Is Rhode Island Energy The Same As National Grid?

Table of Contents

Overview

Rhode Island Energy and National Grid are both energy companies that provide electricity and natural gas services to customers in Rhode Island. However, they serve different roles in the state’s energy landscape.

Rhode Island Energy is an energy supplier or retail electricity provider. It purchases electricity and natural gas on the wholesale market and sells it directly to customers in Rhode Island. Rhode Island Energy competes with other third-party suppliers for customers in the state.

National Grid, on the other hand, is the electric and natural gas distribution utility for most of Rhode Island. It owns and maintains the poles, wires, pipelines, and other infrastructure that delivers electricity and gas to homes and businesses. National Grid delivers energy purchased from suppliers like Rhode Island Energy.

In essence, Rhode Island Energy generates and supplies energy, while National Grid distributes or delivers that energy through its network. But the two companies work together to bring electricity and natural gas to Rhode Island customers.

History of Rhode Island Energy

Rhode Island Energy was founded in 1997 as a retail electricity supplier in Rhode Island. The company was originally established as a subsidiary of National Grid USA, which had acquired Narragansett Electric the previous year. As a competitive electricity supplier, Rhode Island Energy was part of the deregulated energy market that emerged in Rhode Island in the late 1990s. This market restructuring enabled customers to choose their electricity supplier and rate plans, with distribution and delivery still handled by National Grid.

As one of the first competitive retail electric suppliers in the state, Rhode Island Energy gave Rhode Islanders an alternative to purchasing electricity directly from National Grid. The company offered residential and business customers different pricing plans and promotions for their electric supply.

History of National Grid in Rhode Island

National Grid has a major presence in Rhode Island, but it is a relative newcomer to the state’s energy market. In 1998, National Grid acquired Narragansett Electric, which had served Rhode Island customers for over a century.

Narragansett Electric traced its roots back to 1888, when the Rhode Island Electric Lighting Company was founded in Providence. Over the ensuing decades, the company grew to become the dominant electric utility in Rhode Island under the Narragansett Electric name.

In 1998, National Grid, an international energy conglomerate based in the UK, acquired Narragansett Electric for $1.9 billion. This gave National Grid access to over 1.1 million electric and gas customers in Rhode Island.

Today, National Grid continues to serve Rhode Island under the Narragansett Electric name as the state’s largest energy delivery company.

Relationship Between the Companies

Rhode Island Energy and National Grid have a unique relationship in Rhode Island. While the companies are legally separate entities, they work together to deliver electricity to customers throughout the state.

National Grid owns and operates the physical electricity infrastructure in Rhode Island, including the power lines, transformers, and substations. So National Grid delivers or distributes electricity to homes and businesses.

Rhode Island Energy does not own any electricity infrastructure. Instead, they purchase electricity from power generators and sell it to customers. So Rhode Island Energy is an electricity supplier, while National Grid handles delivery.

This structure is the result of deregulation in Rhode Island’s electricity market. Before deregulation, National Grid controlled all aspects of electricity – generation, transmission, distribution, and supply. Now customers can choose Rhode Island Energy or another company to supply their electricity, while National Grid continues to own and manage the delivery infrastructure.

So in essence, National Grid provides the delivery pipes, while Rhode Island Energy supplies the electricity product that goes through those pipes. Rhode Island customers need both companies to receive electricity – National Grid for delivery, and Rhode Island Energy or another supplier for the power itself.

Service Territories

While Rhode Island Energy and National Grid have a close relationship, there is one major difference between the two companies – their service territories. Rhode Island Energy is focused exclusively on customers within the state of Rhode Island. They provide electricity to residents and businesses across the entire state.

National Grid, on the other hand, serves parts of multiple Northeastern states, including Rhode Island, Massachusetts, and New York. So while Rhode Island Energy only handles customers in one state, National Grid has a much broader service area across several states. This means Rhode Island accounts for just a fraction of National Grid’s total customer base.

