Rhode Island energy costs are soaring. So are political tensions.

He wasn’t talking about the cluster of social service agency leaders who surrounded him, cheering as he signed an executive order, authorizing $28 million in proceeds from the state’s gas cap-and-trade program to offset winter electricity bills for Rhode Island Energy customers. 

Instead, McKee was referring in broad terms to the people who spoke out during the 2026 legislative session against his proposed energy affordability plan. The proposal, which was largely dismantled by lawmakers in the final fiscal 2027 budget, sought to save ratepayers $1 billion on energy bills over five years in part by weakening state programs meant to promote renewable energy and energy efficiency.

Environmental groups, solar developers, and Democratic lawmakers all cited concerns with McKee’s plan, arguing that the short-term savings came with long-term costs to climate change, energy independence and ratepayer savings. In signing the fiscal 2027 budget, which did not include these contested components, in June, McKee praised lawmakers for acknowledging many of his priorities, including energy affordability.

Six weeks later, barreling toward a contested Democratic primary against challenger Helena Buonanno Foulkes, the governor was quick to point fingers at the people who dismantled his energy plans.

“This was an all-out effort to water down the plan I put in place,” McKee said. “Anybody who was testifying and pushing back against energy savings that are needed right now, they are part of the cohort that said ‘let them pay more.’”

McKee declined to name who specifically made this statement or when.

Larry Chretien, executive director at Green Energy Consumers Alliance, which was one of the groups opposed to McKee’s energy proposal, said in an interview he was “shocked and saddened” by McKee’s accusations.

Chretien stressed the merits of maintaining the state’s path to decarbonization, in turn protecting ratepayers from seasonal price volatility, refusing to play the blame game.

“He’s zigging while the rest of the world is moving toward this direction of renewables and energy efficiency,” Chretien said of McKee. “Look at what happened with the Strait of Hormez. There’s no better example of why we need to have alternatives.”

Emily Koo, senior policy advocate and Rhode Island program director for Acadia Center, shared Chretien’s focus.

“An overreliance on volatile fossil gas and rising utility infrastructure spending misaligned with ratepayer interests are key systemic drivers of this affordability crisis,” Koo said in an emailed response Thursday. “We urge policymakers to embrace (and not undermine) long-lived affordability solutions, like energy efficiency and renewables, that offer durable savings year-after-year along with consumer and economic benefits, and can actually shrink the need for one-time settlements and emergency allocations going forward.”

In the same breath that McKee touted his strong relationships with legislative leaders, evidenced by weekly lunches with the House speaker and Senate president, he also called out lawmakers for failing to include the biggest — and most controversial — parts of his energy plan in the final budget.

 He urged the General Assembly to reconvene for a special session before the typical January start date to resuscitate his energy relief measures.

“Bring them back,” McKee said.

Senate President Valarie Lawson and House Speaker Christopher Blazejewski defended the final state spending plan in a joint statement Thursday, noting that McKee himself credited the legislature for measures to save ratepayers money. They did not address the calls for a special legislative session.

Not exempt from McKee’s wrath was the Public Utilities Commission, which he characterized as “not always inclined” to follow his directives regarding ratepayer savings. 

The three-person utility panel walks a delicate line, dually mandated to consider ratepayer savings while keeping utility suppliers financially solvent.

More hikes on the horizon

It’s unlikely, for example, that the commission will reject Rhode Island Energy’s seasonal winter electricity price proposal, which is poised to raise average monthly electric bills to the highest amount on record: $175.21 per month for the average residential customer who uses 500 kilowatt-hours of electricity, according to Rhode Island Energy’s application submitted Wednesday. 

Seasonal increases in electric prices — and anguish over the burden for ratepayers — are not new. Constrained supply and rising demand, exacerbated by international conflict, typically translate to higher winter electric prices. Rhode Island Energy by law cannot make any money off the base electric prices, which are set by third-party suppliers and passed directly on to consumers. And the Public Utilities Commission is legally required to approve the rates as long as there is no evidence that Rhode Island Energy is making a profit off the purchase.

