National Grid proposes rate increase

BUFFALO, N.Y. (WIVB) -- National Grid announced a proposed rate hike on Friday that would eventually lead to an increase of around $25 per month for electricity in the average household.

The proposal is a joint proposal that was reached with Department of Public Service Staff, IBEW Local 97, and other parties.

If approved, residential customers using an average of 625 kilowatt-hours of electricity per month would see an estimated increase of $14.32 in Year 1, $6.44 in Year 2 and $4.34 in Year 3. Natural gas customers using an average of 78 therms per month would see an estimated increase of $7.66 in Year 1, $8.08 in Year 2 and $9.18 in Year 3.

“We recognize that this proposal comes at a time when affordability is top-of-mind for our
customers," said Phil DeCicco, National Grid's New York General Counsel. "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."

IBEW Local 97 Vice President Joseph R. Peluso Jr. said that the 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," Peluso Jr. said. "Without these updates, National Grid risks service interruptions, safety concerns, and an inability to meet future customer demand."

National Grid's upstate electricity business serves 1.7 million customers, and its gas distribution business serves more than 640,000 customers.