Knowing the service territories can help customers understand the scale and focus of each company. Rhode Island Energy is concentrated entirely on meeting the needs of Rhode Island customers. National Grid balances serving customers across multiple states and regions.

Billing and Rates

Rhode Island Energy and National Grid handle electricity billing in different ways. Rhode Island Energy is an energy supplier that sells electricity to customers. National Grid is the utility company that delivers electricity over the power lines and infrastructure. This means customers get separate charges on their bills from each company.

Rhode Island Energy charges for the actual electricity supplied to your home. This is the generation charge on your bill. The rate depends on the supply plan you choose with Rhode Island Energy.

National Grid charges for the delivery of electricity. This includes maintaining power lines, transformers, and other equipment to deliver power to your home. National Grid delivery charges are regulated by the state and change periodically based on factors like infrastructure costs.

So in summary, your monthly electric bill will include supply charges from Rhode Island Energy and delivery charges from National Grid. The total is what you pay for your electricity service each month.

Power Sources

Rhode Island Energy and National Grid have distinct roles when it comes to providing electricity to Rhode Island residents. Rhode Island Energy is an energy supplier that purchases electricity from power generators and marketers in the competitive wholesale electricity market. They do not actually generate or transmit electricity themselves.

National Grid, on the other hand, is the electricity distribution company responsible for delivering electricity to customers through the power lines and infrastructure. While Rhode Island Energy supplies the electricity itself, National Grid handles the delivery and maintains the physical infrastructure that transports it to homes and businesses across their service area.

This division of roles allows customers to choose where their electricity supply comes from by selecting their energy supplier, while National Grid manages the delivery through their regional network. So when it comes to power sources, Rhode Island Energy purchases electricity from a variety of generators and marketers, while National Grid focuses on distribution services.

Customer Service

Rhode Island Energy and National Grid each have their own customer service departments to handle questions and issues from customers. Even though the two companies are affiliated, they operate separate call centers and have distinct processes for handling customer inquiries.

For residential customers of Rhode Island Energy, there are a few ways to reach customer service:

Call 1-800-322-3223. This number connects to the Rhode Island Energy call center for help with billing questions, starting/stopping service, reporting outages, and more.
Email [email protected] for assistance. Emails are typically answered within 1 business day.
Visit a local Rhode Island Energy customer service office. There are locations in Providence, Warwick, Newport, and other cities.

National Grid residential customers in Rhode Island can contact customer service at:

Call 1-800-322-3223 to speak with a National Grid representative for billing, outage, and service inquiries.
Email [email protected] for help via email.

Visit a National Grid customer service office, with locations in Cumberland, Middletown, and across the state.

So in summary, Rhode Island Energy and National Grid each have dedicated teams to serve their respective customers in Rhode Island. The contact information is different for each company’s customer service department.

Choosing a Supplier

Customers in Rhode Island have the option to choose their electricity supplier. The main options are to stay with Rhode Island Energy as the default utility supplier, or switch to another competitive retail supplier. Customers can compare rates and plans to determine the best option for their needs.

Rhode Island Energy provides a standard fixed rate per kWh based on current market conditions. Other suppliers may offer more variable rates, introductory rates, or 100% renewable energy options. Some factors to consider when choosing a supplier are the rate stability, contract terms, renewable energy mix, and customer service reputation of the supplier.

Customers can switch suppliers at any time with no interruption to service. The distribution infrastructure is still maintained by National Grid regardless of your supplier. Your monthly bill will show separate charges for supply and delivery.

Summary

To recap, Rhode Island Energy is a utility provider that has operated in Rhode Island for over 100 years. In 1998, National Grid acquired Rhode Island Energy and merged it into its operations. While Rhode Island Energy still legally exists as a subsidiary, the two brands now essentially function as one entity in Rhode Island. They share the same service area, infrastructure, rates, and customer service. The only difference is branding and logo – bills come from National Grid, but reference Rhode Island Energy. So in essence, Rhode Island Energy is now part of National Grid in Rhode Island. Both provide natural gas and electricity service to most of Rhode Island, with the exception of Pascoag Utility District and Block Island Power Company.