Projo 7 to 7 News Blog

By Timothy Barmann
Journal staff writer

Just seven weeks after increasing natural gas rates by 8 percent, National Grid has filed a request to lower rates for its Rhode Island customers by 4.6 percent.

The company said the market price for natural gas has fallen since the rate increase went into effect on July 15, which means that the company's expected cost to buy the fuel for its customers has fallen as well.

However, National Grid said it has no plans to seek a decrease in electricity rates because the recent declines in the cost of energy will still not be enough to cover its costs to buy power for its customers. The company raised electricity rates by 21.7 percent on July 15 as well.

The gas rate decrease will lower the bill of a typical heating customer who uses 922 therms of natural gas to $1,499 a year from the current typical bill of $1,570 a year, a decline of $72, or 4.6 percent.

The company filed the request with the Public Utilities Commission late Tuesday and seeks to implement the new rate as of Nov 1.

Separately, however, National Grid is still seeking an increase in natural gas distribution rates, which would increase rates by about 5 percent.

Those charges, which are separate from those for the gas itself, cover the company's cost of operating and maintaining the gas distribution network. The PUC has scheduled public hearings on that request for next week.

The result: If both proposals are approved, the increase in distribution rates would essentially equal the decrease in the gas rate, and bills would remain essentially unchanged.

 Tags  business National Grid

Comments

Steve said:

Don't look at this as a softening of the heart or even as a moral decision bythe Nat. Grid robber barons. They are simply baiting everyone into a larger rate hike in the middle of the winter.

Link | September 3, 2008 8:05 PM
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kevin said:

I though monopolies were illegal? These clowns "graciously" drop their gas rates 4.6% and concurrently want to raise their distribution rates 5%? It won't stay even - it is an increase of .6% when the price of gas has gone down! Basically they are going to gouge us regardless of gas price, if it's low they nail us with "distribution fees" if it goes high they just bury the increase under "increased" natural resource prices. My question is this - if they didn't move to decrease the rates for the price of gas would they have put forth the request for a "distribution" increase? My guess is no, so basically this is just a cleverly guised money grab. I hope the PUC is smart enough to see this but I doubt not.

Link | September 4, 2008 10:10 AM
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CJ said:

Well said Steve and Kevin. Don't trust these crooks at all. 4.6% was the increase they wanted to "advertise" switching to gas from oil to the citizen's of RI, PAID FOR BY THE CITIZEN'S OF RI. That was last week, now they want to drop the rate the exact same amount? Expect the same increase in the near future.
PUC=PERFECTLY USELESS COMMITTEE. Just useless.

Link | September 4, 2008 11:18 AM
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