Origin
Rhode Island enacted legislation in 2006 requiring the state Public Utilities Commission (PUC) to establish standards for system reliability, energy efficiency and conservation procurement, including standards for energy supply diversification, distributed generation, demand response, and "prudent and reliable" energy efficiency and energy conservation measures.
Additional legislation enacted in June 2012 (H.B. 8233) requires utilities to support the installation of efficient combined heat and power (CHP) systems at commercial, industrial, institutional and municipal facilities. Each utility must specify in its annual efficiency program plan how it will do so. Proposed plans must be approved by the state's Energy Efficiency and Resource Management Council.
Electric Sales and Demand Reduction (and Natural Gas Sales Reduction)
The specific standards and guidelines pursuant to legislation must be reviewed at least once every three years. In late 2023, the PUC adopted the following required triennial targets for its rate-regulated electric and gas utilities for the period 2024-2026.
| Year | Electric Energy Savings (Lifetime MWh) | Gas Energy Savings (Lifetime MMBtu) | Electric Active Demand Response (MW) |
|---|---|---|---|
| 2024 | 1,397,644 MWh | 7,058,839 MMBtu | 86.7 MW |
| 2025 | 1,401,610 MWh | 7,090,690 MMBtu | 89.7 MW |
| 2026 | 1,413,953 MWh | 7,119,585 MMBtu | 94.6 MW |
Program Administrator Type
While the recommended standards and programs intended to meet the standard are initially vetted through the Rhode Island Energy Efficiency and Resource Management Council (EERMC), the seats of which are comprised of a representative range of energy efficiency stakeholders, the programs are administered by Rhode Island's affected utilities.
Cost Effectiveness and Program Evaluation
Rhode Island uses the Total Resource Cost test (TRC), one of the five "California tests" in the California Standard Practice Manual, as the primary test for evaluating the programs intended to meet the standard.
Utility Cost Recovery Provisions
Decoupling and Program Cost Recovery
Rhode Island Statute 39-2.1.2 requires each electric distribution company to include a surcharge per kilowatt-hour delivered to fund demand-side management programs, which are implemented by the electric distribution company. The electricity surcharge took effect January 1, 2008, and will remain in place through December 31, 2028. Similarly, each gas distribution company must include a surcharge per decatherm (Dth) delivered to fund demand-side management programs. The gas surcharge took effect January 1, 2007, and will remain in place through December 31, 2028. The PUC determines the surcharge levels, which are not specified by the statute, for electricity and gas delivery.
| Implementing Sector: | State |
| Category: | Regulatory Policy |
| State: | Rhode Island |
| Incentive Type: | Energy Efficiency Resource Standard |
| Web Site: | https://ripuc.ri.gov/utility-information/electric |
| Administrator: | |
| Start Date: | |
| Eligible Renewable/Other Technologies: |
|
| Electric Sales Reduction: | Varies annually (see entry) |
| Electric Peak Demand Reduction: | Varies annually for winter and summer |
| Natural Gas Sales Reduction: | Varies annually (see entry) |
| Name: | R.I. Gen. Laws § 39-1-27.7 |
| Date Enacted: | 06/29/2006 |
| Effective Date: | 06/29/2006 |
| Name: | R.I. Gen. Laws § 39-2-1.2 |
| Name: | R.I. PUC Docket 3931 (2009-2011 Triennial Plan) |
| Name: | R.I. PUC Docket 4202 (2012-2014) |
| Name: | R.I. PUC Docket 4443 (2015-2017) |
| Name: | R.I. PUC Docket 4684 (2018-2020) |
| Name: | R.I. PUC Docket 5023 (2021-2023) |
| Name: | R.I. PUC Docket 23-21-EE (2024-2026) |
| Name: | R.I. PUC Docket 23-35-EE (2024-2026 RI Energy Plan) |
| Name: | Public Information - RIPUC |
| Organization: | Rhode Island Public Utilities Commission |
| Address: |
89 Jefferson Blvd. Warwick RI 02888 |
| Phone: | (401) 941-4500 |
This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.
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