National Grid rolls back proposed rate hikes

PROVIDENCE – National Grid announced on Thursday it plans to reduce its current gas and electric distribution rate proposal by $25 million in light of federal tax changes but Lt. Gov. Dan McKee believes the company can do even more for Rhode Islanders.

McKee would also like to see National Grid reduce its current rates between now and September to also reflect the tax savings.

“I’m encouraged by National Grid’s response to my request to lower their proposed 6% electric and 5% gas rate increases in light of the federal corporate tax reduction,” McKee said in a statement issued on the proposed rate changes.

“This is a step in the right direction but this solution, on its own, will not provide ratepayers with a single penny of relief until September when the Grid’s proposed rate is set to go into effect,” McKee said.

McKee said he sent the Rhode Island Public Utilities Commission a letter in which he called for a roll back of National Grid’s current gas and electric rates through September 1.

“During this time the Grid will enjoy savings from the corporate tax break, yet Rhode Islanders will continue to pay an inflated and inaccurate price for their energy,” McKee said.

McKee said the PUC can reopen the dockets for rate increase proposals or create new dockets, which would allow the agency to reexamine “all recently approved” National Grid rate increases that will be affected by tax savings this year.

“I encourage the PUC to do so and I look forward to National Grid’s response,” McKee said.

National Grid’s announcement of its distribution rate proposal noted it would affect the rate proposal it filed with the PUC last November, the first such increase request it has submitted since 2012.

After filing the request, National Grid indicated it has been “assessing” how the newly passed federal tax reform legislation signed into law in December would benefit its customers.

“Today’s announcement is a key indicator of how this new tax law can provide real benefits to National Grid’s customers,” Tim Horan, president and COO of National Grid in Rhode Island,” said of the rate proposal reduction. “We are committed to ensuring that the tax savings of the legislation are fully realized and are used to help our customers in their energy bills,” Horan said.

The company noted that as part of the PUC’s review of National Grid’s base rate case filing, the agency issued a data request on December 21 asking the company to recalculate its proposal to reflect changes from the federal tax reform.

National Grid has been examining how the legislation could benefit customers since the law passed last month, and provided the new figures to the RIPUC today, the company noted.

Rhode Island Republican Party Chairman Brandon S. Bell released a statement that McKee and Gov. Gina Raimondo deserve “zero credit” for the rate reduction.

“Instead of sending out silly statements claiming credit in some way for this rate reduction, they should just say thank you to the Republican Congress and President Trump for tax reform and admit that there will benefits to Rhode Islanders from tax reform.”

National Grid initially sought an increase of more than $71 million to support operations and new initiatives in National Grid’s gas and electric business, according to the company.

The revised proposal takes into account more than $19 million in tax savings, the company noted. Those savings coupled with other adjustments made during the recalculation the proposal comes in at approximately $45 million in total. The adjusted figures estimate a request for $27 million on the electric side and $18 million on the gas side, according to National Grid.

The company’s proposed rate increases will continue to be reviewed by the PUC under a process expected to last eight months, according to the company. That time frame will also allow for multiple opportunities for public comment in the review. Any approved rates would not be effective until September 1, 2018, National Grid noted.

National Grid said it is still assessing how the reduction will impact customer bills.