Photo: 277volts / Wikimedia Commons, CC BY-SA 4.0
Most South County homes get electricity from Rhode Island Energy, the utility that took over from National Grid in 2022. Its bills can look complicated, but nearly every charge falls into one of two groups: supply and delivery.
Supply
The supply charge pays for the electricity itself. Unless you choose another supplier, you receive Rhode Island Energy’s standard rate, called Last Resort Service, which the utility buys through wholesale contracts and resets periodically with approval from the Rhode Island Public Utilities Commission. Supply prices often rise in winter, when New England’s demand for natural gas, used to generate much of the region’s electricity, is highest.
Delivery
Delivery charges pay for the poles, wires, substations and staff that bring power to your home. They include a monthly customer charge and per-kilowatt-hour charges for distribution and transmission, along with smaller charges for state programs such as energy efficiency and renewable energy. Delivery rates are set by the Public Utilities Commission after rate cases in which the utility must justify its costs.
Choosing a competitive supplier
Rhode Island customers can buy supply from a licensed competitive supplier instead of Last Resort Service. Delivery stays with Rhode Island Energy either way. If you consider switching:
- Compare the supplier’s price per kilowatt-hour with the current standard rate.
- Check whether the price is fixed or variable, how long it lasts and whether there is a cancellation fee.
- Be cautious of door-to-door or phone offers; you never need to switch to keep service.
The Rhode Island Office of Energy Resources and the Division of Public Utilities and Carriers publish information for consumers.
Help with bills
- Discount rate: income-eligible customers may qualify for Rhode Island Energy’s low-income discount rate.
- LIHEAP: federal heating assistance can be applied to electric or gas heat, through the region’s community action agencies.
- Payment plans: the utility offers arrangements for customers behind on bills, and Rhode Island has winter protections against shutoffs for certain households.
- Efficiency: no-cost home energy assessments can identify savings and may include free LED bulbs and other measures.
