NEWPORT, R.I. — Low-income electric customers in Newport and across Rhode Island could see discounts of up to 75 percent on their bills under a new program announced Monday, Nov. 9, by Rhode Island Energy, the state’s largest electric and gas provider.
The Enhanced Electric Discount Rate replaces a two-level discount of 25 or 30 percent with five tiers based on household income compared with the Federal Poverty Level. The lowest-income households get the biggest cut. Households at 0 to 50 percent of the poverty level get 75 percent off, those at 50 to 75 percent get 66 percent, 75 to 100 percent get 56 percent, 100 to 150 percent get 38 percent, and households above that, up to 250 percent, get 10 percent.
For a single person, the poverty level is $15,960 a year, with $5,680 added for each additional household member. A one-person household earning up to $7,980 would qualify for the 75 percent tier, and one earning more than $23,940 falls into the 10 percent tier.
To qualify, a customer must already be in a public assistance program: federal heating aid known as LIHEAP, food assistance through SNAP, Medicaid, SSI, the Rhode Island Works cash program, or General Public Assistance. The state Department of Human Services determines each household’s income level, assigns the tier and passes it to the utility, which then sends a letter confirming enrollment and the discount.
Customers already on the current discount rate will get notices in the coming weeks about their new level. About 33,000 customers now receive a discount, and the utility says only about a quarter of those who qualify are enrolled. The new rate applies to electric service only; the gas discount does not change.
The utility says it is working to put the new rate in place in early 2027 and will give advance notice before anything changes, so there is no immediate effect on bills. The program comes out of a settlement reached in June among the utility, a state utility-regulation office, advocates for low-income residents and others. More information is at rienergy.com/toolkit.
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Filed under: Newport RI Business News
