Public Utilities Commission approves electricity rate hike

THE STATE Public Utilities Commission on Tuesday unanimously approved an electricity rate increase proposed by National Grid.
THE STATE Public Utilities Commission on Tuesday unanimously approved an electricity rate increase proposed by National Grid.

(Updated, 3:44 p.m.)

WARWICK – The state Public Utilities Commission on Tuesday unanimously approved a proposed electricity rate hike, which will be divvied up as a monthly rate hike throughout the year for residential customers, while a 10 percent deferral is slated for commercial customers.

The overall amount being paid to National Grid will remain the same, but the system of how it’s paid is adjusted. Originally, National Grid proposed a residential rate increase of 26.4 percent, much of which would be paid for in the first six months of the year.

The Commission, in an attempt to spread out the financial burden, voted in favor of reducing the monthly increase to 14.2 percent, which will remain the same every month of the year, according to spokesman Thomas Kogut of the Rhode Island Division of Public Utilities and Carriers. The typical residential customer will pay an average increase of $12.34 per month.

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The Commission voted differently for commercial rates and deferred 10 percent of the increase to the second six months of the year. From January to June the rate will be 12.139 cents per kilowatt hour and from July to December the rate will decrease to 10.592 cents per kilowatt hour.

A minor adjustment could be made in July, Kogut said.
The industrial rate increase didn’t change, Kogut said, but all three rates include the Renewable Energy Standard cost of 0.48 cents per kilowatt hour.

The new rates go into effect Jan. 1.

According to information from National Grid, the electricity supply rate initially requested by National Grid was in line with those recently sought by other electric utility companies in New England.

“The impact of this lower rate increase on residential customers using 500 kilowatts per hour of electricity a month amounts to a total net bill increase of $10.53 per month when compared to rates in effect last January 2014, from $88.28 to $98.81,” according to a National Grid press release.

In the news release, National Grid reminded its Rhode Island customers that they “have the option to purchase their electricity supply from National Grid or alternative energy supply companies,” a list of which can be found on the Commission’s website. National Grid also rationalizes the increases, saying there isn’t sufficient natural gas transmission lines serving the region, so “electric generators must then switch to more costly fuels.”

“National Grid purchases it electricity supply through competitive purchasing procedures and passes the costs of the electric supply through to the customers with no profit to the company,” according to the release.

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