Stop the Hikes: Rhode Island Energy's Latest Move Threatens Lives—Again!
Rep. Morales takes a stand: "We are not going to stand for expensive utilities. We're not going to stand for lies."
Rhode Island Energy is at it again: yet another utility price hike. In protest, the George Wiley Center, last Thursday, organized a press conference at Rhode Island Energy in Providence:
The start:
Hi, my name is Camille Viveiros, and I'm the director of the George Wiley Center. I'm here with some organizers, members from the George Wiley Center community, supporters, and leadership who have been helping us fight unfair utility prices for a long time.
The George Wiley Center has been around for more than forty years, much longer than Rhode Island Energy. Interestingly, PPL, the parent company of Rhode Island Energy, in Pennsylvania supports something called a Percentage Income Payment Plan (PIPP). Our members and national experts have come together to advocate for this plan, and we've presented it at the Statehouse. Representative Morales has been a leader in this effort, and we've been asking Rhode Island Energy to help us pass our proposal here in Rhode Island.
Instead of working with us to pass the Percentage Income Payment Plan—which would allow low-income families to afford their utility rates in a fair way—Rhode Island Energy has repeatedly focused on increasing everyone’s rates. We find this approach unfair and irresponsible.
When Rhode Island Energy first came here, we had many community meetings, and they promised not to make things worse for utility customers, especially residential customers. We now see this rate increase as a breach of that agreement.
We are often ignored, even though we're a well-established advocacy group with over forty years of experience helping to reduce utility shutoffs across the state. Since we started organizing, we've managed to cut the number of shutoffs in half through various programs we've supported. But that's not enough for affluent advocates who just want to keep increasing rates to fill the pockets of m[b]illionaires in Pennsylvania, Kentucky, or wherever they're from, to benefit their stockholders. For them, a few percentage points increase isn't a big deal, but for our members, it means hardship, pain, anxiety, and sometimes ending up on the streets, in nursing homes, or in emergency rooms. So we say no to this rate increase; we say no to any rate increase.
Fast forward to time stamp 2:40 in the video above to hear what else Camilo Viveiros has to say. At 6:06, Rep. David Morales takes over. He is a staunch supporter of fair utility rates and a repeat-sponsor of legislation introducing the Percentage Payment Plan (PIPP) in Rhode Island. Here is some of what he said:
We make sure that people don't go without essential services, and we work out payment plans to have protections in place. But let's be real—these programs that they talk about are not the easiest to apply for, especially if you're someone who isn't comfortable using technology or if English is not your first language. There are barriers to these protections that are often cited. The protections cited by Rhode Island Energy and the Public Utilities Commission simply do not cut it.
That is why we are here together, on behalf of the hundreds of thousands of people who will be impacted by these utility rate hikes. We are demanding that the Public Utilities Commission reject these rate hikes. We are demanding that Rhode Island Energy withdraw their proposal to increase utility rates by 23% this fall. We are demanding that Rhode Island Energy finally come to the table in good faith to work with the state legislature to implement a Percentage Income Payment Plan.
They need to come to the table in good faith to support our neighbors, not to enrich themselves and their shareholders. Because I will be damned if we have to show up in September to the Public Utilities Commission and justify once more why it is cruel and inhumane to make a basic utility service inaccessible to working people.
Now let’s unpack the report aired last Thursday by Channel 12.
Shannon Hegy: With most Rhode Islanders facing higher electricity bills this fall– or later this fall–community advocates are once again pushing back. Providence State Rep David Morales joined a rally outside Rhode Island Energy this afternoon calling on the Public Utilities Commission to reject the company's proposed rate hikes for the winter. As we reported, Rhode Island Energy's proposed rates would have the average customer paying about $31 more per month compared to the summer.
David Morales: Year after year, it is absolutely frustrating that we have to show up and oppose annual utility rate hikes being proposed by our for-profit utility system that clearly prioritizes profits over providing a public service to our communities.
Shannon Hegy: If the Public Utilities Commission approves the increase, it would begin October first. Rhode Island Energy says supply-and-demand and global events are driving up energy prices. They said in a statement, quote "It's important to note that we charge customers what we pay generators for producing the power, and we don't earn a profit on the cost of electricity."
