Rhode Island energy and electricity

Executive Order 26-05 directed use of available RGGI reserves and a utility-commission petition for residential winter rate relief. The directive and petition requirement do not establish that credits were approved or paid. This topic relationship does not establish an effect on a state statistic.

Retained Rhode Island evidence context: energy · reviewed policy-topic context. This record’s connection to the topic does not establish an effect on the measured result.

Daniel J. McKee Governor 1l,\o(00t State of Rhode Island EXECUTIVE ORDER 26-05 July 23, 2026 � -00 � ml>c:� '- c::: !::::o ,-- C">-4 N '""' o ::Z: _::t .,, M ..,,z \..tJ c=;o-4 -n 1"'1:;ic,o u ::t �.,, (.I) N•• _,.... O> - Z-f ,..., NcJ DECLARING AN ENERGY AFFORDABILITY EMERGENCY AND PROVIDING RATEPAYER RELIEF TO MITIGATE WINTER PRICE SPIKE High Rates and Rising Costs Are Driving Rhode Island's Energy Affordability Crisis WHEREAS, Rhode Island has among the highest electricity costs in the nation, with the U.S. Energy Information Administration ranking Rhode Island as having the fourth-highest average retail electricity price in the United States, more than 85 percent above the national average; any further increase in winter residential rates would therefore place added pressure on households already facing exceptionally high energy costs; and WHEREAS, residential electricity rates have increased by more than 25 percent in just three years, more than three times the rate of inflation, placing mounting financial pressure on households already confronting elevated costs for essential goods and services; and WHEREAS, the number of residential electric accounts in arrears for ninety or more days has increased by over 40 percent since May 2023, and the average balance owed by these deeply delinquent households has nearly doubled over the same period, such that any further increase in the cost of electricity would drive additional already￾strained families into severe arrearage, force impossible tradeoffs between paying for power and affording food, medicine, and other necessities, and deepen the financial distress of households least able to absorb higher bills; and WHEREAS, current hardship indicators show that energy affordability strain in Rhode Island is already acute and widespread, with United Way of Rhode Island reporting a nearly 20 percent increase in cold-weather utility assistance requests from 2024 to 2025, and the 2025 Rhode Island Life Index finding that more than nine in ten respondents view difficulty paying utility bills as descriptive of their community; and WHEREAS, demand for utility-bill assistance has surged, with the United Way of Rhode Island's 2-1-1 line receiving more than 5,700 energy-related calls in May and June 2026, nearly five times the 1,184 such calls received during the same two months of 2025; and WHEREAS, according to the United States Census Bureau's Household Pulse Survey, more than a third of Rhode Island adults reported reducing or skipping basic Executive Order 26-05 July 23, 2026 Page 2 household necessities, such as food or medicine, in order to pay an energy bill within the preceding twelve months, the highest rate among the six New England states; and WHEREAS, Rhode Island households have less capacity to absorb rising utility costs than many neighboring households, with median household income below that of Connecticut, Massachusetts, and New Hampshire; a winter residential rate increase would therefore fall hardest in Rhode Island on households already most at risk of arrearage or reliance on public and charitable assistance; and WHEREAS, Rhode Island families have endured the most severe national inflation in four decades, and just as that historic surge began to ease, the military conflict with Iran conducted by the Trump administration has driven regional energy prices up more than 18 percent and prices at the pump up nearly 34 percent over the past year, reigniting inflation across the region and prolonging the erosion of household purchasing power with no period of relief before winter; and WHEREAS, federal tariff actions have raised the average effective tariff rate on imported goods to its highest level in more than eight decades, increasing the prices of everyday goods that Rhode Island families purchase, including clothing, food, vehicles, appliances, and household materials, with independent economic analyses estimating that these measures reduce the purchasing power of the average American household by as much as one thousand dollars or more per year and impose the heaviest relative burden on low and moderate income households, leaving families even less able to absorb a utility rate increase without falling into debt or sacrificing other essential needs; and WHEREAS, the ongoing impacts of H.R. 1 are further straining Rhode Island families and households, with the loss of enhanced Affordable Care Act tax credits and new federal restrictions on Medicaid and SNAP threatening health coverage and food assistance for tens of thousands of Rhode Islanders; and The Conflict in Iran and Other Disruptions Will Cause a Surge in Already High Winter Rates WHEREAS, the escalation of armed conflict involving Iran in 2026 has materially disrupted global energy markets, including the markets for crude petroleum and liquefied natural gas (LNG), and these disruptions are transmitted into the New England region with particular force because the region's energy supply is subject to constrained natural gas pipeline capacity and limited delivery infrastructure that restrict the region's ability to source additional supply during periods of peak winter demand; and WHEREAS, New England's winter electricity prices are often driven by the region's reliance on imported LNG during periods of peak demand, therefore disruptions in international fuel markets are transmitted directly into the wholesale and retail electricity and heating costs borne by Rhode Island households; and WHEREAS, effective March 1, 2025, ISO New England implemented a new Day￾Ahead Ancillary Services market design that was projected to add $140 million in incremental costs, but that the ISO's Internal Market Monitor has since estimated at $974 million in its first year of operation, nearly seven times the projected amount; these costs are allocated regionally and