The New York State Public Service Commission has approved a joint proposal that sets new three-year electric and gas rate plans for National Grid, significantly reducing the company’s initial request for increased delivery revenues. The agreement was reached with input from 15 parties, including consumer advocates, trade groups, and large industrial customers.
National Grid had originally sought to raise electric delivery revenues by $509.6 million and gas delivery revenues by $156.5 million for one year. The Commission’s adopted plan reduces these requests by over $340 million (a 67% decrease) for electric and nearly $100 million (a 63% decrease) for gas in the first year. Under the new arrangement, levelized increases to electric revenues will be $167.3 million in the first year, followed by higher increments in subsequent years; gas revenue increases will also be phased in more gradually.
The joint proposal is expected to generate $110 million annually in efficiency savings, delay non-essential capital projects, and strengthen programs aimed at energy affordability and customer protections. Capital investments of about $4.3 billion for electric service and $1 billion for gas service are planned to maintain safety and reliability across National Grid’s network serving 2.3 million upstate New York customers.
“The adopted joint proposal meets the legal requirement that the company continue to provide safe and adequate service at just and reasonable rates,” said Commission Chair Rory M. Christian. “The three-year rate plan is in the public interest. It is a forward-looking plan that benefits customers and includes provisions that further important state and Commission objectives, while keeping customer affordability first and foremost in mind.”
Parties supporting the proposal included Department of Public Service staff, Multiple Intervenors, New York Solar Energy Industries Association, Alliance for a Green Economy, Independent Power Producers of New York, NYGEO, Turning Stone Enterprises, U.S. Department of Defense, Fedrigoni Special Papers North America, Empire Natural Gas Corporation, New Yorkers for Clean Power, New York Power Authority, IBEW Local 97 among others; other groups like Environmental Defense Fund did not oppose it.
Public feedback played a significant role in shaping the outcome: almost 9,000 comments were submitted during the process along with several public hearings held both virtually and in-person.
Governor Kathy Hochul directed close scrutiny of National Grid’s original rate request to prioritize affordability concerns for residents throughout upstate New York.
The main drivers behind necessary rate increases include ongoing capital investments such as replacing leak-prone pipes as well as covering operational costs needed to run both electric and gas systems safely.
Increases are set at a levelized basis: electric rates will rise by 3.4 percent in year one; 5.6 percent in year two; 4.6 percent in year three; while gas rates increase by 5.5 percent each of the first two years and 6 percent in the third year.
For those seeking more information or documentation on today’s decision or how to participate further with language assistance if needed can visit www.dps.ny.gov or contact the Commission directly at their Albany office.
