Attorney general protests rate hike

In the face of rising winter electricity costs, Attorney General Martha Coakley has called on state utility regulators to curb future rate increases and take steps to "mitigate" the soaring rates this winter.

In a three-page letter, Coakley's office, which acts as an advocate for utility customers, asked the Department of Public Utilities to investigate ways to reduce the impact of the steep increase that National Grid ratepayers will face starting in November. National Grid, one of the state's biggest utilities, recently said its rates will jump 37 percent from last winter and 49 percent from the summer. The average Massachusetts household will see its electricity bill rise $50 in November.

Northeast Utilities, the parent of NStar and Western Massachusetts Electric, is expected to file its winter rates at the end of this month or early next month, but they, too, are expected to rise. The reason for the increases is the higher cost of generating electricity, which utilities buy from independent power producers and pass on to customers.

Coakley's office acknowledged that under the law that deregulated the state's electricity market, regulators have little authority to review or amend rate increases. But Coakley's letter said the department "should explore initiatives which could provide customers with greater notice of these changes."

Coakley is the Democratic nominee for governor.

In the immediate term, the attorney general's office asked the utility regulator to work with National Grid to negotiate ways to provide some relief to consumers from high winter prices. For example, the letter proposed that it seek to have the impact of the rate hike spread across the entire year, instead of a six-month period.

Jesse Reyes, the chief of the Office of the Ratepayer Advocate in Coakley's office, also asked the department to consider a long-term strategy to reduce rate hikes. Especially in the winter, Reyes wrote, consumers should not be subject to "dramatic rate increases."

"With the heating season beginning at the same time as National Grid's rate increase, many consumers will have little ability to adjust their consumption patterns," the letter said.

Mary-Leah Assad, a spokeswoman for the Department of Public Utilities, said her department was reviewing the letter and had asked utility companies Thursday "to provide a summary of their efforts to inform and prepare consumers for the high energy costs this winter."

The Department of Public Utilities approved the rate increase from National Grid on Sept. 23. National Grid said the higher rates were the result of bids submitted by power generators. National Grid does not mark up the power it acquires. It's delivery charge will be mostly unchanged from last winter.

The attorney general's office said that the office had received five consumer complaints about the rate hike, which was announced last week.

National Grid spokesman Jake Navarro said the company shares Coakley's concerns but opposes her proposal to defer part of the increase until next May. Instead, Navarro said, consumers could contact National Grid directly to discuss lowering their bills.