By JOSEPH FITZGERALD

BURRILLVILLE — With electric rates on the rise, Pascoag Utility District’s rates are expected to remain stable for the rest of 2008 and any increase that happens next year should be reasonable, Pascoag Utility District General Manager Theodore G. Garille said Tuesday.

The Rhode Island Public Utilities Commission voted back in July to approve Pascoag Utility District’s request to not increase electric rates for the remainder of the year. Garille said even though portions of the electric bill were adjusted to more accurately reflect the various charges incurred by the district, the bottom line remains the same. That means that a residential customer using 500 kilowatt-hours in a billing period will continue to pay approximately $71.
“This is the lowest cost for electricity in our state,” said Garille, adding that by comparison, a National Grid customer using the same amount of electricity would pay approximately $93.
Any increase in the district’s electric rates next year is expected to be moderate, Garille said.
The Pascoag Utility District was incorporated by a special act of the Rhode Island General Assembly. A quasi-municipal utility and the only public power utility in the state, Pascoag provides electricity and water on a “not for profit” basis. Pascoag Electric, which is regulated by the Public Utilities Commission, currently provides electric service to over 5,000 customers in Pascoag and Harrisville and 1,200 water customers in Pascoag.
Garille says the district has taken several steps to keep costs to customers as low as possible while maintaining system reliability and customer service.
“The district has several long-term power contracts in place, securing over 85 percent of our customer’s needs through the year 2010,” he said. “Pascoag’s power portfolio is also diverse and includes hydro power (20 percent), nuclear power (20 percent), with the remainder coming from fossil fuel generating stations.”
In addition, he said, the utility this year completed its goal to obtain a credit rating with Standard and Poor’s.
“This past spring, we received a rating of A-, which will enable the district favorable rates on future debt service, and most importantly, enhance the district’s ability to negotiate favorable power contracts,” Garille said.
With the approval of the Rhode Island Public Utility Commission, Pascoag Utility District this year also established a “purchased power restricted fund” account. This account, dedicated to power expenses, will ensure that the district can meet payments to power suppliers in a timely manner, avoiding penalties and interest charges, which would have to be passed on to its customers, Garille said.
Garille says there are several things residents can do to help keep their bill as low, save money and help reduce Pascoag’s peak demand, including conservation, using appliances and electronics with the Energy Star logo, avoiding peak hours and paying electric bills on times.
Garille also announced that the Pascoag Utility District will be holding its second annual open house on Oct. 4 from 11 a.m. to 2 p.m. to coincide with National Power Week.
The open house will include an ice cream social, raffles and free activities for children and conservation information for adults. Visitors who bring a canned good or non-perishable food item to the open house will receive a ticket for an free ice-cream sundae.
Children’s activities will include face painting, pumpkin painting, bucket truck rides, Halloween games and Home Depot children's workshops. 
There will also be raffles for conservation kits and energy saving products donated by Home Depot.
Garille said the district has recently partnered with Home Depot to recycle compact fluorescent light bulbs. Beginning Oct. 4, Pascoag Utility will be a drop off site to recycle CFL's. Home Depot will then take the bulbs and have them recycled. Residents can drop off burned out, unbroken CFL's to the District Office. They will then be shipped to Home depot to be recycled.