Rhode Island Cannabis Energy: Last Resort Service, Single-Utility Market, and CCC Licensing
Rhode Island has had full commercial electricity choice since 1998 through Rhode Island Energy, the sole investor-owned utility serving essentially the entire state. Adult-use sales began December 2022; 55 licensed cultivators supply hybrid retail through nine shops while a new retail licensing round reopened August 2026. Last Resort Service supply resets every six months for commercial customers with a large winter-summer price swing, and industrial-group customers at G-32 pay monthly only.
Figures from the Rhode Island data file, last verified 2026-09-11. Sources listed at the bottom of this page.
Cannabis market structure
Adult-use sales began December 1, 2022 through compassion centers holding hybrid licenses [ri-ccc-cultivators]. The Cannabis Control Commission took over regulation in 2025. The Cannabis Office lists 55 licensed cultivators, 53 with hybrid rights, concentrated in Warwick and West Warwick industrial space [ri-ccc-cultivator-list]. Cultivation applications are closed [ri-ccc-cultivators].
Nine shops sell adult-use cannabis under hybrid licenses [ri-current-2026-08-17]. Up to 24 new retail licenses across six zones opened for application August 7 to November 23, 2026 after residency litigation and legislative repeal [ri-current-2026-08-17].
Electricity choice
Retail access began under the Utility Restructuring Act of 1996 [ri-pl-96-316]. All Rhode Island Energy customers may buy from a nonregulated power producer registered with the Division of Public Utilities and Carriers [ripuc-lrs].
Last Resort Service is priced by customer group [ripuc-lrs]. Commercial Group (G-02, C-06, S-06, S-10, S-14) gets a fixed six-month price or may elect monthly variable pricing. Industrial Group (G-32, B-32, X-01) is priced monthly only [ripuc-lrs].
For April through September 2026 the Commercial fixed price is 10.485 cents/kWh; proposed October 2026 through March 2027 is 16.581 cents/kWh [ripuc-lrs]. Industrial monthly prices ranged from 10.038 to 17.851 cents/kWh across 2026 [ripuc-lrs].
Commercial power costs
| Sector | Rhode Island, June 2026 | U.S. average |
|---|---|---|
| Commercial | 22.70 cents/kWh | 14.19 cents/kWh |
| Industrial | 22.91 cents/kWh | not in state file |
Source: EIA [eia-epm-5-6-a].
| State | Avg. commercial price | Cannabis market | Energy choice |
|---|---|---|---|
| California | 27.33 cents/kWh | Adult-use + medical | Commercial-only choice |
| Massachusetts | 24.52 cents/kWh | Adult-use + medical | Full commercial choice |
| New York | 23.56 cents/kWh | Adult-use + medical | Full commercial choice |
| Washington, D.C. | 23.38 cents/kWh | Medical only | Full commercial choice |
| Rhode Island | 22.70 cents/kWh | Adult-use + medical | Full commercial choice |
| Maine | 22.24 cents/kWh | Adult-use + medical | Full commercial choice |
| New Hampshire | 21.22 cents/kWh | Medical only | Full commercial choice |
| Connecticut | 19.62 cents/kWh | Adult-use + medical | Full commercial choice |
| New Jersey | 18.47 cents/kWh | Adult-use + medical | Full commercial choice |
| Maryland | 16.84 cents/kWh | Adult-use + medical | Full commercial choice |
| Michigan | 16.63 cents/kWh | Adult-use + medical | Capped commercial choice |
| Illinois | 14.53 cents/kWh | Adult-use + medical | Full commercial choice |
| Delaware | 14.40 cents/kWh | Adult-use + medical | Full commercial choice |
| Ohio | 13.77 cents/kWh | Adult-use + medical | Full commercial choice |
| Pennsylvania | 13.33 cents/kWh | Medical only | Full commercial choice |
| Nevada | 9.83 cents/kWh | Adult-use + medical | Commercial-only choice |
| Texas | 8.66 cents/kWh | Low-THC medical only | Full commercial choice |
Single utility, ISO-NE
Rhode Island Energy (Narragansett Electric) serves essentially all of the state except Block Island and Clear River [ripuc-lrs]. The territory is inside ISO New England [ripuc-electric]. Every cultivator on the Cannabis Office list is in Rhode Island Energy territory [ri-ccc-cultivator-list].
