Rhode Island public-utilities officials cite $10.3 million settlement, forecasted supply price drop starting April 1

The Division of Public Utilities and Carriers and the Public Utilities Commission told the House Finance Subcommittee on General Government that a $10.3 million settlement tied to an alleged fraud scheme and a planned change in the supplier procurement will reduce costs for many customers.

Linda George, administrator for the Division of Public Utilities and Carriers, said the state and Rhode Island Energy reached a "$10,300,000 settlement" that included a credit of "$7,900,000 payment into Rhode Island's storm fund." She said that, as a result of ongoing procurement activity, "electric rates are coming down beginning April 1 for a standard residential electric customer. They will see their energy commodity price reduce from 16.4¢ per kilowatt hour to roughly 10.1¢," and that "bills will be reduced by close to $30 or 20%."

Why it matters: Committee members pressed officials about whether savings are durable and how other components of bills — transmission, distribution and public-policy charges — will affect final customer bills. The division and commission stressed that supply (the commodity price) is only one piece of the total bill, and that transmission and delivery…