Projo Biz Blog

As expected, the Public Utilities Commission has approved a 21.7-percent increase in the price National Grid charges its customers for electricity and a 10-percent increase in the price it charges for natural gas.

The combined increases, which go into effect July 15, will raise the average utility bill for a typical home heated by gas by almost $30 a month. The increase will be higher in winter months and lower in summer months.

Electricity rates are now 9.3 cents per kilowatt hour and will increase to 12.5 cents. The electricity rate request was the largest single rate increase the company has ever sought, and pushes rates to their highest level ever.

National Grid requested the increase because the company says it's paying more to purchase electricity and natural gas.

The PUC's approval comes as little surprise. In an interview this week, PUC Chairman Elia Germani said the PUC has little leeway in cases where a utility is simply passing on increases it pays for energy.

Under such circumstances, state statute limits the commission to deciding three questions:
Did the utility make "prudent" decisions in buying the energy that led to the higher costs? Are the numbers the utility cited in requesting the increase correct? When will the increase take effect?

Today's decision does provide some safeguards for consumers. The PUC said it would hire an auditor to review National Grid's documentation in support of the increase.

The PUC put a time limit on the natural gas increase, approving it only through Nov. 1. National Grid will have to return with another request for the time period after that.

National Grid, Rhode Island's dominant utility company, provides electricity to 477,000 customers in 38 communities and natural gas to about 245,000 customers in 33 communities.

-- Journal staff writer Paul Edward Parker.

Comments

rhody red said:

well the PIGS in RI STRIKE AGAIN, not a surprise.
when was the last time you got a 21% raise???

Link | July 11, 2008 9:10 AM
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