RI Utilities Commission Ends Gas Subsidies, Advances Heat Pump Adoption

Major decisions protect customers from paying for new gas connections and take steps toward addressing electric heat pump overcharges

CLF advocated for changes to Rhode Island Energy’s request, submitting evidence and expert testimony to end the costly expansion of the gas system and support those who upgrade to heat pumps. Photo: Ran Allen via Creative Commons 2.0

August 21, 2026 (Providence, RI) – Rhode Island’s Public Utilities Commission (PUC) finalized key decisions during its meeting Friday that will help move the state toward a cleaner, more affordable energy system. In addition to reducing Rhode Island Energy’s request for higher profits, the commission approved ending a policy that saddled existing gas customers with the cost for new gas hookups and accepted a settlement to examine the overcharging of heat pump users.

“These decisions move Rhode Island toward an energy system that puts families and businesses first,” said Jamie Rhodes, director of clean buildings at Conservation Law Foundation. “They mark important steps away from costly investments in our fossil fuel past and toward a cleaner, more affordable energy future. This will protect Rhode Islanders’ hard-earned dollars, cut harmful emissions, and advance the state’s climate goals.”

The decisions are the result of a months-long deliberation over Rhode Island Energy’s request to increase utility rates. Conservation Law Foundation (CLF) advocated for changes to Rhode Island Energy’s request, submitting evidence and expert testimony to end the costly expansion of the gas system and support those who upgrade to heat pumps.

The PUC decided to phase out subsidies for new gas connections, which force existing gas customers to help pay the cost of connecting new users to the system. The practice is a bad deal for existing customers who are required to pay for new gas infrastructure, and the continued expansion of our polluting gas system is at odds with Rhode Island’s climate goals.

The PUC also accepted a settlement between CLF and Rhode Island Energy that will require the utility to study to what extent heat pump owners are being overcharged for electricity service.  Heat pumps can efficiently heat and cool homes with electricity, reducing reliance on dirty and volatile fossil fuels. CLF introduced significant testimony that demonstrates how existing rates predictably and measurably overcharge heat pump customers for service.

CLF will continue to advocate to make it easier and more affordable for Rhode Islanders to choose clean electric heating and cooling while protecting customers from volatile fossil fuel energy costs.

CLF experts are available for further comment.

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