National Grid Reaches Joint Proposal with Multiple Interested Parties on Rate Plan to Build a Better Energy Future for Downstate New York
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BROOKLYN/MELVILLE, N.Y. – National Grid announced today that the company has reached an agreement on a three-year rate plan proposal in its ongoing rate case proceeding. In line with National Grid’s commitment to building a stronger, smarter, cleaner energy system in New York, the joint proposal includes critical improvements to support the state’s clean energy goals, ensure reliable and safe operation of the distribution networks, and expand and enhance programs that support National Grid’s customers in New York City and on Long Island, with a focus on programs designed to assist its most vulnerable customers.
Throughout the process, National Grid has engaged in an open and transparent public engagement process including responding to more than 1,600 information requests and participating in eight public statement hearings both virtually and in person. The joint proposal submitted today was developed in response to significant feedback from customers, communities, environmental advocates, and other key stakeholders. The PSC will hold additional public hearings on the joint proposal. Details of the filing and additional information about opportunities to participate in the feedback process are available here: KEDLI | KEDNY.
“National Grid is proud to play a vital role in achieving New York’s energy goals. The joint proposal submitted today includes critical improvements in infrastructure maintenance and upgrades that will enable us to continue providing reliable, affordable service while advancing the state’s energy priorities,” said Phil DeCicco, New York General Counsel. “We are proud of the agreement we have reached with the Department of Public Service Staff and other parties and look forward to receiving additional feedback from our stakeholders in the downstate region during the upcoming public review process.”
National Grid’s Downstate New York gas distribution network serves 1.9 million customers across Brooklyn, Staten Island, parts of Queens and on Long Island. The joint proposal includes vital improvements in this network that will increase reliability during extreme weather, improve energy efficiency and reduce greenhouse gas emissions. It also includes more than $210 million in bill credits for vulnerable New Yorkers, including approximately $60 million in the first year of the rate period.
Specific initiatives outlined in the Joint Proposal include:
- Actively working with customers to transition to cleaner energy sources. National Grid commits to evaluate opportunities to replace gas mains with cleaner energy alternatives and increase outreach to customers about options for transitioning to renewable energy sources. The company continues its commitment to not market new gas connections and encourage applicants requesting new or expanded service to consider electrification options.
- Accelerating gas main replacement, reducing emissions, with a focus on disadvantaged communities. Since 2013 National Grid has replaced 1,500 miles of gas main -- lowering system emissions by 102,385 metric tons of CO2e which is equivalent to removing 22,257 cars from the road.
- For New York City -- Replacing a minimum of 45 miles/year of gas main (compared to 41 under the current plan)
- For Long Island – Replacing a minimum of 119 miles/year of gas main (compared to 114 under the current plan)
- Specific reporting on impacts to disadvantaged communities.To ensure the clean energy transition leaves no one behind, National Grid will file an annual report providing specific data on energy efficiency spending, demand response programs, main replacement programs, customer operations data, and clean energy job creation in disadvantage communities.
- Expanded Customer Service and Assistance. Approximately $75 million annual funding for energy efficiency programs and new residential weatherization programs, including a shareholder funded weatherization health and safety program, up to $2 million per year, to address health and safety barriers to energy efficiency for low-to-moderate income and disadvantaged community households.
- Increasing Language Access. National Grid commits to expand the availability of translated customer assistance materials into Spanish, Russian, Chinese, Polish, Haitian Creole, Bengali, Yiddish, Urdu and/or Arabic.
National Grid has a strong track record of executing the commitments included in the company’s rate plans, prioritizing customers’ energy needs and affordability and ensuring safety and reliability. Since the company’s last rate case settlement in 2020, National Grid increased energy efficiency savings 50 percent, replaced more than 500 miles of gas main, and provided more than $50 million per year for its most vulnerable customers through bill assistance programs.
If the three-year agreement is approved, a typical residential heating customer in New York City (Brooklyn, Staten Island and parts of Queens), using 97 therms of natural gas could see a total monthly increase of approximately $28 in the first year of the agreement commencing June 1. Customers on Long Island and the Rockaway Peninsula using 102 therms of natural gas a month could see a total monthly bill increase of approximately $29 in the first year of the agreement commencing June 1. Actual impacts will vary depending on usage and service classification.
About National Grid
National Grid (NYSE: NGG) is an electricity, natural gas, and clean energy delivery company serving more than 20 million people through our networks in New York and Massachusetts. National Grid is focused on building a smarter, stronger, cleaner energy future — transforming our networks with more reliable and resilient energy solutions to meet state climate goals and reduce greenhouse gas emissions.
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