IN THE NEWS

OCTOBER 2011

GOOD NEWS FOR COGENERATION -BACKUP SERVICE RATES REDUCED BY 90%

TEC-RI, National Grid and the Division of Public Utilities signed a settlement agreement that was approved by the Public Utilities Commission on September 26, 2011. The agreement alters the National Grid electric tariff by reducing the backup service demand charge from $2.86/KW to $0.28/KW for the B-62 rate and $5.22 to $0.52 for the B-32 rate.

Backup service exists to make sure that electricity supply is available from National Grid in the event the customer's generator has failed or is down for maintenance.  These rate changes will reduce the cost of cogeneration by thousands of dollars per month and make it a more economically viable option.

Cogeneration gives customers another option for coping with operating costs and the rising costs associated with the non-energy portions of the electric bill by generating electricity on site. Customers who use natural gas for cogeneration are also exempt from the energy efficiency surcharge on the gas used by the generator.  This gas surcharge  is currently 41 cents per dekatherm.

In conjunction with this, National Grid is providing incentives for the development of cogeneration projects through its energy efficiency program.  Customers who have considered cogeneration in the past and rejected it may want to  reconsider it now in view of these developments.  Customers who have not yet considered cogeneration may want to do so now.

These rates goes into effect January 1, 2012.  TEC-RI thanks National Grid, the RI Division of Public Utilities and the RI Public Utilities Commission for working with us to bring about these changes that are important to the advancement of RI's energy policy and economic development.  Actions such as this give businesses, governments and institutions additional options for coping with operating costs and preserving and adding jobs.

Contact Bill Ferguson at TEC-RI if you have any questions.

Visit the RI PUC website under docket 4232 for more information at the following web address:  www.ripuc.org/eventsactions/docket/4232.html.