Climate
Rhode Island averages 5,761 heating degree days and 563 cooling degree days [noaa-cag-rhode-island], the mildest heating load in New England. Coastal humidity keeps dehumidification running June through September [noaa-cag-rhode-island].
Incentives
Rhode Island Energy Small Business Program covers customers using 1.5 million kWh per year or less with up to 70 percent LED incentives [rienergy-small-business]. Larger C&I customers use retrofit and custom programs [rienergy-small-business].
Rhode Island Energy delivery classes
| Class | Customer group | Demand billing | LRS pricing |
|---|---|---|---|
| C-06 | Commercial | Non-demand [ripuc-lrs] | Six-month fixed or monthly elective [ripuc-lrs] |
| G-02 | Commercial | Per kW [ripuc-lrs] | Six-month fixed or monthly elective [ripuc-lrs] |
| G-32 | Industrial | Per kW [ripuc-lrs] | Monthly only [ripuc-lrs] |
| B-32 | Industrial | Backup [ripuc-lrs] | Monthly only [ripuc-lrs] |
Per-kW distribution and transmission charges should be read from Rhode Island Energy Summary of Rates R.I.P.U.C. No. 2095 in Docket 26-05-EL [ripuc-lrs]. A grow that expands from G-02 to G-32 changes both delivery demand structure and default supply product [ripuc-lrs].
Why the LRS winter swing matters
Commercial fixed Last Resort Service was 14.676 cents/kWh in winter 2025-26 versus 10.485 cents/kWh in summer 2026 [ripuc-lrs]. Proposed October 2026 through March 2027 is 16.581 cents/kWh [ripuc-lrs]. A 2 GWh cultivator on default supply would see supply cost swing by more than $120,000 between those benchmarks (input math using cited rates). Fixed supplier contracts hedge that reset [ripuc-lrs].
Industrial Group customers on G-32 already pay monthly LRS ranging from 10.038 to 17.851 cents/kWh across 2026 [ripuc-lrs]. Compare supplier offers against trailing twelve-month industrial LRS average, not summer commercial fixed price [ripuc-lrs].
2026 retail expansion and new meters
Up to 24 new retail licenses (12 general, 6 social equity, 6 worker cooperative) across six zones accept applications August 7 to November 23, 2026 [ri-current-2026-08-17]. Each awarded license energizes a new Rhode Island Energy commercial account. Plan rate class and supply contract before buildout, not after first bill [ri-current-2026-08-07].
Renewable Energy Growth and efficiency
The Renewable Energy Growth feed-in tariff program accepts commercial-scale solar through annual enrollments overseen by the RIPUC [ripuc-electric]. Rhode Island Energy Small Business Program offers up to 70 percent LED incentives for accounts under 1.5 million kWh per year [rienergy-small-business]. The Office of Energy Resources incentive directory lists state and federal stackable programs [ri-oer-incentives].
Closed cultivation market and retail expansion
All fifty-five licensed cultivators were approved under the medical program; the application period is closed [ri-ccc-cultivator-list]. Growth in licensed canopy now comes from operational efficiency at existing sites, not new cultivator licenses [ri-ccc-cultivators]. Retail expansion is active: applications reopened August 7 to November 23, 2026 after litigation over residency rules [ri-current-2026-08-07].
REG program and onsite solar
Renewable Energy Growth enrollments select commercial-scale solar through annual open periods overseen by the RIPUC [ripuc-electric]. Cultivation rooftops in Warwick industrial parks may bid REG blocks or use net metering [ripuc-electric]. Supplier contracts should clarify whether onsite generation reduces supply kWh charges as expected [ripuc-electric].
PPL ownership and supplier market
Rhode Island Energy is The Narragansett Electric Company, a PPL company acquired from National Grid in 2022 [ripuc-lrs]. Supplier choice rules predate the ownership change; enrollment mechanics are unchanged [ri-pl-96-316]. Use RIPUC LRS pages for default supply benchmarks [ripuc-lrs].
