News Summary
The New York State Public Service Commission has approved a substantial rate increase for National Grid customers, resulting in an average cost hike of over $600 annually. Monthly bills will rise beginning in September, with electricity and gas rates increasing significantly. This decision has drawn mixed reactions from government officials, highlighting concerns about affordability amidst a challenging economic climate for many residents. The rate hike is intended to fund infrastructure improvements, but it poses additional financial strain on low-income families already struggling with utility payments.
New York – The New York State Public Service Commission (PSC) has approved a rate increase for customers of National Grid, impacting household utility expenses significantly. The approved rate increase will raise average household costs by over $600 annually, with customers set to see increases in their monthly bills starting in September.
The PSC’s approval, however, is less than what National Grid initially proposed. Customers can expect their electricity bills to rise by approximately $14.47 per month and gas bills to increase by $7.66 during the first year, totaling an average increase of about $22 per month over the course of three years. Following the first year, the rate hikes will continue, impacting customers substantially.
This decision comes after the PSC considered about 4,500 public comments and hosted three in-person meetings throughout the rate-setting process. The response to the proposed increases has beenmixed, with various government officials expressing concerns. Governor Kathy Hochul criticized the rate hike, emphasizing that it remains excessive despite the reduction from the original proposal.
Local Government Response
State Senator Joseph Griffo labeled any rate increase as “unacceptable,” particularly in light of ongoing economic challenges faced by many New Yorkers. Assemblywoman Marianne Buttenschon also expressed dissatisfaction, stating that the PSC should have prioritized affordability more strongly, indicating a growing concern among lawmakers about the financial strain on utility customers.
As these rate hikes are implemented, they are projected to add strain on low-income families who are already struggling. The Public Utility Law Project of New York has warned that many of these households are already behind on their bill payments, suggesting that increased costs could lead to further financial distress.
Infrastructure Improvements
National Grid has indicated that the rate hikes are part of a larger plan to modernize aging gas and electric networks, with expected costs nearing $7 billion. These upgrades aim to improve the reliability and safety of energy delivery across the state. Additionally, the company plans to create approximately 480 new jobs statewide as part of these developments, which could bring some economic benefits to the region despite the higher utility costs.
The PSC’s approval process for utility rate increases generally takes around 11 months, reflecting the thorough exploration of public feedback and stakeholder negotiations involved in the decision. National Grid’s initial proposal was submitted in May 2024, which sought greater rate increases than what the PSC ultimately decided upon.
Consumer Impact and Context
National Grid’s rate hikes, although reduced, will contribute to an already high cost of living in New York, where consumers face energy expenses that significantly exceed those of residents in states like Florida. This financial burden has sparked concerns over population migration, as more individuals might consider relocating to states with lower utility costs.
Deeper Dive: News & Info About This Topic
- WKTV: New York State Approves National Grid Utility Rate Increase
- Times Union: National Grid Reaches Deal on Gas and Electric Rates in NY
- Rome Sentinel: National Grid Rate Plan Increase
- CNY Homepage: NYS Public Service Committee Approves National Grid Rate Hike
- Syracuse.com: Upstate NY Metros Getting Crushed by Utility Costs
- Wikipedia: Utility Rate
- Google Search: New York utility rate hike
- Google Scholar: Utility Rate Increases
- Encyclopedia Britannica: Utility Rate
- Google News: New York energy costs
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.