recovered from Rhode Island customers through the supply portion of their electric bills; and WHEREAS, as a result of these disruptions, the Last Resort Service rate charged to Rhode Island Energy's residential electricity customers is set to increase by approximately 15 percent relative to the prior winter period, with double-digit increases also expected from all other suppliers, causing the supply portion of residential electric bills to spike during the winter heating season and placing additional financial strain on Rhode Island households; and Executive Order 25-01 July 23, 2025 Page 3 The Spike in Energy Prices Will Harm Thousands of Rhode Island Households WHEREAS, rapidly increasing electricity costs have created a point of crisis for many Rhode Islanders, requiring bold executive action to mitigate immediate impacts on ratepayers and pursue lasting reforms that address the underlying causes of rising energy costs; and WHEREAS, persistent inflation and rising costs for housing, food, health care, prescription medications, and other essential goods have significantly strained household finances; additional increases in electricity costs will likely force more Rhode Island families to choose between paying their utility bills and meeting other essential needs; and WHEREAS, an unaffordable winter rate increase inflicts harm even where service continues uninterrupted, as households ration heat to unsafe levels, sacrifice food and medicine to keep the lights on, and accumulate arrearage debt compounded by penalties and interest that they cannot repay, endangering the health and financial security of families across the state; and WHEREAS, existing low-income rate relief is insufficient to meet the needs of Rhode Islanders as middle-income household earnings fail to keep pace with inflation and the rising cost of essential goods and services; and WHEREAS, absent State action, these disruptions threaten Rhode Island residents with abnormal increases in winter electricity and heating costs that endanger the health, safety, welfare, and resources of the people of this State, particularly during the months of peak heating demand; and Regional Greenhouse Gas Initiative Funds Are Available for Rate Relief WHEREAS, in January 2026, the Governor of New Je�sey declared a state of emergency arising from electricity affordability conditions and directed state agencies to deploy available resources, including proceeds associated with Regional Greenhouse Gas Initiative (RGGI), toward relief for ratepayers facing elevated energy costs; and WHEREAS, multiple states participating in RGGI, including New Hampshire, Maryland, New Jersey, Virginia, and Delaware, have in recent years directed auction proceeds, or state energy funds supported in part by such proceeds, to direct relief for ratepayers facing elevated energy costs; and WHEREAS, ISO New England's 2025 Annual Markets Report found that RGGI and Massachusetts carbon allowance charges increased regional energy market costs from approximately $690 million in 2023 to approximately $1.1 billion in 2025, accounting for roughly 12 percent of total energy market costs; because New England clears power at a single regional price, those charges are reflected in the wholesale electricity prices paid by Rhode Island ratepayers; and WHEREAS, Rhode Island law expressly contemplates the use of RGGI auction proceeds to reduce costs for ratepayers; and WHEREAS, Rhode Island General Laws§ 30-15-9(e)(1) authorizes the Governor to suspend the provisions of any regulatory statute prescribing the procedures for the conduct of state business, or the orders, rules, or regulations of any state agency, if strict compliance with the provisions of any statute, order, rule, or regulation would prevent, hinder, or delay necessary action in coping with the emergency; and WHEREAS, pursuant to§ 30-15-9(e)(2), the Governor is authorized to use all available resources of state government to cope with the emergency. Executive Order 26-05 July 23, 2026 Page 2 NOW THEREFORE, I, DANIEL J. MCKEE, by virtue of the authority vested in me as Governor of the State of Rhode Island, pursuant to Article IX of the Rhode Island Constitution and the Rhode Island General Laws, including, but not limited to, Title 30, Chapter 15, do hereby order and direct the following: 1. A state of emergency is declared for the State of Rhode Island due to the impending double digit increase in the winter supply rate charged to residential electricity customers, which is resulting from energy market disruptions, including the 2026 conflict involving Iran and the unanticipated regional costs associated with the implementation of the Day-Ahead Ancillary Services market. This rate increase is occurring at a time of exceptionally high existing electricity costs, mounting household financial hardship, and persistent increases in the cost of essential goods and services. 2. The Office of Energy Resources (OER) shall allocate and disburse twenty-eight million dollars ($28,000,000) from available RGGI auction reserves to provide cost-effective direct rate relief to all Rhode Island residential consumers, as contemplated by§§ 23-82-6(a)(3)-(4), for the purpose of mitigating abnormal winter energy cost increases attributable to the disruptions described herein. a. OER shall file a petition with the Public Utilities Commission to apply these funds as direct rate relief for all residential electric customers such that the full twenty-eight million dollars ($28,000,000) is applied as a uniform credit to residential electric accounts during the winter heating season. The credit shall be structured to mitigate the winter price spike, maximize the number of Rhode Island residents receiving relief, and remain consistent with the statutory objective of providing cost-effective direct rate relief. b. In implementing this rate relief, OER shall avoid materially disrupting or impairing ongoing projects and programs currently funded through RGGI. c. To effectuate the relief required by this Executive Order, the requirements of§ 23-82-6 are hereby suspended, but only to the extent necessary to implement the across-the-board rate relief directed by this Executive Order. All other RGGI proceeds shall continue to be allocated in accordance with § 23-82-6. This Executive Order shall take effect immediately. I rnor

