Rhode Island Energy to Launch Expanded Electric Bill Discounts for Low-Income Customers

Rhode Island Energy will launch an expanded discount program for low-income customers this coming January, according to reports from Rhode Island Current.

The new Enhanced Electric Discount Rate aims to concentrate savings on the state’s most vulnerable residents. The program is designed to ensure that eligible customers spend no more than 3% of their income on electricity costs.

The shift comes as the utility provider faces significant debt from its customer base. Company filings with state regulators show that more than 114,000 Rhode Island Energy customers were behind on their electric bills as of September, owing a combined $172.9 million.

Tiered savings for low-income households

The revised five-tier program replaces an existing two-tier model. It is patterned after similar systems used in Connecticut and New Hampshire. The most relief is reserved for those earning at or below 50% of the federal poverty level.

Rhode Island Energy program aims at helping customers save on their electric bills

For individuals in that lowest bracket, the company will cover 75% of monthly electric bill costs. This could result in savings of up to $7,980 for a single person or $16,500 for a family of four.

The level of assistance scales down as income increases. The smallest discount of 10% is available to individuals earning between $23,940 and $39,900, or families of four earning between $49,500 and $82,500.

Rhode Island Energy to Launch Expanded Electric Bill Discounts for Low-Income Customers — Photo: rhodeislandcurrent.com

Income Bracket (Single Person)	Income Bracket (Family of Four)	Estimated Discount Level
At or below 50% Federal Poverty Level	At or below 50% Federal Poverty Level	75% of bill
$23,940 – $39,900	$49,500 – $82,500	10% of bill

Most of the 33,000 customers currently enrolled in the existing program will see their discounts automatically enhanced when the new system begins. However, Carrie Gill, Rhode Island Energy’s head of electric regulatory strategy, noted that some customers may need to verify personal information, such as address and income, to remain eligible.

The cost of utility debt and shutoffs

While the program increases costs for the utility, officials suggest it may mitigate long-term losses. The company expects to spend $22.7 million on the enhanced program, which is 3.5% more than its current discount spending.

Rhode Island Energy says it's trying to help customers save on their electric bills through a new program. https://t.co/cvejRcEIux

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Roger Colton, a consultant for the Rhode Island Division of Public Utilities and Carriers, noted in regulatory filings that the net cost to the company might actually decrease. He suggested that higher discounts could help more customers pay their bills, thereby reducing expenses related to debt collection and service shutoffs.

“If there are fewer arrears, there’s less expenses on collections,” Gill said.

Rising service disconnections increase the urgency for relief. As of September, more than 4,000 Rhode Island Energy customers had their electricity shut off due to unpaid bills. This represents a 33% increase compared to September 2025, when pandemic-era protections against utility shutoffs were still in effect.

RI Energy launches program to help customers save on electric bills

Those protections ended in May, prompting an increase in requests for help from organizations like the United Way of Rhode Island and the George Wiley Center.

Challenges for vulnerable residents

For some residents, the financial pressure is already overwhelming. Marissa Diakite, a 26-year-old CNA living in Pawtucket, told Rhode Island Current that she has had to portion food and has previously gone without Wi-Fi to manage rising costs.

RI Energy expands electric discount rate program

“It adds a lot of mental stress when you see all the bills compiling,” Diakite said. “Trying to balance everything is getting kind of ridiculous.”

Even with the new discounts, advocates worry about the gaps in the current safety net. A seasonal moratorium on shutoffs began on November 1, which prevents customers with unpaid bills from losing light and heat through May 1.

Camilo Viveiros, lead organizer at the George Wiley Center, expressed concern for those whose health or age makes them particularly vulnerable once the moratorium ends next spring. He noted that while the new program is an incremental victory, additional protections are needed, including more flexible repayment options for those with serious medical conditions and a moratorium specifically addressing extreme heat.

The implementation of the new discount program in January remains subject to change if extreme weather events, such as a major blizzard, require emergency utility responses.