Rhode Island deregulated its commercial electricity market in the late 1990s, and today businesses have the same choice as their Massachusetts counterparts: stay on National Grid’s default supply rate, or work with a competitive retail electricity supplier for a rate that may better fit their cost structure or sustainability goals.
The market dynamics in Rhode Island are somewhat different from Massachusetts — National Grid RI is the sole electric utility, the market is smaller, and the competitive supplier options are more limited. But for commercial and industrial buyers, the fundamental opportunity is the same: competitive procurement can deliver price certainty and, at the right time, meaningful savings.
National Grid RI Default Service: How It Works
National Grid Rhode Island offers a Last Resort Service (LRS) rate to commercial and residential customers who haven’t chosen a competitive supplier. LRS rates are set by the Rhode Island Public Utilities Commission and procured competitively by National Grid. The rate resets periodically — in April 2026, the residential LRS rate was updated to approximately 11.2 cents per kWh (down about 16% from the prior period), and the small commercial LRS rate was set at approximately 10.7 cents per kWh.
Like Massachusetts default service, the Rhode Island LRS rate resets periodically and does not provide price certainty beyond the current rate period. Commercial buyers who need to budget over multi-year horizons are exposed to rate resets that can be significant in either direction.
What Competitive Suppliers Offer in Rhode Island
Rhode Island competitive suppliers offer the same range of products available in Massachusetts: fixed-rate contracts for 12, 24, or 36 months, index (market-tracking) products, and green energy options including Class I and Class II renewable products under Rhode Island’s Renewable Energy Standard.
The competitive value proposition in Rhode Island mirrors Massachusetts: fixed-rate supply locks in your per-kWh cost for the contract term, protecting against LRS rate resets and wholesale market volatility. The trade-off is that if the LRS rate drops (as it did in April 2026), fixed-rate customers may find themselves above the current default rate until their contract expires.
The CCA Opportunity in Rhode Island
Rhode Island has enabling legislation for community choice aggregation — allowing municipalities to aggregate their residents’ and businesses’ electricity supply purchasing power. CCA activity has been growing in Rhode Island as towns look for both cost savings and pathways to increase renewable energy procurement. Businesses in municipalities with active CCA programs may find their electricity supply automatically enrolled in the CCA program unless they opt out.
When to Consider a Competitive Supplier in Rhode Island
- Your business has a multi-year planning horizon that makes fixed-rate cost certainty valuable
- You have sustainability commitments that require renewable energy procurement beyond what LRS provides
- You’re a larger C&I buyer (above 200,000 kWh annually) with a consistent load profile that makes competitive pricing most attractive
- Your current LRS rate period is expiring and forward market prices suggest locking in is advantageous
How to Shop the Rhode Island Market
The process is straightforward: work with a licensed energy broker who has relationships with competitive suppliers licensed by the Rhode Island Public Utilities Commission. The broker will need 12 months of National Grid billing history. From that, they can pull competitive fixed-rate quotes and compare them to your current LRS rate and near-term LRS forecast.
Contact Gridwealth Electric: Gridwealth Electric is a competitive retail electricity supplier licensed in Rhode Island, serving C&I customers through the broker channel. Contact us at tford@gridwealth.com.
