National Grid Proposes 20% Rate Increase Over Three Years for New Yorkers
New York, Sunday, 27 April 2025.
Starting September 2025, National Grid plans to raise utility bills by $22 monthly for electric and gas services, impacting 1.7 million customers despite affordability concerns.
Details of the Proposed Rate Hike
National Grid’s proposal, set to begin with a significant increase in September 2025, involves a comprehensive plan that would eventually add nearly $22 monthly to each customer’s bill. Specifically, the electric bill increases by $14.32, while gas bills rise by $7.66 in the first year alone. Over three years, customers could see their annual costs increase by approximately $600 if the Public Service Commission (PSC) approves these new rates [1][2].
Reactions and Economic Context
This proposal has sparked significant concern among New Yorkers, particularly as it dovetails with rising costs of living. With grocery and gas prices already stretching budgets thin, many customers express worries over sustainability. A Syracuse customer noted that while prices of necessities have soared, salaries have remained stagnant, exacerbating financial pressures [2][4].
Infrastructure Investment Justification
National Grid’s rationale for the rate hike hinges on substantial infrastructure upgrades, aimed at improving reliability and meeting increased regulatory and environmental standards. The company plans to invest $1.75 billion in the first year to modernize systems, enhance service delivery, and expand job opportunities. Stakeholders argue this is crucial to avoid potential service interruptions and to sustain long-term energy reliability [5][6].
The Path to Approval
The proposal’s fate rests with the PSC, which is expected to vote after a public review process scheduled toward summer’s end. Public feedback will be critical in shaping the final decision. National Grid has engaged with various groups, including business and union representatives, to try and foster a supportive coalition for this initiative [1][5].