News Summary
The New York State Public Service Commission has approved a three-year rate hike for National Grid, leading to increased gas and electric bills for upstate New Yorkers. Beginning September 1, 2025, the average residential bill will rise by approximately $22 per month, phased in over three increases. National Grid cites outdated infrastructure and rising energy demands as reasons for the hike, while Governor Hochul expresses concern about affordability. The company is offering bill assistance programs to help customers cope with the financial impact.
Liverpool, NY – The New York State Public Service Commission has unanimously approved a three-year rate hike for National Grid, increasing gas and electric bills for upstate New Yorkers. The new rates will take effect on September 1, 2025, with the average customer’s bill rising by approximately $22 per month.
The rate hike will occur in three phases. The first phase begins on September 1, 2025, with an increase of approximately $14.23 per month. This will be followed by a second phase starting on May 1, 2026, which will see an additional increase of about $6.44 per month. Finally, the third phase will take effect on May 1, 2027, resulting in a further increase of approximately $4.34 per month. Over the three-year period, this will lead to a total annual increase of about $600 per household.
National Grid has cited the need to replace outdated infrastructure—some of which is over 60 years old—as a primary reason for the rate hike. The company is also preparing for increased energy demand from electric vehicles and electric heating systems, which they believe require substantial upgrades to the current grid.
Despite acknowledging customer dissatisfaction regarding the rate increases, National Grid’s spokesperson indicated that the additional revenue generated from the hikes is vital for supporting necessary infrastructure improvements. To mitigate possible financial hardships due to the increases, National Grid is offering up to $300 million in bill assistance programs aimed at helping customers who may struggle to afford the new rates.
Governor Kathy Hochul has criticized the approved rate hikes, emphasizing the importance of prioritizing affordability for ratepayers, particularly amid challenging economic conditions. While she noted that the initial proposed rate increases were significantly higher, she appreciated efforts made to lower them but ultimately deemed the final outcome inadequate.
The decision to impose higher rates has sparked concern among residents in Liverpool. Many community members, including business owners, have expressed frustration over the expected rise in energy costs, which they fear will force them to manage tighter budgets moving forward. This reaction reflects a broader apprehension about the impact of increased utility bills on families and businesses alike, especially as many are still recovering from the financial strains caused by the pandemic and its lingering effects on the economy.
In response to the concerns raised, National Grid has announced plans to enhance its outreach and education efforts regarding energy affordability programs, focusing particularly on disadvantaged communities. The aim is to ensure that those most affected by the rate hikes are aware of assistance options available to them.
The implementation of these rate increases in upstate New York marks a significant change in the landscape of energy costs for consumers in the region. The approved hikes reflect larger trends in utility management as companies respond to aging infrastructure and shifting energy demands. Stakeholders, including consumers, business owners, and policymakers, continue to navigate the implications of these increases as they unfold over the next few years.
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Additional Resources
- WGRZ: National Grid Rate Hike to Impact Customers
- Syracuse.com: State Approves National Grid Rate Hike
- Spectrum Local News: Bill Aimed at Overturning National Grid Rate Increases
- LocalSYR: NYS Public Service Committee Approves Rate Hike
- WHEC: NY State Approves National Grid’s Rate Hike Plan
- Wikipedia: Electricity Pricing
- Google Search: National Grid Rate Hike
- Google Scholar: National Grid Energy Rates
- Encyclopedia Britannica: Utilities
- Google News: National Grid Rate Hike
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