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July 8, 2008
PUC hears pleas against utility rate hikes / Photo

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
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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.