Lower Rates On the Way for National Grid's Rhode Island Natural Gas Customers

With the first blasts of winter’s biting winds just around the corner, there’s good news for Rhode Islanders who heat their homes and businesses with natural gas. The Rhode Island Public Utilities Commission has approved new rates for National Grid natural gas customers, which means net savings of 8.2 percent or more than $113 over the next twelve months.

While most of the rate reduction is the result of lower commodity costs, National Grid is also lowering some of the charges related to the operation of the distribution system.

The net reduction of eight percent applies to a typical residential natural gas heating customer in Rhode Island using 922 therms of natural gas per year. Annual costs will be reduced to $1,265 from $1,379. The new rates will take effect on November 1.

“This is more good news for our local customers and it’s right on time for the winter heating season,” said Timothy F. Horan, president of National Grid in Rhode Island. “It’s the second significant natural gas rate reduction for the community in as many years.” Last year the company reduced natural gas rates by 9.3 percent.

Record reserves and new supplies of natural gas coming on line caused natural gas costs to decline over the past few years. National Grid purchases natural gas for its customers and passes the cost of the commodity directly to the customer with no increase.

Rhode Islanders can find even more ways to save on their energy bills by going to powerofaction.com/ri.