Last Resort Service

If you don’t select a competitive supplier, Rhode Island Energy provides electricity directly to you through Last Resort Service. On your bill, the supply services section identifies you as an LRS customer by listing RIE as your supplier.

To provide electricity for LRS customers, we conduct competitive solicitations throughout the year. Wholesale electricity suppliers submit bids, and Rhode Island Energy enters into contracts with one or more of these suppliers to purchase electricity. The prices you pay reflect the actual cost of electricity — Rhode Island Energy does not profit from these arrangements.

Additionally, we adhere to renewable energy standards by purchasing electricity from renewable sources or by acquiring Renewable Energy Certificates (RECs). The cost of RECs is included in your bill as part of the energy charge under supply services.

To learn more about the difference between supply and delivery services, visit our Rates and Shopping page.

Last Resort Service offers two pricing structures depending on your customer group: a fixed price option for residential customers and small commercial accounts, and a variable price option for larger commercial and industrial accounts.

Fixed price option

Residential customers and small commercial accounts start on the fixed price option, where rates remain the same for six months and are updated in April and October. These rates are based on the average monthly contract prices in Rhode Island Energy’s supply agreements. All residential customers and small commercial accounts (C-06) are automatically enrolled in the fixed price option when applying for Last Resort Service.

Small commercial customers can choose to switch to the variable price option, but they must remain on that option for at least twelve months before switching back.

Variable price option

Larger commercial and industrial accounts begin on the variable price option, where rates adjust monthly to reflect current electricity market prices. Larger commercial customers (G-02, S-05, S-06, S-10, S-14) and all industrial customers are automatically enrolled in the variable price option when applying for Last Resort Service.

Commercial customers in these groups can switch to the fixed price option, but they must remain on that option for at least twelve months before switching back.

Current and past rates

To view current and past Last Resort Service rates for all customer groups, visit our LRS rates page or consult the RIPUC 2096 Summary of Rates.

Additional costs included in rates

LRS rates include administrative costs necessary to ensure reliable electricity service for our customers. These costs may cover:

• Working capital: Funds used to manage the daily operations of Last Resort Service, such as purchasing electricity from suppliers and maintaining financial stability to ensure uninterrupted service.
• Uncollected charges: Costs related to unpaid bills from other Last Resort Service customers, ensuring that the system remains fair and operational for all users.
• Administrative expenses: The costs of employees who handle essential tasks like managing contracts, conducting competitive solicitations, processing billing, and ensuring compliance with regulatory requirements.