National Grid Wants Gas Rate Increase Starting March 1

EAST GREENWICH, RI — National Grid wants customers to chip in about $95 more (starting March 1) for natural gas because it didn't stockpile enough supply to deal the with cold 2018 winter. The new rates, if approved, are supposed to add $11.87 a month (depending on use) to customers' bills. The higher rate would stay in effect through October.

According to Timothy M. Rondeau, spokesman, the company had to go out on the spot market and buy additional gas to keep pace with customer demand. Here is the statement.

“This week National Grid sought approval from the Rhode Island Public Utilities Commission for an increase in current natural gas supply rates, citing higher natural gas demand as a result of extremely cold weather. National Grid makes no profit on the cost of gas and simply passes it on to the customer without mark-up.

The new supply rates, if approved, would become effective March 1, 2018 and result in a total estimated increase of approximately $95, or approximately 15%, to the bill of a National Grid residential heating customer using 396 therms during the months of March through October (an average of $11.87 per month, depending on usage).

The adjustment is driven by cold weather increasing demand for natural gas above forecasted amounts. This extreme cold necessitated the purchase of additional supplies, over and above those already planned for, in order to meet the needs of our customers. Because of pipeline constraints in New England, when extreme temperatures occur and customer demand rises, the cost of gas supply increases substantially.

National Grid has approximately 267,000 natural gas customers in Rhode Island.
National Grid offers a variety of bill pay options and energy efficiency tips to both manage bills and reduce energy use as the winter weather continues. More information is available at: www.ngrid.com/winterbills.”

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