This media report raises serious questions. First of all: what exactly does Rhode Island Energy mean when it claims to make no profit on the cost of energy? Look at the utility earnings in Rhode Island, as reported by the Federal Reserve Bank of St. Louis:
To be explicit, these data show an increase in Rhode Island utilities earnings from $155 million at the beginning of 2016 to $406 million at the end of the first quarter of 2024. That is an increase by more than 260 percent—yes, 260 percent!
If, as Rhode Island Energy claims, that wasn’t a profit on the cost of electricity, then what was it?
The price of electricity (generation charges) might be around 50% or less of a customer’s bill. As a consequence, the utility company can make a profit from the remaining 50%. To name just a few possible sources of profit, there are high-voltage transmission, local distribution, and other service-related charges. Thus, even if utilities are not profiting directly from the generation of electricity, they can still increase overall profit from these other components.
Also dubious is Rhode Island Energy’s claim that it is merely responding to the global energy market. Let’s note in passing that this is supposedly a free market. In fact, it is manipulated by the Federal Government on behalf of energy corporations through wars and sabotage. According to the U.S. Energy Information Administration:
In 2022, natural gas fueled 83% of Rhode Island's electricity net generation, the second-largest share of any state after Delaware; and
83% of Rhode Island net electricity generation came from natural gas.
Obviously, as far as the proposed rate increase is concerned, the issue is predominantly the price of natural gas, as shown in the following chart:
Rhode Island Energy claims that supply-and-demand and global events are driving up energy prices. However, the data in this chart tell a different story. Chairman Gerwatowski of the Rhode Island Public Utility Commission needs to ask Rhode Island Energy to explain how a fourfold decrease in natural gas prices can possibly justify driving up electricity rates in Rhode Island, while in fact a price reduction is in order.
Given the persistent heavy reliance on natural gas for electricity generation, one also must question the effectiveness of Rhode Island's climate and energy policies. In a November 2021 press release, the Rhode Island General Assembly claimed:
“The Act on Climate puts Rhode Island on a path to a sustainable and prosperous future,” said House Speaker K. Joseph Shekarchi (D-Dist. 23, Warwick).
If the Energy Information Administration is correct, Rhode Island generated 83% of its electricity from natural gas in both 2022 and 2024. This indicates that Rhode Island is making no progress whatsoever on the path that Speaker Shekarchi so proudly announced in 2021.
What else is new? First, we had the Resilient Rhode Island Act of 2014. Then came the 2021 Act on Climate. Now, nearly a decade down this path, we’re left with the question: Are these just separate acts of a tragicomedy called Rhode Island Climate Inaction?
Back to the press conference
At the 14:50 time stamp, Rep. Morales introduces Daisy Paz of the George Wiley Center, who then gives the floor to Progresso Latino’s Jonathan Dejesus:
Good afternoon, my name is Jonathan Dejesus, and I am the Community Policy Advocate for Progreso Latino. Our vision is to sustain a socially and economically thriving Latino and immigrant community that drives solutions to statewide issues. We serve over ten thousand individuals through our transformational programs, meeting the needs of Central Falls and our state’s rapidly growing population.
I am here today to express our strong opposition to the proposed utility rate hike. This increase would have a devastating impact on marginalized communities, especially those already struggling with rising rent and living costs. Our state is in the midst of a housing crisis, and the rate hike would only exacerbate the financial hardships faced by many of our residents.
At Progreso Latino, we witness these struggles firsthand. Every month, we hold a free housing clinic where experts from Rhode Island Legal Services and the George Wiley Center assist Rhode Islanders with issues such as rent, evictions, discrimination, renters' rights, and rising utility costs. According to the 2023 Housing Fact Book, the median household income in Central Falls is $40,235, while the average rent for a two-bedroom apartment is $1,599, requiring an income of $63,942 to afford it.
With 62% of Hispanics and 63% of Black residents in our state being renters, the burden of rising costs is disproportionately felt by these communities. We also run a food pantry every Wednesday, serving over 300 people each week. The increase in attendance at both our housing clinic and food pantry highlights the growing desperation in our urban core. Families are being forced to make impossible choices between paying rent, buying food, or keeping the utilities on.
By rejecting the rate increase, you have the power to prevent further financial distress for thousands of Rhode Islanders. Instead of facing evictions or utility shutoffs, families could use their limited resources for basic needs, ensuring their homes remain safe and warm. Utility costs should not be a source of fear or financial ruin—they are essential services that our residents depend on for survival. I urge the Public Utilities Commission to consider the far-reaching consequences of this proposal and to stand with our communities at this critical moment. Thank you.
