Wilmington Electricity Rate Hikes Smaller Than In Other Towns: RMLD

WILMINGTON, MA —With global factors leading to significant electricity-bill rate hikes nationwide, Wilmington's electricity provider has reassured residents that their bills are unlikely to spike like those in some other municipalities.

Reading Municipal Light Department's (RMLD) position as a public utility gives it an advantage over other utility companies, according to Greg Phipps, RMLD's interim general manager.

"Fortunately for customers in our service territory of Reading, Wilmington, North Reading, and Lynnfield Center, our position as a public utility gives us the ability to purchase our power through long-term contracts," Phipps said in a statement to Patch. "Because of these long-term contracts, RMLD customers don't experience the same level of pricing volatility that investor-owned utility customers have faced recently due to external global factors."

Phipps continued: "Despite record inflation and gas prices, RMLD has mitigated 2022 bill increases to $15 on average per month, which is approximately 12 percent."

Phipps said that RMLD has taken other measures to minimize additional rate increases for customers, including: investing in in-territory generation, aggressively pursuing statewide and federal funding made possible with the recent passing of the Inflation Reduction Act, and value engineering to alleviate supply chain cost increases.

Nationwide, electricity and gas rate hikes are being driven by a surge in the price of natural gas, which drives electricity costs.

Russia's invasion of Ukraine has been a major factor as sanctions imposed on Russia have reduced the global supply of natural gas, while global demand has remained high.

The war has only compounded a longstanding natural gas problem in New England: the region doesn't have enough gas pipelines to keep up with demand, according to the energy regulator ISO New England.

Natural Grid, which provides natural gas service to Wilmington, said it has a pending proposal with the Department of Public Utilities that would result in a monthly bill of $278 for an average Boston Gas residential heating customer using 115 therms per month. That is an increase of $50, or 22 percent, compared to rates last winter, according to the company.

National Grid has made it clear that its rates are based on what the company pays for gas on the wholesale market, and that it does not mark up prices in order to profit.

As a result of the rate increases, National Grid has launched the Winter Customer Savings Initiative to help customers reduce their energy and save money, better manage their bills and secure available energy assistance.

"We want to do everything we can to help our customers manage through the months ahead through our Winter Customer Savings Initiative, while maintaining high levels of service to meet their energy needs this winter season," said Helen Burt, National Grid's chief customer officer.

Burt continued: "This includes informing customers that they can 'shop' or choose from different energy suppliers, in addition to taking advantage of energy saving programs, including those supported by Mass Save. We believe helping customers take more control over how and what energy they use creates a more equitable and affordable energy future."