Natural gas prices could drop nearly 10% for RI customers
It won’t be long before colder temps are on the way, and our customers will be using more natural gas to heat their homes and businesses. The bright side of all this is that customers may be paying lower prices for natural gas if the Rhode Island Public Utilities Commission approves the proposed natural gas supply prices that we recently submitted.
The possible savings for the typical residential customer who heats with natural gas is $120.00 annually.
There’s even more possibility of savings. When coupled with a natural gas price reduction that went into effect on November 1, 2014, our Rhode Island customers will be paying approximately 14% less than what they paid through most of 2014. We purchase natural gas for customers and pass through those costs.
“We know the winter season can pose an extra challenge when it comes to energy costs so we’re very happy to be able to pass on the savings created with the availability of lower cost natural gas,” said Timothy F. Horan, president of National Grid in Rhode Island. “Domestic natural gas is essential to providing the mix of energy sources that is essential to our region’s future growth and prosperity.”
Factors contributing to the price drop include:
- Anticipated drop in the cost of natural gas.
- Reduction in the surcharge used to reconcile the difference between the cost of gas we purchased in the prior year versus what customers were billed.
Pipeline Constraints Continue
While less expensive natural gas is helping to bring down costs for residential and commercial customers, New England still needs additional gas pipeline capacity so that gas can continue to be delivered safely and reliably, especially as customer demand increases.
As demand increases and with about half of New England’s power plants fueled by natural gas, electricity supply prices remain volatile. The region’s pipeline constraints limit the amount of natural gas available for electricity generation, which can lead to price spikes during the coldest days of the year. Those spikes, in turn, affect what customers pay for electricity.
Save More with Energy Efficiency
Customers are encouraged to save even more with energy efficiency and can find out more at: https://www1.nationalgridus.com/EnergyEfficiencyService.