Attorney General Neronha helps secure $170 million in bill credits, climate mandates on behalf of Rhode Island ratepayers

Published on Thursday, August 27, 2026

The PUC rejects Rhode Island Energy's efforts to maximize profits following the Office's successful advocacy

Attorney General Peter F. Neronha today announced that his Office helped secure $170 million in bill credits, climate mandates, and numerous other benefits for Rhode Island ratepayers following the Office's advocacy in Rhode Island Energy's distribution "rate case" before the Public Utilities Commission (PUC). On Friday, August 21, 2026, the Commission issued its decision in the rate case, siding with the Attorney General on nearly all of the Office's positions.

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. On August 13, 2026, following the conclusion of those hearings, the Attorney General argued that the PUC should reject Rhode Island Energy's attempt to increase its profits while Rhode Islanders increasingly struggle to afford energy costs.

"Rhode Island Energy continues to acknowledge publicly that energy prices are too high while simultaneously petitioning our Public Utilities Commission to allow them to increase their profit margins," said Attorney General Neronha. "I am thankful to the PUC for rejecting this Company's attempts at adding to the financial distress of Rhode Island ratepayers who already pay far too much for essentials including food, health care, and of course, energy. Thanks to my Office's advocacy, Rhode Islanders will receive more than $20 million in additional gas and electric bill credits from an agreement my Office required during the sale of Narragansett Electric to Rhode Island Energy. As some may recall, the Company and the governor tried to ram through a deal to issue these credits using a calculation that would have shortchanged Rhode Islanders by up to $39 million, before ultimately walking away when we called them on it. While I continue to believe that the additional $21 million is less than what Rhode Island ratepayers are owed, I am grateful that they will receive $170 million rather than the $148 million deal that Rhode Island Energy and the governor tried to sneak through last year. Additionally, the PUC agreed with my Office that Rhode Island Energy must take important steps towards implementing a clean energy future, namely phasing out subsidies for fossil fuels and integrated planning and coordinated gas and electric long-term forecasting in line with Act on Climate compliance.

"We cannot simply count on Rhode Island Energy to be good community partners - after all they answer, at least in part, to their investors. Therefore, it is up to regulators and public officials to hold their feet to the fire and ensure that these utilities deliver affordable, clean energy."

Within its decision, and largely in accordance with the Attorney General's recommendations, the Commission:

• Conditionally approved Hold Harmless Customer bill credits only if the Company calculates its obligation using a customer-centric discount rate as proposed by our Office , and the Company agreed, resulting in an additional $21.3 million for Rhode Islanders in energy bill discounts for a total of $170 million;
• Rejected Rhode Island Energy's multi-year rate proposal and only a one-year increase will be allowed;
• Rejected the Company's proposed return on equity (ROE) of 10.75%, keeping the current ROE of 9.275% in place;
• Reduced the Company's equity ratio to 52% instead of the proposed 57%;
• Phased out Line Extension Allowances completely over 3 years, beginning with a 33% reduction in April 2027;
• Required the Company to work on integrated planning and coordinated gas and electric long-term forecasting in line with Act on Climate compliance.
• Required the Company to propose a schedule for Time of Use rate implementation, which will help the environment and save customers money;
• Ordered certain IT investments be reviewed in subsequent proceedings and some recovery was denied (including a request for retroactive payments);
• Reduced recovery of outside counsel investments by approximately $450,000; and
• Approved a change to a seasonal distribution rate for electric service - lowering winter and raising summer distribution rates by up to 1.5 cents per kWh, which stands to benefit all customers in combating winter prices, including heat pump customers who use larger load to heat their homes during the winter.

The PUC's decision is the result of its review of a periodic request by Rhode Island Energy to increase its base distribution rates in a rate review proposal, or a "rate case." This was the first base distribution rate case since 2018, in part because of a condition required by the Attorney General at the time of the sale of Narragansett Electric which barred the Company from requesting distribution rate increases for three years, while also securing $200 million in value for Rhode Island ratepayers.

According to Rhode Island Energy, a distribution rate case was needed "to reflect what it really costs to deliver safe, reliable energy" and "cover funding for critical infrastructure, better customer service, modern technology, and meeting state requirements." Importantly, rate case considerations include review of the Company's Return on Equity (ROE), or allowed profits, for which the Company sought an increase from 9.275% to 10.75%. Overall, Rhode Island Energy asked the PUC for an increase of more than $200 million in distribution rates for their gas and electric systems. As a result of the PUC's decision, the Company will receive significantly less than requested.

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 to resolve the same hold Harmless Commitment considered in the rate case, which severely undervalued 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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