George Wiley Center’s Daisy Paz ends reading testimony of people who couldn’t be at the press conference because they are in wheelchairs, have asthma or are otherwise medically vulnerable. This section starts at time stamp 19:10.
Lydia Peoples from Providence
"I'm living on a fixed income. I either eat or pay my utilities. It is very important for me to have affordable rates—not to raise them."Everett Pope from Providence
"I don't agree with the rate increase at all. I'm struggling to pay my utilities already."Lee Butler
"We can't afford another rate hike. We can barely get food already. I don't want to have to sit with my daughter by the fire pit outside to heat our food—imagine how cruel that would be. Or put on an extra sweater because we can't pay utilities. Instead, I want to be able to turn my heat on when I need it. They raise the rates every fall, and it has to stop."Cicciolina Duarte from Pawtucket
"I am low income, a single mom, and it's not easy. If the rates increase, it will be especially hard for us, the poor. It's not fair to pay so much for utility bills, and to raise the rates again."Louisa Cabral
"I can't afford another rate increase because I am a single mom of two children, and I have medical conditions.” (She’s one of the many who have utility debt and is trying to sign up for programs, but again, this could be solved if we had a Percentage Income Payment Plan.)"Louisa Rodriguez
"It is already hard to buy food, clothing, and pay for utilities. It's hard to survive. I don't agree with the rate increases."Jessica Barney
"I have a daughter with health conditions. It's hard doing everything by myself. If the rates get raised again, it will be harder for us, especially for the disabled."Roland Lingloy
(Who by the way is currently unhoused because he couldn't pay his bills.) Utilities are too expensive. Don't raise them."Yvette Figueroa from Pawtucket
"The cost of living is too high already. It's hard to afford basic necessities. The income we bring home does not match the current rates. Now imagine another rate increase—my whole family is struggling to afford everything. Don't raise the rates. We need a PIPP program (Percentage Income Payment Plan) instead of rate increases."Kwame from Providence
"I don't agree with the utilities being raised because most folks are already barely making rent with a nine-to-five job. Adding more to what people are already overwhelmed with does not make sense to me."Steve Poston from Pawtucket
"I don't agree with the rate increases. My life would be different if we had affordable utilities under a Percentage Income Payment Plan."Daisy Paz from Central Falls
"I am already in debt for utilities and for other basic necessities. Raising the rates would impact me as a student, as a community member, as a poor person, and as a Hispanic. I'm part of the minority as well, and a lot of us are here represented. It's not fair. We need to stop. Rhode Island Energy needs to stop raising the rates—like yesterday."
Only the willfully blind will ignore the testimony featured at the press conference, showing that yet another utility rate increase will escalate the already skyrocketing homelessness in Rhode Island. Furthermore, research shows that a ten percentage point rent increase drives up the risk of death by eight percent. The threat of a potential eviction via a notice from a landlord, even if the eviction never takes place, is associated with a nineteen percent increase in risk of death.
There is a term for this: policy murder. To let that sink in, consider this: 'Policy Murder': Research Shows Poverty Is 4th Leading Cause of Death in US.
This month, the Public Utility Commission will hear Rhode Island Energy’s case for their latest proposed rate increase. Stay tuned, and sign up here for the George Wiley Center mailing list to receive their alerts.
Peter—
One of the sad developments in American commerce was the privatization of basic utilities which had been previously semi-public entities. Alas, America lost Ma Bell. We were told back then that privatization would bring about needed competition which would lower prices but of course all of that was a lie. Certain things must be public. Basic energy needs for every household in America are not some frills that should be adjusted helter-skelter by free enterprise. It is too essential for the wellbeing of the people. If it had remained semi-public we already would be moving to wind and solar energy throughout the nation. And perhaps we would not be living in the hottest year in history.
It is like the Post Office. Interesting that the private mail enterprises are much more expensive than the US Post Office but yet conservatives want to do away with it. Next it will be our water. Just imagine the graft that would arise with the privatization of water. More profit can be made by lowering standards. And how is the space race going with putting our vehicles in the hands of Boeing Aviation? If we had kept it all under government control we would have already stood on Mars.
There is a difference between free enterprise and allowing huge corporations to dominate the field and hold the American people hostage! But yet conservatives would think my views subversive. So I offer you my praise and admiration for your being willing to speak out and make a difference!
—Geoffrey