New Yorkers to face series of rate hikes from National Grid starting Sept. 1

Just in time for winter, New Yorkers will pay more for home heating and natural gas when a series of rate hikes goes into effect on Sept. 1.

The NYS Public Service Commission (PSC) gave the greenlight to National Grid on Thursday to establish new rates for the Britain-based utility giant’s downstate gas business to help pay for “critical investments” to its operation and programs to help its most vulnerable customers. 

National Grid’s Downstate New York gas distribution network serves 1.9 million customers across Brooklyn, Staten Island, parts of Queens and Long Island.

Bills will increase for customers in Brooklyn, parts of Queens and Staten Island 19.4% starting Sept. 1, 2024. Then, it will increase 5.1% effective April 1, 2025, and 11.1% starting April 1, 2026.  

In cash numbers, customers will likely see an additional $30.18 bump at first, followed next year by another $9.61, and then another $22.09 in 2026. 

Long Island and Rockaway Peninsula customers will see similar hikes. 

The company said the increases will help pay for expanded customer service and assistance, support for low- and moderate income customers, modernizing infrastructure, reports on impacts to disadvantaged communities and increasing language access. 

National Grid said it will replace a minimum of 45 miles per year of gas main in NYC, compared to only 41 under the current plan. 

Phil DeCicco, New York general counsel at National Grid, said the rate plan will help support these initiatives.

“National Grid’s first priority is delivering reliable service for our customers while ensuring that energy remains affordable for all New Yorkers,” he said. “We are also committed to advancing New York’s clean energy transition, using all the tools available to reduce energy consumption and lower emissions. We are proud that this rate plan advances all these commitments.” 

What New Yorkers are saying about paying more for utilities

But after years of inflation, other utility charges and a high cost of city living, it’s not surprising many New Yorkers are upset about the National Grid news.

Michael Anthony of Staten Island said the new charges speak to the high cost of living in the Big Apple.

“In actuality, you need to create more income if you want to remain in New York City,” he said. 

Overall, New Yorkers are fed up with higher utility costs, not only gas.

Gina Bove, a disabled New Yorker, said she is finding it hard to manage so many cost increases lately.

“I’m disabled and on SSDI, and my income is budgeted,” she said. “With all these rates going up, it’s so hard. The cost-of-living adjustment they give is like $30. You can’t buy milk, bread, eggs and cheese with that. As for me, the seniors are feeling it worse.”

Deric Borrero of Staten Island pointed out that homeowners who turned to solar power are still seeing high electric bills despite using natural energy. 

“We definitely have more solar panels on homes today than we did even a year ago,” he said. “Five years ago, they asked for families to get solar panels to cut down on the usage of electricity on the grid. So many people in our community did that, and yet our bills still go up.”

Environmental advocates are skeptical, too. While NYS strives to leave fossil fuels in the dust, some utility companies have actually spent billions to maintain and expand gas infrastructure, as noted in a City Limits article that cites a Building Decarbonization Coalition report. 

Meanwhile, reps from economic development, business, community and labor organizations reacted to the rate hikes, including Thomas Grech, president and CEO of the Queens Chamber of Commerce.

“National Grid is a critical partner to the New York business community,” he said. “Keeping reliability and affordability at the forefront is essential for a robust, dynamic, and vibrant economy for our local communities. These investments will ensure National Grid continues providing these critical energy services while building the clean energy infrastructure necessary to meet New York’s climate goals.”

Matthew Aracich, president of the Building and Construction Trades Council of Nassau and Suffolk Counties, applauded National Grid’s initiatives within the new rate plan. 

“National Grid is a good union employer who held the line for ratepayers during the most trying times of COVID,” he said. “This marginal increase will facilitate our region’s transition to green energy while also accelerating the gas main replacement program. Many hands make light work, and together we will continue to drive Long Island into the future.”

National Grid said it held an “open and transparent” public process about the rate plan that included responses to more than 1,600 information requests and participation in nine public hearings.