Dive Brief:
- National Grid has asked Massachusetts to approve a 21% rate hike beginning in November, saying the region's constrained gas system has led to significantly higher power prices.
- Electricity prices remain "volatile and relatively high, though not as high as last winter," the company said.
- If approved by the Massachusetts Department of Public Utilities, the new rates would run from November to April.
Dive Insight:
You know it's a big increase when a utility says "But it's not as bad as last year."
National Grid issued a statement this week urging customers to utilize bill pay options and energy efficiency to keep their costs lower. The utility said it had procured power for residential customers at 13.1 cents/KWh, leading to bills about 21% higher than current -- though still roughly 9% lower than last winter's bill, after accounting for other adjustemnts.
The utility “remains concerned about volatile and unpredictable electricity supply prices our customers are subject to,” said Marcy Reed, president of National Grid in Massachusetts, in a statement. “We urge Massachusetts residents to take full advantage of energy efficiency tips and other solutions such as payment programs that can help stabilize their bills.”
If approved by regulators, an average residential customer’s monthly bill starting November 1 would be about $110, compared with current bills around $91. A year ago, average bills spiked to $121, the utility said.
National Grid said this winter's prices are a 41% increase from the current residential electric supply price and a 19% decrease from last winter’s price.
