Tuesday, March 24, 2015

National Grid Files For Electric Rate Reduction

Ken O’Brien

National Grid electric customers could see lower bills this spring.

The company has asked the state’s Department of Public Utilities to allow them to change the the Basic Service charge from the current price of over 16 cents a kilowatt hour to just over 9 cents per kilowatt hour.

The decrease, National Grid explains, is primarily due to fluctuations in the wholesale electricity market prices, which are costs the company does not control. 

“As we emerge from what has been a relentless winter, we are pleased that our customers will start to feel some relief from what we know has been a challenge to their energy budgets. Though we can’t take credit for the drop in energy prices, we’re committed to pursuing solutions that help stabilize electricity and natural gas costs for our customers, regardless of the season,” says Marcy Reed, president of National Grid Massachusetts.

With the new rate, the average customer using 500 kilowatts of power, who receive basic service, can expect a decrease of 26 percent – or about $32 – on their overall bill as compared to a current bill.

Those new rates, which still need approval by state regulators, would take effect May 1.

National Grid notes that while bills would generally reflect a reduction over the summer months, bills could likely increase again next winter due to ongoing gas pipeline capacity constraints.

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