Region facing higher electricity supply prices for winter season

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Due to an increase in the cost of electricity that National Grid buys for its customers, Rhode Islanders can expect to pay more for electricity this winter. For the second consecutive winter, most of the region will be confronted with higher electricity supply rates. On Wednesday, National Grid submitted its proposal to the Rhode Island Public Utilities Commission (RIPUC) for Standard Offer Service (SOS) rates, which represent the cost of electricity that National Grid buys for customers and passes on without profit.

National Grid’s residential SOS rate in Rhode Island decreased in April to 8.486 cents per kilowatt hour – one of the lower rates currently offered in the region – but under current conditions the residential SOS rate will increase to 12.129 cents per kilowatt hour for the winter season if approved by the RIPUC. The new rate would result in a typical residential customer seeing an increase of $18.97 on their total monthly bill or a 19 percent increase for the same amount of electricity used.

As part of its filing letter to the RIPUC, the company also noted that the commission has the discretion to approve an alternative SOS residential rate of a longer term, which could spread out the increased price of electricity to customers over a 12-month rate period. Under that scenario, the SOS residential rate would be significantly lower than the proposed six-month winter rate, but customers would not see a decrease in April, when prices are expected to be even lower than they are now.

“There’s no question, these higher energy prices are a major concern for us and our customers,” said Timothy Horan, president of National Grid in Rhode Island. “And while we don’t control the supply cost of electricity, we do have energy saving programs and other measures available to help our customers take control of their bills. When the region is facing such high electricity supply prices, its critical that our customers recognize how participating in these programs can put them in charge and lower their energy costs.

The electricity supply rates representing the cost at which National Grid buys electricity and delivers to our customers is adjusted twice a year for residential and commercial customers. The new SOS rates, if approved by the RIPUC, are effective from October 1, 2018 through March 31, 2019. Electricity supply prices are determined by the market, and SOS rates represent the cost for electricity purchased at those prices. National Grid passes this cost along to its customers without any mark-up.

There are several driving factors as to why the region has seen higher winter rates the past two years.

The recent retirement announcements of several power plants in the region. While the closing of coal-fired power plants is a positive step forward for the environment the closures do have short-term impacts on the markets and regional energy supply.

New England went from having an anticipated surplus of power generation to a much lower availability of supply for a certain period of time.

Electricity supply prices typically rise in the winter because of continued constraints on natural gas pipelines serving the region. More than fifty percent of New England’s electricity generation is now fueled by natural gas.

As the availability of natural gas decreases at times of peak demand, some generators are forced to buy gas on the spot market at higher gas prices, switch over to alternate fuels or not run at all.

What Can Customers Do To Prepare For the Higher Rates?

Many customers will use less electricity in the winter months than what they need in the summer months, but the best way for customers to try and decrease their bills is by becoming more energy efficient in their energy use year round. Customers are encouraged to visit www.ngrid.com/save for energy savings tips and incentives on a wide variety of energy efficient home equipment, from smart power strips and programmable thermostats to high-efficiency furnaces and boilers.

For example, replacing a minimum of five incandescent lights with ENERGY STAR light bulbs could provide a typical savings of $9 a month. Recycling or getting rid of a second, older refrigerator could save customers $23 a month. For more tips on how to lower your energy bills, customers can go visit www.nationalgridus.com/RI-Home/Energy-Saving-Tips.

National Grid also offers many programs to help customers manage their costs:

National Grid offers budget plan programs to help customers spread payments out more evenly across the year, which are particularly helpful to those on fixed incomes. This service is available to customers all year long.

Billing options and discount rates also are available to help eligible customers who may have difficulty paying their monthly gas or electric bill. Discounted rates are based on service area and certain eligibility requirements.

For more information about bill assistance, customers should contact National Grid at 800-322-3223. Customers can also visit www.ngrid.com/billhelp.

When it comes to the supply portion of the bill, most customers also have the option to choose from a variety of competitive electricity suppliers. Customers can perform their due diligence and explore other supplier options at www.ri.gov/empowerri or on our website at www.nationalgridus.com. Regardless of a customers chosen supplier, National Grid will continue to deliver reliable electricity, respond to service and emergency needs and provide storm restoration services.

Comments

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  • richardcorrente

    Your National Grid bill has finally been fully deregulated. Politics delayed it for a long time but deregulation is finally here. You will notice that the bill is in 2 categories. "Delivery Services" which has always been, and will remain, National Grid. They do the bookkeeping, and they do an excellent job of that. The second part of your bill; the part could that cost far less, is the "Supply Services" part. That is where National Grid buys the electricity. I switched my "Supply" to "Xoom". My state-certified agent is Jeff Street. His phone number is 267-974-1059, and he saved my office 22% on our electric bill, and just under 10% on my residential bill at home. There are many choices for less expensive electricity. National Grid AS A SUPPLIER is about the MOST expensive.

    Be advised!

    As Mayor I would post all state-certified energy suppliers on the City of Warwick web site and invite ALL citizens to contact them and compare. I want to promote energy deregulation to ALL Warwick residents and businesses. Saving money just makes sense.

    Happy Summer everyone.

    Rick Corrente

    The Taxpayers Mayor

    Thursday, July 26, 2018 Report this

  • CrickeeRaven

    In addition to using this website for free political advertising, the make-believe mayor is also using it for commercial advertising, which is specifically prohibited in the website's terms of use:

    "Content contributions solely focused on the promotion of commercial events or businesses are not permitted."

    Readers know better than to take advice from someone who use a fake title for himself and can not be bothered to read a website's policies for its use.

