National Grid Seeks to Freeze Gas Delivery Rates for Customers in New York City and on Long Island

National Grid today filed a Rate Stabilization Proposal with the New York State Public Service Commission (PSC) to freeze gas delivery rates for the company’s 1.9 million customers in New York City and on Long Island. If approved, rates for gas customers approved under the current rate plan would remain in effect for one additional year, from April 1, 2027, to March 31, 2028.

“With so many households and businesses across New York City and Long Island facing the pressures of inflation and a rising cost of living, we identified an opportunity to provide meaningful financial relief for our customers by freezing our gas delivery rates until 2028,” said Sally Librera, President of National Grid New York. “Coming off a harsh winter that brought record demand for gas, this proposal directly addresses affordability while ensuring our dedicated employees continue to deliver the safe, reliable energy that heats homes and powers businesses—especially during periods of extreme weather.”

This rate freeze proposal delivers substantial benefits to National Grid’s customers in New York City and on Long Island, including:

• postponing delivery rate increases that would otherwise result from a traditional rate case while providing an additional year of rate stability.
   
• maintaining all customer benefits from the PSC-approved Joint Proposal in 2024, including energy efficiency programs, energy affordability initiatives, weather-related protections, expanded multi-lingual customer support and materials, and non-pipeline alternatives commitments.
   
• helping to achieve New York’s climate goals by extending emissions reduction initiatives and programs supporting disadvantaged communities.

Thanks to the company’s active cost management, including implementation of key customer-focused affordability and efficiency programs, as well as low natural gas commodity costs, rates for customers of The Brooklyn Union Gas Company d/b/a National Grid NY (KEDNY) and KeySpan Gas East Corporation d/b/a National Grid (KEDLI) have remained stable for more than 15 years. As a result, adjusted for inflation, KEDNY natural gas bills are approximately 10 percent lower today than in 2008 while KEDLI bills are approximately 17 percent lower.  

Under this proposal, National Grid will direct approximately $250 million of customer credits to fund critical infrastructure investments that enhance the safety and reliability of its Downstate gas distribution networks, while maintaining current rates for one additional year.

New York's regulatory framework has consistently supported reasonable rate plans that fairly balance the need to promote customer affordability, fund critical infrastructure investment, and preserve a stable investment climate. This proposal supports each of those objectives. The Company looks forward to engaging with the Commission and other stakeholders through the review of this proposal and future rate proceedings to advance New York’s energy priorities.

To enable the significant financial benefits this proposal provides to customers, National Grid has requested that the PSC approve this gas rate freeze proposal promptly and without material modification. Individual billing impacts will vary based on usage and service classification.