Last Resort Service Procurement

Supplier Proposals and Procurement Process

Rhode Island Energy is seeking proposals from competitive suppliers to fulfill its obligation as a Last Resort Service provider. As a Last Resort Service provider, Rhode Island Energy must purchase and provide generation supply for customers who don’t choose alternative suppliers.

Two people shaking hands in front of an electrical transmission tower.

Rhode Island Energy procures energy on a quarterly basis, holding auctions in January, April, July and October. These contracts are broken up into tranches and include laddered supply for load following full requirements fixed price tranches.

This website will serve as the primary source of information and documents related to solicitations under Rhode Island Energy’s Last Resort Service. Please check back often for updated information and documents.

To learn more about the current proposal, complete our registration form. This will allow you to receive important updates, and information about the solicitation process.

Background Information

Rhode Island General Laws §§ 39-1-27.3 and 39-1-27.8 requires Rhode Island Energy to arrange for power supply for customers who are not otherwise receiving electric service from a Non-Regulated Power Producer (NPP). Standard Offer Supply (SOS) transitioned to Last Resort Service (LRS) in 2020. The LRS plan term also evolved from 1 year to 2 years. RIE currently leverages both Fixed Price Full Requirements (FPFR) service and spot market contracts in supply of customers on Last Resort Service (LRS).

LRS is procured via quarterly auctions with no load caps or limits on supply. The terms are divided into “summer” and “winter” periods (April – Sept, Oct – March). FPFR load following service helps buffer LRS customers from volatility in energy and ancillary costs.  The Forward Capacity Market (FCM) cost volatility is mitigated by utilizing capacity cost estimation.

The current LRS Plan is a 2-year term and will run through December 2024. For Residential & Commercial customer classes – 90% is Fixed Price Full Requirements load following supply and 10% is spot market supply. Contract terms vary from 6 months to 24 months. For Industrial – 100% is 3-month fixed price full requirements load following supply.  Wholesale suppliers bid a fixed $/MWh price for the specified term in the auction.

A winning supplier becomes responsible for the energy, ancillary services and any other miscellaneous Independent System Operator-New England (“ISO-NE”) charges associated with the LRS customer load. However, RIE assumes the costs associated with Capacity – with suppliers passing through these costs without mark-up for margin or risk.