Electric bills will go up in September following Public Service Commission decision, but not by as much as originally proposed
North Country residents can expect a hike in their electric bills to increase beginning in September after the Public Service Commission approved three-year electric and gas rate plans for National Grid.
The Commission’s action will significantly reduce the company’s request for total electric delivery revenues by over $340 million (67% decrease from request) and total gas delivery revenues by nearly $100 million (63% decrease from request) in the first year.
The adopted joint proposal delivers $110 million in annual efficiency savings, defers non-essential capital projects, and supports energy affordability programs and protections for vulnerable customers, according to a release from the commission.
National Grid had sought a base delivery increase of $509.6 million (25.5 percent delivery or 10.4 percent total revenue) and $156.5 million (29.7 percent delivery or 15.7 percent total revenue) for electric and gas, respectively for one year.
Under the original proposal, users would have seen a $22 monthly increase in their bill in the first year. That number will likely be closer to $7 under the PSC plan.
Instead, the Commission adopted a joint proposal establishing levelized increases, on a percentage basis, to the company’s electric revenues of $167.3 million in the first year, $297.4 million in the second year, and $243.4 million in the third year.
Governor Kathy Hochul made it clear the original rate proposal was too high. At Governor Kathy Hochul’s direction, the Department of Public Service, the staff arm of the Commission, scrutinized National Grid’s rate case to prioritize affordability. 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 believes these agreements found the best possible path forward in this case.
“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. I have been crystal clear that utilities must make ratepayer affordability the priority. 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. That means at a time when worried New Yorkers are being forced to tighten their budgets, all utilities must follow suit. 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,” the governor said in a prepared statement.
Levelized revenues to the company’s gas revenues are $57.4 million, $64.5 million, and $71.8 million, respectively, in each of the upcoming rate years beginning Sept 1.
National Grid, previously known as Niagara Mohawk Power Corporation, provides utility service to 2.3 million customers in upstate New York.
“The adopted joint proposal meets the legal requirement that the company continue to provide safe and adequate service at just and reasonable rates,” said Commission Chair Rory M. Christian.
“The three-year rate plan is in the public interest. 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.”