Is the high cost of electricity stifling RI’s economic recovery?

RI does have the second highest “retail” electric rates in the country.[1] However, the addition of the CREC is unlikely to change this ranking as, at best, it will only lower prices by 1 to 2%, as identified by its own witness at the RI Public Utilities Commission (“PUC”) and secondly, the wholesale price of electricity represents only a portion of the electric bill.  The charges for distribution, transmission, and customer service will be unchanged by the CREC. Therefore, this plant is likely to have no material impact on the price of electricity in the state, especially considering it will be sold to entities outside the state and “blended” with numerous other sources of electricity.

As stated above, the CREC will, at best, improve this by 1 to 2% as compared to solar or EE (energy efficiency) that are found to reduce rates 10 to 20%. For example, a solar net metering agreement which allows customers to credit purchases from these resources against their electric bill are typically procured at 10 to 20% less than the retail rates. This allows for more savings to electric consumers in RI.

[1] EIA Electric Power Monthly with Data for April 2017, June 2017, Table 5.6.A.