Advocates sound alarm over state's proposed multi-million-dollar budget cuts: 'It's a retreat'

In an effort to mitigate rising power bills, the state of Rhode Island is cutting funding to recent energy-efficiency programs. However, critics believe it could cost the state millions, while only saving households around $2 a month.

What's happening?

Rhode Island Energy, which runs the power grid in the state, plans on cutting spending for these programs by 18% — more than $42 million — according to Canary Media. This shift is a change of pace for the state, which has consistently ranked among the top 10 states in the country by the American Council for an Energy-Efficient Economy on its annual scorecard.

The logic behind the move mainly points to evolving issues in the energy market, as the costs for electricity and gas outpace inflation 2-to-1 and 4-to-1, respectively. In New England, specifically, these concerns are amplified by longer winters that require higher energy bills to heat homes, which is why several states have made similar moves in the name of consumers' wallets. 

Why is cutting energy-efficiency funding in Rhode Island concerning?

Advocates at the climate action nonprofit Acadia Center view the cuts as short-sighted, prioritizing short-term, small financial gains for the average customer over meaningful long-term cost reductions. 

"Energy efficiency is a tool for suppressing supply costs, for suppressing infrastructure costs in the long-term," explained Emily Koo, Acadia Center's program director for Rhode Island.

These measures pass savings down to customers by slowing energy consumption and avoiding the use of costlier, dirtier methods of producing energy. In fact, from 2005 to 2024, efficiency programs lowered electricity use by 5% in Rhode Island and would have raised those rates by roughly 15% if not established.

What's being done about these cuts?

In an incremental win for clean energy supporters in the state, the local Energy Efficiency Council (EEC) is not taking the bait. It voted not to endorse Rhode Island Energy's proposed 2026 plan, according to WPRI.

While it is still unclear how the cuts will shake out, advocates will continue to speak out to keep the focus on economic solutions that stand the test of time. 

"It's a retreat," said Larry Chretien, the executive director of the Green Energy Consumers Alliance. ​"It just feeds into the narrative — that we don't accept — that ratepayers aren't seeing benefits from energy efficiency."

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