Rhode Island Electricity Prices To Fall With Upcoming 'Summer Rates'

PROVIDENCE, RI — Winter has drawn to a close in Rhode Island, bringing the promise of warmer weather to come. With the warm-up comes the return of "summer rates" from National Grid, lower rates for electricity starting April 1.

The Rhode Island Public Utilities Commission approved a summer rate of 7.174 cents/kWh, down from the winter rate of 10.491 cents/kWh. That would be a decrease of about $17 per monthly bill for a standard resident using 500 kWh per month, National Grid said.

For commercial customers, the rate is expected to drop from 8.730 cents/kWh to 6.451 cents/kWh, the company said, dropping bills by about 8.5 to 14 percent, depending on usage.

While the lower summer rates will offer some relief for Rhode Islanders, current trends show the likelihood of a steep rate increase going into next winter, the commission predicted. Since electricity rates are closely tied to the cost of natural gas, high demand leads to higher prices for New England residents. To help protect against large spikes, National Grid procures half of the needed load for Rhode Island nine months in advance, the company said, allowing them to avoid the rush in demand at the end of the summer.

"We’re happy our customers will see some relief on the price of electricity during the upcoming summer months," said Brian Schustera, a spokesperson for National Grid in Rhode Island. "But as the Commissioners discussed at this week’s open meeting, as energy prices remain extremely volatile due to global issues, the outlook for winter electric prices could mean significant rate increases. And while we can’t control the cost of the energy supply, we do want to encourage customers to prepare now for that potential."

The summer rate will be in effect from April 1 through Sept. 30 for residents and April 1 to June 30 for industrial customers. Rates are determined by the market and are not marked up at all, National Grid said.