Newport Giving Options To Lower Electricity Bills For Residents

NEWPORT, RI — Newport's municipal aggregation program might save you some money on your electric bill next year, even with price hikes statewide on the way under Rhode Island Energy.

Newport is one of several cities and towns in the Ocean State developing an alternative way to buy electricity from Rhode Island Energy — which is planning a huge rate increase on Nov. 1. Public Utilities Commission, most Rhode Islanders will likely see an average of more than $50 a month added to their electric bill.

So beginning in May 2023, Newport, along with Barrington, Central Falls, Portsmouth, Providence and South Kingstown, will launch new community electrical aggregation programs with Good Energy, in an effort to lower prices and offer cleaner energy.

How does it work? State law allows individual cities and towns to buy electricity in bulk and sell it to residents. Otherwise, you default to National Grid as your supplier — and that means you pay the much higher Rhode Island Energy's much higher supply rates.

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If you examine your electric bill, you'll see two separate charges: one for distribution over the power lines, and one for electricity generation. The supply part of the bill is what you pay for generation before electricity travels across Rhode Island Energy's infrastructure.

Newport will buy electricity power from the broker Colonial Power Group. The group will announce their prices in March 2023, according to Good Energy.

According to Good Energy, the electricity offered in the program will exceed state renewable energy standards.

Participating cities and towns also committed to sourcing the energy from New England. Sources include solar power facilities in North Providence and Johnston, as well as wind turbines in Providence, Coventry and Narragansett.

"We are excited to help communities combat climate change while also looking out for the energy spend of their residents and businesses," said Philip Carr, the New England regional director of Good Energy. "Community electricity aggregation programs are rapidly transforming the electricity sector in many states, and we are thrilled to bring this program to Rhode Island consumers."