New electric rates go into effect January 1

The Block Island Power Company hopes its new rates will be going into effect on January 1. They are the result of the required annual reconciliation that converts predictions into reality. Predictions because the rates are set based onhow much energy you think you are going to sell in advance of a coming year, and reality because what you think will happen is never exactly what actually does happen. Sometimes it’s good, and sometimes it’s bad. And the resulting differences between predicted and actual are folded into the rates that go into effect in the coming year.Currently though, the rate changes are coming mainly from price increases in the energy markets. The power supply component accounts for about two-thirds of the increase.This year, unlike other places in New England, the news is much better than expected, and believe it or not, Block Island will have the second-lowest electric rates in Rhode Island, with the Pascoag Utility District having the lowest, and RI Energy the highest. In Massachusetts, National Grid and Eversource (also in Connecticut), all had large rate increases – even higher than RI Energy’s 47-percent increase that went into effect on November 1. Block Island’s rate increase

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