Where can we help you today?
CONTACT: Media Relations 401-784-7730
PROVIDENCE, RI – Rhode Islanders should see a significant decrease in their electric bill this summer after the Rhode Island Public Utilities Commission (RIPUC) approved a recent rate proposal for Standard Offer Service (SOS) from National Grid. The projected rate will be one of the lowest “Standard Offer” rates that residential customers have seen since the summer of 2017.
While some components of the final SOS rate for effect April 1 are still pending approval, for residential customers, the new standard offer rate is expected to be less than 8.5 cents/kWh down from the current rate of approximately 11.0/kwh, about a 23 percent decrease. The impact of the new expected Residential SOS rate on the monthly bill for a residential customer using 500 kWhs is a projected decrease of roughly $13, or almost 15 percent, on their total bill. For commercial customers, which includes ‘Small Commercial & Industrial” customers the rates are expected go from the current rate of approximately 10.2 cents/kWh to almost 7.9 cents/kWh, roughly a 23 percent decrease.
“Over the last couple years, residents and businesses across New England have had to endure some of the highest electricity prices we’ve seen in some time. And while the region still has a ways to go compared to other parts of the country, we’re starting to see markets stabilize and get our customers the relief they deserve as we head into the summer,” said Terry Sobolewski, President of National Grid Rhode Island.
The new SOS rates, approved by the RIPUC, are effective for residential, commercial and industrial customers from April 1, 2020 through September 30, 2020. The electricity supply or “Standard Offer” rates represent the cost at which National Grid buys electricity and delivers it to its customers and passes along without a mark-up. At the discretion of the RIPUC, rates are adjusted twice a year for residential customers and small to medium size commercial customers. The electricity supply prices are determined by the market, not National Grid.
“As we continue to see more renewable energy generation come online and the price of energy declines, we know our customers are always seeking the lowest price of energy available,” Sobolewski said. “And while we can’t control the cost of that supply, customers should always remember they can take more control over their energy costs by utilizing our energy efficiency programs and for those that qualify, taking advantage of our payment assistance programs.”
Final SOS rates will not be available until later in March when the RIPUC rules on the proposed SOS adjustment factor, the SOS Administrative Cost Factor, and the Renewable Energy Standard Charge. Even with proposed changes in these components, National Grid still expects the residential rate to be under 8.5 cents/kWh. The Company also has additional filings before the RIPUC impacting the delivery side of customers’ bills. Those bill impacts are expected to be smaller, allowing most residential customers using 500 kWhs to still realize a significant decrease on their bills starting April 1st.
What Else Can Customers Do to Better Manage their Energy Costs?
The best way for customers to try and decrease their bills and prepare for adjustments is by becoming more energy efficient in their energy use year-round. For example, replacing a minimum of five incandescent lights with ENERGY STAR ® light bulbs could provide a typical savings of $9 a month and help offset seasonal increases. Simply recycling or getting rid of an older or second refrigerator could save customers $23 a month. Customers can visit www.ngrid.com/shop for energy efficient and smart home products while receiving instant rebates exclusive to National Grid customers. The site offers products like ENERGY STAR ® LED light bulbs, water saving showerheads, smart thermostats and more – which can help customers conveniently lower their energy use. For more tips on how to lower your energy bills, customers can go visit: www.ngrid.com/save. National Grid also offers many programs to help customers manage their costs:
About National Grid: National Grid (NYSE: NGG) is an electricity, natural gas, and clean energy delivery company serving more than 20 million people through our networks in New York, Massachusetts, and Rhode Island. National Grid is transforming our electricity and natural gas networks with smarter, cleaner, and more resilient energy solutions to meet the goal of reducing greenhouse gas emissions.
For more information, please visit our website, follow us on Twitter, watch us on YouTube, friend us on Facebook, and find our photos on Instagram.