Will an Income Percentage Utility Payment Plan Make it Through the Legislature this Year?
May 25, 2026
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PROVIDENCE — Despite years of high energy costs, it appears lawmakers are no closer to adopting utility payment plans that would benefit the state’s working and low-income residents.
Legislation (H7880/S2248) creating a percentage income payment plan has been introduced in both chambers of the General Assembly for over a decade now. In recent years its repeat sponsors have been Rep. Scott Slater, D-Providence, and Sen. Susan Sosnowski, D-South Kingstown.
Most electric and gas ratepayers in Rhode Island are on default service, also called last resort service. Every month Rhode Island Energy sends customers a bill for supply and delivery charges based on how much energy a household has used that month.
A percentage of income payment plan (PIPP) made available to low-income residents would replace that structure. To satisfy their bills, eligible residents at or below 150% of the federal poverty level (around $49,000 for a family of four) would pay based on their income: 3% of their income for heat, and another 3% for electricity.
“It’s to ensure that home energy utility costs are affordable for eligible low-income households,” said Sosnowski at a hearing on her bill on May 21.
Under the legislation, it would be up to the state Public Utilities Commission to oversee the process for the utility company, Rhode Island Energy, to collect the difference from all other ratepayers.
That process isn’t new; if Rhode Island Energy collects too little or too much from their Rhode Island customers in order to cover the supply of electricity, the companies goes through a cost reconciliation process with state regulators.
A PIPP isn’t brand new to Rhode Island. The state had a pilot program for some residents back in the late 1980s, but a permanent plan was never enacted. Other states, like Ohio, Colorado, Pennsylvania (home state of Rhode Island Energy’s corporate owners), and New Jersey have enacted PIPP legislation.
The legislation is backed by the George Wiley Center, a Pawtucket-based nonprofit dedicated to utility justice, and the Environment Council of Rhode Island, who see it as a key component for a just energy transition away from fossil fuels.
The legislation’s main opponent is the state’s primary utility company. The legislation was stonewalled by National Grid when it owned Rhode Island’s electric and gas assets, and Rhode Island Energy, owned by the PPL Corporation, has opposed the legislation, including this year’s bills.
During the PIPP bill’s House hearing in early April, Slater told the House Corporations Committee he and the George Wiley Center met with Rhode Island Energy to find a compromise on the program.
“I was hoping to get to a resolution, but we weren’t able to come to an agreement,” he said.
Rhode Island Energy is opposing the legislation again, but this time the company has unveiled its own PIPP-inspired program that’s before state regulators at the Public Utilities Commission, as part of the company’s ongoing base rate distribution case this year.
It’s called LIDR+, a discount rate tier proposed for 60% of the lowest earning ratepayers in the state. Rhode Island Energy has said the program would not add “significant costs for others,” and if approved by state regulators, the discounts could begin as early as next year.
“It uses the same principles as income-driven results to improve energy affordability for our most vulnerable customers,” said Nick Ucci, a Rhode Island Energy lobbyist.
Rhode Island has an energy problem. The main driver is the New England region’s reliance on natural gas as a source of electricity and heat, despite there being no natural gas resources to exploit. That means the region has to import it, via the Algonquin pipeline or via ship transports landing at the Port of Providence.
Thanks to wars in the Ukraine and Iran, the price of fossil fuels has yet to decrease to pre-2022 levels, even as the United States produced and exported record amounts of natural gas.
And Rhode Islanders are feeling the pinch. According to the latest filings at the PUC, as of March 2026 around 100,000 electric accounts out of a total 460,000 are 30 days or more behind on their electric bills. On the gas side, it’s around 74,000 out of 259,000 total accounts.
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And who exactly will be expected to make up the difference? Many of us are hovering just above the 150% poverty line but we will not only pay the bill for ourselves, but for others as well. Just another example of income redistribution with no special accommodation to ease our expenses. Who will be looking out for our “utility Justice”?
I don’t see how that’s can work – household income is constantly changing as people get jobs, get overtime, get laid off, come to or leave the household. Plus there is a significant under the table economy of income not reported. There will need to be an expensive bureaucracy to enforce this or there will be significant fraud and high use of electricity not paid for by the users.
Better to have lifeline rates for all, where a basic amount of electricity is available to all, and those who go over that amount pay increasing rates. That would give everyone an incentive to conserve and low prices for a basic amount will help those with low incomes
No, no, no way! People need to take care of themselves. We worked multiple jobs and overtime to cover our expenses. We worked different shifts so our children did not have to be in daycare. We never spent foolishly, used coupons for grocery shopping, and made meals based on the sale items. We had a vegetable garden, hours of work weeding and then canning the food for the winter months. We always buy our clothes on sale or made them ourselves. We do not buy coffee at Dunkin Donuts/ Starbucks; we make it at home. We never went on vacations away from home. No one was pounding down our door to pay our bills. Why are laws always being made to take money out of our pockets for others? Stop thinking of ways to empty our pockets! There are so many programs out there already for low income individuals, section 8, food assistance, heating assistance, the RI Promise Program at CCRI, the Hope Scholarship at RIC and the list goes on and on.
Let’s not forget some individuals have electric vehicles. They already do not pay road tax. Now you want us to subsidize their charging as well.
I agree that something needs to be done to combat the ridiculously high electric bills. There is already a fee charged for a fund for low-income. We do not need another one. And there are families who are just above the poverty level but cannot qualify for any help…what about them? BUT, I also think people need to look at how they are using electricity. How many TVs do you have? I know people who keep TVs on all day ‘for noise.’ Electronic games. Computer games. Do you leave lights on when you are not in a room? Do you have LED bulbs? People in general today are wasteful. I’m not saying you need to live like a monk, but people do need to be aware that some of the problem might, MIGHT be because lots of people don’t think about how they are using/wasting electricity. I am very low income, but I try not to be wasteful: I unplug my laptop/lights/appliances when not in use. I do not own a TV…just my laptop. I don’t leave lights on…I keep a light in the kitchen and a light in the room where I’m at. All my bulbs are LED. Up until a year or two ago, my bill was very low…still is compared to most people (and I own a house). My family teases me but I have to live within my means. The delivery charges and fees make up most of my bill. I hate paying it. But I do. In full. Every month. Just a thought.