Rhode Island

Electric:

Rhode Island customers received the ability to choose their electric provider in 1997, part of an industry reform movement designed to give customers a chance to save money on their electric bills.

Rhode Island utilities sold their power plants to open the market to competition, and now only own the transmission and distribution wires, while also providing "backstop" power to customers who do not shop for electricity. With the move to competition, the utilities have separated service into two parts:

    • Regulated distribution of power, which is still only provided by the utilities, and
    • Supply of the electric commodity, which is open to competition.

Customers can choose to receive their electricity supply from their utility, or an alternate energy provider.

Customers who do not choose an alternate energy provider receive default service from the utility, or Standard Offer Service (SOS). SOS prices are set via auction, and vary monthly for large non-residential customers, such as industrials.  For smaller customers, the rates can change twice a year or more, depending on National Grid's procurement plan for that particular year.

Customers who choose an alternate energy provider still have their power delivered to them by their utility, and contact their utility for all outage reporting. Customers can choose to receive either a single bill from their utility for their delivery service and energy supply service, or can receive two bills, one from each company.

Natural Gas:

Some business customers in Rhode Island have the right to choose their natural gas provider, and save money on their gas rate. At National Grid, choice is limited to business customers using more than 5,000 therms per year. Customers choosing an alternate gas supplier will still have their gas supply delivered by the local utility, but customers will be buying their gas supply from a new company.

A customer's natural gas bill has been separated into two parts:

• Regulated distribution of gas, which is still only provided by the utility, and
• Supply of the gas commodity, which is open to competition.

If customers do not shop for an alternate gas supplier, they receive default sales service from their utility. Under default sales service, customers pay a "cost of gas" charge which can vary as often as monthly. Customers can avoid wild monthly swings in the gas supply charge by contracting with an alternative gas supplier.

No matter who you choose to buy energy from, your local utility will continue to deliver your gas and respond to service interruptions and outages. You will still pay your utility for these services. You will receive a separate bill for your gas supply from your alternative gas supplier.