Press Release:
Highlights of National Grid’s Filing:
- Critical investments to ensure the reliability and safe operation of the company’s energy delivery system that serves 2.3 million upstate New York residential and business customers.
- Enhanced system resiliency and reliability measures to manage and reduce the impact of frequent and severe weather and enable continued strong storm response.
- Integrated energy planning to consider interactions between 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.
- Enhanced energy affordability programs and services, and programs to enable clean energy and energy efficiency benefits for disadvantaged communities.
National Grid has submitted a proposal to support a smarter, stronger, cleaner energy system that will enhance reliability and advance New York’s clean energy goals in a filing with the New York State Public Service Commission. The filing, which proposes to reset electricity and natural gas delivery prices beginning in spring 2025, is focused on maintaining critical infrastructure, improving customer service, providing additional assistance to vulnerable customers, promoting economic growth, and preparing electricity and gas networks for the energy transition that will rely more heavily on clean energy sources.
The company’s plan includes targeted investments and programs to reduce emissions, strengthen the safe delivery of energy, connect renewable energy projects to the company’s networks, and increase energy efficiency offerings and other programs to help customers reduce their energy usage.
Additionally, the plan will improve the overall customer experience by increasing the number of consumer advocates to assist vulnerable customers, including those in disadvantaged communities, eliminating credit card fees for residential bill payments, and adopting new technologies to provide more self-service options for customers.
The company shaped the filing after conducting listening sessions with customers, communities, environmental justice advocates and other key stakeholders. The meetings were held to help ensure National Grid’s proposal aligns with the goals and priorities of the customers and communities it serves while meeting our legal and regulatory mandates.
“Prioritizing the energy needs of our customers is vital, and nothing is more important than the safe operation of our networks as we look for new ways of delivering energy for all our customers,” said Phil DeCicco, New York General Counsel. “We have identified essential investments in this rate proposal, and we will ensure no customer is left behind in their access to reliable and affordable energy as we continue on the clean energy transition.”
An Extended Period of Energy Price Stability
The company’s efficiency initiatives and relatively low commodity costs in recent years have contributed to an extended period of energy price stability. Adjusted for inflation, total bills are lower than they were 16 years ago. As noted in the charts below, average residential electricity bills were approximately 20% lower in 2023 than they were in 2007, and natural gas bills are 40% lower over
the same period.
The one-year proposal would result in a total monthly bill increase of about $19, or 15 percent for a residential electricity customer using 625 kilowatt-hours. The total gas bill increase for residential gas customers would be about $18, or 20 percent a month, based on 78 therms used.
Today’s filing includes a one-year proposal along with cost data for three additional years to enable discussions on a multi-year settlement. Reaching a settlement that spreads cost increases over four years, for example, could reduce the first-year delivery price impacts by more than half.
“While we have made every effort to moderate the proposals and resulting bill impacts in our filings, we are interested in exploring a multi-year rate plan that would allow National Grid to take full advantage of efficiencies and manage bills over multiple years,” DeCicco added. “We’re committed to doing all that we can to minimize any impact on our customers while delivering on the critical safety, reliability, and clean energy priorities our customers expect and deserve. Recognizing the imperative to manage customers’ bills, these filings balance the need for continued investment with the need to maintain affordability and protect our most vulnerable customers.”
Additional customer benefits in the proposal include:
- Investment of approximately $1.7 billion in the electricity grid and $338 million in gas networks across upstate New York. This includes investments that will increase the company’s ability to seamlessly connect renewable, distributed generation.
- Investments in the natural gas system will mitigate regional capacity constraints, make needed infrastructure replacements, and improve the safety and reliability of the distribution network. This includes the retirement of 128 miles of leak-prone pipe over four years.
- Increased customer assistance and energy affordability programs for those having difficulty managing their energy costs.
- Continued deployment of economic development and energy efficiency programs that help grow the upstate economy.
- Adding more than 800 jobs over the next four years 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.
The plan also will prepare the electric system for the company’s Upstate Upgrade initiative, which is essential to the continued reliable operation and resiliency of the energy infrastructure and further enables the connection of locally generated clean energy across Upstate New York.
The New York Department of Public Service will thoroughly review the proposal to ensure the company prudently invests in, operates and maintains its energy delivery system.
“National Grid is determined to build a better energy future while keeping energy as affordable as possible,” DeCicco said. “We look forward to an open and transparent public review process and encourage customers to become involved in how we can build a better energy future for all the communities we serve.”
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 as ngrid.com/uny-ratefiling.
