Majority Leader Terrence M. Hassett announced that he wants the Public Utilities Commission to meet in special session to lower National Grid’s electric rate in Rhode Island in light of the 50% decrease in the cost of crude oil, the cost of which was the primary reason the PUC agreed to a rate increase in July.

Hassett said that National Grid petitioned the Public Utilities Commission in July to increase electricity rates by more than 20%, attributing the price of oil as the primary cause for the rate hike. National Grid, according to Hassett, originally proposed a 15.6 % increase for electricity, while the PUC ultimately approved a 21.7% increase, effective July 15, 2008.

Hassett pointed out that since July 11^th, when the cost of crude oil reached an all-time peak of $147.27, the cost of a barrel of crude oil has dropped approximately 50%, to just $76.38 on October 17^th.

“If the rationale was to boost the rate for electricity here in Rhode Island because it is directly related to the cost of oil, then the PUC is obligated to summon National Grid before them to reconsider the more substantial change in the world market price of oil,” Hassett said.

“As the cost per barrel of crude oil has plummeted, it is the PUC’s turn to act on behalf of the consumers in Rhode Island and reduce the rate of electricity,” Hassett said.

He added that, “The PUC must balance current and projected crude oil costs and act accordingly. Clearly, if the cost to produce electricity has gone down, rates should follow.”

Hassett observed that Rhode Islanders have seen dramatic increases in the cost of nearly all basic necessities and said that, “It is time to give Rhode Islanders a much needed break.”