National Grid proposes rate increase

National Grid is proposing a rate increase, for both electric and gas. If approved some customers could see bills go up over $11 a month and gas rates over $10 monthly. The increases would take effect in April 2018, if approved by the state public service commission.

Official press release:

National Grid Proposes New Rate Plan for April 2018

Current delivery price freeze to continue through March 31, 2018

April 28, 2017

Filing calls for continued electricity & gas infrastructure investment to enhance network reliability, storm resiliency, customer service

Plan supports regional economic growth, integration of clean energy technologies

After more than a decade of stable energy bills and $6 billion in infrastructure investments, National Grid today filed a proposal to reset electricity and natural gas delivery prices beginning in April 2018. The new delivery prices will allow the company to modernize its electricity and gas networks to further enhance reliability and resiliency, improve customer service – including programs to assist the most vulnerable customers – and promote economic growth.

The proposal must be reviewed by the New York Public Service Commission and, if approved, would take effect April 1, 2018. The current delivery price freeze for National Grid’s upstate electricity and natural gas customers will remain in effect through March 31, 2018. Adjusted for inflation natural gas delivery prices have held steady for more than a decade and electricity delivery prices are lower than they were in 2004.

Today’s proposal would result in total monthly bill impacts of $11.23, or 13.9 percent (21.8 percent on delivery) for a residential electricity customer using 600 kilowatt-hours. Total bill impacts for residential gas customers would be $10.38, or 14.9 percent (24.8 percent on delivery) a month, based on 77 therms used.

While regulations require the company to file a one-year plan, National Grid is open to phasing in new rates through a multi-year agreement to mitigate customer impact. Spreading the increase over three years, for example, could reduce the first year customer bill impacts by more than half. The company’s filing would impact only energy delivery prices. Supply prices are set by the market, not National Grid.

“After more than a decade of rate stability, we fully understand the near term bill impact of this proposal on our customers and will look to phase in that impact while providing enhanced energy efficiency programs and bill management tools, and significantly increasing our support for our most vulnerable low-income customers,” said Ken Daly, National Grid’s New York president. “The proposal is focused on efficiently delivering the investments needed for the long term to achieve our primary object – the safe and reliable delivery of energy for our customers. This includes preparing for and responding to severe storms, which are increasing in both frequency and intensity. It also will allow us to lay the foundation for a sustainable and clean energy future by developing networks capable of serving the next generation of customers.”

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