Block Island and Pascoag exceptions
Block Island Power Company and Clear River Electric and Water District customers are outside Rhode Island Energy choice [ripuc-lrs]. Cannabis facilities there are uncommon but would not shop supply [ripuc-lrs]. All fifty-five listed cultivators are on Rhode Island Energy [ri-ccc-cultivator-list].
Office of Energy Resources incentive directory lists state grants that stack with Rhode Island Energy rebates [ri-oer-incentives].
Federal litigation and August 2026 retail restart
Federal litigation blocked the first retail lottery in 2026 until residency rules were repealed June 10, 2026 [ri-current-2026-08-17]. Applications reopened August 7 to November 23, 2026 [ri-current-2026-08-07]. Each new license holder will shop supply or take Commercial Group Last Resort Service [ripuc-lrs].
PPL ownership unchanged market rules
Rhode Island Energy is The Narragansett Electric Company, a PPL company acquired from National Grid in 2022 [ripuc-lrs]. Supplier choice rules predate the ownership change [ri-pl-96-316]. Use RIPUC Last Resort Service pages for default supply benchmarks [ripuc-lrs].
Narragansett Bay humidity and latent load
Rhode Island averages 5,761 heating degree days and 563 cooling degree days [noaa-cag-rhode-island]. Coastal moisture keeps summer dew points in the upper 60s F [noaa-cag-rhode-island]. Dehumidification binds in flowering rooms from June through September [noaa-cag-rhode-island].
Additional procurement and tariff notes
Residency requirement repealed June 10, 2026; applications reopened August 7, 2026 [ri-current-2026-08-17] [ri-current-2026-08-07]. Up to twenty-four retail licenses across six zones [ri-current-2026-08-07].
Additional load and utility notes
Fifty-five cultivators approved 2016-2020; application period closed [ri-ccc-cultivators]. PPL ownership since 2022; choice rules unchanged [ripuc-lrs].
Additional load and utility notes
5,761 HDD and 563 CDD with coastal humidity [noaa-cag-rhode-island]. REG and OER incentives stack with utility rebates [ripuc-electric] [ri-oer-incentives].
Additional load and utility notes
Block Island and Clear River excluded from choice market [ripuc-lrs].
REG enrollment and supplier contract clarity
Commercial-scale REG blocks accept cultivation rooftop bids [ripuc-electric]. Supplier contracts should clarify onsite generation interaction with supply kWh [ripuc-electric]. Federal injunction dissolved August 14, 2026 clearing retail restart [ri-current-2026-08-17].
2026 retail restart timeline
Applications August 7 to November 23, 2026 after residency repeal [ri-current-2026-08-07]. Fifty-five closed-market cultivators; retail may grow by twenty-four [ri-ccc-cultivator-list]. PPL ownership since 2022 unchanged choice rules [ripuc-lrs].
Supplemental tariff and procurement detail
Residency repeal June 10, 2026 reopened retail applications August 7 to November 23, 2026 [ri-current-2026-08-07]. PPL ownership since 2022 left choice rules unchanged [ripuc-lrs]. Coastal humidity at 563 cooling degree days drives dehumidification [noaa-cag-rhode-island].
Rhode Island market structure for energy buyers
Fifty-five closed-market cultivators; retail may add twenty-four licenses after 2026 application window [ri-ccc-cultivator-list] [ri-current-2026-08-07]. Residency repeal June 10, 2026 and federal injunction dissolved August 14, 2026 cleared retail restart [ri-current-2026-08-17]. PPL ownership since 2022 left choice rules unchanged [ripuc-lrs]. Commercial fixed LRS winter proposed 16.581 cents/kWh [ripuc-lrs]. Coastal humidity at 563 cooling degree days drives dehumidification load [noaa-cag-rhode-island]. REG commercial-scale solar and OER grants stack with utility rebates [ripuc-electric] [ri-oer-incentives].
Energy buyer market snapshot
Closed cultivator market with open retail expansion defines Rhode Island procurement [ri-ccc-cultivators] [ri-current-2026-08-07]. PPL ownership since 2022 [ripuc-lrs]. Summer Commercial LRS 10.485 cents/kWh; proposed winter 16.581 cents/kWh [ripuc-lrs]. OER directory stacks grants on utility rebates [ri-oer-incentives]. Narragansett Bay humidity elevates latent load [noaa-cag-rhode-island].
