Rhode Island Gas Storage Unit Agreement
Description
How to fill out Gas Storage Unit Agreement?
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FAQ
Rhode Island Energy is allowed to recoup a 9.275% return on investment, or ROE, on authorized capital costs. The discussion in the Ocean State comes as the Pennsylvania-based PPL Corp., RI Energy's parent, moves to execute a new business plan.
The average ROE authorized for electric utilities was 9.71% for rate cases decided in the first quarter of 2023, up from the 9.54% average observed in full year 2022.
Thus, the state allows National Grid to exclusively own all the electric and gas transmission and distribution infrastructure. And because the utility company is a monopoly, it's subject to state regulation and oversight. The Public Utilities Commission (PUC) approves rates and services on behalf of ratepayers.
Rates across the regional New England electric grid are largely driven by the wholesale costs of natural gas, a primary fuel for power generation as well as heating. Market prices fall in the summer, when demand for gas ebbs and increase in the winter when residences and businesses need the fuel for heat.
A Rhode Island month-to-month lease agreement is a rental contract between a landlord and tenant that authorizes the tenant to occupy a residential unit for one (1) month at a time. This type of arrangement is especially favorable for tenants who are unable to make the long-term commitment required in an annual lease.
The ROE is set so that the return is sufficient to attract the capital needed for the utility to construct and maintain a safe and reliable system while not charging utility customers more than is necessary.