Mass. AG Slams National Grid Rate Hike Plan

Attorney General Martha Coakley asked state regulators Thursday to reject National Grid's request for a $111 million rate increase for 1.2 million Massachusetts electric customers, saying it was "neither warranted nor justified."

Coakley said the Department of Public Utilities should instead move to reduce National Grid's rates by $36.4 million.

"At a time when many consumers in Massachusetts are experiencing layoffs or are taking home smaller paychecks, National Grid is seeking to improve its own bottom line with a massive rate hike and rate plan that almost exclusively benefits the company and its shareholders," Coakley said in a statement Thursday.

The attorney general also asked regulators to take a number of other steps, including ordering changes in National Grid's debt structure; rejecting its efforts to recover nearly $30 million in costs associated with the December 2008 ice storm in Massachusetts; eliminating increases in non-union salaries and benefits; and eliminating executive incentive compensation.

In a statement, National Grid said the rate increase would allow for long-term investment in "critical improvements," so customers will continue to receive safe and reliable service.

A rejection of the rate hike "will have consequences for customers that ultimately will lead to higher costs for them," the company said.

If the rate hike is approved, National Grid said a typical residential customer would see a monthly increase of $4.25 or 5.5 percent. The company said it was the first comprehensive rate filing it has made in 14 years.

National Grid provides electricity through two subsidiaries in the state, Massachusetts Electric Co. and Nantucket Electric Co.

Coakley is a candidate for the Democratic nomination for the U.S. Senate seat that was held by the late Edward M. Kennedy.

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