National Grid’s 15% Rate Increase Request Draws Fire from Raimondo

GoLocalProv News Team

National Grid’s 15% Rate Increase Request Draws Fire from Raimondo

National Grid has requested a 15 percent increase in rates — citing that it is the first time in five years that the company has sought a request for the transmission structure.

“National Grid is proud to deliver the energy needs of 267,000 gas customers and 492,000 electricity customers in Rhode Island,” said Tim Horan, president and COO of National Grid in Rhode Island. “The proposal we put forth today will allow us to continue delivering energy to them in the safe, reliable, and efficient way customers deserve. It also reflects the shared goals we have with the State of Rhode Island in promoting more renewable forms of energy, providing greater assistance to income-eligible customers, and modernizing the State’s energy network."

Within hours of the announcement of the request for the rate increase, Governor Gina Raimondo issued the following statement, "Just a month ago, tens of thousands of Rhode Islanders lost power and it took National Grid nearly a week to get the lights back on. Now, they are asking the state to approve a 15 percent rate increase.”

“Rhode Island families and small business owners - especially manufacturing businesses - are already challenged by high energy costs. The Public Utility Commission needs to open up National Grid's books and stand up for Rhode Island ratepayers,”  added Raimondo.

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The company said the rate increase is needed, “To meet the energy needs of its customers, National Grid has filed a proposal with the Rhode Island Public Utilities Commission (RIPUC) to update its base distribution rates for electric and gas customers for the first time since 2012. If approved, the revised rates would allow the Company to continue to improve service quality, deliver the safety and reliability our customers rely on, and pursue new initiatives focused on renewable energy, modernizing the grid, and helping income-eligible customers.”

August Rate Increase Granted By PUC for Production

Rhode Island Governor Gina Raimondo said she is “disappointed” following the Public Utilities Commission’s approval of National Grid’s electricity rate increase.

During a five hour public hearing on Tuesday, the Public Utilities Commission voted 3-0 to approve National Grid’s proposal for a 53% rate hike. The Governor has appointments to the Board.

The increase will take effect on October 1 and stay in effect until March 31.

Distribution Cost Increase Request

National Grid recovers the cost of doing business through its base distribution rates. This proposal would update National Grid’s pricing to reflect the current costs associated with running the core business, including property taxes, healthcare, labor, and equipment, according to the company.

Over the past five years, National Grid has invested $800 million in gas and electric distribution infrastructure to help improve the safety and reliability of Rhode Island’s energy infrastructure.

Currently, National Grid’s residential customers in Rhode Island have some of the lowest electric distribution charges in the region, which the Company hopes to maintain.  If approved, residential electricity customers would see a monthly bill increase of 6 percent, while commercial and industrial electricity customers’ monthly bill impacts would range from 3 percent to 9 percent depending on customer size and usage. The rate increase would include $41.3 million to support operations and new initiatives in National Grid’s electric business in Rhode Island. 
 
Low-Income Residents Would See a Decrease

“An income-eligible customer using the average 500 kWh/month on the electric side would see a decrease in their bill of 3 percent.  On the gas side, an income-eligible heating customer using an average of 845 therms/year would see a 6 percent decrease on their bill,” said National Grid.

National Grid’s proposal now goes before the Public Utilities Commission and the review process is expected to last nine months. Any approved rates would not be effective until September 1, 2018.


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