Projo Biz Blog

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.

-- Journal business writer Timothy Barmann

Comments

Pam said:

Rate-increases are a sign of the times...
Oil,food,utilities etc. all going up.
I understand the need for these hikes.
As long as there aren't large PROFITS made.

Link | July 4, 2008 9:24 AM
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