Limit utilities’ profits to protect ratepayers
By Rep. Megan L. Cotter
Rhode Islanders are being pushed to the breaking point by sky-high utility rates. With electricity costing an average of 27.57 cents per kilowatt-hour— 61% higher than the national average —many families are paying over $130 a month just to keep the lights on. For those living paycheck-to-paycheck, that’s a devastating hit to their already-stretched budgets.
These rates aren’t just a financial inconvenience; they’re forcing impossible choices. Senior’ s on fixed incomes, parents with young children, and low-income families often have to sacrifice food, rent or medicine just to pay their utility bills. No one should have to choose between basic needs and staying warm in winter or cool in summer.
Part of the problem is that Rhode Island’s utility companies, like Rhode Island Energy, operate as distribution monopolies.
With no competition, they have little incentive to keep rates fair or service reliable. President Theodore Roosevelt warned us about monopolies over a century ago, saying, “The absence of effective state, and, especially, national, restraint upon unfair money-getting has tended to create a small class of enormously wealthy and economically powerful men, whose chief object is to hold and increase their power.” It’s the government’s job to step in and protect people from these practices — and that’s exactly what we need to do.
That’s why I’m proposing a cap on gas and electric utility profit margins at 4%. This cap will ensure that utility companies focus on providing fair, efficient and reliable service instead of inflating profits for shareholders. It will also help stabilize utility costs for hardworking Rhode Islanders who are struggling under the weight of rising expenses.
By capping profits, we’ll not only give relief to families but also bring much-needed transparency to the system. Utility companies will need to be clear about where your money goes and invest in infrastructure and renewable energy projects that benefit everyone without clear-cutting forests.
It’s time to put Rhode Islanders first. No one should have to choose between keeping the lights on and putting food on the table. I urge my fellow legislators to support this measure and work toward long-term solutions to make utilities more affordable for everyone.
Rep. Megan L. Cotter
Rep. Megan L. Cotter (D-Dist. 39, Exeter, Richmond, Hopkinton) is the sponsor of legislation (2025-H 5018) to limit electric and gas utilities’ return on equity to 4%.