National Grid Rhode Island Gas Rates to Drop 15%

Rhode Islanders will be paying less for natural gas in the months ahead. The Public Utilities Commission today approved National Grid's request to lower the rates customers pay for the cost of natural gas. Residential heating customers will see the cost of gas reduced by 15.8 percent compared to rates set last year. The new rate will take effect on November 1, 2010 and remain in place for one year. The net effect of the rate cut would lower the total annual bill of the average Rhode Island residential heating customer using 922 therms of natural gas for the year by $138, from $1,486 to $1,348 or 9.3 percent.

A decline in the price National Grid pays to buy natural gas for its Rhode Island customers is making the proposed reduction possible.

It is important to note that customer bills are comprised of two types of costs – those related to the delivery of natural gas, and the cost of the natural gas itself. Natural gas costs account for approximately 70 percent of a customer's total bill. National Grid does not control the cost of the gas. The company purchases natural gas on behalf of its customers and passes the cost directly on to customers without mark-up.

"This is great news for our natural gas customers," said Nick Stavropoulos, executive vice president of Gas Distribution for National Grid. "Not only will our customers be paying less for their natural gas, they'll have the additional benefit of using a clean and efficient fuel. We are delighted to be able to pass these savings on to our customers."

Even Greater Savings Through Efficiency

Customers can save more money and benefit the environment by managing their energy usage wisely. National Grid has embarked on a campaign that urges customers to make a pledge to use three percent less energy every year for the next 10 years.

The cornerstone of the three percent less campaign is an interactive website, www.powerofaction.com, where visitors can sign a pledge; participate in a free energy evaluation; and learn ways to reduce their energy consumption by:

• Implementing simple low-cost or no-cost energy conservation methods
• Converting from oil to gas heat
• Taking advantage of National Grid energy efficiency programs in their region

For more than 20 years National Grid has offered award-winning efficiency programs to Rhode Island customers. Customers can also realize savings on their energy bills through company supported energy assistance programs and products. Information is also available at www.powerofaction.com

Payment Plans and Assistance

Even with lower gas costs and efficient use of energy, National Grid realizes that some customers may need assistance paying their energy bills. For more information and to learn if you qualify, go to www.nationalgridus.com, click on Rhode Island under "Natural Gas" then click on "Ways to Pay" and "Payment Assistance." Among the assistance sources Is the Good Neighbor Energy Fund, which is administered by the Salvation Army. This year National Grid will contribute up to $200,000 to the Fund to help Rhode Islanders pay their energy bills.

In addition, customers who are having trouble paying their bills should call National Grid at 800-870-1664 to speak with a representative about addressing overdue balances and setting up a payment program.

National Grid is an international energy delivery company. In the U.S., National Grid delivers electricity to approximately 3.3 million customers in Massachusetts, New Hampshire, New York and Rhode Island, and manages the electricity network on Long Island under an agreement with the Long Island Power Authority (LIPA). It is the largest distributor of natural gas in the northeastern U.S., serving approximately 3.4 million customers in Massachusetts, New Hampshire, New York and Rhode Island. National Grid also owns over 4,000 megawatts of contracted electricity generation that provides power to over one million LIPA customers.

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