PROVIDENCE, R.I. - Mar 7 - By RAY HENRY Associated Press Writer

 

Legislators unveiled four energy bills on Tuesday, including one that would force utilities to invest in conservation programs before raising rates.

Sens. William Walaska, D-Warwick, and Susan Sosnowski, D-South Kingstown, said the bill is designed to reduce the share of cost increases utilities pass along to their customers. They said reducing the demand for energy by better insulating homes and using efficient lights is often cheaper than buying more energy.

But the problem, according to environmental groups backing the bill, is that major utility companies like National Grid and New England Gas are essentially monopolies that make money charging customers for every unit of energy consumed. Facing little competition, there are few incentives to reduce consumption and keep costs low.

"They're the only supplier in town, so they're just passing (costs) through," said Samuel Krasnow, an advocate for Environment Northeast.

The proposed scrutiny didn't surprise Fred Mason, the vice president of business services for National Grid in Rhode Island. He attended the senators' news conference and said he was still reading through the proposed legislation hours later to gauge its effect.

He said the Public Utilities Commission already inquires about a utility's conservation efforts and use of non-fossil fuel energy before approving rate hikes.

"The wholesale markets are quite volatile at the moment," he said. "It's not unusual or surprising that people are going to be looking at the procurement process. We have no problem with that."

Another bill in the package would earmark part of the sales tax businesses pay on heating oil to winterize the homes of poor families, Walaska said. He said that option is cheaper than programs proposed by House lawmakers that would cap utility bills for poor families at a maximum of 4 percent of their annual income.

"There's no incentive for conservation," Walaska said. "Once you've spent four to six percent of your income, the rest of your units are free."