Record High Electricity Rates Are Coming To Rhode Island

This summer has seen record high electricity rates across New England. Unfortunately, these record-high electricity rates will be introduced to Rhode Island this winter.

As the Providence Journal reports, starting October 1^st, Rhode Island residents will see nearly a 47% increase in their monthly electricity bills. If you use 500 kWh of electricity in a month, which is the state average, you can expect your monthly bill to increase by about $52, which is a change in an average electricity bill from $111 a month to $163 a month. If you are a commercial business owner, electricity rate increases will vary more widely depending on usage, increasing from a range of 41% to 51%.

To put this in a historical perspective, the predicted rates this winter will be the highest since 2000 and over double the current rate, increasing from 7.81 cents per kwh to 17.8 cents per kwh. This is especially high when looking at the increased winter rates from last year which were 10.9 cents per kwh. On average, this is 50% higher than rates over the 6 years.

For the most part, Rhode Island has been able to avoid increasing rates as the state buys its energy on a different schedule than the rest of New England. Right now, Rhode Island has the lowest rates in New England but its prices will match or pass the other states in the region when the rate change goes into effect.

Rhode Island Energy, the top supplier of electric and natural gas in the state, has been forecasting these price increases since the spring when prices were the lowest they had been in years. By foreshadowing this record winter increase it has been notifying its customers that the winter will not be friendly to their electric bills.

Of course, this price change is expected as Rhode Island Energy does change its prices twice a year and a rate increase is expected in the winter when there is an increased demand for natural gas as temperatures drop and the gas is used to heat homes. However, this rate increase exceeds the normally expected increase.

The rate increase that is coming this winter is extraordinary but makes sense with the economic recovery from the pandemic and the war in Ukraine which has been driving oil and gas prices up this summer. The Rhode Island Public Utilities Commission will have a final say on if the new rate hike will go into effect but it is expected that the latest increase will be approved.

Increases in electricity rates have become too common for homeowners across the region and have seemed like an unavoidable, inevitable, and variable expense where they have no idea what the next bill will look like and will continue paying these increasing rates forever.

This leads many homeowners to ask…

How Can I Stop Paying Rising Electricity Rates? 

Isaksen Solar looks to provide that answer for homeowners. Simply having a conversation about solar can open up a new world of possibilities and show homeowners that they have options to save money on energy. They can work with you to create your own custom solution to start saving the day your system is turned on and you start producing your own energy.

Homeowners powering their home with solar are experiencing monthly savings, a lifetime positive return on their investment, and may even have their utility company pay them instead of paying their power company every time the prices change while getting the same exact same service.

Residential solar installations will continue to help Rhode Island residents balance their reliance on natural gas, reduce carbon emissions and give residents freedom from the constant price increases.

If you have questions about how solar can save you money and reduce your carbon footprint give Isaksen Solar a call at 508-567-0647 or get started on your free quote today!