National Grid is the main electric distribution company in Rhode Island providing distribution services to 99 percent of the state. In 1996, The Rhode Island Restructuring Act was passed allowing the state to restructure its power system which opened the door to outside competing energy suppliers. Retail energy choice gives residential and commercial customers the option to choose a retail energy supplier other than National Grid. National Grid remains the supplier of last resort for generation services and will continue to provide distribution services to all customers.
National Grid is one of the largest invested-owned energy companies in the world. Serving over 20 million customers in New York, Massachusetts, and Rhode Island, National Grid is the largest distributor of natural gas in the Northeast. National Grid is the local distribution company for Rhode Island and is the supplier of last resort for customers who do not select a third-party generation supplier.
The Difference between Generation and Distribution Charges
Whether a residential or commercial customer decides to stick with National Grid or choose a competing supplier, they will still be responsible for paying both the generation and distribution charges. Unless duel billing is requested, National Grid will continue to send out one bill that incorporates both the generation and distribution costs. This is known as single billing.
The generation charge deals with the generation of power that is needed to meet the end-users demand. The generation charge is part of the bill that is deregulated and open to competition. A retail energy supplier will have several different sources in which power is generated. These sources often include coal, natural gas, nuclear power, hydropower, and so forth. A customer choosing an energy supplier that is 100% green or generates power from renewable energy sources will often pay a high premium. Power generation from renewable sources is currently not as cost-effective as conventional methods such as nuclear power.
The distribution charge is the regulated portion of the bill and is handled by National Grid. This is the cost associated with maintaining the lines and wires to safely and efficiently deliver the electricity to your home or place of business. If a customer switches to a retail energy supplier, they will continue to pay National Grid for the delivery charge.
To report a power outage, contact National Grid directly at 1-800-465-1212.
Renewable Energy Sources in Rhode Island
In 2016, Rhode Island was the second-lowest state of carbon dioxide emission and the largest state of natural gas, which in 2018, represented 93 percent of its electricity generation. The remainder of its net generation of power comes from wind, biomass, solar, and a small amount from hydropower.
Wind – Rhode Island is home to the nation’s first offshore wind project developed by Deepwater Wind in 2016. The project consists of 5 turbines which are expected to generate more than 125,000 megawatt-hours of electricity annually. Wind power in Rhode Island is modest compared to other states. The perfect geographical conditions for this power of generation is in high altitude areas with flat terrain.
Biomass – Less than 5 percent of power generation in Rhode Island comes from Biomass. Biomass energy is the generation of electricity through living or once-living organisms. The most common examples of biomass energy come from sources such as corn and soy.
Solar – Solar energy is one of the most popular methods of renewable resources to generate power. This is not surprising given the massive amount of energy the sun gives off every minute. Rhode Island has created many incentives for companies to pursue solar, including the Renewable Energy Fund (REF). The REF provides grants to renewable energy projects to make the generation of renewable power, from sources such as solar panels, more affordable.
Hydropower – The amount of electricity generated from hydropower in Rhode Island is limited. This is due to the state’s relatively flat surface and the limited number of rivers. Numerous projects are in the works to produce hydropower on existing dams, but it is likely only a handful of these projects will come into development.