National Grid seeks 16% increase in average residential gas bills for 2024 - Newsday

National Grid seeks 16% increase in average residential gas bills for 2024 - Newsday
Long Island Politics

National Grid seeks 16% increase in average residential gas bills for 2024
National Grid Headquarters, located at 175 East Old Country Road in Hicksville, on June 18, 2021. Credit: Newsday /Howard Simmons

National Grid is proposing to hike average residential gas bills by $28.52 next year, citing increased costs for materials, contractors and property taxes.

The increase would raise total residential heating bills for gas by just over 16% beginning next April. Customers who use gas primarily for non-heating purposes such as cooking would see a $15.41 monthly increase, or 24.8%. For commercial heating customers the average bill would increase by $70.55 a month, or 10.8%. Multi-family accounts would see an average monthly increase of $300.80, or 11.4%.

In all, National Grid is seeking to increase revenue from Long Island customers by $228 million over the year ended March 31, 2025.

The company is requesting larger rate increases for its New York City customers, seeking to increase revenue from rates by $414 million.

One consumer group was quick to criticize the proposed rate hike, noting that it comes even as 51,000 of National Grid’s approximately 600,000 Long Island customers are 60 days or more behind on their bills.

“New York has an energy affordability crisis already, and this potential rate hike would exacerbate that,” said Andrew Saavedra, legal aide at the Public Utility Law Project of NY, in a statement. “Rate increases of these magnitudes have a devastating impact on ratepayers, in particular low- and fixed-income households, and are unreflective of the financial realities of the current economic climate.”

PULP said it intends to “fully participate in this rate case to advocate for the needs of vulnerable households,” and it urged the state Department of Public Service to “carefully consider the full breadth of potential the impact these increases will have on consumers and work towards a solution that will benefit everyone.”

National Grid, in an April 28 letter to DPS formalizing the rate request, said the proposed bill increases were “largely driven by a combination of inflation and cost factors beyond National Grid’s immediate control.” Among the factors were increases in “core business” expenses, safety and regulatory compliance costs and property taxes, which the company said comprised nearly 37% of the Long Island increase.

Other increased expenses included environmental remediation, energy efficiency programs, higher interest rates and “other non-controllable costs.” The company said it’s working to “identify efficiencies” to reduce certain costs.

In addition to covering increased costs, the rate proposal also includes increases for programs such as energy efficiency, low-income discounts and plans to “aggressively repair gas leaks to drive further emissions reductions.”

Volatile natural gas prices have whipsawed local customers over the past two years. Last fall, National Grid said it expected winter heating bills to jump $299 during the past heating season, but a warmer winter and moderating prices helped quell some of those costs.

As of May, a unit of gas, known as a therm, stood at just over $0.31 cents, a drop from a September high of $1.08.

Those with problems paying their bills can call National Grid's helpline at 800-930-5003.