As a bipartisan group of state senators and representatives tries to combat rising utility rate hikes with winter approaching, a national advocacy group has compiled a “shopping guide” to help consumers find the most cost-effective ways to stay warm.
The Retail Energy Advancement League (REAL) was founded in February to help expand and modernize American retail energy markets, and has already been put to the test in response to expected massive spikes in costs resulting from a combination of inflation, supply chain issues and the war in Ukraine. The shopping guide it created is available at bit.ly/3N88rq9.
“It’s important for people to know they don’t have to wait and accept their fate,” said Christopher Ercoli, president and CEO of REAL, which is based in Pennsylvania but has members across New England. “They can make choices right now to affect their bill over the next six months.”
According to the guide, National Grid’s rate will go up from 11.5 cents per kilowatt-hour to 33.9 cents starting Nov. 1. Eversource’s figures are expected to be finalized in the next couple of days.
“Winter prices are always a bit more expensive, but on a global scale we’re just seeing a massive increase in natural gas prices, which is the fundamental reason why we’re seeing electricity price increases,” Ercoli said, adding that the cost of all energy sources increases when natural gas prices rise.
Meanwhile, 31 state senators and 76 state representatives sent a letter this month to the state Department of Public Utilities to express concern about the energy rate increases set to impact residents this winter. The letter to DPU Chair Matthew Nelson urges the department to protect residents from these rate increases.
“I think what we’re trying to do is work every angle and every avenue possible to help support constituents as we head into the winter and as threats of higher energy costs continue to pour in,” said Sen. Jo Comerford, D-Northampton, who signed the letter. “I hear from constituents all the time who are struggling to make ends meet, struggling to pay their bills. We have to find relief for families.”
“In recent weeks my office has received many messages and calls regarding this obscene rate hike,” Rep. Susannah Whipps, I-Athol, said in the letter to DPU. “National Grid claimed $18 billion in profits in (fiscal year 2022), a 25% increase from the previous year. At a time when folks are truly struggling, we must stand up to this kind of greed. I am proud to join my colleagues in this fight.”
“The DPU must stop making sweetheart deals with utilities at the expense of our constituents,” Rep. Natalie Blais, D-Sunderland, said in the letter. She also mentioned a bill she sponsored with Comerford to “protect electricity and gas customers by eliminating automatic annual rate hikes and limiting the return on equity that utilities can earn to no more than the average of neighboring states.”
Sen. Anne Gobi, D-Spencer, said these rate increases represent an additional burden on her constituents.
“DPU must act in the best interest of Massachusetts residents, ensuring that families are not left out in the cold, hungry or sick,” Gobi said in a statement.
John Lamontagne, who works in strategic communications for National Grid, explained electric bills are increasing by roughly 64% for average residential customers in Massachusetts due to electric prices being closely correlated to those of natural gas.
“Electric prices are closely correlated to natural gas prices because natural gas generators are often the marginal resource that sets electric prices. More than half of the electricity generation in New England comes from natural gas,” Lamontagne wrote in an email. “It is important to note that National Grid does not generate electricity and plays no role in determining market prices, which control basic supply rates. The company procures the electricity and then passes those costs to customers with no mark-up.”
According to Lamontagne, National Grid launched the Winter Customer Savings Initiative to help customers reduce their energy usage, save money, better manage their bills and secure energy assistance. Customers can visit ngrid.com/heretohelp to explore programs and offerings. National Grid also offers several bill help and payment-assistance options. Customers may be eligible for programs such as the Home Energy Assistance Program (HEAP), the Massachusetts Good Neighbor Fund, discounts on electric rates and more.
Reach Domenic Poli at: dpoli@recorder.com or 413-772-0261, ext. 262.