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 costs are set or influenced by other entities and regulatory frameworks.

What officials told lawmakers: Public Utilities Commission Chair Ron Geratowski described the commission’s role as quasi‑judicial and emphasized the need to balance consumer protection with utilities’ financial health. On transmission costs, Geratowski told the committee that "transmission is regulated at the federal level by the Federal Energy Regulatory Commission," and that state representatives have limited direct control over interstate transmission pricing. He added the division has statutory authority to represent Rhode Island before federal forums such as FERC.

On the storm fund, Geratowski and division staff said the fund had reached a historic deficit during recent severe-weather periods. The commission said the storm fund deficit once exceeded $100 million and ‘‘was still riding somewhere around $30,000,000 when the settlement was entered into.’’ They said the objective was to reduce the deficit toward a traditional target range of approximately $15 million to $20 million so the account could be managed as a positive reserve that would earn interest for ratepayers.

On rate components and customer confusion: Officials spent considerable time answering lawmakers’ questions about why customers see large delivery or transmission charges that do not change with household consumption. Geratowski and division staff explained that the bill is a stack of components — supply, transmission, distribution, renewables and public‑policy programs — and that many delivery and policy costs are largely fixed and recovered volumetrically. "The major piece of which is the supply," a division official said, but "the delivery part... tends to be fixed." Committee members said constituents were frustrated by the way bills present those pieces, urging clearer bill formatting and more consumer outreach. The commission said it has consumer agents who will review individual bills with constituents and that it is engaged with Rhode Island Energy on bill transparency.

Other budget details: Fiscal staff and agency presenters reiterated that the PUC and the division are legally distinct: the commission is a three‑commissioner quasi‑judicial body and the division is an executive office led by an administrator. The budget includes funding for a microgrid consultant (about $100,000 ongoing) to advise on rate structures, federal funds for pipeline safety inspections, and modest vendor funding for dual‑party relay services that assist hearing‑ and speech‑impaired telephone users. The presenters said many restricted receipt lines (assessments on regulated utilities and federal program dollars) fund the agency and that several authorized positions remain vacant.

What the committee asked next: Lawmakers asked whether a rebuilt storm fund would automatically result in a refund to ratepayers once the fund is positive; Geratowski said that historically, when the fund is positive it can earn interest for ratepayers and depending on the regulatory treatment some credits or rate adjustments may follow. Members also pressed the commission to continue its outreach on bill presentation and to use consumer agents to help constituents understand individual bills.

Ending: The division and commission said they would continue to pursue federal representation on transmission matters and to work with Rhode Island Energy on billing clarity; officials also said they will keep the committee updated on the microgrid consultant work and on whether the storm fund reaches a positive balance.