The EIA fact measures retail electricity revenue per kilowatthour across sectors. Review of net-metering costs and legislative ratepayer impacts concerns rate components. An order to review and report does not itself set rates or establish savings. This relationship does not establish causation. Actions after the measurement period cannot explain its earlier value.

Retained Rhode Island evidence context: Average retail electricity price. This record’s connection to the topic does not establish an effect on the measured result.

NOW, THEREFORE, I, DANIEL J. McKEE, by virtue of the authority vested in me as Governor of the State of Rhode Island, pursuant to Article IX of the Rhode Island Constitution and the Rhode Island General Laws, including, but not limited to, Title 30, Chapter 15, do hereby order and direct the following: 1. The Office of Energy Resources (OER), in consultation with the Division of Public Utilities and Carriers (DPUC), the Public Utilities Commission (PUC), the electric and gas distribution companies, and such additional stakeholders as OER deems appropriate, including representatives of labor, residential and commercial solar developers, and consumer interests, shall conduct a comprehensive review of the State's Net Metering Program (behind-the-meter and virtual) and Renewable Energy Growth Program. The purpose of this review is to control costs to electric ratepayers and ensure that these programs do not impose an undue or disproportionate financial burden on households and businesses, while remaining aligned with the State's emissions-reduction objectives. The review shall evaluate ratepayer impacts, state fiscal implications, and energy-system effects, and shall assess potential program modifications as appropriate. a. As part of this effort, OER shall submit supplemental budget article amendment options related to the State's virtual net metering program to the Governor's Office and the Office of Management and Budget (0MB) no later Executive Order 26-01 February 9, 2026 Page 3 than April 24, 2026. These options shall be designed to maintain ratepayer savings for households and businesses while updating the structure of the virtual net metering program. In developing these options, OER shall seek to avoid adverse impacts on existing solar projects and shall evaluate approaches used by peer states to maintain more cost-effective solar incentive programs. Any proposed supplemental budget article amendments shall be transmitted to the House and Senate Finance Committees no later than May 1, 2026. b. In addition, OER, in consultation with participating state agencies, shall complete a longer-term review of behind-the-meter net metering and the Renewable Energy Growth Program and deliver the results of that review—including key findings and potential policy and legislative options-to the Governor's Office and 0MB no later than October 1, 2026, aligned with the development and submission of agency budget proposals for the subsequent fiscal year. In conducting this review, OER and participating state agencies shall be advised by Dr. Noah Kaufman, Senior Research Scholar at Columbia University's Center on Global Energy Policy or other outside experts. 2. The DPUC shall evaluate and communicate the anticipated ratepayer impacts of all significant energy legislation under consideration by the General Assembly to ensure that policy makers, stakeholders, and the public have a clear and timely understanding of the potential effects of such proposals on utility rates, customer bills, and overall energy affordability. As part of this process, the DPUC shall determine which proposed energy legislation is sufficiently broad in scope, material in potential ratepayer impact, or sufficiently advanced in the legislative process to warrant the preparation of an official Ratepayer Impact Note. As part of this process, the DPUC shall: a. Develop an internal framework for preparing Ratepayer Impact Notes, that, to the extent practicable, assess expected impacts on electric and gas rates and typical customer bills, identify the duration of such impacts, describe key assumptions and uncertainties, and discuss the impacts across customer classes (where feasible), with particular attention to overall affordability. b. Establish a legislative notification and coordination process to ensure that Ratepayer Impact Notes are made available to the General Assembly, Executive Order 26-01 February 9, 2026 Page 4 including legislative leadership and relevant committees, in a timely manner to properly inform legislative deliberations on significant energy proposals. c. Establish a process to make available on its agency website plain-language impact summaries of such considered legislative proposals, with the goal of enabling every Rhode Island ratepayer to understand how proposed energy policies may affect utility bills and the cost of living. Order shall take effect immediately upon the date hereof.

