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July 3, 2008

National Grid ups electricity rate hike request to 21.7%

Even before state regulators have considered a proposed 15.6 percent hike in electricity rates, National Grid now says it wants to increase rates even more.

National Grid told the state Public Utilities Commission today that the increasing price of crude oil and natural gas has forced it to revise its proposed rate increase to 21.7 percent.

The request is the largest single rate increase the company has ever sought, and would put rates at their highest level ever.

National Grid has asked the new rates to go into effect on July 15.

A typical customer, which National Grid defines as one who uses 500 kilowatt-hours of electricity each month, would pay a total of $93.44 a month, an increase of $16.67 a month from the current monthly bill of $76.77.

The revised proposal was necessitated by the continued rise in energy prices, the company said. Since its original rate hike request in mid-May, National Grid said that both natural gas and crude oil prices have increased more than 10 percent. Since November, when the current rates went into effect, both fuels have increased by over 60 percent, the company said.

The rate increase would add to the already strained budgets of families who are coping with record-high gasoline prices and rising food costs. In addition, National Grid in May proposed raising natural gas rates by 10 percent.

National Grid is Rhode Island’s dominant utility company, providing electricity service to 477,000 customers in 38 communities and natural gas to about 245,000 customers in 33 communities. The company filed its revised rate-increase proposal with the state PUC this afternoon.

The Public Utilities Commission will listen to comments on the revised rate request at a previously-scheduled public hearing at 9:30 a.m. on Tuesday at the PUC office, 89 Jefferson Blvd., in Warwick.

Posted by Tim Barmann  at 5:59 PM | Permalink

Comments

This is getting crazy everything is going up but peoples' salaries. Everyone needs electricity,oil,gas, water and so on, so these utility and oil companies have everyone by the you know what. Something has to be done.

Michael | July 3, 2008 6:51 PM link

Oh, sure, blame the fuel prices, they were making money long before the fuel prices went up! They should not be granted that great of an increase, by any means, how are people in this current state of economics going to support every utility company at this rate? I think this is terrible, and wish someone would smarten up, and put this to a halt. I think greed is a common factor in this request...mark my words...

Steven | July 3, 2008 7:22 PM link

I am on a fixed income (disability) electric, propane, gas, food,water. the list is pretty endless and GUESS what my disability has not gone up. And I am sure when I get my increase in Jan it will not begin to cover my expenses. As far as the Electric is concerned, all this is gonna do is make billions more for the FOREIGN comapny that owns National Grid and they have a monopoly over us thanks to the PUC and the idiots on smith hill.

slammie | July 3, 2008 9:02 PM link

Glad that I sold my home, retired and moved from Rhode Island.

Paul | July 3, 2008 9:47 PM link

Capitalism obviously isn't working. It is time to nationalize the electric and gas monopolies and the oil companies. That's the only way senior citizens like me are going to survive on fixed incomes.

Peter C. | July 4, 2008 6:58 AM link

I THINK EVERYONE IS TAKING ADVANTAGE OF THIS SITUATION & NOBODY IS DOING ANYTHING TO STOP THIS MADNESS. THE ONLY PEOPLE WHO ARE HURTING--THE POOR ARE GETTING POORER & THERE'S NO MORE MIDDLE CLASS. THE RICH PEOPLE AREN'T EFFECTED, THEY DON'T HAVE TO WORRY ABOUT PAYING THEIR BILLS TO SURVIVE. I BET THE TOP PEOPLE AT NATIONAL GRID GET SALARY INCREASES.
ITS ALSO A JOKE THAT THEY HAVE TO PUT IN A REQUEST FOR AN INCREASE-----THEY ALWAYS GET IT APPROVED.

