National Grid customers, lawmakers charged up over rate increase

Posted Wednesday, October 1, 2014 4:44 am

A sharp spike in winter season electricity charges announced last week by National Grid, which does not generate power but delivers it based on outside market prices, is drawing fire from Berkshire County customers.

The 37 percent increase over last winter's prices, based on expected tight supplies of natural gas that fuel electricity-generating plants, could increase a typical Berkshire homeowner's bill by as much as $100 a month during January and February. The rate hike from November to May represents a 49 percent surge over current rates, said Jake Navarro, a National Grid spokesman.

"This is going to hurt everyone; individuals, families and businesses," said state Rep. William "Smitty" Pignatelli, D-Lenox. Most of his district is served by National Grid. "Time to circle the wagons and fight this," he urged readers of his Facebook page.

But, interviewed Monday, Pignatelli acknowledged that state lawmakers have no say over electricity rates.

"Here we are, the economy's turning around, and we're going to sock people with another unforeseen cost," he said.

He also warned of the potential impact on employers, pointing out that the last major increase in 2006 helped drive Schweitzer-Mauduit International, owner of four paper mills in Lee, out of the area two years later at a cost of 165 local jobs.

Large commercial and industrial customers will see a rate increase of 75 percent, the state's Executive Office of Energy and Environment confirmed, averaging out to $19,000 a month.

"These increases are killing small businesses like my husband's store," Andrea Harrington wrote on Facebook. Her husband, Tim Walsh, owns the popular Public Market in West Stockbridge.

Last winter, some Berkshire residential customers saw electric bills exceeding $300 a month. The "sticker shock" stems not only from inadequate pipeline capacity in the New England region but also from the shutdown of coal-burning plants and nuclear installations such as Vermont Yankee, according to Dan Dolan, president of the New England Power Generators Association.

As Great Barrington financial planner Tom Sirois put it, "We cannot have our cake and eat it too. We cannot over-regulate coal plants nor nuclear plants (resulting in closing) and expect the result to be positive to our pocketbook. Maybe a little less regulation and a little less environmentalism would ease things up."

In view of new pipeline proposals from Kinder Morgan's Tennessee Gas Pipeline Co. and other suppliers, Pignatelli raised the question of "corporate collusion, that they're all working on this together to say, ‘give us the pipeline and rates will go down.' It makes me wonder."

Also wondering is Lenox Select Board Chairman Channing Gibson. "Interesting timing, blaming the higher prices on lack of pipeline capacity right as Kinder Morgan pre-files with the Federal Energy Regulatory Commission," he declared. Suggesting "more corporate fear-mongering," he challenged the need for a new pipeline route through Western and Northern Massachusetts.

National Grid, which serves 17 of Berkshire County's 32 communities -- including North Adams, Adams, Great Barrington and most of Lenox -- has no control over the price charged by electricity suppliers, Navarro explained. "Even though the issue is out of our control, we're concerned over what this means for our customers," the company's spokesman said in an Eagle interview.

The state Department of Public Utilities (DPU) approved the increase last week. "We have to file with the state to make sure our customers are protected and regulations are being followed," Navarro said. Those regulations ensure that utility suppliers such as National Grid have sought competitive bids from power-generating companies.

Article Continues After Advertisement

The DPU does not set the prices for basic services on the supply portion of customers' bills, said spokesman Amy Mahler, of the state's Energy and Environmental Affairs office. But the DPU does review and approve the competitive bidding process, she added, and also controls the distribution portion of the bill.

Western Massachusetts Electric Co., which serves the rest of Berkshire County, including Pittsfield, Dalton and Lee, plans to file its rate-increase plan with the state in mid-November, ahead of a winter-season rate adjustment that takes effect Jan. 1.

The increased cost of power purchased by National Grid is passed on to customers, said Navarro, and yields no profit. The "delivery" portion of the bill covers the company's costs and profit margin, he added.

National Grid recommends budget plans to spread out customers' bills equally through the calendar year.

Discounts are available to customers at certain income levels. "We encourage them to apply," said Navarro. Information: 1-800-322-3223.

"The anticipated basic service rate increases for electricity customers highlight the need for our continued aggressive investments in efficiency and a diverse energy mix to maintain energy price stability," according to the Energy and Environmental Affairs office.

Article Continues After These Ads

"A desire to minimize increases of this size motivated the Patrick administration to work with the Legislature to file the Clean Energy Bill during the last legislative session," the statement continued, "and is why the administration will continue to fervently advocate for similar legislation."

Last July, the state Legislature failed to approve Gov. Deval Patrick's high-profile solar and hydropower bills.

To "circle the wagons," Pignatelli suggested, customers could complain to the Department of Public Utilities (DPU) and the state attorney general's office.

If it's of any comfort, the National Weather Service's Climate Prediction Center predicts a milder-than-normal season from December through February.

Online assistance ...

For pricing by competitive suppliers: www.nationalgridus.com

Fuel bill help for low-income households: www.bcacinc.org

Article Continues After Advertisement

Energy conservation tips: www.mass.gov/eea/winterenergyresources

"Energy Smarts" blog: www.mass.gov/blog/energy

Video help: www.youtube.com/MassEEA

•••

National Grid in the Berkshires...

The following 17 of Berkshire County's 32 communities are served by National Grid: Adams, Alford, Cheshire, Clarksburg, Egremont, Florida, Great Barrington, Hancock, Lenox, Monterey, Mount Washington, New Marlborough, North Adams, Sheffield, Stockbridge, West Stockbridge, Williamstown.

To contact Clarence Fanto:

cfanto@yahoo.com

or (413) 637-2551.

On Twitter: @BE_cfanto