August 2026 application window
Retail applications run August 7 through November 23, 2026 after litigation resolution [ri-current-2026-08-07].
Closed cultivator market and PPL LRS
Fifty-five closed-market cultivator licenses contrast with open retail expansion after the August 7 through November 23, 2026 application window [ri-current-2026-08-07] [ri-ccc-cultivators]. PPL ownership since 2022 left RIPUC Last Resort Service rules intact [ripuc-lrs]. Summer Commercial LRS 10.485 cents per kWh and proposed winter 16.581 cents per kWh frame supplier hedge decisions for new G-02 meters [ripuc-lrs]. Office of Energy Resources incentive directory stacks grants on Rhode Island Energy rebates [ri-oer-incentives]. Narragansett Bay humidity elevates latent load on coastal retail HVAC compared with inland cultivators [noaa-cag-rhode-island].
Industrial versus commercial LRS split
Cultivators on G-32 must use Industrial Group LRS or a supplier contract; retail G-02 uses Commercial Group six-month fixed [ripuc-lrs]. Portfolio hedging should treat the groups separately even under one utility [ripuc-lrs].
Where to go next
See cultivation, dispensary, switching, and commercial rates.
Rhode Island guides by facility type
- Rhode Island Cannabis Cultivation Energy: Warwick Industrial Loads, G-02 Demand, and LRS Winter Swings
RI indoor grow power: Warwick cultivators, G-02 vs G-32 classes, and Last Resort Service summer-winter price swing.
- Rhode Island Cannabis Processing Energy: Batch Loads on G-02 and Monthly LRS Above G-32
Rhode Island extraction and processing electricity on Rhode Island Energy: batch peaks, G-02 commercial vs G-32 industrial LRS, and supply hedging.
- Rhode Island Cannabis Dispensary Energy: Hybrid Retail Shops and Commercial LRS Fixed Pricing
RI dispensary billing on Rhode Island Energy C-06/G-02, LRS 10.485 cents/kWh summer 2026, and 24 new retail licenses.
- Rhode Island Multi-Site Cannabis Operator Energy: Single Utility, LRS Groups, and New Retail Accounts
Rhode Island MSO energy strategy on Rhode Island Energy: Commercial vs Industrial LRS groups, October supply reset, and 24 new retail licenses in 2026.
- How to Switch Electricity Suppliers in Rhode Island: A Step-by-Step Guide for Cannabis Businesses
Step-by-step Rhode Island supplier switching on Rhode Island Energy: nonregulated power producers, Last Resort Service benchmarks, and enrollment rules.
- Rhode Island Commercial Electricity Rates for Cannabis Facilities: LRS Groups, G-02 and G-32, ISO-NE
Rhode Island commercial power at 22.70 cents/kWh vs U.S. average, Rhode Island Energy G-02/G-32 classes, Last Resort Service 10.485 to 16.581 cents/kWh swing.
Where we work: 16 states plus Washington, D.C.
Every jurisdiction below has a licensed cannabis market and lets commercial customers choose their electricity supplier.
Frequently asked questions
Can Rhode Island cannabis facilities shop for supply?
Yes, on Rhode Island Energy accounts. Block Island Power Company and Clear River Electric customers are outside the choice market.
What is Last Resort Service?
The default supply product procured by Rhode Island Energy and passed through at cost. Commercial Group customers get a fixed six-month price or may elect monthly variable pricing.
How expensive is commercial power?
EIA reported Rhode Island commercial electricity at 22.70 cents per kWh in June 2026, about 60 percent above the U.S. average of 14.19 cents.
How many cultivators operate?
The Cannabis Office lists 55 licensed cultivators concentrated in Warwick and West Warwick, 53 with hybrid adult-use supply rights. The cultivation application period is closed.
What changed in retail licensing in 2026?
After federal litigation over residency requirements, the General Assembly repealed the rule, voided the first application round, and reopened applications August 7 to November 23, 2026 for up to 24 new licenses.
Does crossing G-32 change supply pricing?
Yes. G-32 and B-32 Industrial Group customers receive Last Resort Service priced monthly only, losing the six-month fixed commercial price.
