National Grid proposes even bigger gas rate decrease
4:07 PM Thu, Nov 06, 2008 | Permalink
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By Timothy Barmann National Grid has proposed an even bigger decrease in natural gas rates because of falling energy prices. The utility company's proposal would lower the bill of a typical residential customer by about $11 a month, or 8.3 percent, according to a filing the company made to the Public Utilities Commission on Oct. 31. The bigger decrease reflects a drop in the price of natural gas futures of about 12 percent over the past two months, according to figures from the Energy Information Administration, part of the U.S. Department of Energy. The company's calculation is based on the consumption of 860 therms over an 11-month period, beginning Dec. 1. A previous filing, made in September, proposed a rate decrease of about $6 a month, or about 4.6 percent. However, customers may not see much of a decrease in their bills because of a separate proceeding in which National Grid is seeking to raise distribution 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. In that proceeding, National Grid said it wants to raise rates by $18.7 million annually, in order to speed up replacement of aging gas lines and to create a discount for low-income customers. National Grid is also seeking changes in the natural gas rate structure to protect itself from revenue losses that result from the conservation efforts of its customers. The distribution rate has not been raised in 10 years. The Division of Public Utilities and Carriers, the agency that represents ratepayers in utilities cases, has argued for a lower distribution rate increase -- $8.7 million. The PUC has already held extensive hearings on the distribution rate proposals. The commission is expected to make a decision on the proposed increase and the decrease by Nov. 30. The new rates would go into effect on Dec. 1. As for electricity rates, National Grid said it plans on proposing new rates in the middle of November. Those rates are likely to reflect a decrease in energy costs, but also an increase in transmission costs. Electricity rates have remained unchanged since they were raised by 21.7 percent in July. 
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It is amazing how the smoke and mirror show continues. They will lower the cost of the energy but raise the transmission cost? Understand it as a shift in where the price increase will come.
If you look at the retail price of heating oil the price per gallon includes all the costs that the gas company breaks down to make the cost of their product cheaper. There is one exception the oil company does not charge their customer, just to be a customer!!!
One last question: Why Mr. Barmann has yet to write about the 50%+ DECREASE in HEATING OIL PRICES?
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This is simple actually, Nation Grid is our OPEC. Demand goes down, supply should go up and prices decrease, but not when you are National OPEC. You raise distribution rates to offset your losses. People conserving gas? Good thing right? Not if you are OPEC Grid. So you penalize conservation by elevation of your dispensation. I like this. And since the cost of all resources to create electricity have dropped they kept their 21% increase. NOW they want to increase my distribution fees to help low income gas users. Guess what OPEC, I used to be a middle class income gas user, but since you've increased my fees for gas and electricity in the double digits, I'm a low income gas user. Can we increase the rates of the high income gas user? You know, spread the wealth or will I just continue to get the shaft? I'd love to get a wood stove and solar water heater, call up OPEC Grid and tell them to come and get all their junk out of my house. Then I'd probably find out OPEC Grid bought all the wood in RI and will charge me a distribution fee. How do they sleep at night?
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Until the PUC learns to say "NO" you can expect Natianal Greed to get whatever they want.
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it is amazing to me how they increase rates as often as they do.. it seems to be a domino effect
gas, oil, electric, food..when will it end!!!1
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Vic A, you are SO WRONG!!
Quote:
There is one exception the oil company does not charge their customer, just to be a customer!!!
After my heating oil consumption went down last year, my oil company sent me a letter saying that because I was no longer buying a zillion gallons of oil over the heating season (because of my conservation when prices went through the roof), they would no longer offer me a service contract for $150, but that they could offer the same service plan for $300!!
I sure wish I could say to my boss, "Because you cut back my hours this year I will have to insist upon a raise so that my paycheck remains the same, for fewer hours worked." But I have cold feet. (See above.)
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