The prospect of winter utility rate hikes drew sharp criticism Monday night from residents, activists, and elected officials, who blasted Rhode Island Energy for its proposed gas and electric rates during a public hearing.

The nearly-two-hour-long hearing held at the Rhode Island Public Utilities Commission’s Warwick offices comes less than a month before the commission’s scheduled vote on winter electric rates, which take effect Oct. 1, along with annual natural gas rates, which take effect Nov. 1. 

Rhode Island Energy, the primary supplier of electricity and natural gas for residents and businesses, has proposed higher rates for both electricity and gas supply compared with current, summer prices, as is typical during colder months.

If approved, the average residential customer would see their monthly electric bill increase 23.4%, or $32.16, starting Oct. 1. The average residential gas bill would increase $41.72 per year.

Business and industrial customers would also see their bills rise, with the increase dependent upon usage.

The proposed electric rates are slightly less than last winter, while rising natural gas supply costs will be slightly offset by a monthly bill credit due to accounting errors in the previous year, according to filings with state regulators.

But critics remain unconvinced by the argument that market demand and availability — not company profits — are driving the increases, despite state regulations that prevent the private utility provider from profiting off the power it buys from third-party suppliers.

“Not only is it cruel, it just doesn’t make sense that people are putting profit over people’s lives,” Lee Wilder said during the hearing. “Rhode Island already has the second highest electricity rates in the country. What are we going for, first?”

Wilder was among the dozen community activists who donned T-shirts signifying their participation in local community organizing efforts through the George Wiley Center and the Rhode Island Poor People’s Campaign. Both groups have pushed for a state policy change known as the Percentage Income Payment Plan, which would create a discount plan in which low-income ratepayers – earning less than 150% of federal poverty guidelines –  pay 3% to 6% of their income on gas and electricity. The proposal, modeled after similar policies in more than a dozen states, is a perennial fixture at the Rhode Island State House but has failed to gain traction in either chamber despite support from a handful of lawmakers, including Providence Democratic Rep. David Morales.

“In the grand scheme of affordability and cost of living, this is pushing people into utility debt, this is pushing people into losing service, and worst of all, this is pushing people into housing instability and eventually becoming homeless,” Morales said Monday.

Heartbreaking stories about rising rents, medical costs and child care featured prominently in testimony Monday.

Pawtucket resident Ubaldo Quintero said he already had his utilities shut off, after losing his job during the pandemic. Quintero’s wife has disabilities and requires electricity as part of her care.

“I don’t want to have to choose between eating and paying for services,” Quintero said, speaking through an interpreter.

College student Daisy Paz also lamented the obstacles to her education if she can’t afford to keep paying for electricity.

“I want to continue my studies, but I don’t have the money to pay for rate increases,” Paz said.

At the same time as the review of proposed rate hikes, state regulators are considering changes to the way rates are calculated including a model in which monthly costs fluctuate rather than stay flat for a six-month period.

Nicholas Vaz, special assistant attorney general to Rhode Island Attorney General Peter Neronha, in an Aug. 23 memo to state regulators, stressed the need to consider state decarbonization mandates under the Act on Climate Law if rate design and calculations are changed. Vaz also acknowledged the impact of proposed winter rate hikes on residents.

“As noted above, the LRS rates being considered in this docket are the result of pass-through supply costs, and the Company is not permitted to profit on supply,” Vaz wrote. “Still, this is of no comfort to Rhode Islanders who face increased bills each month during the winter period, just as they have in years past.”

The proposed electric rate hikes also do not account for refunds from a $25 million overcollection in 2023. Details of how the refund will be distributed are still being finalized.

State regulators will review and approve proposed winter electric and gas rates at a later meeting which has not been scheduled as of Tuesday.

Customers in seven municipalities — Barrington, Central Falls, Narragansett, Newport, Portsmouth, Providence, and South Kingstown — can opt out of the Rhode Island Energy electric prices and participate instead in a community aggregation plan that leverages bulk buying power to secure lower-priced electricity for its residents.