Rising electric bills stun New Englanders
SALEM, N.H. » John York, who owns a small printing business here, nearly fell out of his chair the other day when he opened his electric bill.
For October, he had paid $376. For November, with virtually no change in his volume of work and without having turned up the thermostat in his two-room shop, his bill came to $788, a staggering increase of 110 percent. "This is insane," he said, shaking his head. "We can’t go on like this."
For months, utility companies across New England have been warning customers to expect sharp price increases, for which the companies blame the continuing shortage of pipeline capacity to bring natural gas to the region.
Now that the higher bills are starting to arrive, many stunned customers are finding the sticker shock much worse than they imagined. York said he would have to reduce his hours, avoid hiring any new employees, cut other expenses and ultimately pass the cost on to his customers.
Like turning back the clocks and putting on snow tires, bracing for high energy bills has become an annual rite of the season in New England. Because the region’s six states — Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont — have an integrated electrical grid, they all share the misery.
These latest increases are salt in the wound. New England already pays the highest electricity rates of any region in the 48 contiguous states because it has no fossil fuels of its own and has to import all of its oil, gas and coal. In September residential customers in New England paid an average retail price of 17.67 cents per kilowatt-hour; the national average was 12.94 cents.
Don't miss out on what's happening!
Stay in touch with top news, as it happens, conveniently in your email inbox. It's FREE!
(According to Hawaiian Electric Co., residential customers on Oahu paid an average of 34.62 cents per kilowatt-hour in 2013.)
Beyond that, the increases confound common sense, given that global oil prices have dropped to their lowest levels in years, and natural gas is cheap and plentiful from the vast underground shale reserves in nearby Pennsylvania.
The utilities argue that they are hamstrung unless they can increase the pipeline capacity for natural gas, which powers more than half of New England. That would not only lower costs for consumers, they say, but also create thousands of construction jobs and millions of dollars in tax revenue.
The region has five pipeline systems now. Seven new projects have been proposed. But several of them have stalled because of ferocious opposition.
Consumers have been left in the middle, as baffled as they are angry.
"I think we need to be more aggressive in pursuing renewables and energy efficiency," said John Howat, a senior policy analyst at the National Consumer Law Center, a Boston-based nonprofit advocacy group for low-income residents. "But I doubt we can implement those solutions quickly enough and at a sufficient scale to relieve the economic burden in the short term on those 30 percent of households that don’t have sufficient income to pay these bills."
By Katharine Q. Seelye, New York Times
© 2014 The New York Times Company