The gasoline fact is a six-state New England regional price proxy, not a Rhode Island-only price. A Rhode Island fuel-tax provision concerns one price component in one of those states; it does not establish regional prices or how much was passed through to consumers. This relationship does not establish causation. Actions after the measurement period cannot explain its earlier value.

Retained Rhode Island evidence context: New England regular gasoline price. This record’s connection to the topic does not establish an effect on the measured result.

SECTION 8. Sections 31-36-7 and 31-36-20 of the General Laws in Chapter 31-36 entitled "Motor Fuel Tax" are hereby amended to read as follows: 31-36-7. Monthly report of distributors — Payment of tax. (a) State requirements. (1) Every distributor shall, on or before the twentieth (20th) day of each month, render a report to the tax administrator, upon forms to be obtained from the tax administrator, of the amount (number of gallons) of fuels purchased, sold, or used by the distributor within this state and the amount of fuels sold by the distributor without this state from fuels within this state during the preceding calendar month, and, if required by the tax administrator as to purchases, the name or names of the person or persons from whom purchased and the date and amount of each purchase, and as to sales, the name or names of the person or persons to whom sold and the amount of each sale, and shall pay at the same time to the administrator tax at the rate of thirty-two cents ($0.32) per gallon on all taxable gallons of fuel sold or used in this state for periods ending on or before June 30, 2025. (2) Every distributor shall, on or before the twentieth day of each month, render a report to the tax administrator, upon forms to be obtained from the tax administrator, of the amount (number of gallons) of fuels purchased, sold, or used by the distributor within this state and the amount of fuels sold by the distributor without this state from fuels within this state during the preceding calendar month, and, if required by the tax administrator as to purchases, the name or names of the person or persons from whom purchased and the date and amount of each purchase, and as to sales, the name or names of the person or persons to whom sold and the amount of each sale, and shall pay at the same time to the administrator, tax at the rate of forty cents ($0.40) per gallon on all taxable gallons of fuel sold or used in this state for periods beginning on or after July 1, 2025. (b) Federal requirements. In the event the federal government requires a certain portion of the gasoline tax to be dedicated for highway improvements, then the state controller is directed to establish a restricted receipt account and deposit that portion of gasoline tax receipts which brings the state into federal compliance. (1) Beginning July 1, 2015, and every other year thereafter, through June 30, 2025, the gasoline tax shall be adjusted by the percentage of increase in the Consumer Price Index for all Urban Consumers (CPI-U) as published by the United States Bureau of Labor Statistics determined as of September 30 of the prior calendar year; said adjustment shall be rounded to the nearest one cent ($.01) increment, provided that the total tax shall not be less than provided for in section (a) (1). (2) Beginning July 1, 2027, and every other year thereafter, the gasoline tax shall be adjusted by the percentage of increase in the Consumer Price Index for all Urban Consumers (CPI- U) as published by the United States Bureau of Labor Statistics determined as of September 30 of the two (2) prior calendar years; said adjustment shall be rounded to the nearest one cent ($0.01) increment; provided that, the total tax shall not be less than provided for in subsection (a) (2).