Rhode Island Public Utilities Commission Approves RI Energy Deal, Rejects Profit Margin Increase
The Rhode Island Public Utilities Commission (PUC) has concluded a new rate case for RI Energy, the state's largest utility, approving an increase in the amount the company can spend on infrastructure to account for inflation. However, the PUC rejected RI Energy's request to increase its return on equity by 1.475%. According to Emily Koo, Rhode Island Program Director for Acadia Center, the PUC's decisions effectively lowered the extent of potential rate increases by limiting the utility's profit from equity and the amount that could be financed with equity. RI Energy also committed to studying how its current rates may be overcharging heat pump customers, with a new report indicating that these customers are overcharged by an estimated $7.7 million annually. The preliminary outcomes of the rate case are seen as initial steps towards the state's Act on Climate goals, including phasing out gas line subsidies, re-evaluating gas demand forecasting, and planning for heat pump rates. 
