Last Resort Service

Last Resort Service overview

bill identifies you as an LRS customer by listing RIE as your supplier. LRS ensures that no one will be without a supply of electricity.

How Last Resort Service works

To make sure we can provide you electricity through LRS, we buy electricity periodically throughout the year. We conduct a competitive solicitation, requesting bids from wholesale electricity suppliers who want to supply us with electricity that we can deliver to you. As a result, we enter into contracts to purchase electricity from one or more of these wholesale suppliers. We do not profit from any of these arrangements or from the prices we pay wholesale electricity suppliers under these contracts.

Customer groups and delivery services

RIE purchases its LRS supply and sets LRS rates for three groups of customers. The three customer groups and the delivery services included in each are as follows:

• Residential
• Basic residential (A-16)
• Low income (A-60)
• Commercial
• Small C&I (C-06)
• General C&I (G-02)
• Streetlighting (S-05, S-06, S-10 & S-14)
• Industrial
• Large demand back-up service (B-32)
• Large demand rate (G-32)
• Electric propulsion (X-01)

Overview of pricing options

As an LRS customer, the pricing options available to you will depend on your customer group.

• Residential
• Fixed price
• Commercial
• Fixed price option
• Monthly variable price option
• Industrial
• Variable price

Fixed price option

The LRS rate billed to you under the Fixed Price Option will remain the same for a pricing period (currently 6 months for residential and commercial customers). Under the Fixed Price Option, the LRS rate changes every April 1 and October 1. All rates are based on the average monthly contract prices in our LRS supply contracts over the pricing period.

• Automatic Enrollment: All Residential Group customers and all Rate C-06 (Small C&I) Commercial Group customers are automatically placed on the Fixed Price Option when first applying for LRS.
• Switching to the variable price option: Rate C-06 Commercial customers can switch to the Variable Price Option once during a twelve-month period. However, once your choice has been made, you must remain on the Variable Price Option for at least twelve (12) months.

Variable price option

The monthly rates under the Variable Price Option will change from month to month to reflect the monthly prices of electricity we purchase each month under our contracts with our LRS suppliers.

• Automatic enrollment: All Industrial Group customers and all Commercial Group customers served under rates G-02, S-05, S-06, S-10 or S-14 are automatically placed on the Variable Price Option when first applying for LRS.
• Switching to Fixed Price Option: Commercial customers can switch to the Fixed Price Option once during a twelve-month period. However, once your choice has been made, you must remain on the Fixed Price for at least twelve (12) months.

Current and past rates

For current and past Last Resort Service rates, please visit:

• LRS rates for all customer groups
• Summary of rates - Last Resort Service - RIPUC 2096

Other Costs Included in Last Resort Service Rates

In order to provide LRS rates that can be compared to prices of competitive suppliers, Rhode Island Energy is allowed to include in the LRS rates that appear on your bill an additional charge to reflect certain administrative costs that are paid by RIE.

Administrative Costs Include:

• Cost of “working capital”
• LRS charges that were unable to be collected from other customers
• Cost of employees who conduct competitive solicitations, enter into contracts, calculate rates, submit rates for approval, create and distribute information, and bill customers

Compliance with Renewable Energy Standards

RIE is subject to rules developed to promote clean, renewable energy. These rules require us to either buy electricity generated from renewable resources or purchase Renewable Energy Certificates (RECs). The cost of purchasing RECs is included on your bill as a component of the Energy Charge, under the Supply Services section.

As explained, your bill is separated into two services: supply and delivery. While you cannot control how the electricity is delivered to your home, you can reduce your costs by reducing your consumption of electricity and/or purchasing your electric supply from the seller of your choice.

For more information about choosing a competitive supplier, please visit our Energy Choice page.