National Grid Announces 2019 Winter Rate Hike

Rhode Island may be in the midst of a historic heat wave, but cooler winter months aren't too far off. With that in mind, National Grid has announced this year's winter rate increases. The company said in a release that this year's rate hike is lower than previous years, but residents should still plan ahead and be prepared for the increase.

National Grid's winter rate will be in place from October 1 until March 31, 2020. The company said the annual increase is needed to account for higher electricity costs on their end.

Each year, National Grid submits a proposal to the state's Public Utilities Commission, which approves the rates before they are applied to customers. Electricity rates tend to be lower in the summer months than in the winter.

"Unlike the past two winter seasons, which saw double digit percentage increases on a typical residential monthly bill, this year’s increase will be less substantial," said Terry Sobolewski, President of National Grid Rhode Island. "We’re finally starting to see some leveling of those more dramatic fluctuations customers experienced during the winter pricing seasons of 2017-18 and 2018-19. Much of those increases were driven by the recent retirement announcements of several power plants in the region."

This year's increase, if approved, will raise rates by 1.71 cents to 10.957 cents per kilowatt hour.

Under today’s filing, residential SOS rates would increase by 1.717 cents per kilowatt hour to 10.957 cents per kilowatt hour, pending

According to National Grid, the average customer can expect an increase of around eight percent, or about $8.95 per month for a household that uses 500 kWh. Small-business owners can expect an increase between 4.8 to 6.0 percent, depending on how much energy is used. Larger commercial customers will see more of an increase of 10 to 14 percent.

This April, rates dropped slightly from 10.99 cents per kilowatt hour to 9.240 cents per kilowatt hour.

Last year, the winter increase was considerably higher, with most customers seeing an increase of about $13, National Grid said.

"We know any increase in the cost of energy presents challenges for our customers. Despite making great strides in bringing more renewable energy generation online, and seeing the price of that energy decline, we know our customers still want lower energy prices now," Sobolewski said. "While we can’t control the cost of that supply, we can help our customers take greater control of their energy costs through our energy saving programs and other assistance programs."

To prepare for increase energy costs, Rhode Island residents are encouraged to conduct an energy audit of their homes. Making energy-efficient changes can save money over time, such as installing LED light bulbs or replacing older appliances with newer, more efficient models.