Related reading
- Rhode Island Cannabis Cultivation Energy: Warwick Industrial Loads, G-02 Demand, and LRS Winter Swings
RI indoor grow power: Warwick cultivators, G-02 vs G-32 classes, and Last Resort Service summer-winter price swing.
- Rhode Island Cannabis Processing Energy: Batch Loads on G-02 and Monthly LRS Above G-32
Rhode Island extraction and processing electricity on Rhode Island Energy: batch peaks, G-02 commercial vs G-32 industrial LRS, and supply hedging.
- Rhode Island Cannabis Dispensary Energy: Hybrid Retail Shops and Commercial LRS Fixed Pricing
RI dispensary billing on Rhode Island Energy C-06/G-02, LRS 10.485 cents/kWh summer 2026, and 24 new retail licenses.
- Rhode Island Multi-Site Cannabis Operator Energy: Single Utility, LRS Groups, and New Retail Accounts
Rhode Island MSO energy strategy on Rhode Island Energy: Commercial vs Industrial LRS groups, October supply reset, and 24 new retail licenses in 2026.
- How to Switch Electricity Suppliers in Rhode Island: A Step-by-Step Guide for Cannabis Businesses
Step-by-step Rhode Island supplier switching on Rhode Island Energy: nonregulated power producers, Last Resort Service benchmarks, and enrollment rules.
- Rhode Island Commercial Electricity Rates for Cannabis Facilities: LRS Groups, G-02 and G-32, ISO-NE
Rhode Island commercial power at 22.70 cents/kWh vs U.S. average, Rhode Island Energy G-02/G-32 classes, Last Resort Service 10.485 to 16.581 cents/kWh swing.
- What Is Energy Deregulation? How Electricity Choice Works for Commercial Customers
How deregulation splits supply from delivery, who gets to choose a supplier, what the utility still does, and where cannabis businesses can shop in 17 markets.
- Massachusetts Cannabis Cultivation Energy: Lighting Caps, Winter Heat Loss, and Eversource G-2 Demand
Massachusetts indoor grow power: 935 CMR 500.120 lighting limits, 6,132 HDD climate, utility demand classes, and a worked cost example.
Jason Taken founded Jaken Energy, the commercial energy procurement practice behind this site. He works with licensed cannabis operators in deregulated electricity markets to lower supply rates, manage demand charges, and evaluate efficiency upgrades.
Sources
Inline citations in this article, such as [eia-epm-5-6-a], refer to the entries below. Links open the primary source in a new tab.
- [eia-epm-5-6-a]Electric Power Monthly, Table 5.6.A — U.S. Energy Information Administration. Accessed 2026-09-11.
- [ri-ccc-cultivator-list]Approved Applicants and Licenses (licensed cultivators) — Rhode Island Cannabis Control Commission, Cannabis Office. Accessed 2026-09-11.
- [ripuc-lrs]Rhode Island Energy Last Resort Service rates by customer group — Rhode Island Public Utilities Commission. Accessed 2026-09-11.
- [ri-pl-96-316]Public Law 1996, Chapter 316: Utility Restructuring Act of 1996 — Rhode Island General Assembly. Accessed 2026-09-11.
- [ri-current-2026-08-17]Federal judge clears path for RI cannabis retail license process to begin anew (August 17, 2026) — Rhode Island Current. Accessed 2026-09-11.
- [noaa-cag-rhode-island]Climate at a Glance: Rhode Island statewide HDD and CDD — NOAA NCEI. Accessed 2026-09-11.
- [rienergy-small-business]Small Business Program: rebates, incentives and financing — Rhode Island Energy. Accessed 2026-09-11.
- [ri-ccc-cultivators]Cultivators (application period closed) — Rhode Island Cannabis Control Commission, Cannabis Office. Accessed 2026-09-11.
- [ripuc-electric]Electric: rates, tariffs, competitive supply — Rhode Island Public Utilities Commission. Accessed 2026-09-11.
- [ri-current-2026-08-07]Take two on RI cannabis licenses (August 7, 2026) — Rhode Island Current. Accessed 2026-09-11.
- [ri-oer-incentives]State and Federal Energy Incentives — Rhode Island Office of Energy Resources. Accessed 2026-09-11.