Not that it dulls the sting of winter rate hikes. Rhode Island Energy President Greg Cornett acknowledged the challenges facing customers in announcing the company’s proposed winter electric prices, which are set to take effect Oct. 1.

“We understand that higher energy costs can create real challenges for our customers, especially during the winter months when energy use is at its highest,” Cornett said in a statement Thursday. “While these supply costs are driven by market conditions outside of our control and are passed through to customers without markup or profit, our focus is on supporting our customers. We encourage everyone to explore the many programs and resources available to help manage energy bills and reduce usage this winter.”

As proposed, the 17.03 cents per kilowatt-hour cost for electricity will increase the average customer’s bill by 21.4%, or $30.93 a month, over existing summer rates. It’s also 15% higher than last winter, reflecting global energy unrest in the wake of the Iran War and new requirements by ISO New England. In 2025, the regional electric grid operator began a new program meant to help stabilize the grid and prepare for emergencies or demand surges. The rule has increased administrative costs for electricity providers, driving 61% of the increase in Rhode Island Energy’s winter electric rates, Michael Dalo, a company spokesperson said.

Mary Colapietro, a spokesperson for ISO New England, defended the rules tied to the regional wholesale electric market program, which account for less than 7% of total costs and improve grid reliability and system operations.

“The ISO continues to evaluate this new market’s performance and has already filed with our federal regulator refinements that will improve cost effectiveness, while preserving its reliability benefits that the market provides,” Colapietro said in an emailed response. 

McKee’s executive order offers a short-term salve to seasonal energy bill pain using proceeds from the state’s Regional Greenhouse Gas Initiative. While the state has distributed funding from the gas cap-and-trade program to low-income ratepayers before, an emergency declaration was needed to authorize funds for ratepayers across income levels, McKee said.

The $28 million proposal, which also requires approval from the Public Utilities Commission, would save the average residential customer $61 per month for the first three months of 2027.

‘Not normal’

McKee’s initiative was met with applause by the social service agency leaders who joined him at Thursday’s press conference. But the crisis facing the thousands of residents they serve is hardly over.

More than 5,700 calls for help with energy bills have been made through United Way’s 2-1-1 hotline in May and June of this year — nearly five times the amount of energy-related calls made in the same two months a year ago. 

“This is not normal,” said Cortney Nicolato, president and CEO of United Way.

More than 2,700 Rhode Island Energy customers already had their electric or gas service shut off in May due to nonpayment, according to monthly reporting submitted to the Rhode Island Public Utilities Commission. Another 50,000 gas and electric customers were sent letters warning of shutoffs if they didn’t pay. Electric customers who were disconnected in May had an average balance of $3,250, while the average balance for gas customers who lost connection was $3,835. 

And the seasonal spike in winter electricity supply prices isn’t the only cost hike looming. Rhode Island Energy is also seeking to increase distribution and service charges — not tied to energy usage — starting in September. The $230 million, two-year revenue generation plan remains under review by the Rhode Island Public Utilities Commission, alongside a separate but linked application to fulfill a bill discount requirement linked to the 2022 sale of the state gas and electric lines to Rhode Island Energy’s parent company, PPL Corp.

If approved, the distribution charge proposal would add another $7.78 to average residential monthly electric bills in the first year, and $343.53 more in annual gas bills. A second year of increases in both electric and gas service charges is also included in the proposal.

Rhode Island Energy defended its ask as a necessity to offset its own inflationary expenses on supplies and labor. The company was not allowed to seek service charge increases for the first three years of ownership of state utilities as a condition of the sale in 2022. 

In approving the sale, state regulators also required the company to issue credits to customers for the tax and accounting charges tied to the transaction. An original, $150 bill credit proposal was proffered, then pulled away last fall amid objections over the calculations used to determine the value of savings to customers. Rhode Island Energy offered a slightly higher, $160 million credit proposal in April, proposing to distribute the credits in the first three months of 2027 and 2028. The revised discount plan remains under review by state regulators.

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