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Major National Grid rate hike may be approved today

A National Grid rate increase of 20% for customers of electric in Western New York could be approved Thursday morning by the Public Service Commission.

If the proposal is approved, 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.

Commission members are scheduled to meet today in Albany at 10:30 a.m.

National Grid filed the proposal — reached with Department of Public Service Staff, IBEW Local 97 and other parties representing a broad perspective of interests — that outlines a three-year electricity and natural gas delivery rate plan for the company’s upstate customers in April.

The agreement, the company said, minimizes bill impacts, enhances energy affordability programs, targets key reliability and resiliency investments, promotes economic growth and advances New York’s renewable energy and emissions reduction goals.

Today’s proposal replaces the company’s May 2024 rate request and is subject to further regulatory review.

“We recognize that this proposal comes at a time when affordability is top-of-mind for our customers,” said Phil DeCicco, National Grid’s New York General Counsel in the spring. “We worked hard to strike a balance that prioritizes energy affordability and ensures grid resiliency — especially in light of the record number of damaging storms we’ve seen in upstate New York — while deferring other programs and initiatives that would add to our customers’ bills,”

In its proposal, the company noted there would be:

— 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, 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 vulnerable Upstate New Yorkers, including approximately $72 million in the first year.

— 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.

— Infrastructure investments to support economic development, connect clean energy, and enhance security.

“The joint proposal assures National Grid’s ability to maintain the overall 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,” Decicco said. “We look forward to receiving additional feedback from our stakeholders during the upcoming public review process.”

Opponents to the rate hike have noted that many in the state are already struggling to pay high bills.

AARP New York State Director Beth Finkel said she sent Gov. Kathy Hochul a letter in the spring urging her “to continue to publicly oppose not only National Grid’s egregious rate increase request, but to also recommend the New York State Public Service Commission (PSC) reject the rate increase contained in the Joint Proposal recently submitted by the utility and Department of Public Service staff.”

“That agreement, to be voted on by the PSC in the near future, would see electric delivery rate increases total nearly 28% over three years and gas rates increase 36% over the same period. The Governor is working to make New York an affordable state to live and age, and we’re deeply concerned that those efforts will be undermined by the approval of these enormous increases on households across Upstate New York,” Finkel said.

Finkel also said that as of April, more than 230,000 households in National Grid’s service territory are 60 days or more behind on their utility bills, owing more than $350 million, and nearly 60,000 households have received a final termination notice due to nonpayment. “Allowing National Grid to increase its rates as the agreement currently stands will only boost those arrears numbers, putting more New Yorkers behind on their electric and gas bills, including many older people living on a fixed income,” she said.

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