WARWICK – Electricity and natural gas customers across much of Rhode Island will face steep increases next week under National Grid rate requests approved yesterday by the R.I. Public Utilities Commission.

On electricity, the PUC approved a 21.7-percent increase in the Standard Offer rate paid by most customers – to 12.4 cents per kilowatt hour – the full increase sought by National Grid. (READ MORE) The unanimous vote came despite a filing on behalf of consumers by the R.I. Office of the Attorney General. But under state law, the PUC has little choice but to grant increases – such as this one – that only pass along fuel costs paid by the utility company.

On natural gas, the PUC approved an increase of 8 percent, rather than the 10-percent hike National Grid had sought.

Altogether, an average residential customer in the state will face an increase of $26.27 per month under the increases, both of which are slated to take effect on Tuesday.

National Grid’s average local residential customer using 500 kilowatt hours per month of electricity will now face a monthly bill of $93.44, or $16.67 per month more than under the current rates. The average natural gas bill, for those who heat their homes with gas, will rise to $129.43, an increase of $9.60 per month.

The PUC action came on the same day the governors of the New England states – including Gov. Donald L. Carcieri and Mass. Gov. Deval L. Patrick – joined in a letter to President George W. Bush seeking an increase in federal funding for the Low Income Home Energy Assistance Program (LIHEAP).

“Never before in modern history has New England faced the prospect of so many residents being unable to heat their homes as there will be this coming winter,” the governors wrote in a letter drafted at their Energy Summit this Wednesday in Boston. (READ MORE)

Additional information about the New England Governors’ Conference session and the resulting letter is available at www.negc.org. The governors also requested additional funding for weatherization; energy-efficient heating systems and appliances; and emergency aid for needy families.

National Grid, a division of the U.K.-based National Grid plc, distributes electricity and natural gas to nearly 4 million customers in Massachusetts, New Hampshire, New York and Rhode Island. Additional information is available at www.nationalgridus.com.

News and information from the R.I. Public Utilities Commission and its Division of Public Utilities and Carriers, including the text of recent filings by local utilities and other regulated businesses, are available at www.ripuc.org.