Your Partner in Saving Energy.

Monday, July 29, 2008

National Grid typical customer - $93/Month:

Pascoag Electric typical customer - $71/Month

Why does a typical customer of Pascoag Utility District pay, on average, $22 less per month than the typical customer of National Grid?

There are many reasons. Pascoag Utility District has taken several steps to keep your cost as low as possible while maintaining system reliability and exceptional customer service.  The District has several long-term power contracts in place, securing over 85% of its customer’s needs through the year 2010.  Pascoag’s power portfolio is also diverse and includes hydro power (20%), nuclear power (20%), with the remainder coming from fossil fuel generating stations.

In addition, Pascoag is pleased to announce that it successfully completed its goal to obtain a credit rating with Standard and Poor’s.   This spring, the District received a rating of A-, which will enable the District favorable rates on future debt service, and most importantly, will enhance the District’s ability to negotiate favorable power contracts.

With the approval of the Rhode Island Public Utility Commission, Pascoag established a “Purchased Power Restricted Fund” account.  This account, dedicated to power expenses, will ensure that the District can meet payments to power suppliers in a timely manner, avoiding penalties and interest charges, which would have to be passed on to its customers.

What can you do to help keep the electric rates as low as possible?

There are several things that you can do to help keep your bill as low as possible that will save you money, and help to reduce Pascoag’s peak demand.

Conservation – this is the best and easiest way to cut back on your utility bills.  By turning off lights, keeping air conditioners set slightly higher, unplugging small appliances and phone chargers when not in use, and by replacing old, inefficient light bulbs with the new energy saving bulbs, you’ll see savings in your electric bill. 

ENERGY STAR – always look for the ENERGY STAR logo when you buy appliances and electronics.  You’ll save money in the long run, and you may qualify for a rebate on your electric bill!  Call our office before you buy to see what programs are in place for rebates.

Avoid peak hour use – Pascoag’s peak hours for energy consumption are between 3:00 p.m. and 9:00 p.m.  Whenever possible avoid using dishwashers, clothes washers and electric dryers during this time.  By reducing the peak demand for energy, all customers save because as the peak demand increases, Pascoag has to go to the energy market to buy additional power, thus incurring additional expenses.

Pay your electric bill on time – this avoids incurring additional penalties and late charges on your electric bill.  It also saves in other ways.  Pascoag is a not-for-profit electric company, and does not have huge operating reserves or share-holders.  Thus, in order to meet its financial obligations to its suppliers, Pascoag relies on revenue from sales of electricity to its customers.   When the District meets its financial obligations in a timely manner, late fees and penalties are avoided.

 Always call the office if you are delinquent in your bill – If your electric bill does become delinquent, call the office immediately to make a payment arrangement.  If your electric bill is shut off for non-payment, you’ll incur a fee of $25 for reconnection.

Coming Soon!!! Renewable Energy and Sustainable Workshop Series at Pascoag Utility District!

Check back here for more information as it becomes available.

A typical customer is a residential customer using 500 kilowatt-hours of electricity per month.

Friday, June 11 , 2008

21.7% Electric Rate Increase requested

This was the ProJo’s headline last week. Actually it was a story about a rate increase request made by National Grid. 

What about the Pascoag Utility District (PUD)? Will PUD’s electric customers’ rates be spiraling upward also? Well there is good news and some not so good news!  

First and foremost PUD has requested the RI Public Utilities Commission to maintain our rates, at today’s level, for the rest of 2008! 

Pascoag Electric’s rates were raised in August 2006 and were not adjusted again until January of this year when they were raised 2.2% to account for higher Transmission rates from National Grid and the New York Independent System Operator for transmission of our New York Power Authority Hydro Power allotment. That represented 18 months of stable (and very competitive) rates! 

Pascoag continues to receive a large portion of its purchased power under a contract that calls for the provision of energy at a cost of 7.8 cents/kWh. The market price recently has been pegged at between 10.2 cents/kWh with some future trading at 14 cents/kWh! 

RI residents served by National Grid will now see 12.4 cents/kWh for the Standard Offer portion of their bill sooner rather than later, while PUD customers remain at 5.942 cents/kWh. The bad news is that our contract that I referred to above ends in 2010. Prior to that PUD will also be negotiating new contracts. They are expected to be MUCH higher! The Board of Utility Commissioners, the RIPUC and the Division of Public Utilities and Carriers, as well as the Management Team here at PUD, are working together to explore many options right now, as opposed to waiting until 2010.

Amongst those options is PUD’s participation in two new Generating Plants owned by and operated for Public Power Systems, such as ours. We continue to be optimistic regarding the competitive pricing of the output of these plants. Additionally, we are considering requests for “moderate” rate increases during 2009 and the 1st half of 2010 to ameliorate any potential for substantial increases associated with new contracts. Please be assured we are working diligently to keep rates as low as possible without sacrificing the highest level of Customer service.

 

 

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