National Grid's latest request for a drastic increase in electric rates indicates that something is fundamentally wrong with the restructuring scheme that was supposed to reduce the rates.

We were sold on the concept that by deregulating the wholesale energy markets, open competition would help lower our electric rates. We passed legislation in 1997 that authorized the restructuring of our electric utilities in Rhode Island and removed the Public Utilities Commission from regulating the wholesale rates of our electric bills. Unfortunately, what was not factored into this equation was keeping an adequate supply of electricity and becoming too dependent on one fuel source to drive this system.

With the Environmental Protection Agency pushing to shut down all of the coal-fired generating stations in this country, the government has manufactured a capacity crisis in the Northeast. In addition, with the replacement of these older plants, including Brayton Point, with new gas-fired generating facilities, it has put an undo strain on the natural gas transmission system feeding New England and Rhode Island. How is it that these federal regulators allowed the construction of these new gas-fired generating stations to operate on an outdated, undersized pipeline system?

The responsibility for this crisis in our utility rates falls on the EPA, the Federal Energy Regulatory Commission (FERC) and its agent, the Independent System Operators, or ISO.

Because of the continued delay in getting the new natural gas pipeline into the Northeast to add capacity to the system, we are suffering under unreasonably high natural gas prices and electric rates. We have basically put all of our eggs in one basket. Where is the competition?

Perhaps what is needed is to enact legislation to restore some of the safeguards that were traded for the promise of lower utility rates. As our PUC is powerless to stop these ridiculous rate increases, perhaps Rhode Island needs to get relief in the federal courts.

Sherry Roberts is a Republican state representative from West Greenwich.