Utility bills are about to skyrocket for tens of thousands of Central New York National Grid customers. The state public service commission Thursday unanimously approved a negotiated agreement which clears the way for average increases of $300 each for electricity and gas service over three years. It’s the largest rate hike in decades.
The new rates will generate about $900 million in revenue for the company. National Grid said it needs the money for infrastructure upgrades and improve reliability. The plan also expands assistance programs to help low-income customers pay their bills.
The PSC said it scrutinized National Grid’s rate case to prioritize affordability. In a release, the PSC said it’s the Commission’s responsibility to find the right balance between the resources needed to ensure system reliability and minimize costs to ratepayers. The Commission said these agreements found the best possible path forward in this case.
“The three-year rate plan is in the public interest," commission chair Rory Christian said. "It is a forward-looking plan that benefits customers and includes provisions that further important state and commission objectives, while keeping customer affordability first and foremost in mind.”
Governor Kathy Hochul blasted the utility for not making ratepayer affordability more of a priority.
"While I appreciate that the New York Public Service Commission worked to significantly lower the outrageously high initial rate proposals, it’s still not enough," Hochul said in a statement. "Since taking office, my administration has prioritized energy affordability, particularly for our most vulnerable, and we need the utilities to take it seriously as well. This is no time for bonuses and big raises for executives, especially if they are going to be looking to raise rates on their customers.”
Here's the breakdown of the rate increases. Amounts will vary depending on usage:
- Residential electricity customers using an average of 625 kilowatt-hours per month can expect to see an increase of $14.32 each month in the first year, $6.44 in the second year and $4.34 in year three.
- Gas customers using an average of 78 therms per month will see an increase of roughly $7.66 a month in the first year, $8.08 in the second, and $9.18 in the third.
