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Get a Free QuoteRhode Island Energy has filed for $65.9M in electric and $114.7M in gas rate increases — the first base rate case since PPL acquired the utility. Average electric bills up $7.78/month. Target effective date: September 2026.
Last updated April 2026 | Source: RI PUC Docket 25-45-GE filings
~$230M
Total request (2 years)
+$7.78/mo
Avg electric bill impact
$0.29/kWh
Current rate (46% above avg)
Sep 2026
Target effective date
Rhode Island Energy (PPL Corporation) has filed Docket 25-45-GE — a general rate case requesting approximately $230 million in combined electric and gas rate increases over two years. This is the first base rate increase request since 2018, when the utility was still National Grid Rhode Island.
If approved as filed, the average residential electric customer will pay an additional $7.78 per month ($93.36/year). Gas customers face a much steeper hit: $28.63 per month ($343.53/year). The target effective date is September 2026, though PUC proceedings may extend the timeline.
For solar homeowners: every rate increase makes your panels more valuable. For those still on the grid without solar, this is another reason to lock in your electricity cost now.
Docket 25-45-GE is a "general rate case" — the formal mechanism through which a regulated utility asks the Public Utilities Commission for permission to increase the distribution rates it charges customers. Distribution rates cover the cost of maintaining and operating the electric grid and gas pipeline system within Rhode Island.
This is distinct from the "supply" or "standard offer" rate (the cost of the electricity itself), which is set through a separate proceeding. The base rate increase would apply on top of whatever supply rate is in effect, meaning the total bill impact could be higher than the distribution-only numbers.
| Customer Type | Current Monthly | Proposed Increase | Annual Impact | % Change |
|---|---|---|---|---|
| Average Residential Electric | $142 | +$7.78/mo | +$93.36/yr | +5.5% |
| Average Residential Gas | $125 | +$28.63/mo | +$343.53/yr | +22.9% |
| Electric + Gas Combined | $267 | +$36.41/mo | +$436.89/yr | +13.6% |
Covers grid modernization (smart meters, automated switches), aging infrastructure replacement, storm hardening, and increased labor and materials costs. RI Energy argues 8 years of investment without a base rate adjustment has created a significant revenue shortfall.
The gas request is nearly double the electric request. It covers gas main replacement (leak-prone aging pipes), safety upgrades, and the ironic reality that as gas customers switch to heat pumps, remaining customers must absorb a larger share of fixed infrastructure costs.
$0.29/kWh
Current RI Electric Rate
46% above national average ($0.17/kWh)
+8.4%
Year-over-Year Increase
RI rates rose 8.4% from 2025 to 2026
8 years ago
Last Base Rate Case
Filed by National Grid in 2018, before PPL acquisition
Expired 2025
PPL Moratorium
PPL agreed to freeze base rates during acquisition; moratorium ended
Rhode Island homeowners are already paying $0.29/kWh — 46% above the national average of approximately $0.17/kWh. This rate has risen 8.4% year-over-year (from $0.267 in early 2025 to $0.29 in 2026), continuing a decade-long trend of above-inflation rate increases.
The rate case, if approved, would push the effective residential rate to approximately $0.31/kWh or higher — depending on simultaneous changes to the supply rate. At that level, Rhode Island would be within striking distance of Massachusetts ($0.32/kWh) as the most expensive state in New England.
For a household consuming 8,000 kWh per year (the RI average), the combined effect of the 2025-2026 rate increases and the proposed rate case means electricity costs have risen from approximately $2,200/year (2023) to a projected $2,480-$2,640/year (late 2026) — an increase of $280-$440 per year in just three years.
The Rhode Island PUC is not rubber-stamping the rate case. In a clear signal of concern about customer affordability, the PUC already cut RI Energy's FY2026 capital spending budget by 18% — a $29 million reduction from the utility's proposed $161 million to an approved $132 million.
$161M
Proposed capital budget
-$29M
PUC cut (18%)
$132M
Approved budget
This capital budget cut is significant because a large portion of the rate case request is driven by capital investment recovery. If the PUC maintains this level of scrutiny in the rate case proceeding, the approved rate increase could be substantially lower than the $230M requested.
The PUC's decision was driven by widespread customer outrage over rising bills. Public hearings on the capital budget drew hundreds of comments from ratepayers expressing frustration with costs that have risen steadily since PPL's acquisition, even before a base rate case was filed. The PUC noted that while infrastructure investment is necessary, the pace must be balanced against customer ability to pay.
In response to the affordability crisis, a $180M+ winter relief package was assembled to cushion the blow for Rhode Island ratepayers. While helpful, these are largely one-time credits that do not address the structural rate increases in the rate case:
Credits distributed to all customers from PPL acquisition settlement agreement.
Additional funding for low-income customers through the Low Income Home Energy Assistance Program (LIHEAP) and RI Energy discount rate.
Refund from interstate natural gas pipeline settlement passed through to gas customers as bill credits.
One-time relief, not a permanent fix
The $180M+ relief package is a one-time set of credits and refunds. Once distributed, there is no guarantee of continued relief. The structural rate case — if approved — will increase base rates permanently. The PPL settlement credits ($155M) are a finite pool from the 2022 acquisition agreement that will eventually be exhausted.
Solar panels produce electricity at a fixed cost for 25-30 years. Once installed, your cost per kWh is effectively $0 for the energy you produce and consume. Every time RI Energy raises its rate — whether through this rate case or future ones — the value of your solar investment increases.
| Rate Scenario | Annual Bill (8 kW) | Solar Savings | Payback |
|---|---|---|---|
| Current Rate ($0.29/kWh) | $3,100 | $2,900/yr | 7-9 years |
| Post-Rate Case (~$0.31/kWh) | $3,300 | $3,100/yr | 6-8 years |
| Projected 2030 (~$0.36/kWh) | $3,850 | $3,600/yr | 5-7 years |
| National Average ($0.17/kWh) | $1,800 | $1,600/yr | 14-16 years |
The comparison with the national average is stark. At RI's current $0.29/kWh, a solar system pays for itself in 7-9 years. At the national average of $0.17/kWh, the same system takes 14-16 years. Rhode Island's high rates — while painful for non-solar customers — make solar one of the best investments in the country.
The rate case only strengthens this dynamic. If the PUC approves even half of the requested increase, pushing rates toward $0.31/kWh, solar payback drops to 6-8 years. Add the REG program ($0.27/kWh for 15 years) and the payback drops to 4-5 years.
Solar's value is not just about today's rates. It is about avoiding 25 years of rate increases. If RI rates continue rising at the 10-year historical trend (approximately 5% per year), a homeowner without solar will pay a cumulative $100,000-$120,000 in electricity costs over the next 25 years. A solar homeowner with an 8 kW system will pay $17,000-$21,000 upfront and generate free electricity for the entire period — a net savings of $80,000-$100,000.
Sarah tracks state and federal energy incentives, utility rate structures, and rebate programs. She has helped hundreds of homeowners navigate complex incentive stacks.
Sources: RI PUC Docket 25-45-GE filing documents; RI Energy rate case testimony; RI Division of Public Utilities and Carriers; US EIA state electricity price data; RI Office of Energy Resources.
Every rate increase makes solar more valuable. With RI rates already 46% above the national average and a $230M rate case pending, the best time to go solar is before the next hike hits your bill.