RI Gas Bills Increase by 1.6%

On Monday, October 28th, the Rhode Island Public Utilities Commission approved a 1.6% gas bill increase for Rhode Island residents starting November 1st, 2024 and lasting until October 31st, 2025. This rate increase will amount to a $28.12 annual increase for the average customer using 845 therms per year bringing the average bill from $1,757.31 to $1,785.43.

Rate Increase Is Due to Two Adjustment Mechanisms

The overall rate change is broken between two adjustment mechanisms used by RI Energy: Gas Cost Recovery Charge (GCR) and the Distribution Adjustment Charge (DAC).

These mechanisms are tools used by RI Energy to adjust rates based on changes in specific costs. GCR adjusts rates to reflect the actual cost of purchasing natural gas while DAC covers various operational costs, such as system maintenance, environmental compliance, and customer assistance programs.

Natural Gas Supply and Market Conditions Are Driving Up Costs

Major factors contributing to this rate increase include reliance on imported natual gas in the New England region, international conflict, and rising gas demand.

The Russian invasion of Ukraine was cited as a significant influence of volatile energy market conditions over the past two years. Additionally, natural gas was recognized as a maginalized resource in New England due to geographic location and rising population rates.

RI Energy Will Recover Over $1 Million from This Increase

The 1.6% gas rate increase will result in over $1 million of cost recovery for RI Energy.

In a preceding open meeting held on October 28th, legal counsel for RI Energy, Steven J. Boyajian stated this rate change to be a “modest increase” for the average customer given the current energy market circumstances.

Electricity Prices Are Likely to Rise Next

Since natural gas powers over 50% of Rhode Island’s electricity generation, it’s likely that electricity prices will also increase following this rate change. These constant changes prove the point—we’re on a never-ending merry-go-round of rising rates.

You are not alone if you’re left wondering, “How can I get off this exhausting ride?”

Solar: The Solution to Escaping Rising Rates

Investing in solar is the only way to protect yourself from rising utility rates. While it isn’t possible for everyone, solar may be your reliable, long-term solution to unstable energy prices. If you’re sick of being strung along by corporate utility companies, it’s worth exploring solar.

Isaksen Solar: Your Life-Long Energy Partner

At Isaksen Solar, we see you as more than an account—you’re part of our community. Unlike corporate utility companies, we genuinely care about your experience and strive to make every step of your solar journey smooth, personal, and long-lasting. From your first consultation to years down the road, we’re by your side, ensuring you enjoy reliale, clean energy. With a passion for helping our neighbors gain energy independence and rate stability, we pride ourselves on offering custom, thoughtful solutions that truly make a difference in your life.

We encourage you to consider solar as your sustainable energy solution. We are happy to provide you with a free quote or answer any of your questions. Feel free to give us a call and talk to one of our outstanding customer service agents at (508) 717-3820. Or fill out our online form and we’ll reach out to you within 48 hours.