Cuts to Rhode Island energy-efficiency plan bad for residents, study says
Funding for Rhode Island’s energy-efficiency programs could be cut by more than $42 million next year in an effort to rein in residents’ soaring power bills. That rollback would deprive the state of more than $90 million in benefits and potentially eliminate hundreds of jobs while creating only modest up-front savings, a new analysis finds. Rhode Island Energy, the utility that administers the state’s energy-efficiency offerings, has proposed to slash spending on that front by 18% compared to last year and more than 30% compared to the budget originally projected in the nonbinding three-year plan introduced in 2023. If approved, the cuts will save the average household $1.87 per month, according to Rhode Island Energy. The result of these changes, according to climate action nonprofit Acadia Center, would be more expensive electricity and more exposure to volatile natural gas prices in the long run. “Energy efficiency is a tool for suppressing supply costs, for suppressing infrastructure costs in the long-term,” said Emily Koo, Acadia Center’s program director for Rhode Island and one of the authors of the group’s analysis. “I am not seeing our leaders think beyond the immediate.” Rhode Island has traditionally been a leader in energy-efficiency programming. Over the past 15 years, the state has repeatedly placed among the top 10 states in the American Council for an Energy-Efficient Economy’s annual energy-efficiency scorecard. Since 2009, the state has spent more than $2 billion on efficiency incentives and services, yielding more than $6 billion in environmental and social benefits. Now, however, the dynamics of energy markets are creating new obstacles. Nationwide, electricity costs have gone up at twice the rate of inflation over the past year, and gas prices have increased by more than four times the inflation rate. Rhode Island, like other New England states, has the added difficulty of already having some of the highest electricity rates in the country. Add in cold Northeastern winters, and the state is girding for an expensive season ahead. As in neighboring states, regulators, elected officials, and utilities in Rhode Island are scrambling for ways to provide some relief for residents and businesses. These efforts have increasingly looked to the bill fees that fund renewable energy incentives and energy-efficiency programs as possible targets for quick, if small, bill reductions. In Maine, for example, leaders from both sides of the aisle have sought to lower incentives for customers and community solar developments that send power back to the grid, and in Massachusetts, utility regulators ordered energy-efficiency administrators to cut $500 million from a planned $5 billion three-year budget. Now, Rhode Island Energy is proposing rollbacks of its own, saying that its latest plan prioritizes customer affordability. The company has the support of the Rhode Island Division of Public Utilities and Carriers, which points to the growth in accounts with overdue utility bills to bolster its argument that the changes will provide needed relief to consumers. “There is simply a financial limit as to how much cost the ratepayers can bear,” the department wrote in its public comments on the proposal.
Funding for Rhode Island’s energy-efficiency programs could be cut by more than $42 million next year in an effort to rein in residents’ soaring power bills. That rollback would deprive the state of more than $90 million in benefits and potentially eliminate hundreds of jobs while creating only modest up-front…
Funding for Rhode Island’s energy-efficiency programs could be cut by more than $42 million next year in an effort to rein in residents’ soaring power bills. That rollback would deprive the state of more than $90 million in benefits and potentially eliminate hundreds of jobs while creating only modest up-front savings, a new analysis finds.
Rhode Island Energy, the utility that administers the state’s energy-efficiency offerings, has proposed to slash spending on that front by 18% compared to last year and more than 30% compared to the budget originally projected in the nonbinding three-year plan introduced in 2023. If approved, the cuts will save the average household $1.87 per month, according to Rhode Island Energy.
The result of these changes, according to climate action nonprofit Acadia Center, would be more expensive electricity and more exposure to volatile natural gas prices in the long run.
“Energy efficiency is a tool for suppressing supply costs, for suppressing infrastructure costs in the long-term,” said Emily Koo, Acadia Center’s program director for Rhode Island and one of the authors of the group’s analysis. “I am not seeing our leaders think beyond the immediate.”
Rhode Island has traditionally been a leader in energy-efficiency programming. Over the past 15 years, the state has repeatedly placed among the top 10 states in the American Council for an Energy-Efficient Economy’s annual energy-efficiency scorecard. Since 2009, the state has spent more than $2 billion on efficiency incentives and services, yielding more than $6 billion in environmental and social benefits.
Now, however, the dynamics of energy markets are creating new obstacles. Nationwide, electricity costs have gone up at twice the rate of inflation over the past year, and gas prices have increased by more than four times the inflation rate. Rhode Island, like other New England states, has the added difficulty of already having some of the highest electricity rates in the country. Add in cold Northeastern winters, and the state is girding for an expensive season ahead.
As in neighboring states, regulators, elected officials, and utilities in Rhode Island are scrambling for ways to provide some relief for residents and businesses. These efforts have increasingly looked to the bill fees that fund renewable energy incentives and energy-efficiency programs as possible targets for quick, if small, bill reductions. In Maine, for example, leaders from both sides of the aisle have sought to lower incentives for customers and community solar developments that send power back to the grid, and in Massachusetts, utility regulators ordered energy-efficiency administrators to cut $500 million from a planned $5 billion three-year budget.
Now, Rhode Island Energy is proposing rollbacks of its own, saying that its latest plan prioritizes customer affordability. The company has the support of the Rhode Island Division of Public Utilities and Carriers, which points to the growth in accounts with overdue utility bills to bolster its argument that the changes will provide needed relief to consumers.
“There is simply a financial limit as to how much cost the ratepayers can bear,” the department wrote in its public comments on the proposal.