National Grid rates, supply costs increasing

National Grid says record-high electricity supply costs, coupled with a rate increase, will add up to an average increase of $10 in a residential customer’s monthly electricity bill this winter.

The electric utility, formerly Niagara Mohawk, reports that the price increases will vary from a low of $5.50 in Western New York to a high of $15 in the eastern part of the state.
“Commodity costs are at or near record levels,” said company spokesman Stephen Brady. “The long-range forecasts are that they will spike up this winter and will slide back down as we get to spring and summer,” he said, noting that even those lower rates will reflect higher-than-average supply costs.

Electricity prices have increased markedly in recent months, largely due to the impact of hurricanes Katrina and Rita. Tighter supplies have resulted in a significant increase in the price of natural gas, which in turn influences the cost of electricity.

Business First