BOSTON (AP) — Officials say electrical supplier National Grid is requesting an increase in its rate for its service that would cost residential customers about $9 more a month.
National Grid officials say the higher rates are necessary to offset an increase in paying for expenses such as wooden poles, transformers, and employee salaries.
The company provides electricity to Nantucket and large sections of eastern and central Massachusetts.
If the increase is approved, the average National Grid household that uses 600 kilowatt-hours of electricity per month would pay 7 percent more on each bill.
National Grid for Massachusetts President Marcy Reed says inflation, health care costs and property taxes have also grown since the company’s last rate increase in 2009.
Officials expect the Massachusetts Department of Utilities will take nearly a year to review National Grid’s request.
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The article discusses National Grid’s proposed rate increase, which would raise the average residential electricity bill by approximately $9 per month. This 7% hike aims to cover rising costs for essential infrastructure components like wooden poles and transformers, as well as employee salaries. National Grid’s President, Marcy Reed, cites inflation, healthcare costs, and increased property taxes as additional factors driving the need for this adjustment. The proposed increase, affecting customers in Nantucket and much of eastern and central Massachusetts, underscores the financial pressures utilities face in maintaining and upgrading infrastructure. Given that the last rate increase was in 2009, the proposal reflects a decade’s worth of accumulated cost pressures. However, this move will likely burden households already coping with broader economic challenges. The Massachusetts Department of Utilities’ year-long review process indicates the thorough scrutiny such requests undergo, balancing corporate financial needs with consumer protection. The proposed rate hike highlights the ongoing tension between ensuring reliable utility services and managing the financial impact on consumers.