Sen. Patalano introduces legislation to lower electrical bills

STATE HOUSE — Sen. Todd M. Patalano has introduced legislation to provide relief to electrical customers facing rising bills.

“Rhode Islanders need both lower bills now, and relief from rising rates in the future,” said Senator Patalano (D-Dist. 26, Cranston). “Unfortunately, numerous state mandates that are contributing to our high cost of electricity will continue to do so for years to come. The goals of these programs are admirable but with Rhode Islanders paying some of the highest rates in the nation, we need to rethink the balance between long-term goals and immediate relief. We cannot afford to price out seniors and working-class Rhode Islanders today to fund projects next decade.”

Electricity rates in Rhode Island are currently the third highest on record, and Rhode Islanders pay the fourth highest residential electricity rates in the nation.

The package of five bills primarily takes aim at the components of residential electrical bills that are influenced by state mandates. Rep. Charlene M. Lima (D-Dist. 14, Cranston, Providence) has introduced matching companion bills in the House.

“I am grateful to Senator Patalano for sponsoring the Energy Cost Reduction package in the Senate,” said Representative Lima. “While laws aimed at tackling climate change are important, they should not place undue financial burdens on Rhode Island ratepayers who are already struggling with some of the highest rates in the nation. These bills will establish a better balance between our climate goals and our pocketbooks.”

Two of the bills aim to address the supply cost of electricity, which makes up about 50% of an average electrical bill in Rhode Island, based on information from Rhode Island Energy using customer bills from Jan. 2025.

The first bill (2025-S 0886, 2025-H 5820) would push back by 10 years the state’s mandate to use 100% renewable energy sources for retail electricity, from 2033 to 2043. This would slow the rate at which utilities distributing electricity in Rhode Island would need to increase the share of renewables they purchase to supply residential consumers — which increase the total cost of electricity — while still providing a pathway to net-zero residential energy usage by 2043, when renewable sources may be cheaper.

The second bill (2025-S 0890, 2025-H 5819) addressing supply costs would change the net-metering credit paid to solar producers by utilities from the last resort service rate — the most common rate Rhode Islanders pay for electricity — to the wholesale rate that utilities pay for electricity, with the goal of lowering the cost Rhode Island utilities pay for electricity from renewable sources.

The next bill (2025-S 0895, 2025-H 6013) introduced by Senator Patalano and Representative Lima would suspend the gross earnings tax on electric and gas companies until Jan. 1, 2035. According to Rhode Island Energy, this tax accounts for 2.1% of the average customer bill.

The fourth bill (2025-S 0894, 2025-H 6005) would address the share of Rhode Islanders’ electrical bills that is made up of state-mandated programs by removing the requirement that $5 million annually be paid out of energy rates to the Rhode Island infrastructure bank to fund energy efficiency and renewable energy programs in the state.

“These first four bills work directly to bring down our electricity bills, but in order to make further improvements we are going to need to do even more,” said Senator Patalano. “That is why I am also sponsoring a bill to produce a comprehensive study of how best to further reduce energy rates for consumers, based on the lessons and experience of other U.S. states.”

This bill (2025-S 0891, 2025-H 5814) would fund a study conducted by the Public Utilities Commission with assistance of the Division of Public Utilities and Carriers to determine the best way to lower energy rates for both electricity and gas for Rhode Island consumers. It would provide a comprehensive breakdown of the costs effecting Rhode Island rates, a list of programs that are adding to the cost of these rates, the potential savings if these programs were ended and look to the practices and experiences of other states to recommend best practices to lower bills for Rhode Islanders.

Senator Patalano is serving his first term in the Senate. A lifelong resident of Cranston, Senator Patalano has been a member of the Cranston Police Department since 1995 and currently serves as the Chief of Administrative Services at the rank of Major. He holds master’s and bachelor’s degrees from the Roger Williams University School of Justice Studies.