National Grid: Lower gas rates ahead for Rhode Island customers

For the average residential heating customer using 845 therms annually, the combined bill impact from the proposed DAC and GCR charges for a typical residential heating customer represents a decrease of $147.58 or 10.9% per year, according to National Grid.

Rhode Islanders should see a decrease on their annual gas bill for the year ahead after the Public Utilities Commission (RIPUC) approved recent rate proposals from National Grid on Friday afternoon, according to a press release from National Grid today. 

The filings, submitted by the Company in September, impact the Gas Cost Recovery (GCR) charges and the Distribution Adjustment Clause (DAC) charges on customers’ natural gas bills and are effective from November 1, 2019 through October 31, 2020.

For the average residential heating customer using 845 therms annually, the combined bill impact from the proposed DAC and GCR charges for a typical residential heating customer represents a decrease of $147.58 or 10.9% per year, according to National Grid.

“As the winter season approaches we know our customers will be using more gas to heat their homes and businesses,” said Terry Sobolewski, President of National Grid Rhode Island in the release. “And while our customers need to prepare for that increased use, it’s encouraging to know their overall costs for the year ahead should be less significant than last year.”

The “Cost of Gas” or supply prices are determined by the market and represent the price at which National Grid purchases natural gas and reserve pipeline capacity on behalf of our customers; National Grid passes this cost along to our customers without profit. The market rates for gas are lower this year than last year. The reduced rate for “Cost of Gas” can be found under the “Supply Services” portion of a residential heating customers bill. The new rate will be $0.5302 per therm for residential heating customers.

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The new rate for the “Distribution Adjustment Charge” can be found under the “Delivery Services” portion of a residential heating customers bill. The new rate will be $0.0007 per therm for residential heating customers.

This news comes as Newport officials are becoming increasing frustrated, concerned, and impatient as promised reports on the specific cause of the massive gas outage nine months ago have yet to surface.


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