National Grid’s Estimated Bill Impacts as a Result of New Electricity Distribution Rates in Effect as of October 1, 2016
**This communication is being sent to all Mayors, City and Town Managers, and Town Administrators in the municipalities that National Grid serves in Central & Western MA.**
Further to our previous communications regarding National Grid’s electricity Distribution Rates that went into effect earlier this month (attached below), please note the projected bill impacts for each of our commercial and industrial rate classes shown below. We have also included a brief comment on the impacts to residential rate classes R1 & R2.
Please note that the impacts shown are on the total bill, assuming the Basic Service supply rate in effect on October 1, 2016.
Residential Rates
R-1 (Regular Residential rate) = 6.9% increase or $7.36/mo (This is based on average residential customer usage of 600 kWh/mo.)
R-2 (Low Income rate) = 1.8% increase or $1.30/mo (This is based on average residential customer usage of 600 kWh/mo.)
Small Commercial (G-1) Rate
The total bill impact for this rate class varies from an overall increase of 0.2% to a decrease of -7.3%. The wide swing in percentage impact stems from the fact that previously the distribution rate was $0.04933 for the first 2000 kWh used by a G1 customer and $0.06705 per kWh used in excess of 2000 kWh. The new distribution rate is $0.04936 for all kWh usage. Therefore, customers using 2000kWh or less will see a very slight increase, while customers with greater than 2000kWh of usage will see a decrease.
Mid-Sized Commercial (G-2) Rate
The total bill impact for this rate class varies from an overall increase of 5.3% to an increase of 11.1%.
The primary changes are as follows:
Customer Charge (from $16.56 to $25.00)
Demand (kW) Charge (from $6.00/kW to $8.50/kW)
Distribution Charge (from $0.01134 /kWh to $0.01176/kWh.)
Similar to the G-1 bill impacts, customers using more energy (kWh) will see a lesser bill increase, while customers using less energy will see increases on the higher end.
Commercial & Industrial (G-3) Rate
The total bill impact for this rate class varies from an overall increase of 1.9% to an increase of 4.8%.
The primary changes are as follows:
- Customer Charge (from $220 to $223)
- Demand (kW) Charge (from $3.92/kW to $5.75/kW)
- Peak Distribution Charge (decreased from $0.01503/kWh to $0.01313/kWh)
- Off Peak Distribution Charge (decreased from $0.00750/kWh to $0.00560/kWh).
Once again, customers using more energy (kWh) will see a lesser overall bill impact.
Please note that the above impacts do not factor in the "winter" supply rates. We will provide that information to you prior to winter supply rates going into effect on November 1, 2016.
Please contact your respective Community & Customer Manager if you have any additional questions.
Respectfully,
The Central/West Community and Customer Management Team
Joanne DeRose, Scott Farrar, Andrea Gossage, Helayna Grover, Kevin Shaughnessy, and Aleta Fazzone
_____________________________________________
From: Municipal Room Central and West
Sent: Thursday, October 06, 2016 3:32 PM
Subject: National Grid Electricity Distribution Rate Update
National Grid’s Electricity Distribution Rate Case Has Been Decided
**This communication is being sent to all Mayors, City and Town Managers, and Town Administrators in the municipalities that National Grid serves in Central & Western MA.**
Last Friday, National Grid received an order from the Massachusetts Department of Public Utilities (DPU) allowing us to update our electricity distribution prices for the first time since 2010. The agency has issued a decision that will help us continue to invest in and maintain the distribution system for our 1.3 million electricity customers across the Commonwealth.
The DPU’s order followed a rigorous 11-month review that included the participation of numerous stakeholders who share our interest in safe, reliable, and affordable electricity service. This update in our base electricity distribution rates, combined with a seasonal change in winter supply prices next month, will result in an approximately 7 percent bill increase for our residential customers. We will have more exact bill impact estimates later this month (particularly for larger business customers) once we finish reviewing the order and submit our compliance filing as required by the DPU.
