National Grid is asking the Rhode Island Public Utilities Commission to approve new electric rates for its Rhode Island customers effective January 1, 2009. If the request is approved, the cost of electricity will be reduced by approximately 23 percent from current rates that went into effect in July of this year.
National Grid does not make any profit in managing the electric supply it purchases on behalf of its customers. The new, lower rate reflects the price National Grid pays for the electricity it purchases. The decline in price reflects the lower cost of natural gas and oil used to generate much of this electricity.
The proposed reduction is in a filing that also includes adjusted charges for delivering electricity to customers, which, if approved, would add slightly more than one-half of one cent per kilowatt hour to the delivery portion of customers’ bills.
The net effect of these proposed changes for a typical National Grid Rhode Island residential electric customer who uses 500 kilowatt hours of electricity each month would be a reduction in the monthly bill from $93.44 to $80.60, which is $12.84 or 13.7 percent.
National Grid is an international energy delivery company. In the U.S., National Grid delivers electricity to approximately 3.3 million customers in Massachusetts, New Hampshire, New York and Rhode Island, and manages the electricity network on Long Island under an agreement with the Long Island Power Authority (LIPA). It is the largest distributor of natural gas in the northeastern U.S., serving approximately 3.4 million customers in Massachusetts, New Hampshire, New York and Rhode Island. National Grid also owns over 4,000 megawatts of contracted electricity generation that provides power to over one million LIPA customers.