STATE OF RHODE ISLAND
PUBLIC UTILITIES COMMISSION
IN RE: Block island utility district
d/b/a block island power company’s
annual reconciliation of last resort
and transmission charges
DOCKET NO.: 25-56-EL
ORDER
This matter is before the Public Utilities Commission (Commission) upon Block Island Utility District d/b/a Block Island Power Company’s (BIUD) power supply procurement plan and proposed Last Resort Service (LRS) and transmission rates for usage on or after January 1, 2026.[1]
BIUD’s procurement plan involves voluntarily meeting Rhode Island’s Renewable Energy Standard (RES) by purchasing energy and settling “New” and “Existing” Renewable Energy Certificates (RECs) through power purchase agreements and using REC accounting and criteria like the RES.[2] BIUD is continuing its policy of procuring RECs to achieve a 100% renewable energy supply.[3] The procurement plan developed by BIUD includes a portfolio of contracts meeting approximately 92% of BIUD’s annual energy requirement, 89.7% of which will be served by bundled energy and RECs contracts with hydroelectric facilities, and 2.3% of which will be served by similar contracts with solar facilities. BIUD’s remaining 8% load and REC requirements will be purchased on the ISO-NE spot market from presently undetermined sources.[4] The expected total energy and REC cost is $1,130,546, of which $251,239 will be borne by ratepayers.[5]
In support of its proposed rates, BIUD submitted pre-filed testimony of David Bebyn and Craig Kieny. BIUD subsequently filed revised proposed rates based on updated actual expenses from invoices received after its initial filing.[6] For a typical residential customer taking LRS and using 500 kWh per month, the bill impact of the proposal would be an increase of $2.25. Because BIUD has seasonal rates, the percentage impact on a customer’s bill varies depending on the season.[7] BIUD’s proposed LRS rate is a decrease from the current LRS rate, while its proposed transmission rate is an increase from the current transmission rate.[8]
The Commission issued one set of pre-hearing discovery to BIUD. Of note, BIUD stated through pre-filed testimony that its solar facility is not registered in NEPOOL-GIS because it is a load reducer for ISO-NE settlement purposes.[9] However, BIUD treats its solar facility as a source of RECs in its procurement plan, which could only be possible if the facility were registered in NEPOOL-GIS. After requesting clarification, BIUD agreed to register its facility in NEPOOL-GIS so that it could generate RECs that BIUD could settle.[10]
The Division of Public Utilities and Carriers (Division) submitted its position memorandum on December 16, 2025. The Division reviewed the filings and determined that BIUD’s power and REC procurements were reasonable, and that the proposed rates were reasonable and accurately calculated. Accordingly, the Division recommended that the proposed procurement plan, LRS rate, and transmission rates be approved.[11]
The Commission held an evidentiary hearing on December 18, 2025, during which an opportunity for public comment was offered. No members of the public provided comment. At an Open Meeting held on December 23, 2025, the Commission reviewed the filings and approved BIUD’s proposed procurement plan and proposed LRS and transmission rates for usage on or after January 1, 2026.
Accordingly, it is hereby:
(25583) ORDERED:
1. BIUD’s proposed 2026 LRS Procurement Plan is approved;
2. BIUD’s proposed 2026 Last Resort Service rate of 9.49 cents per kWh is approved for usage on or after January 1, 2026;
3. BIUD’s proposed 2026 transmission rate of 8.36 cents per kWh is approved for usage on or after January 1, 2026;
4. BIUD’s proposed tariff included in David Bebyn’s supplemental testimony filed on December 11, 2025 is approved.
EFFECTIVE AT WARWICK, RHODE ISLAND ON JANUARY 1, 2026 PURSUANT TO AN OPEN MEETING DECISION ON DECEMBER 23, 2025. WRITTEN ORDER ISSUED JANUARY 16, 2026.
PUBLIC UTILITIES COMMISSION
_______________________________
Ronald T. Gerwatowski, Chairman
_______________________________
Abigail Anthony, Commissioner
_______________________________
Karen M. Bradbury, Commissioner
NOTICE OF RIGHT OF APPEAL: Pursuant to R.I. Gen. Laws § 39-5-1, any person aggrieved by a decision or order of the Commission may, within seven days from the date of the decision or order, petition the Supreme Court for a writ of certiorari to review the legality and reasonableness of the decision or order.
[1] All filings submitted in this matter can be accessed on the Commission’s website at https://ripuc.ri.gov/Docket-25-56-EL at its offices at 89 Jefferson Boulevard, Warwick, RI during regular business hours.
[2] Kieny Test., at 3:6-12 (Nov. 18, 2025). For background, the RES requires obligated entities to obtain a yearly increasing percentage of electricity sold at retail from eligible renewable energy resources. Compliance with the RES can be demonstrated by settling RECs relating to generating units certified by the Commission as using eligible renewable energy sources. See R.I. Gen. Laws §§ 39-26-4(a)-(b), (d); 39-26-5.
A “New” REC (referred to in other jurisdictions as a “Class I” REC) means a certificate relating to a generating unit “using eligible renewable energy resources and first going into commercial operation after December 31, 1997; or the incremental output of generation units using eligible renewable energy resources that have demonstrably increased generation in excess of ten percent (10%) using eligible renewable energy resources through capital investments made after December 31, 1997; but in no case involve any new impoundment or diversion of water with an average salinity of twenty (20) parts per thousand or less.” R.I. Gen. Laws § 39-26-2(16). Conversely, an “Existing” REC (referred to in other jurisdictions as a “Class II” REC) is a certificate relating to a generating unit “using eligible renewable energy resources and first going into commercial operation before December 31, 1997.” R.I. Gen. Laws § 39-26-2(9).
[3] See Kieny Test., Attachment CK-2.
[4] Id. at 3:14-4:21, 6:3-6.
[5] BIUD’s Response to PUC 1-1.
[6] See generally Bebyn Suppl. Test. (Dec. 11, 2025).
[7] See id. at 2:5-14.
[8] Id. at 2:17-3:2.
[9] Kieny Test., at 6:8-13.
[10] BIUD’s Response to PUC 1-2 (Dec. 3, 2025).
[11] Division’s Position Mem., at 2 (Dec. 16, 2025).