Utility workers installing smart meters to upgrade infrastructure in upstate New York.
National Grid has proposed significant increases in electricity and gas rates for upstate New York customers, with average residential bills expected to rise by $600 over three years. The plan includes the installation of smart meters and is designed to upgrade the infrastructure while providing job creation and bill discounts for low-income families. This decision comes in the context of rising costs linked to climate laws, impacting many households already struggling to pay their bills.
Residents of upstate New York should brace themselves for some hefty increases on their utility bills, as National Grid has announced plans to significantly raise electricity and gas rates for its customers. The utility company is taking steps to install new smart meters across eastern New York, but this upgrade comes at a cost.
Under the proposed settlement with state regulators, average residential customers will see their bills climb by an additional $600 over three years if the plan gets the green light from the state Public Service Commission (PSC). These new billing rates are scheduled to kick in as soon as September 2025. The monthly increase breaks down to approximately $14.32 for electric bills and $7.66 for gas bills, which totals to $21.98 each month.
This rate hike is not a one-time event; it’s part of a larger plan that will see rates climb further in the second and third years. The plan itself started on April 1, 2025. For context, a typical residential bill shows that an average customer uses about 625 kilowatt-hours of electricity and 78 therms of gas each month.
Back in May 2024, National Grid initially proposed a rate increase that would have been even steeper – about $673 million in total, leading to a possible monthly spike of $37. However, the utility company has since revised its approach by dumping a hefty $1 billion in capital projects to lessen the burden on customers. Instead, they are now focusing on projects that keep things safe and reliable.
In an effort to provide better service amid the rate increases, National Grid is targeting a whopping $1.75 billion investment in upgrading gas and electric infrastructure right in the first year. This endeavor not only aims to enhance services but also promises to create 480 new jobs at National Grid, which currently employs around 5,400 workers.
Additionally, to help ease these price hikes for families in need, National Grid is planning to dish out $290 million in bill discounts for low-income and vulnerable customers, allocating about $72 million in the first year alone.
It’s important to note that these increases aren’t just about the utility company wanting to make adjustments. Rising costs for consumers are also linked to the state’s stringent climate laws that are influencing delivery rates. A significant concern arises from groups like the Public Utility Law Project of New York, which has pointed out that over 210,000 customers are already behind on their payments, raising alarm about how these hikes could impact families who are just getting by.
The PSC’s process for rate approval typically takes around 11 months. During this time, the public and interested stakeholders will be allowed to comment on the settlement. A vote from the PSC is anticipated during the summer, and there’s an air of uncertainty regarding the outcome. While some groups have shown support for the changes, the Public Utility Law Project has retracted its endorsement due to worries about the potential impact on low-income households.
This proposed increase in rates is part of a broader trend of utility rate hikes that have been observed nationally since 2020. Just to give a clearer picture, electricity rates are set to increase by about 20% over three years, while natural gas rates could rise by 27%.
As the clock ticks toward September 2025, residents of upstate New York may find themselves grappling with tightening budgets and the reality of increasing utility bills. Stay tuned for more updates as the PSC faces mounting pressure to make a decision. A brighter future for energy consumers might hinge on their vote!
News Summary American Airlines has decided to end its partnership discussions with JetBlue Airways, marking…
News Summary Kathy Mendieta, a senior at Jefferson High School in Tampa, made waves in…
News Summary New York City has seen a surge in the establishment of exclusive members'…
News Summary New York City's 988 Mental Health Crisis Hotline, managed by Vibrant Emotional Health,…
News Summary New York has finalized a historic $254 billion budget for Fiscal Year 2026,…
News Summary New York City is set to transform its handling of denied medical claims…