National Grid is proposing to raise average residential gas bills by $28.52 next year, citing rising costs for materials, contractors and property taxes.
The increase would increase total residential gas heating bills by just over 16% from next April. Customers who use gas primarily for non-heating purposes, such as cooking, would see a monthly increase of $15.41, or 24.8%. For commercial heating customers, the average bill would increase by $70.55 per month, or 10.8%. Multi-family accounts would see an average monthly increase of $300.80, or 11.4%.
In total, National Grid is looking to increase revenue from Long Island customers by $228 million in the year ending March 31, 2025.
The company is asking for larger rate increases for its New York City customers, seeking to increase fee revenue by $414 million.
A consumer group quickly criticized the proposed rate hike, noting that it comes even as 51,000 of National Grid’s roughly 600,000 Long Island customers are 60 days or more behind on their bills.
“New York already has an energy affordability crisis, and this potential rate hike would make it worse,” Andrew Saavedra, a legal assistant at the New York Public Utility Law Project, said in a statement. “Rate increases of these magnitudes have a devastating impact on ratepayers, particularly low- and fixed-income households, and do not reflect the financial realities of the current economic climate.”
PULP said it intends to “fully participate in this rate case to advocate for the needs of vulnerable households” and urged the state Department of Public Service to “carefully consider the full potential impact that these increases will have on consumers and work.” towards a solution that benefits everyone”.
National Grid, in an April 28 letter to DPS formalizing the rate request, said the proposed bill increases were “driven in large part by a combination of out-of-control inflation and cost factors immediate from National Grid”. Among the factors were increases in “core business” expenses, safety and regulatory compliance costs and property taxes, which the company said accounted for nearly 37% of the Long Island increase.
Other increased expenses included environmental remediation, energy efficiency programs, higher interest rates and “other uncontrollable costs.” The company said it is working to “identify efficiencies” to reduce certain costs.
In addition to covering rising costs, the rate proposal also includes increases for programs such as energy efficiency, low-income rebates and plans to “aggressively repair gas leaks to drive further emissions reductions” .
Volatile natural gas prices have hit local customers hard over the past two years. Last fall, National Grid said it expected winter heating bills to increase by $299 over last heating season, but a warmer winter and price moderation helped reduce some of those costs.
In May, a unit of gas, known as thermal, was just over $0.31 cents, down from a September high of $1.08.
Those having trouble paying their bills can call the National Grid Helpline at 800-930-5003.
Mark Harrington, a Newsday reporter since 1999, covers energy, wineries, Indian affairs and fisheries.
