Provides that any rate increase with respect to electric distribution companies would be no greater than the increase in the Consumer Price Index or 5.5%, whichever is greater, unless there is approval of a higher rate by the general assembly

# Summary of Rhode Island House Bill on Electric Rate Increases

This bill would place a cap on how much electric utility companies in Rhode Island can raise their rates each year. Under the proposal, any rate increase for electricity distribution would be limited to either the increase in the Consumer Price Index (a common measure of inflation) or 5.5%, whichever number is higher. For example, if inflation is at 3%, the cap would be 5.5%, but if inflation rises to 7%, the cap would be 7%. This means utility companies could not raise rates beyond these limits on their own.

If an electric distribution company believes it needs a rate increase that exceeds this cap, it would not be able to get approval through the usual regulatory process alone. Instead, the company would need to obtain direct approval from the Rhode Island General Assembly — the state legislature — to charge rates above the limit. This shifts some rate-setting authority away from utility regulators and gives elected lawmakers a more direct role in approving larger rate hikes.

This bill would affect all Rhode Island electricity customers by potentially limiting how quickly their electric bills can rise from year to year. It would also affect electric distribution companies, such as Rhode Island Energy, by restricting their ability to increase rates through the standard regulatory process. The bill is currently in the early stages of the legislative process, having been introduced and referred to the House Corporations Committee, with a hearing scheduled for April 2026.