Electric rates likely to drop in R.I. this spring

PROVIDENCE — The cycle of fluctuating electric bills for most Rhode Islanders is set to continue after state regulators largely approved a proposal from National Grid that will see rates go down this spring.

While the Rhode Island Public Utilities Commission has yet to approve some components of the new standard offer proposal, National Grid says that for residential customers, the rate going into effect April 1 will drop down to less than 8.5 cents a kilowatt hour. That represents a 22 percent drop from the current rate of 10.96 cents.

For the typical residential customer that uses 500 kilowatt hours a month, it will mean a reduction in their monthly bill of about $13, or a 15 percent decrease, according to National Grid.

“Over the last couple years, residents and businesses across New England have had to endure some of the highest electricity prices we’ve seen in some time,” Terry Sobolewski, president of National Grid Rhode Island, said in a statement. “And while the region still has a ways to go compared to other parts of the country, we’re starting to see markets stabilize and get our customers the relief they deserve as they head into the summer.”

The last time the residential rate was about 8.5 cents a kilowatt hour was in the spring and summer of 2018. It increased to about 11 cents the following winter and then dropped to 9.2 cents when spring came last year.

The pattern is driven by demand for natural gas, the dominant generating fuel in New England. Usage goes up in the winter when the fuel is needed for heating and then eases in the spring when demand tails off.

Standard offer rates reflect the cost of energy that National Grid buys on wholesale markets and, by law, passes on to ratepayers without profit.