National Grid then passes the costs on to their customers, which the company cannot profit from. There is a competitive bidding process to procure the electricity for basic services. Massachusetts law says electricity must be procured in a competitive market, meaning electric distribution companies are required to contract with an electric supplier on behalf of customers because customers do not get to select their own supplier. “We continue to work with utilities and stakeholders to help transition our energy supply to clean energy sources at a stable and affordable cost.” “The Department knows that these rate reductions will provide much-needed relief to families and businesses,” DPU Acting Chair Cecile Fraser said in a press release on Tuesday. Basic service rates change each year on May 1 and Nov. National Grid serves 1.39 million customers in Massachusetts. The decision, announced Tuesday, will result in residential customers seeing roughly a 40% decrease in monthly bills starting after May 1. Joseph Shekarchi has taken a position on the bill, spokesman Larry Berman said in an email, “Speaker Shekarchi is keeping an open mind and will evaluate the bill after it goes through the legislative hearing process.”Īt the Senate hearing, Schuster said National Grid does not oppose offshore wind.The Massachusetts Department of Public Utilities has approved a rate reduction for National Grid plc electric customers. When asked by The Journal whether House Speaker K. Arthur Handy, D-Cranston, was referred to the Corporations committee, which has yet to schedule a hearing. The House version of the bill introduced by Rep. The development of more offshore wind is seen as essential to meeting the state’s climate goals. When combined with the 30-megawatt Block Island Wind Farm and the 400-megawatt Revolution Wind proposal, half of the state’s electric supplies could come from offshore wind power alone within the next few years. If the procurement goes ahead and a contract is signed for the full 600 megawatts of capacity, it would provide nearly a third of Rhode Island’s electric demand, enough power for 340,000 homes. And then, two or three percent is a whole lot.” “Two or three percent might not sound like a lot in any other sector except energy. “You’ll negotiate your best deal and then on top of that, you’ll get another two or three percent,” the Cranston Democrat said to Schuster. Josh Miller echoed arguments made by the PUC and by Healey that ratepayers, not the utility, carry the risks of any offshore wind contracts because they’re the ones who will be paying for the energy. Legislators seemed unconvinced by the company’s concerns. “Those costs ultimately get passed on to our ratepayers.” Legislators unmoved by utility's concerns Enroll in a budget plan to spread your projected annual energy costs into more predictable monthly payments. “The higher the interest rates, the higher our costs,” he said. Schedule an appointment to start, stop, or transfer service the week before you move. If the company’s creditworthiness goes down and borrowing costs go up, Rhode Islanders would end up paying more, he said. You're paying extra for it.Īt the hearing Wednesday before the Senate Committee on Environment and Agriculture, Schuster said that ultimately it would be ratepayers who suffer if the company doesn’t get the incentive it wants. The bottom line: National Grid is making millions on wind power. The commission took a similar position in a decision approving a contract National Grid had agreed to with a Connecticut solar farm. National Grid asked for a payment for that agreement to buy 400 megawatts of capacity from the Revolution Wind proposal, but the Public Utilities Commission rejected the request, concluding that the company failed to provide evidence that its financial standing would be harmed. While the contract for the Block Island Wind Farm provides National Grid an incentive worth 2.75% of the contract, and offshore wind contracts approved in Massachusetts include a similar payment, Rhode Island utilities regulators rejected any incentive for a contract approved in 2019. On the market: Worries persist about storm response if Narragansett Electric sale goes through National Grid says offshore wind contracts are risky commitments and want to make sure that they're not just paying folks to have great vacations and their private jets." "I just want to level-set this conversation. "It's just a little bit hard to swallow when we're talking about billions of dollars, which most people can't even fathom what that means," said Sen.
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