Your Money
National Grid seeks gas-rate cut, but increase in distribution rate
02:03 PM EST on Friday, November 7, 2008
Rhode Island utility company National Grid has proposed a cut in natural-gas rates that is even greater than the decrease it sought in September.
The proposal, linked to falling energy prices, would lower the bill of a typical residential customer by about $11 a month, or 8.3 percent, according to a filing the company made with the Public Utilities Commission on Oct. 31.
The bigger decrease reflects a drop in the price of natural-gas futures of about 12 percent over the past two months, according to figures from the Energy Information Administration, part of the U.S. Department of Energy.
The company’s calculation is based on the consumption of a total of 860 therms per residential customer over an 11-month period, beginning Dec. 1.
The previous filing proposed a rate decrease of about $6 a month, or about 4.6 percent.
However, customers may not see much of a decrease in their bills because of a separate proceeding in which National Grid is seeking to raise distribution rates by about 5 percent.
Those charges, which are separate from those for the gas itself, cover the company’s cost of operating and maintaining the gas-distribution network.
In that proceeding, National Grid said it wants to raise rates by $18.7 million annually to speed up replacement of aging gas lines and create a discount for low-income customers. The company is also seeking changes in the natural-gas rate structure to guard against revenue losses that result from the conservation efforts of customers.
The distribution rate has not been raised in 10 years.
The Division of Public Utilities and Carriers, the agency that represents ratepayers in utilities cases, has argued for a lower distribution rate increase –– $8.7 million.
The PUC has already held extensive hearings on the distribution-rate proposals. The commission is expected to make a decision on the proposed increase and decrease by Nov. 30.
The new rates would go into effect on Dec. 1.
As for electricity, National Grid said it plans to propose new rates in the middle of this month.
Those rates are likely to reflect a decrease in energy costs, but also an increase in transmission costs.
Electricity rates have remained unchanged since they were raised by 21.7 percent in July.
| H1N1 and Pets: Felines, Ferrets and Flu | |
| Barrington's affordable housing puts opportunities within reach for mother, daughter | |
| Police seize large quantity of marijuana in Woonsocket |
More Your Money stories
|
Homebuyer tax break boosting sales in R.I.
Homebuyer tax break boosting sales in R.I.
Thinking about buying U.S. savings bonds? Interest rate is up
Most Viewed Yesterday
No driver’s license? For many, no problem
Some immigrants in Central Falls are afraid to give info to the government
PC 91, Stonehill 55: Peterson gets a lot done
Most active surveys
What's your favorite breakfast/lunch place?
Are the Yankees on the brink of another dynasty?
React to Carcieri's veto of R.I.'s first saltwater fishing license
Will you allow your children to be vaccinated against swine flu? Why or why not?
Is it a bad thing or a good thing that prostitution is legal in Rhode Island, indoors?
Most e-mailed in the last 24 hours










You must be logged in to contribute. Log in | Register Now!
You are logged in as screenname | Log Out
You are logged in, but do not have a "screen" name. Create a Screen Name