Rhode Island

In January 1996, Rhode Island began deregulating its energy market. The Rhode Island Utility Restructuring Act was created, forcing utilities to dump their generating assets and reciprocally, the inspiration of a wholesale marketplace for new suppliers was born.

There were an initial 25 independent energy providers in 1998 given access to service the state. However, utilities still had full control, offering the much lower rate of 3.2 cents/kWh that independent energy retailers couldn’t match.

For the first two years, a mere 2,000 of Rhode Island’s almost half-million residents switched suppliers. With only a small number of customers utilising the energy deregulation, a bill was placed to support a more competitive market.

Through this new system, customers could choose to either stick with a default “standard offer”, be placed with a “last resort” electric service, supplied by an electric distribution company, or pick their independent competitive supplier. Customers can now choose their supplier online, viewing various tariffs and offers available.

Looking at how this has affected the state in recent times, electricity prices are higher than in the majority of other states. Also, renewable energy seems to be an afterthought. Both lower prices and increased renewable energy have been constants among other states that have deregulated energy, but Rhode Island hasn’t budged.

As of last year, across the United States, Rhode Island generated a larger share of its electricity from natural gas than any other state. Almost 89% of electricity is generated from natural gas, with the rest coming from wind, solar, hydropower, petroleum and biomass resources.

Rhode Island has six power plants, generating more than 50 megawatts (MW), all using natural gas as the primary fuel. There have been slight improvements in renewable energy production, as in 2016 an estimated 100 MW of wind, solar, and hydropower capacity were installed in the state.

However, Rhode Island ranks as the second-lowest energy-related carbon dioxide emitter in the country. This is mainly due to the size of the state and lower energy usage. Also, the state is a part of the Regional Greenhouse Gas Initiative scheme, aimed at reducing carbon emissions from electricity generation.

Excluding California and Hawaii, Rhode Island’s total per capita electricity sales are lower than in all other states. For the residential sector, sales are lower than all states apart from five.

Taking a view of the average electricity price in Rhode Island, it ranks the 5th highest in the whole country at 21.73¢ per kWh. The average electricity bill is roughly $121.62, placing the state in the top half.

The three electric distribution companies are regulated by the Rhode Island Public Utilities Commission (RIPUC). The three electric distribution companies in the state are:

  • National Grid – This is the biggest out of the three, managing 99 per cent of the distribution system in Rhode Island. They supply around 486,000 electricity customers and have a network of over 6,000 miles of distribution lines.
  • Block Island Power Company – Serves the remaining areas on Block Island.
  • Pascoag Utility District – Serves western Burrillville.