Rhode Island Energy filed its winter Last Resort Service (LRS) rates on July 23, and the numbers tell a clear story for commercial customers.
The headline: Rhode Island's commercial fixed Last Resort Service rate is proposed at 16.58¢/kWh for October through March—up from 14.68¢ last winter and roughly 58% higher than today's default supply price, pending PUC approval.
The monthly variable option climbs even higher, beginning at 13.896¢ in October before peaking at 19.654¢/kWh in January.
The State Has Already Responded
Governor Dan McKee declared an energy affordability emergency the same day the filing was released, authorizing the use of $28 million in RGGI reserves to provide approximately $61 in bill credits for residential customers.
That's important—but only if you're a homeowner.
Businesses receive no comparable relief. For commercial and industrial customers, the primary tool for managing higher electricity costs remains securing a competitive supply contract before the new rates take effect.
It's Not Just Supply Costs
The October supply increase isn't happening in isolation.
Rhode Island businesses could see two major increases back-to-back:
- September 1: Rhode Island Energy's proposed $230 million delivery rate increase takes effect if approved.
- October 1: Last Resort Service supply rates reset for the winter season.
Customers remaining on default service would be exposed to both increases within a matter of weeks.
Massachusetts Isn't Far Behind
Massachusetts customers are facing similar conditions.
Beginning August 1, National Grid and Eversource small commercial default supply rates increase across much of the state, with winter variable pricing reaching as high as 24.833¢/kWh in January 2027 for some customers.
The trend is consistent throughout New England: default service pricing is moving significantly higher heading into the winter heating season.
What We'd Recommend This Week
- Quote Rhode Island commercial renewals against the proposed 16.58¢ winter default rate—not today's lower pricing.
- Lock Massachusetts small commercial customers before winter pricing gains additional momentum.
- Take advantage of current wholesale market conditions while natural gas prices remain relatively favorable.
The market fundamentals are lining up in the same direction: wholesale inputs remain comparatively attractive today, while default utility supply prices continue moving higher.
For many commercial customers, fixed competitive supply represents the best opportunity to reduce exposure before winter pricing arrives.
Stay Ahead of Market Changes
Our bi-weekly New England Energy Market Brief tracks ISO-NE pricing, natural gas markets, utility default rates, and key regulatory developments affecting commercial energy buyers throughout Massachusetts and Rhode Island.
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