BUFFALO, N.Y. — The New York State Public Service Commission (PSC) has approved a rate hike for National Grid, but much lower than the company requested.
The PSC approved a three-year rate plan for National Grid customers living in Upstate New York at more than one-third lower than requested.
According to the PSC, National Grid requested an increase of approximately $100.4 million in electric delivery revenues (a 4.9 percent increase in base delivery revenues or a 3.2 percent increase in total revenues), and an increase of approximately $41.8 million in natural gas delivery revenues (a 9.8 percent increase in base delivery revenues or a 5.2 percent increase in total revenues).
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 rate plan for electric and gas service runs from July 1, 2021 through June 30, 2024, allowing for revenues to increase 1.4% for electric and 1.8% for gas the first year and by 1.9% for electric and gas the second and third years.
“The joint proposal we adopted today allows for funding for the company to maintain safe and reliable service, while moderating rate impacts during the term of the rate plan and mitigating the impacts to ratepayers suffering the financial consequences of the pandemic,” said Commission Chair Rory M. Christian. “Further, this agreement is consistent with our nation-leading clean energy initiatives, as well as our social and economic policies.”
The PSC says electric bills for a typical residential customer using 600 KW per month would increase by between 2.02% and 2.2% in the first year, 1.98% and 2.12% in the second year and 2.24% and 2.4% in the third year.
Total gas bills for customers using 82therms per month would increase 1.99% in the first year, 3.13% in the second year and 3.29% in the third year.
In addition to the rate hike request, the PSC signed a joint proposal with National Grid that has a provision to further 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 utilities.
National Grid released the following statement in regards to the PSC action:
The New York State Public Service Commission today approved a three-year rate agreement for National Grid’s upstate New York customers that minimizes bill impacts, enhances energy efficiency programs, targets key infrastructure investments to promote a cleaner, more resilient energy delivery system and advances New York’s renewable energy and emissions reduction goals.
The agreement, which is effective Feb. 1, was reached with Department of Public Service Staff, IBEW Local 97, commercial and industrial customers, the New York Power Authority, and other parties.