The brouhaha over National Grid’s rate increases for electricity is understandable.
For those living under a tight budget, the nearly 25 percent increase is potentially damaging. And the short lead time for the increase makes dealing with the change difficult.
The shock, however, should lead to a more reasoned discussion about the state’s and region’s energy policy.
First, diversity of energy supply is the greatest hedge against price shocks. With more of New England’s electricity being generated by natural gas combustion, it is clear current supply does not meet the demand, leading to price spikes on the spot market.
Second, expanding transmission capability for power created by large-scale hydroelectric projects in Canada, as Gov. Lincoln D. Chafee has advocated, is a necessity, as is continuing to add to the renewable energy portfolio in the region, including offshore wind.
Yes, projects such as Deepwater Wind are more expensive than other forms of energy. But as we have seen with solar energy, the more a technology is used, its per-unit cost comes down. And wind is perhaps the region’s most abundant natural resource.
Lastly, we must increase the supply of natural gas coming into the region, which means building more pipeline capacity. Fracking is not the cleanest method to get at fuel for energy. But properly regulated, it is a good, transitional form of energy, keeping the price competitive as renewable forms become more affordable.
President Barack Obama has made clear that federal energy policy is based on the “all of the above” philosophy. Rhode Island and other New England states should follow that logic as they make energy decisions for the region. •
