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July 8, 2008

PUC hears pleas against utility rate hikes / Photo

puchearing.jpg
Journal photo / Andrew Dickerman
Ada Morales, of Providence, wipes away tears as she shows notices that gas and electricity are going to be shut off in the home she shares with her elderly parents and small children, during a public hearing today before the state Public Utilities Commission on National Grid's rate requests.


WARWICK -- About 20 people -- some who have had utilities shut off -- implored the Public Utilities Commission today not to approve rate increases that National Grid has requested for natural gas and electricity.

Speaker after speaker at a public hearing said the increased rates -- 21.7 percent for electricity and 10 percent for gas -- will force more people to lose electricity, which they need to stay cool in the summer, and gas, which they need to stay warm in the winter.

"None of us today in 2008 can live without electricity. We all need it," Elizabeth Dees testified. "It is unaffordable for a large percentage of the population of Rhode Island."

"Our income is not that much, and the bill is so high," said Elaine Keller. "Everything's expensive, but they're paying me the same thing."

She said her gas had been shut off because she was behind on her bills, and National Grid wanted to put her on a payment plan to catch up. The utility asked her for $400 a month over three months. But, she said, her monthly income is only $700, and she has five children.

National Grid upped its electricity rate request last week, from a 15.6 percent increase, citing increases in energy costs. The request is the largest single rate increase the company has ever sought, and would put rates at their highest level ever. National Grid has asked the new rates to go into effect on July 15.

In testimony to the commission after the public hearing ended, a National Grid representative said he sympathized with people whose utilities had been shut off.

"We're trying as best as we can to not ask any more than we feel is essential," said Gary L. Beland, a manager in the gas pricing department. But, he said, the utility's own fuel costs are also rising. "Our gas bill, if you look at the part that is not hedged, has gone up over 70 percent in the last three months."

Regulators have little discretion when it comes to rate-increase requests that are based on rising fuel prices. State and federal laws allow a utility company to recover from customers what it pays for electricity or natural gas, as long as the company makes "prudent" buying decisions. The PUC could cut the proposed rate increase, or delay it. But eventually, customers will have to pick up the increased costs.

No more public hearings will be held on the rate requests. The PUC will decide on them either this Thursday or next Thursday, July 17.

Extra: See the proposal as put forward before the PUC.

-- Journal staff writer Paul Parker

Posted by Andrea Panciera  at 5:55 PM | Permalink

Comments

These rate increases are killing us. I dont have any young children but work at least 50 hours a week to just support myself.

My question is can you get blood from a stone?

How much more can we take. The gas, grocery and rate increases on everything are insane. The only thing that isnt increasing is our paychecks.

Christine C from Providence | July 8, 2008 7:01 PM link

My sympathies are with those who cannot currently afford their utility bills and groceries etc because of inflation, job loss etc. But before you decide to have any more than 2 children, please think before having them, that you may not be able to afford them. And then don't cry about it!

Think! | July 8, 2008 7:15 PM link

Why doesnt the Governor step in........oh wait he was CEO at Cookson America right? never mind. While I have nothing but disdain for National Grid in everyway shape and form, the lady who complained that she only makes $700.00/ month should get a job. How does she expect to raise 5 kids on that. If the reporter felt that this person's story was going to tug at our heart strings then the reporter should not be a reporter. All that didi was make me thiink of the real hardluck stories. Like the family who had two working parents with three kids and one of the parents lost a job. They fell behind even while making the payments on their arrangement and they still got shut off because National Grid did not want to keep their part of the bargain.

Steve | July 8, 2008 7:45 PM link

It's time we start developing domestic energy sources...coal, oil, nuclear, wind (especially off of the Cape), etc. and stop letting special interests get in the way of the greater good of the citizens of this country. Conservation and good intentions can only go so far to solve our current problems.

tcc3 | July 8, 2008 8:20 PM link

The first question I would ask Ms. Keller, is how did you ever expect to raise 5 children on $700 a month?

Pablo Honey | July 8, 2008 8:47 PM link

Seeing as how these are "public" utilities, is anyone looking at all the salaries and overhead of all the staff that work for them? I wonder if any of their executives will ever know what it's like to have to struggle just to pay these fees.......

Kenny B. | July 8, 2008 9:49 PM link

National GREED. What this foreign company should do is move some of the BILLIONS they make each year into the box called purchasing product.

This is beyond obscene.

People are gonna end up dead and it's on this GREEDY comapny. Sure they are sorry, No they are not all they cale about is profits.

For those of us on a FIXED income these horrible increases can not be paid.

slammie | July 8, 2008 10:25 PM link

It just get harder for all of us to live in Rhode Island.Where will it all end.

James T. Murphy | July 8, 2008 10:35 PM link

I wasn't aware that the Electric and Gas Company has been operating in the RED. This rate hike is an insult. What are the wages of their top employees???

Therese Morse | July 9, 2008 5:36 AM link

National Grid is supposed to put in requests for rate increases 30 days in advance and then give 10 days notice of hearing. Why are they getting a special deal?

Pat Crowley | July 9, 2008 6:09 AM link

HOW MUCH CAN THAY GET FROM PEOPLE WHO HAVE LOST THERE JOBS THERE HOMES. THERE IS NO REASION FOR A HIKE LIKE THAT JUST I WANT TO EAT STAKE INSTADE OF HAMBURE FEED MY POCKETS SO I CAN HAVE A GOOD LIFE.

David Therriault | July 9, 2008 6:14 AM link

everyone passes the raising cost of fuel to the little people. WHAT ABOUT US WHOM DO WE PASS ALL THESES INCREASES PASSED ON TO US TO? OUR EMPLOYERS?

maria | July 9, 2008 6:44 AM link

National Grid are monopolistic thieves. There's no question about that. BUT BUT BUT five (5) children??? I mean, I can't even imagine getting by with ONE (1), let alone FIVE (5). It's hard to be sympathetic for people who make such terrible and avoidable choices in life. I wonder what Mr. Hi-Cock thinks?

Dr. Robert A | July 9, 2008 6:52 AM link

I don't know Ms Keller's story, but while she may have made some poor life choices, she may also have been the victim of bad luck. If your husband takes off and doesn't pay his court ordered child support, very little is done to force him. Where are the fathers of these 5 children? If they were doing their part, her income would be higher than $700/month.

Jane | July 9, 2008 9:51 AM link

If National Grid wants a 10% rate hike, they ask for 21.7%. And the PUC, which is in bed with them, gives them ONLY 15%. What a game!! And we put up with the constant rape of the small guy. Why do I feel that everyone who has authority in Rhode Island has their hand in my pocket?? This includes the buffoons in the state house.

Henry | July 9, 2008 11:36 AM link

So is the arguement from the people at the hearing that the shareholders of Natl Grid should subsidize their lives and their decisons? The price of gas at the pump went up by a 1/3, the cost of oil went from 75 to 140 dollars a barrel, it makes the Nat'l Grid increase seem reasonable.

Clearly some people will always need help from the rest of us (read the gov't), but they should not get help if they don't make good decisons themselves.

Scott | July 9, 2008 1:20 PM link

How about the small business owners in this state?? My electric bill jumps to $2000 a month in the summer and with a 20% increase, that's $100 a week!! My prices will have to go up and my customers will complain... By law, the utilities have to make a profit... what about us?? We are at their mercy and the vice just gets tighter.

Greg | July 9, 2008 1:57 PM link

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