National Grid Reaches Joint Proposal with Multiple Parties on Plan to Build a Better Energy Future for Upstate New York
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ALBANY, NY – National Grid today filed a joint proposal — reached with Department of Public Service Staff, IBEW Local 97 and other parties representing a broad perspective of interests — that outlines a three-year electricity and natural gas delivery rate plan for the company’s Upstate New York customers. The agreement minimizes bill impacts, enhances energy affordability programs, targets key reliability and resiliency investments, promotes economic growth and advances New York’s renewable energy and emissions reduction goals. Today’s proposal replaces the company’s May 2024 rate request and is subject to further regulatory review.
Since filing its original rate proposal, National Grid has engaged in an open and transparent public process including responding to more than 1,600 information requests and participating in multiple public statement hearings. The joint proposal was developed in response to significant feedback from customers, communities, environmental advocates, and other key stakeholders. Signatory support for the proposal has been received from:
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“We recognize that this proposal comes at a time when affordability is top-of-mind for our customers. We worked hard to strike a balance that prioritizes energy affordability and ensures grid resiliency — especially in light of the record number of damaging storms we’ve seen in upstate New York — while deferring other programs and initiatives that would add to our customers’ bills,” said Phil DeCicco, National Grid’s New York General Counsel.
Highlights of the three-year proposal include:
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Critical investments to ensure the reliability and safe operation of the company’s energy delivery system that serves 2.3 million Upstate New York residential and business customers, including capital investments of $1.4 billion in the electricity delivery system and $351 million in the natural gas system in the first year.
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Enhanced system resiliency and reliability measures to manage and reduce the impact of frequent severe weather and enable continued strong storm response.
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More than $290 million in bill discounts for vulnerable Upstate New Yorkers, including approximately $72 million in the first year.
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An up to $3 million shareholder-funded health and safety weatherization program that will assist low-to-moderate and disadvantaged community households.
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Additional energy affordability programs and services, including cold-weather protections, enhanced outreach and education efforts in disadvantaged communities, a dedicated liaison who will provide enhanced service to indigenous communities in the company’s service area, and more in-person customer assistance events.
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Integrated energy planning to consider interactions among gas, electric and customer energy systems to achieve long-term climate goals in a safe and affordable way.
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Infrastructure investments to support economic development, connect clean energy, and enhance security.
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Targeted programs and dedicated teams to better serve residential, commercial and industrial customers.
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Adding more than 480 jobs to support electric and gas operations, grid modernization and customer programs. These will include local employees who live and work in the communities we serve and support the regional economy.
“The joint proposal assures National Grid's ability to maintain the overall reliability, resiliency, and cost-effectiveness of the energy systems that serve more than two million Upstate New York customers. It also offers new and targeted programs to better meet the needs of our customers and communities,” Decicco said. “We look forward to receiving additional feedback from our stakeholders during the upcoming public review process.”
IBEW Local 97 Vice President Joseph R. Peluso Jr. said, “The requested adjustments are necessary to ensure continued investment in infrastructure, improved service reliability, and support long-term sustainability. The joint proposal reflects the rising costs of operations, modernization of aging systems, and the need to meet increasing regulatory and environmental standards. Without these updates, National Grid risks service interruptions, safety concerns, and an inability to meet future customer demand. This proposal also supports the company’s transition to cleaner, more efficient technologies that align with state and community climate goals. It ensures that investments are made now to prevent higher costs and service disruptions in the future.”
Executive Director of New York Solar Energy Industries Association Noah Ginsburg said, “New York leads the nation in community solar deployment, delivering utility bill savings to hundreds of thousands of families and businesses, providing revenue to rural landowners and municipalities, and supporting more than 15,000 good local jobs. New York Solar Energy Industries Association is proud to support the joint proposal for National Grid's rate case, which includes meaningful measures to lower the cost to safely and reliably interconnect new solar and energy storage projects in the utility's service territory.”
Gavin Donohue, President and CEO of the Independent Power Producers of New York, said, “The Independent Power Producers of New York engaged in National Grid’s rate case to safeguard competition in New York’s wholesale electricity markets for independent developers and owners of energy storage resources. The benefits of competitive electricity markets have been prevalent for over 25 years and there is no shortage of independent power producers willing to invest in energy storage resources. Innovation, competitive markets, and appropriate market signals are all important pillars to the state’s energy future. For these reasons, we support the Joint Proposal.”
If the joint proposal is approved, residential electricity customers using an average of 625 kilowatt-hours per month would see an estimated total monthly bill increase of $14.32 in the first year, $6.44 in the second year and $4.34 in year three.
Residential natural gas customers using an average of 78 therms per month would see an estimated total monthly bill increase of $7.66 in the first year, $8.08 in the second year and $9.18 in year three.
To ensure the company invests, operates and maintains its energy delivery system in a prudent manner, the joint proposal will undergo a thorough review process by the New York Department of Public Service.
National Grid’s upstate New York electricity business serves 1.7 million customers in more than 680 cities, villages and towns across 25,000 square miles, while its gas distribution business serves more than 640,000 customers across portions of central, northern and eastern New York.
National Grid’s full rate case filing can be found on the Public Service Commission’s website as ngrid.com/uny-ratefiling.
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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