APRIL 10th – In response to the deal announced between National Grid, New York State energy regulators, New York City and others to raise energy bills for downstate National Grid customers, Jessica Azulay, Director of Alliance for a Green Economy, said:
The new National Grid rate hike proposal demonstrates why it is so important for Assembly Speaker Carl Heastie to come together with Governor Hochul and the State Senate to figure out how to finally pass the NY HEAT Act in full, and bring New Yorkers the cleaner heat and lower bills we need.
NY HEAT would improve protections for low-income customers who are struggling to afford their energy and have to choose between energy and other needs–struggles which this rate hike will worsen. The bill would also reduce the amount of money everyday New Yorkers are paying in subsidies for gas system expansion and replacement, enabling utilities to facilitate cleaner, more cost effective energy options.
The National Grid rate hike proposal, which now will go before the Public Service Commission for consideration, includes $491,362,000 in ratepayer funded subsidies for new gas hookups and reinforcements to the system National Grid says are needed to support the addition of these new customers. The NY HEAT Act would eliminate the subsidy for new gas hookups, commonly known as “the 100-foot rule,” freeing ratepayers from most of these costs.
Overall, the proposal contains nearly $5 billion in gas capital investments over the next 3 years, increasing costs to gas customers. NY HEAT would create a plan to reduce costs like these in the future by enabling utilities to provide customers with cheaper, cleaner options when they are available and where they make sense.
If the proposed rate hike is approved, the average downstate National Grid residential gas heating customer in Brooklyn would see a monthly bill increase of $28.90 this year, another $14.20 per month next year, and then another $23.85 per month in 2026. Customers who use gas for non-heating purposes (such as cooking only) would see their bills rise by an average of $9.48/month this year, $5.20/month in 2025, and $8.66/month in 2026.
On Long Island, the average downstate National Grid residential gas heating customer would see a monthly bill increase of $29.85 this year, another $14.56 per month next year, and then another $20.01 per month in 2026. Non-heating customers would see their bills rise by an average of $13.73/month this year, $9.68/month in 2025, and $15.13/month in 2026.
These rate hikes will exacerbate the hardship faced by vulnerable New Yorkers. Downstate customers already face an energy affordability crisis with 235,912 customers in National Grid’s downstate territory behind on their energy bills as of January. A recent analysis by Win Climate found that in Brooklyn, 24% percent of customers in the area pay $139 more every month than what is considered affordable for a utility bill (6% of income). In Long Island, 23% of households pay more than 6% of their income for energy, for an extra energy burden of $164 every month. The NY HEAT Act would direct the Public Service Commission to implement a plan for addressing these high energy burdens through a combination of strategies, including energy efficiency, renewable energy credits, rates that incentivize efficiency, and bill discounts.
As we enter the final phase of budget negotiations, it’s clearer than ever that we cannot go another year without passing the NY HEAT Act in full. The three-years of obstruction of this law by the NY State Assembly is already costing New Yorkers too much. If NY HEAT does not pass this year, these issues will only get worse and New Yorkers will know who to hold accountable.