Public Utilities Commission addresses rising transmission rates during recent hearing

The House Committee on Finance Subcommittee on RISE convened on March 25, 2025, to discuss critical issues affecting Rhode Island's utility rates and the management of storm funds. The meeting highlighted the ongoing challenges faced by the Public Utilities Commission (PUC) and the Division of Public Utilities and Carriers (DPUC) in balancing the needs of consumers with the financial health of utility providers.

Chairman Geratowsky opened the session by clarifying the roles of the PUC and DPUC, emphasizing their quasi-judicial nature. He explained that while the commission aims to protect consumers, it must also ensure that utilities remain financially viable to provide reliable services. This dual responsibility often complicates decisions regarding rate requests and utility compliance with the law.

A significant topic of discussion was the storm fund, which has faced substantial deficits due to increased severe weather events attributed to climate change. The fund, initially designed to cover storm-related costs, had a deficit exceeding $100 million in recent years. Adjustments have been made to reduce this deficit, with a target of stabilizing it between $15 million and $20 million. Once the fund reaches this level, any excess could potentially be returned to ratepayers or used to offset other utility costs.

Concerns were raised by Rep. Edwards regarding rising transmission rates, which have frustrated constituents who feel powerless against these charges. The chairman noted that transmission rates are regulated at the federal level by the Federal Energy Regulatory Commission (FERC) and that the PUC is actively working to address these issues. He acknowledged the complexity of the situation, particularly as the transition to clean energy necessitates increased investment in transmission infrastructure.

The meeting concluded with a commitment from the PUC and DPUC to continue engaging with legislators and the public to address concerns about utility rates and to ensure transparency in their operations. As Rhode Island navigates these challenges, the focus remains on finding a balance that protects consumers while maintaining the integrity of utility services.