Ferry Operator Seeks 44% Rate Increase

A&R Marine Corp. reached a settlement with state regulators that would raise Prudence Island ferry revenue by about $582,000 a year.

Updated on Nov. 1, 2026 in Utilities

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A&R Marine Corp., which operates Prudence & Bay Islands Transport, reached a settlement October 28 with the Rhode Island Division of Public Utilities and Carriers that would allow roughly $582,000 more in annual revenue. The agreement reduces the company's original request by $102,043 and includes a 24-hour round-trip discount for travel between Prudence Island points.

Why it matters

The settlement would be the first rate increase request from the ferry operator in about 10 years, affecting residents and visitors who rely on service between Prudence Island, Bristol and Warwick. Because the agreement does not automatically set new fares, the Public Utilities Commission's review will determine whether and how the increase takes effect for riders across Rhode Island.

The settlement permits about $582,000 in added annual revenue, a 44% increase over current levels, compared with the $683,782 originally requested. Whether the Public Utilities Commission approves the figure at its November 4 hearing remains undecided.

The players

A&R Marine Corp.

A&R Marine Corp. is the company that operates Prudence & Bay Islands Transport, the ferry service linking Prudence Island with the Rhode Island mainland.

Rhode Island Division of Public Utilities and Carriers

The Rhode Island Division of Public Utilities and Carriers is the state agency that represents consumer and public interests in utility rate proceedings.

Rhode Island Public Utilities Commission

The Rhode Island Public Utilities Commission is the state body that regulates utilities and must approve or reject rate changes such as this ferry settlement.

The details

A&R Marine Corp. filed its rate application March 9 and held a public hearing on Prudence Island September 2. The Division of Public Utilities and Carriers negotiated the October 28 settlement to resolve all outstanding issues, and the revised rates replace the company's original proposal.

March 9, 2026: A&R Marine filed its rate application.
September 2, 2026: A public hearing was held on Prudence Island.
October 28, 2026: The settlement was reached with the state division.
November 4, 2026, 9:30 a.m.: The Public Utilities Commission holds an evidentiary hearing on the settlement.

Market Landscape

The settlement follows the standard Rhode Island process in which a negotiated agreement between a regulated operator and the state Division of Public Utilities and Carriers goes to the Public Utilities Commission for final approval. It reflects a case in which the operator's original request was trimmed before reaching regulators.

If approved, the settlement would raise fares for riders on the Prudence Island ferry, though the 24-hour round-trip discount would apply to travel between Prudence Island points. Riders should watch for the commission's decision on the new fare schedule after the November 4 hearing.

The takeaway

Ferry riders and island residents should track the November 4 hearing, since the commission's decision will determine the final fares. Watching how the regulator weighs the settlement can show how rate requests from essential transit services are resolved in Rhode Island.

What happens next

The Public Utilities Commission will hold an evidentiary hearing on the settlement at 9:30 a.m. on November 4, 2026, where it will consider whether to approve the agreement.