In a letter delivered to the Public Utilities Commission today on behalf of Attorney General Peter F. Kilmartin, the Office of Attorney General is urging the PUC to scrutinize the requested electricity rate hikes proposed by National Grid for the winter months.
"Annual increases in electric rates should not be the 'new normal,' as some have described it. The PUC should first look at all possible alternatives and solutions before agreeing to raise rates one cent. Then and only then, the PUC should do everything it can to mitigate these rate increases on Rhode Island consumers and businesses," said Attorney General Peter Kilmartin.
The proposed rates by National Grid are higher than current rates and last winter's rates. It is expected that the bill of a "typical" residential customer will increase $22.63 per month or 26.1% over the present Standard Offer rate and 23.6% over the Standard Offer rate in effect for the same customer as of January 1, 2014.
Kilmartin has requested the PUC address the issues raised by National Grid's filing by directing the Company to recover costs for customers for the January 1, 2015 to June 30, 2015 period over 12-months rather than a six-month period. The Commission can request National Grid to estimate the likely effect of this proposed deferral and appropriately reflect the reduced rates in an amended filing.
"Reductions to the proposed electric rate increases in the January 1, 2015 through June 30, 2015 time-period will mitigate the shock of the proposed increases during period of harshest weather when household budgets may be unusually stretched," said Kilmartin. "They will also afford customers additional time to adjust their consumption patterns or to find a suitable competitive supplier to the extent that they are aware of or willing to purchase their electricity from such a supplier."