NYS Public Service Commission cuts National Grid’s rate hike request by more than a third

The PSC approved a three-year rate plan for National Grid customers living in upstate New York at more than a third less than requested.

BUFFALO, NY — The New York State Public Service Commission (PSC) has approved a rate hike for National Grid, but far less than the company requested.

The PSC approved a three-year rate plan for National Grid customers living in upstate New York at more than a third less than requested.

According to the PSC, National Grid requested an increase of approximately $100.4 million in electricity delivery revenue (a 4.9% increase in base delivery revenue or a 3.2% increase in total) and an increase of approximately $41.8 million in natural gas delivery revenue (a 9.8% increase in base delivery revenue or a 5.2% increase in total revenue).

National Grid provides electric service to approximately 1.6 million customers and gas service to approximately 600,000 customers in upstate New York.

The three-year tariff plan for electricity and gas service runs from July 1, 2021 to June 30, 2024, allowing for a revenue increase of 1.4% for electricity and 1.8% for gas the first year and 1.9% for electricity and gas in the second and third years.

“The joint proposal we adopted today allows the company to fund the maintenance of safe and reliable service, while moderating rate impacts over the life of the rate plan and mitigating impacts on ratepayers experiencing the financial consequences of the pandemic,” Commission President Rory said. Mr. Christian. “Furthermore, this agreement is consistent with our national clean energy initiatives, as well as our social and economic policies.”

The PSC indicates that the electricity bills of a typical residential customer using 600 KW per month would increase by 2.02% to 2.2% in the first year, by 1.98% and 2.12% in the second year and by 2.24% and 2.4% in the third year.

Total gas bills for customers using 82 therms per month would increase by 1.99% in year one, 3.13% in year two, and 3.29% in year three.

In addition to the rate hike request, the PSC has signed a joint proposal with National Grid that contains a provision to advance the Climate Leadership and Community Protection Act (CLCPA or Climate Act) and respond to the economic conditions created by the COVID-19 pandemic, while ensuring safe and affordable delivery of public services.

National Grid has issued the following statement regarding the PSC action:

The New York State Public Service Commission today approved a three-year rate agreement for National Grid customers in Upstate New York that minimizes bill impacts, improves energy efficiency programs, targets key infrastructure investments to promote a cleaner, more resilient energy delivery system, and advances New York’s energy delivery system. renewable energy and emission reduction targets.

The agreement, which takes effect Feb. 1, was reached with Public Service Department staff, IBEW Local 97, commercial and industrial customers, the New York Power Authority and other parties.

Aurora J. William