National Grid praised for energy efficiency but chided for rate increases

GOV. GINA M. RAIMONDO and Lt. Gov. Daniel J. McKee are not entirely in agreement over the response of National Grid Rhode Island to the recent storms. / PBN FILE PHOTO/MICHAEL SALERNO / COURTESY TOWN OF CUMBERLAND
CHIDED OVER RATE INCREASES by Gov. Gina Raimondo and Lt. Gov. Daniel McKee, National Grid is pointing out its success with energy-efficiency programs. / PBN FILE PHOTO/MICHAEL SALERNO / COURTESY TOWN OF CUMBERLAND

PROVIDENCE – National Grid Rhode Island, the state’s largest utility company, gave itself a proverbial pat on the back Friday after Rhode Island and other states in which the company sells electricity were named among the nation’s best for energy efficiency.

“National Grid is proud to provide nation-leading energy-efficiency programs that consistently rank in [the American Council for an Energy-Efficient Economy’s] top ten and other tangible savings to over 7 million customers,” National Grid President Dean Seavers said in a statement Friday.

“Energy-efficiency programs consistently prove to be a cost-effective way to ensure that the 20 million people whose lives we power are able to take part in our clean-energy future,” Seavers added.

Thursday, the council released its 2018 State Energy Efficiency Scorecard, ranking Rhode Island, Massachusetts and New York – all served by National Grid – among the nation’s most energy efficient. Massachusetts ranked No. 1 for the eighth consecutive year, with Rhode Island ranking third, and New York moving up to sixth this year.

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Also, the council recently named Rhode Island and Massachusetts as top states with utility-sector energy-efficiency programs and policies.

Although National Grid has drawn praise from regulators for its energy-efficiency efforts, some of Rhode Island’s elected officials have taken issue with the company in recent weeks for electricity rate increases and related money matters.

In August, Gov. Gina M. Raimondo and Lt. Gov. Daniel McKee – both running for re-election in November – called on National Grid to return $7.9 million to ratepayers for what they characterized as “over collections” made after Congress passed legislation that reduced the national corporate tax rate to 21 percent from 35 percent, starting last January.

“When President Trump and Congress decided to give corporations like National Grid a massive tax cut, I was concerned about the impact it would have on Rhode Islanders,” Raimondo said in a statement. “While I’m pleased that National Grid has reduced their rate increase request in light of their tax cut going forward, they must also immediately reimburse ratepayers for these over-charges.”

Last week, state Rep. Robert Lancia of Cranston held a news conference outside National Grid’s offices in Providence, criticizing the company for electricity rate increases that went into effect statewide Oct. 1. He was joined by Providence mayoral candidate Dianne Witman.

“This is a day of shame. This rate increase is in addition to the two recent rate increases,” Lancia said in a statement.

Then, this week, McKee issued a statement to remind Rhode Island ratepayers that they can avoid National Grid’s rates by selecting an alternative energy supplier through the state’s online platform Empower RI (www.ri.gov/EmpowerRI).

“As a state, we have much more work to do to lower energy costs and protect consumers,” McKee said, “but Rhode Islanders need to know that Empower RI is an immediate option available to help avoid electric rate increases today.”

A spokesman for state Department of Public Utilities and Carriers, which regulates utility rates, suggested that characterizing National Grid’s approved rate increases as excessive is somewhat of an exaggeration.

For example, he said, National Grid’s current electricity usage rate for residential customers may seem high, but prior to increases approved in the past year or two, that rate had fallen to near or at its lowest level in more than a decade.

He added that National Grid’s new electricity usage rate for Rhode Island residential customers – one of several charges that compose monthly bills – would raise monthly bills by $13 for a home using 500 kilowatts of electricity a month.

Scott Blake is a PBN staff writer. Email him at Blake@PBN.com

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