Energy Efficiency Resource Standard
Rhode Island's Energy Efficiency Resource Standard requires utilities to fund energy efficiency and demand response programs through a surcharge on your electricity and gas bills (in place through 2028). Contact your utility or visit the Rhode Island Energy Efficiency Council to learn what rebates, audits, or upgrade programs are available to reduce your energy use and lower your bills.
The state's utilities must implement PUC-approved efficiency programs targeting specific energy savings (for example, 1.4+ billion lifetime MWh of electric savings required over 2024-2026). Programs are administered by individual utilities, evaluated using the Total Resource Cost test, and must include support for combined heat and power systems at commercial and institutional facilities—contact your local utility for program requirements and incentive details.
Rhode Island's triennial efficiency targets (2024-2026: ~1.4 billion MWh electric, ~7.1 billion MMBtu gas, and 95 MW demand response) are set by the PUC and implemented by distribution companies through plans vetted by the Energy Efficiency Council. Utilities recover program costs via PUC-determined surcharges on electricity (per kWh) and gas (per Dth) delivery, with both mechanisms authorized through 2028; the Total Resource Cost test governs program cost-effectiveness evaluation.
Program details
- Program ID
- 4507
- Last updated
- 6/30/2025
Eligibility
- Sectors
- investor-owned utility municipal utilities cooperative utilities
- Technologies
- yes; specific technologies not identified
Program summary
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 |
Each electric and natural gas distribution company must submit to the PUC for review and approval every three years -- beginning September 1, 2008 -- a plan for system reliability, energy efficiency and energy conservation procurement.
Program Administrator Type
While the recommended standards and programs intended to meet the standard are initially vetted through the Rhode Island Energy Efficiency Council (EEC, formerly the 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.
Contact & resources
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
