National Grid Announces Significant Rate Drop For Summer 2020

Most Rhode Islanders should see a drop in their electric bills in the coming months. Starting in April, National Grid's summer rates will take effect, bringing the lowest rates since Summer 2017.

According to National Grid, the new residential summer rate is set to be less than 8.5 cents per kWh, down around 23 percent from the current rate of 11 cents. Some components of the final rate are still awaiting final approval. Commercial customers are expected to see rates of 7.9 cents/kWh, down from the current 10.9 cents.

"Over the last couple years, residents and businesses across New England have had to endure some of the highest electricity prices we’ve seen in some time," said Terry Sobolewski, the president of National Grid Rhode Island. "And while the region still has a ways to go compared to other parts of the country, we’re starting to see markets stabilize and get our customers the relief they deserve as we head into the summer."

The new rates will be in effect from April 1 through Sept. 30. Each year, National Gird adjusts the rates for residents and small- to medium-sized commercial customers, basing the rate on the market's electricity supply prices.

"As we continue to see more renewable energy generation come online and the price of energy declines, we know our customers are always seeking the lowest price of energy available," Sobolewski said. "And while we can’t control the cost of that supply, customers should always remember they can take more control over their energy costs by utilizing our energy efficiency programs and for those that qualify, taking advantage of our payment assistance programs."

The rates will be finalized in March, when the Rhode Island Public Utilities Commission makes its ruling.

The rate decrease comes after a modest rate increase last winter, when National Grid raised rates by 1.71 cents, a smaller increase than previous winter rate hikes.

Despite the lowered rates, a ranking from February 2019 named Rhode Island as having the highest utility costs in the continental United States.