RI Energy Head Says Legislators Are Using “Inaccurate Info” on Costs as Exec Pay Is Up

RI Energy Head Says Legislators Are Using “Inaccurate Info” on Costs as Exec Pay Is Up

The President of Rhode Island Energy, Greg Cornett, has taken to social media to criticize some members of the Rhode Island General Assembly.

Cornett posted to LinkedIn to claim that "lawmakers' efforts to ease electricity costs would hurt customers.”

 

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He goes on to state that “much of the discourse is based on inaccurate information about what is behind these increased costs.”

 

Cornett however did not address the increasing expense of executive compensation at the company. Cornett and the rest of RI Energy answer to a parent company located out of state.

 

 

 

CEO Compensation Up 31%

 

A GoLocal investigation published in June of 2024 unveiled the dramatic increase in CEO Vincent Sorgi's compensation.

 

Since Pennsylvania’s PPL bought Narragansett Electric and rebranded it RI Energy, energy prices both for gas and especially electricity have skyrocketed in Rhode Island.

 

In each of the past two winters, Rhode Islanders have seen electricity costs for homeowners and businesses jumping as much as 50% in a single year.

 

The increase in electricity costs jumped 47% in 2022 after regulators approved RI Energy’s rate increase.

 

At the same time Rhode Islanders were getting hammered, the CEO of RI Energy’s parent company, PPL, saw a massive increase in his compensation package.

 

Sorgi, the CEO and President, realized a 31% increase to $12 million a year, according to PPL's financial reports.

 

In 2022 Sorgi’s full compensation was $9,146,575. 

 

PPL said in a statement to GoLocal in June of 2024 defended the compensation.

 

"Regarding Mr. Sorgi’s compensation, specifically, CEO compensation is set by a committee of PPL’s Board of Directors, one comprised entirely of independent directors. More than 85% of our CEO’s compensation is at risk, based on performance against operational and financial goals aligned with increasing value for customers and shareholders," said the company. 

 

HERE IS CORNETT’S FULL POST ON LINKEDIN

 

There is a robust discussion happening in Rhode Island around energy affordability. Unfortunately, much of the discourse is based on inaccurate information about what is actually behind these increased costs. 

 

At Rhode Island Energy, our nearly 1,400 union and non-union employees work every day to bring safe, reliable energy to our customers as affordably as we can. 

 

Our efforts are working: in the time since we took over the operation of Rhode Island Energy, we have delivered one of the best electric reliability performance and gas response by any company in state history. 

 

But Rhode Island Energy controls only a portion of the monthly bill, with the majority of costs being driven by public policy mandates and supply costs. The portion of the average electric bill that supports our system operations and investment has decreased as a proportion of the total bill since 2021, while other components of the bill, including public policy costs, have grown significantly.

 

We welcome the dialogue on how to more affordably deliver energy to our customers in Rhode Island. There are in fact ways we can accomplish that. But that will require an honest discussion about the steps which will actually work for customers.

 

Lawmaker's effort to ease electricity costs would hurt customers | Opinion

 

This story was first published 2/12/25 5:39 PM