PROVIDENCE, RI – As instructed by the Rhode Island Public Utilities Commission (RIPUC), National Grid adjusts its electricity supply rates for both residential and small and medium business customers twice a year.  The electricity supply rates represent the cost at which National Grid buys electricity from regional suppliers to deliver it to its customers, without a mark-up.  This cost of energy a customer uses appears on the Supply Services section of their bill.

During the summer season, when most customers are using more electricity to cool their homes or businesses, the rates are typically lower.  During the winter season, rates are usually higher.  As required every year at this time, National Grid submitted its proposal to the RIPUC for Last Resort Service (LRS) rates for the upcoming winter season this week.  The new LRS rates, if approved by the RIPUC, are effective for residential and small and medium commercial from October 1, 2021 through March 31, 2022 and industrial customers from October 1, 2021 through December 31, 2021.  The filing reflects similar rates to last year, with a slight increase from the previous winter’s supply costs.  If the proposal is approved by the RIPUC as is, base LRS rates are likely to decline again next Spring as ‘summer rates’ are usually lower.

“While the upcoming winter electric supply rates are similar to what we’ve seen the past few years, we know that the higher cost of energy during these colder months can be an additional worry for our customers,” said Terry Sobolewski, President of National Grid Rhode Island.  “As Rhode Island begins to climb out of the pandemic, we want both our residential and business customers to be prepared for the months ahead.  They should take advantage of the many bill assistance programs available to them and lean into the energy efficiency options that can help decrease their energy costs.  For those residential customers still struggling to pay their bills due to the pandemic, we also encourage them to explore some of the valuable pandemic related assistance programs, such as Rent Relief RI, which can be used to help pay your utility bill.”

Recognizing the increased numbers of Rhode Islanders on unemployment and facing financial strains, the Company has been informing both residential and business customers about the various programs available to help them pay their bills.  National Grid has customer advocates who work directly with residential customers to identify assistance solutions that meet their needs.  The Company has also been working with the Rhode Island Department of Human Services (DHS) over the past several months to make discount rate enrollment easier for eligible customers who are already enrolled in state assistance programs, such as the Home Energy Assistance Program (HEAP), Supplemental Nutrition Assistance Program (SNAP) or Supplemental Security Income (SSI).  Customers in those programs receive a discount of 25% off their National Grid bill. Customers enrolled in General Public Assistance (GPA), Medicaid, and Rhode Island Works (TANF) can receive up to 30% off their bill. 

Electricity supply prices are determined by the market, and LRS rates represent the cost for electricity purchased at those prices. Electricity supply rates consistently rise in the winter because of continued constraints on natural gas pipelines serving the region. 

The proposed base residential LRS rate for the upcoming winter season is 10.491 cents per kilowatt-hour. The proposal would mean an increase in LRS charges of $2.67, or a 2.2% increase measured on a total bill basis, to those residential customers using 500 kWh per month, when comparing last year’s winter bills. Measured against the current ‘summer rates,’ the estimated monthly bill increase for an average residential LRS customer using 500 kWh per month is $16.94, or 15.6%.  The current ‘summer rate’ of electricity is one of the lowest rates Rhode Island residential customers have seen in years.  Depending on the size and usage, commercial and industrial customer bill impacts would be between 12 and 22 percent.

Energy Efficiency Initiatives Can Also Help Customers Cut 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 which is especially important for any customers dealing with financial hardship as a result of the pandemic:

•  For customers needing more time to pay their bill we offer payment extension plans that can help.
• 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 plans, payment assistance, forgiveness programsand discount rates also are available to help eligible customers who may have difficulty paying their monthly gas or electric bill. Bill discounts are based on 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 Service section 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 at www.nationalgridus.com. Regardless of a customer’s chosen supplier, National Grid will continue to deliver reliable electricity, respond to service and emergency needs, and provide storm restoration services.

About National Grid

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.

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