Public Service Commission approves National Grid's Upstate Rate Plan

ALBANY | The New York Public Service Commission unanimously approved a three-year rate plan for National Grid's Upstate New York electric and natural gas business, serving 2.4 million customers. The rate plan will enhance energy affordability programs, enable key reliability and resiliency investments, promote economic growth, and advance New York's energy goals. The rate filing, initially submitted in May of 2024, underwent a comprehensive review process that involved responding to more than 1,600 information requests and participating in multiple public statement hearings. In May, National Grid, together with the Department of Public Service Staff and parties representing a broad perspective of interests, submitted a joint proposal outlining the terms of a three-year rate settlement. The parties to the joint proposal include: NY Department of Public Service Staff IBEW Local 97 Multiple Intervenors Independent Power Producers of New York New York Power Authority New York Solar Energy Industries Association Turning Stone Enterprises U.S. Department of Defense Walmart New Yorkers for Clean Power Alliance for a Green Economy New York Geothermal Energy Organization Empire Natural Gas Corporation Fedrigoni Special Papers North America, Inc. "We understand affordability is top-of-mind for our customers. In reaching this settlement, we have collaborated with various parties and organizations to strike a balance that prioritizes energy affordability while ensuring grid resiliency — especially considering the record number of damaging storms we've seen in upstate New York," said Phil DeCicco, National Grid's New York General Counsel. Highlights of the new plan include: Critical investments to ensure the reliability and safe operation of the company's energy delivery system, including capital investments of $1.4 billion in the electricity delivery system and $351 million in the natural gas system in the first year. Enhanced system resiliency and reliability measures to manage and reduce the impact of frequent severe weather and enable continued strong storm response. More than $290 million in bill discounts for income eligible Upstate New Yorkers, including approximately $72 million in the first year. An $3 million shareholder-funded health and safety weatherization program that will assist low-to-moderate and disadvantaged community households. Additional energy affordability programs and services, including cold-weather protections, enhanced outreach and education efforts in disadvantaged communities, a dedicated liaison who will provide enhanced service to indigenous communities in the company's service area, and more in-person customer assistance events. Integrated energy planning to consider interactions among gas, electric and customer energy systems to achieve long-term climate goals in a safe and affordable way. Infrastructure investments to support economic development, connect clean energy, and enhance security.Targeted programs and dedicated teams to better serve residential, commercial and industrial customers. Adding more than 480 jobs to support electric and gas operations, grid modernization and customer programs. These will include local employees who live and work in the communities we serve and support the regional economy. "Energy demand is expected to increase in coming years," DeCicco said. "This rate plan is critical to assure National Grid's ability to maintain reliability, resiliency, and cost-effectiveness of the energy systems that serve more than two million Upstate New York customers. It also offers new and targeted programs to better meet the needs of our customers and communities." Residential electricity customers using an average of 625 kilowatt-hours per month would see an estimated total monthly bill increase of $14.32 in the first year, $6.44 in the second year and $4.34 in year three. Residential natural gas customers using an average of 78 therms per month would see an estimated total monthly bill increase of $7.66 in the first year, $8.08 in the second year and $9.18 in year three. National Grid's upstate New York electricity business serves 1.7 million customers in more than 680 cities, villages and towns across 25,000 square miles, while its gas distribution business serves more than 640,000 customers across portions of central, northern and eastern New York. National Grid's full rate case filing can be found on the Public Service Commission's website at ngrid.com/uny-ratefiling. After the approval, Gov. Kathy Hochul said, "While I appreciate that the New York Public Service Commission worked to significantly lower the outrageously high initial rate proposals, it's still not enough. I have been crystal clear that utilities must make ratepayer affordability the priority. Since taking office, my administration has prioritized energy affordability, particularly for our most vulnerable, and we need the utilities to take it seriously as well. That means at a time when worried New Yorkers are being forced to tighten their budgets, all utilities must follow suit. This is no time for bonuses and big raises for executives, especially if they are going to be looking to raise rates on their customers."

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Public Service Commission approves National Grid's Upstate Rate Plan

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