National Grid, the utility giant that supplies natural gas to 1.9 million customers in New York City and Long Island, plans to hike rates by about 17% on its residential users.
The company filed its proposed rate increases on Friday with the New York State Public Service Commission, the governing body that must sign off on them before they can go into effect. The proposal calls for rates to go up 17.2% for residents in New York City and 16.3% on Long Island.
If approved by the commission, the new rates would kick in on April 1, 2024.
National Grid is asking regulators to approve a rate increase that would equate to a $30.95 per month increase for its New York City (Brooklyn, Queens and Staten Island) customers who use about 100 therms of natural gas a month. Residential users who rely on gas to heat their homes consume about 100-125 therms per month, with non-heating customers about 20-30 therms.
Long Island and the Rockaway Peninsula customers who use approximately 100 therms of natural gas a month would see their monthly bill increase 16.3 percent, or $28.52 a month.
National Grid says the rate hikes are needed so the company can afford to meet federal and state climate requirements, cover higher property taxes and fund system upgrades. The company also said that the funds will cover investments that will help reduce emissions and strengthen the safety and reliability of service.
The company is seeking $414 million in additional revenue from its New York City customers and $228 million from its Long Island customers—via the rate hikes– to help defray these costs.
The utility giant said that it would continue to help its vulnerable customers by funding affordability programs. The company said that it provides low-income credits totaling $56 million annually, as well as a $70 million weatherization program to help reduce customer usage.
“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,” said Philip DeCicco, vice president and deputy general counsel for National Grid in a statement. “Approximately 70 percent of the proposal is driven by federal and state safety mandates, as well as increased property taxes and the costs to deliver expanded energy efficiency and other demand reduction offerings necessary to meet State climate targets. “
The proposal will undergo a review process by the New Yor State Department of Public Service that will include public hearings.