Post date: Oct 25, 2016 1:22:14 PM
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