    Thursday, July 26, 2018 Report this

  • Justanidiot

    master mayer, youse can support da free press buy bying an ad . check out http://warwickonline.com/stories/web-advertising-with-beacon-communications,90109 and day tells you all the way about it.

    Thursday, July 26, 2018 Report this

  • Scal1024

    Perhaps someone should read Mr Corrente the rules on commercial advertising. It seems to me there are 2 rules that the lying, pandering, ill informed, deadbeat "Tax Delinquents Mayor" can't comprehend on this website:

    1. Use of Screen Names is permitted

    2. Commercial advertising is prohibited

    You would think with the amount of times Rick Corrente has posted on this website, that he would atleast take a few minutes to read the rules and make sure he understands them ALL 100%. This all says alot about how this dummy operates. How many other rules does "The Tax Delinquents Mayor" ignore? How many pages of legislation will he ignore so he can continue making false off the cuff remarks? Luckily for Warwick taxpayers (real taxpayers not squatters like Rick Corrente) won't have to face that burden after Septembers primary. Honest, informed, hardworking voters will continue to reject Rick Correntes nonsense, and call him out every step of the way.

    Thursday, July 26, 2018 Report this

  • Cat2222

    "It just seemed the timing of it was a little bit of pandering to the public at a time of an election." Matt Gonzalez

    Friday, July 27, 2018 Report this

  • richardcorrente

    Dear Scal1024,

    No, I am not a liar. Or a panderer. Or ill informed. Or a deadbeat. Or a dummy. Or a squatter. Or "The Tax Deliquents Mayor". (7 insults in a row. Not one honest statement.)

    Yes I do know that screen names are permitted. I never said they weren't. (I just feel that only a coward would use one).

    And yes, I also know that commercial advertising is not permitted, that's why I like it when you complain. That way I can respond, explain part of "The Corrente Plan" which can be seen on my web site at "correnteformayor.com", tell readers to e-mail me at "correntemayorwarwick@gmail.com", or invite them to call me at 401-338-9900 and not break any commercial advertising rules. You see? I did read the rules Scal. And I am following them, carefully.

    Thanks for your help Scal1024. I really do appreciate it.

    Happy Summer everyone.

    Rick Corrente

    The Taxpayers Mayor

    Sunday, July 29, 2018 Report this

  • Scal1024

    With all of my help, and over $40,000 which you wasted (at the same time you were a tax delinquent), you lost the 2016 election 65%-35%. You ran for over 2 years, commented on this site daily and discussed your platform of lies unprovoked. Spare me the excuses that you are only responding to me. That type of garbage proves you to be both a liar and a deadbeat. You can deny all of the "seven" labels I've given you Rick, you know what they say? If it walks like a duck, talks like a duck...you get the picture, DON'T YOU?

    As always anytime you post its a chance for me to remind voters you were delinquent on your car taxes '09-'12 and it wasn't until you weren't going to be allowed to register your car that you finally paid your late taxes. After 4 years of delinquency your car disappeared from the tax rolls from '13-'15. What town was the car registered Rick? Answer carefully the information is easily verifiable. Next, I can mention your property taxes from 177 Grand View which were paid by 4 different parties from '14-'18. In '14 and '15 Rick Corrente owed close to $13,000 in back taxes. These taxes were paid by a man who Corrente currently rents a campaign office from. Corrente operates a business at the same location so he doesn't have to provide proof of payment on his rent, as he would if he listed the property as a campaign office. Where is the transparency? Why is there always a trail of questionable behavior and unpaid bills everywhere Rick Corrente goes? There are too many examples for this to be a cooncidence. The "Tax Delinquents Mayor" is unqualified to not only be mayor, he is unqualified to run for mayor. Rick Corrente can point at my use of a screen name. It doesn't make anything I say less true. It doesn't change his years of tax delinquency, unpaid bills, litigation losses, or make his campaign full of smears and lies any more impactful. Honest, hardworking, ACTUAL taxpayers will continue to reject this erratic, unstable, dishonest behavior.

    Sunday, July 29, 2018 Report this

  • CrickeeRaven

    Scal, I'm sure the make-believe mayor's last comment sounded really clever in his own head. It should have stayed there.

    He has lied about how the FY18 budget was passed [Mayor Avedisian didn't try to raise taxes 29 times, it didn't cut taxes or spending]. He has repeatedly and shamelessly pandered to the teachers union [ignoring the 25 meetings the school committee had and refusing to acknowledge the work-to-rule, pickets, and sick-outs that a judge termed an illegal strike]. His calls for a home rule charter and an independent audit are ill-informed because Warwick already has a charter, and audits are done every year by an independent firm for the city and the school department. He did not pay the property taxes on his former residence [which he lost to tax sale] for four years while he continued to live there, making him a deadbeat, a squatter, and a tax delinquent. And his reply about commercial advertising -- which he clearly presented in the first comment on this page -- in trying to defend his use of this website for free political advertising accurately makes him a dummy.

    He is desperate to have people read his lie-filled website or communicate with him by email -- because so far, no one is. And the replies he has gotten here -- no matter how much he pathetically tries to spin them -- have been overwhelmingly negative.

    His refusal and inability to realize this fact is perhaps the most visible of all the defects in his candidacy.

    His use of a fake title does not make his words any more true, no matter how often he repeats them.

    The make-believe mayor is a soon-to-be two-time election loser with nothing to show for his effort except confirmed tax delinquencies, disproven statements, and four years of increasingly humiliating behavior.

    In the end, the only thing the make-believe mayor's 2018 will be notable for is the disgrace he has made of himself, willingly and repeatedly,

    Sunday, July 29, 2018 Report this