MARSHA | July 4, 2008 7:25 AM link

A reality check that is unfortunately, permanent. Gas prices will never retreat to where they once were and whatever retreat, if any will be offset by the increase in the type of energy you currently use to heat your home. It's never going to be the same!
The bottom line is that we're responsible for all of this by trusting our elected legislators to do the right thing. I believe this will change shortly for this laizzer-faire attitude that the majority have had will diminish as soon as it knocks on enough doors. For sure when it knocks on your door. I hope! It's not government we have to look too to make the right decisions. It us!
The hope for clean energy is a worthwhile goal but, the reality of it all is that it won't happen for quite some time to come. There will be to many cold days and night between now and then.
Immediate relief is available. We have oil and the know how for nuclear. If in your heart you cannot see clear to support such a remedy, be sure to do whatever you do early enough in the day so that you'll have ample time to finish whatever chore you've taken on as the wailing of the unfortunate, will be distracting as it creeps closer and closer to your home. It won't be about them anymore, it will be a bit more personal. Does it really have to be personal and about you before taking action?

I received a great email the other day, illustrating for me the true impact to the suggested drilling area in the area referred to as ANWAR. If only the mainstream media, t.v. and print would provide the true impact and not an implied disaster one they seem to champion and for what reason, I don't know, our collective attitude would be different. The true impact is know. We're experiencing it now!
Did you know this ANWR area is in a barren area and not to far from Prudo Bay where oil is being extracted and has been for quite some time? Words are great but the pictures I have been exposed too are even greater. They tell the story unbiased. Google ANWR. You may get a true picture of it all.

lucien | July 4, 2008 8:19 AM link

Of course something has to be done! Go to Google and type "alternative energy" and see what you get. The technology is THERE it just isn't profitable and we all know that's what it comes down to. All of a sudden electric cars are a hit when five years ago people were weirdo lefts who drove one. Everyone is so afraid of something different but we'll be singing a different tune when we're paying up the wazoo for electricity.
We can't tap into a FINITE resource forever. It's just common sense!
I can just guarantee you that soon some big company will come out and say, "oh look what WE'VE discovered!" (and it'll probably be something Tesla invented 100 years ago or something haha) and we will unanimously say "Oh! Finally!" And then they can charge whatever they want and they know we'll pay it. I bet you these companies are waiting for their moment - when all Americans need them, and more importantly, want them.

A Woman | July 4, 2008 9:15 AM link

21.7% increase> How many families will have the electric and gas shut off before winter ever gets here? I haven't had a raise in three years, don't expect to see one now. Work full time in spite of having chronic health issues, wonder how long I can work at all when I start with a second job.

J | July 4, 2008 2:24 PM link

I just can not afford it. I did not get a raise at all this year, not even a cost of living increase. No more newspapers for me and telephone is next to go. Corparate greed has stolen my American dream.
More and more good people will turn to crime to make ends meet. We can all watch the crime rates go up with the utility rates while your elected officials(puppets for big business) do nothing to stop the madness.
Happy 4th of July, let me know when the next revolution starts.
BB

B | July 4, 2008 7:11 PM link

I just picked up my prescription at Stop and Shop......two weeks late.....because I couldn't afford it when I was suppossed to have it.....It was either the med.....or gas to get to work....And now National Grid wants us to dig deeper....
Well....my pocket has a hole in it.....I have no where else to reach to......

Anne | July 5, 2008 10:01 AM link

In reference to the comment by Marsha: Do you, or for that matter, anyone, realize that we , the U.S.A., do not get even ONE DROP of oil from Alaska? That it ALL gets shipped to Japan and Korea? WAKE UP! all we have to do is BUILD REFINERIES IN THE NORTHWEST! Wyoming also has oil underground. Why are there NO oil wells being drilled there? The residents there would welcome them, from what I hear. Only the poor and "middle" class are being hurt by this oil/energy rip off and the wealthy could care less. Put a stop to those "speculaters" who are driving the cost of oil up for no reason other than GREED. Our "Government", "Of the People, for the People" isd a joke. One that I personally do not find funny.

Jerry | July 5, 2008 1:10 PM link

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