News Summary
The New York State Public Service Commission has approved a rate increase for National Grid’s gas and electric services, resulting in an average monthly bill rise of $22 for customers over three years. The increase, driven by stakeholder collaboration, will affect approximately 2.3 million customers in upstate New York. Governor Kathy Hochul has criticized the hikes, emphasizing the burden on families amidst rising costs. As energy prices rise nationally, the adjustments are set to further strain household budgets across the state.
New York – The New York State Public Service Commission has recently approved a significant rate increase for National Grid’s gas and electric services in upstate New York, set to take effect in September 2025. This decision will result in an average monthly bill increase of $22 for customers, a move that will extend over a three-year period.
The first year of the rate increase will see an estimated monthly bill rise of $14.32 for residential electricity customers consuming an average of 625 kilowatt-hours per month. Additionally, residential natural gas customers utilizing an average of 78 therms per month will experience a monthly increase of approximately $7.66. The second year will bring further increases, with an anticipated $6.44 hike in electricity costs and an $8.08 increase in natural gas bills. Finally, the third year will see an additional increase of $4.34 for electricity and $9.18 for gas. In total, households will face an approximate increase of $600 annually over the three years.
This rate hike is a result of a “joint proposal” that stemmed from collaboration among various stakeholders and expert witnesses, aiming to enhance energy affordability programs, invest in grid reliability, support economic growth, and further New York state’s energy objectives. The proposal was met with rigorous scrutiny, including a review process that considered over 4,000 public comments from affected customers.
National Grid currently serves around 2.3 million customers in the upstate New York region. Despite the efforts to create a balanced rate adjustment, Commission Chair Rory Christian acknowledged the necessity for sufficient revenues to maintain safe and reliable service while being mindful of the affordability challenges faced by consumers.
The implementation of the new rates has faced significant pushback, particularly from Governor Kathy Hochul, who has criticized the hikes as an unfair burden for families already grappling with rising costs in their everyday lives. The governor emphasized the urgency of maintaining affordable utility services amid increasing financial pressures on households.
Moreover, concerns from customers—including students and working professionals—regarding the rising utility costs have been voiced widely. Many individuals report feeling the strain of escalating bills on their financial stability and living conditions. This frustration is compounded by the fact that numerous residents are already managing tight budgets, making the prospect of higher utility payments even more alarming.
The approval of these rate increases comes at a time when energy prices are on the rise nationally, with the United States Bureau of Labor Statistics reporting an annual price growth of approximately 7% in energy services. This broader trend underscores the national context of the rate adjustments, reinforcing the pressure on consumers in New York State.
With the approved increase set to begin in less than two years, local residents and advocates for utility affordability are left to brace for the consequences of these financial changes, highlighting the continuing dialogue around energy costs and the implications for household budgets across the state.
Deeper Dive: News & Info About This Topic
- Realtor.com: Upstate NY Utility Bill Hikes
- Syracuse.com: State Approves National Grid Rate Hike
- Times Union: PSC Approves National Grid Rate Increase
- LocalSYR: NYS Public Service Committee Approves Rate Hike
- Wikipedia: Electricity Pricing in the United States
Author: STAFF HERE NEW YORK WRITER
NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.
