The Narragansett Electric Company today filed a request with the Rhode Island Public Utilities Commission (PUC) to reflect the current lower cost of power it purchases on behalf of its customers taking Standard Offer Service. The lower costs are the result of a decline in the price of oil and natural gas. The company does not profit from increases or decreases in power supply costs, which are directly passed through to the customer.
Narragansett Electric is seeking a decrease of more than one cent per kWh on the Standard Offer related components of customers’ electric bills, effective October 1, 2001. If approved, the typical residential Standard Offer customer using 500 kWh of electricity per month will see an 8.1 percent reduction in the overall bill, or $5.38 per month.
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According to Michael Ryan, executive vice president of Narragansett Electric, this decrease would put the price Standard Offer customers pay below prices since 1997.
“We are pleased to be submitting this rate reduction and hope that fuel prices will continue at their current levels so that we can maintain stable rates for our customers,” Ryan said. “It was only a year ago that we experienced extraordinary increases in the cost of fuel. Since then, we have seen a significant decrease in those prices.”
Narragansett Electric serves 460,000 customers in 38 Rhode Island communities and is a distribution subsidiary of National Grid. More than 99 percent of Narragansett Electric’s customers take Standard Offer service.