As mentioned below, please note that customer bills reflecting their October electricity usage may be delayed for about two weeks as we incorporate the new distribution prices that went into effect on October 1st into our billing systems. Additionally, we can also report that winter supply rates will see a slight increase – 9.7 cents per kilowatt hour compared to the current 8.0 cents per kilowatt hour. This supply rate (for customers who have not selected an alternate supplier) will go into effect on November 1st. Please encourage your residents and businesses to log onto ngrid.com/billhelp for ways to help manage their energy costs.
Thank you once again for your support.
Respectfully,
The Central/West Community and Customer Management Team
Joanne DeRose, Scott Farrar, Andrea Gossage, Helayna Grover, Kevin Shaughnessy, and Aleta Fazzone
_____________________________________________
From: Municipal Room Central and West
Sent: Thursday, September 08, 2016 11:35 AM
Subject: National Grid Update on Impending Electricity Distribution Rate Case
National Grid Update on Impending Electricity Distribution Rate Case
**This communication is being sent to all Mayors, City and Town Managers, and Town Administrators in the municipalities that National Grid serves in Central & Western MA.**
Last fall, your National Grid Community Manager notified you of our filing with the Massachusetts Department of Public Utilities (DPU) to update our base electricity distribution rates for the first time in six years. The DPU is expected to make a decision on this filing later this month for rates that would go into effect October 1st for our 1.3 million electric customers across more than 170 Massachusetts communities.
As we near this decision by the DPU and also the timing of our annual change in winter supply rates, we wanted to take the opportunity to assure you, as one of our key stakeholders, that we are equipped to deliver the safe and reliable service that you expect and deserve, and we are continuously striving for improvement. We are confident that the DPU’s extensive, nearly 11-month review of our electricity distribution rate proposal will result in a sound decision to ensure reliability for our customers.
With electricity distribution rates changing October 1st and new winter supply rates going into effect November 1st, our overall electric bills will increase. As a reminder, electricity supply is the portion of the bill that National Grid does not control; instead we purchase supply on behalf of our customers and pass it through to them at cost. Though we do not know the final impact of these combined factors, we estimate only a slight change in winter supply rates (which are typically higher than summer supply rates) and a modest increase on the distribution side of the bill. Please also note that the issuing of customer bills reflecting October electricity usage may be delayed as we await final decision from the DPU on our distribution rates.
We are responsibly using every cent of our customers’ money to deliver on our promise to connect customers with their energy needs today and lead in the creation of a 21st century network for tomorrow. We are constantly maintaining and investing in our infrastructure, training our workforce, supporting projects that will help secure our energy future, and working to improve how we communicate with you.
As your National Grid Community Manager may have mentioned when discussing this with you and/or your colleagues last fall, there is never a good time for any business to raise its prices. National Grid has not sought an increase to cover the cost of running our business, i.e., operating and maintaining our electric system and supporting our electric business, since 2009 and the resulting electricity rates that went into effect from this increase (in January 2010) were based on 2008 costs. As is the case with any business or municipality, our costs have risen too. We recognize the challenges our customers face affording their bills, therefore, we continue to provide our customers with solutions to take control of their energy costs, offering a variety of billing options as well as access to the nation’s #1 energy efficiency programs.
These options may be found at ngrid.com/billhelp. Please share this website with your residents, businesses and other key constituents in your town.
In closing, we assure you that you will continue to receive great value from us as your electricity provider. Thank you for supporting our efforts to build on our successes and to continue to deliver safe and reliable service.
Respectfully,
The Central/West Community and Customer Management Team
Joanne DeRose, Scott Farrar, Andrea Gossage, Helayna Grover, Kevin Shaughnessy, and Aleta Fazzone
Kelli A. Robbins, Esq.
Executive Secretary
Town of Holland
27 Sturbridge Road
Holland, MA 01521
Phone 413-245-7108 EXT. 101
Fax 413-245-7037
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