Attorney General Neronha urges PUC to reject Rhode Island Energy’s push for profits

Published on Thursday, August 13, 2026

Attorney General Peter F. Neronha today announced that his Office has formally completed its advocacy on behalf of Rhode Islanders in Rhode Island Energy's distribution of energy "rate case" before the Public Utilities Commission (PUC), calling on the Commission to reject the Company's attempt to increase its profits while Rhode Islanders increasingly struggle to afford energy costs. In June and July, the Office participated in 17 days of evidentiary hearings advocating on behalf of Rhode Island ratepayers, and recently submitted post-hearing positions to the Commission.

Periodically, Rhode Island Energy must petition the PUC to increase its base distribution rates in a rate review proposal, or a "rate case." According to Rhode Island Energy, a distribution rate case is needed "to reflect what it really costs to deliver safe, reliable energy" and "covers funding for critical infrastructure, better customer service, modern technology, and meeting state requirements." Importantly, distribution rates are also inclusive of the Company's Return on Equity (ROE), or allowed profits, for which the Company is seeking an increase from 9.275% to 10.75%. Overall, Rhode Island Energy is asking the PUC for an increase of more than $200 million in distribution rates for their gas and electric systems in the first year alone, and an additional increase in the second year.

"Rhode Island Energy would have you believe that their primary interest is seeking ways for you to save on your energy bill, but their true motivation is ensuring maximum profits," said Attorney General Neronha. "Rhode Island Energy makes money from investing in infrastructure, which means that their proposed capital investments require careful oversight. Within this rate case, the Company is asking to increase its profit margin to 10.75%. For comparison purposes, the 10-year Treasury yield is 4.63%. And if you think of it in terms of your 401(k), 7% is considered a good return. Investment in capital assets is driven, at least in part, by the opportunity for Rhode Island Energy to earn bigger profits. So, when you hear them talking about necessary investments in capital infrastructure, remember that they have the potential to make a significant profit for every capital investment.

"Rhode Islanders are being crushed under the weight of ever-increasing costs, including everyday items, housing, and of course, energy. For our part, my Office has intervened some 20 times before the Public Utilities Commission and Division of Public Utilities and Carriers fighting for bill credits, lower bill increases, reduced profits for utilities, and smarter longer-term investments that will better position us for a clean energy future. Conversely, Rhode Island Energy has pushed for huge capital spending on natural gas infrastructure, far more than National Grid, and continues to deprioritize climate goals despite clear evidence of the need to transition away from dirty fossil fuels.

"Proposals and decisions made by this company, or any company, which stands to profit from providing a basic necessity must be scrutinized to ensure the right choices are being made for Rhode Islanders, the environment, and generations to come."

In the Office's post-hearing briefs , Attorney General Neronha outlines several recommendations to the PUC including:

• Reject the Company's ROE of 10.75%, and more closely align ROE with the Company's actual cost of capital -below 8.25%;
• End Line Extension Allowances, which subsidize at ratepayer expense the cost for new customers to connect to the gas system and effectively incentivize fossil fuel use over cleaner energy options;
• Address the Company's slow roll of Time of Use electric rate implementation, which would help the environment and save customers money (the Company did not include a Time of Use rate proposal in the rate case,despite saying they would when pitching the benefits of the new smart meters);
• Require careful coordination and integrated planning between gas and electric businesses to achieve climate gains; and
• Ensure Rhode Island Energy's investments are prudent and that they are not wrongly seeking to charge Rhode Islanders for transition costs related to the 2022 sale.

The PUC must make its decision on the rate case by September 1, 2026.

RIAG Energy Advocacy

Advocating for ratepayers has always been a top priority for Attorney General Neronha. In 2022, the Attorney General fought to secure more than $200 million in value for Rhode Island ratepayers, along with mandated steps toward meeting Act on Climate goals, after challenging the approval of the sale of Narragansett Electric by National Grid to PPL Corporation, DBA Rhode Island Energy. The agreement provided for $50 million in ratepayer credits, and $43.5 million in discharge of bill amounts for low-income and protected residential customers, the cost of which would likely have been borne by ratepayers. In addition to this direct ratepayer relief, the Attorney General required that PPL forgo recovery of $103 million from ratepayers: $82 million in costs for new investments it will make as a result of the sale and $21 million of costs already incurred by National Grid.

Since that sale, the Office has regularly sought to hold Rhode Island Energy accountable and advocate for affordable energy prices through proceedings at the Public Utilities Commission (PUC). In September 2022, Attorney General Neronha advocated for the PUC to approve a plan to mitigate Rhode Island Energy's proposed rate changes for electric service, which were slated to take effect October 1, 2022. In February 2023, Attorney General Neronha asked the Public Utilities Commission (PUC) to deny approval of a proposed plan submitted by Rhode Island Energy (RIE), where the company sought a 3% increase over the next twelve months in the average annual gas bill, arguing that the plan failed to adequately account for Act on Climate mandates to reduce and eliminate greenhouse gas emissions.

On October 24, 2025, in response to bill credits proposed by Rhode Island Energy that undervalued by between $37 million and $39 million the amount owed to Rhode Island ratepayers following the sale, Attorney General Neronha filed a position paper and supporting expert testimony with the Public Utilities Commission (PUC) to insist that Rhode Island Energy pay consumers what they are owed. As a result, Rhode Island Energy revoked the proposal.

Additionally, alongside attorneys general across the country, Attorney General Neronha has sued the Trump Administration to protect wind energy , including Revolution Wind , solar energy , electric vehicle infrastructure , and energy and related infrastructure funding , among other actions.

For more information on the Office's energy and environmental advocacy work, as well as Attorney General Neronha's recommendations, please visit our website .

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