A decision in February 2023 at a Public Service Commission meeting is close to becoming a harsh reality for National Grid customers. This week, the utility proposed raising rates for Upstate New York customers.

The recent filing with the New York State Public Service Commission calls for a total monthly bill increase of about $19 for residential customers, a 15% increase from current rates.The utility stated that when adjusted for inflation, “average residential electricity bills were approximately 20% lower in 2023 than they were in 2007.

Under the plan, National Grid would invest around $1.7 billion in upstate New York’s electricity grid, and $338 million across its natural gas infrastructure. The utility also promises “increased customer assistance and energy affordability programs for those having difficulty managing their energy costs.”

In addition, it would add 800 jobs over the next four years.

The proposal is in preparation for National Grid’s Upstate Upgrade initiative to improve local energy connections and bolster “clean energy” generation.

The Public Service Commission will review the proposal, but it’s likely to get the go-ahead from the panel considering what took place one winter ago. At that time, for more than 60 minutes, commission members discussed $6.6 billion in transmission upgrades that are designed to reduce congestion in three upstate regions as called for by the Climate Leadership and Community Protection Act.

As proponents spoke about future benefits to the environment, opponents kept their eye on the other factor: major cost increases to the customers. “The saddest part of what we’re doing today is that no one will know. No one will pay attention,” said John B. Howard, commissioner. “No one will know that upstate rate payers are potentially having higher impacts than downstate rate payers. … It will be after the bill impacts hit — and I guarantee you when these costs hit our rate cases — the howl from these same constituencies will be heard from here to Timbuktu.”

In its 4-2 decision in 2023, the commission approved the requests of Central Hudson Gas & Electric Corp., New York State Electric & Gas Corp., National Grid (upstate), and Rochester Gas and Electric Corp. for authorization to develop upgrades that will reduce congestion in the Capital Region, the southwest, and northern regions of the state. In total, the projects will create 3,500 megawatts of capacity for clean energy — enough electricity for more than 2.8 million average-sized homes.

The lack of transmission capacity in upstate negatively impacts ratepayers by increasing the costs of renewable energy resources and curtailing the production of clean energy, the commission said last year.

“New York is making significant upgrades and additions to the state’s existing transmission and distribution systems to integrate new large-scale renewable energy projects into the state’s energy supply, and we must ensure that these investments are smart and cost-effective,” said Commission Chair Rory M. Christian. “The commission recognizes the need to address congestion in certain parts of the state where renewable energy is already bottled and where additional generation projects are in development or likely to be developed in the future.”

National Grid officials said this week’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,” said Phil DeCicco, New York General Counsel. “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.”