Company Seeks to Recover Capital Costs Related to Leak Prone Pipe Replacement, Helping to Reduce Greenhouse Gas Emissions and Enhance System Safety: Reiterates Commitment to Exploring Geothermal Networks and Non-Pipeline Alternatives

WALTHAM, MA – National Grid yesterday submitted to the Department of Public Utilities its annual filing for approval of Gas Safety Enhancement Adjustment Factors (GSEAFs) that provide recovery of the revenue requirement associated with capital costs to replace eligible leak prone gas pipe and related equipment, and for capital costs associated with gas pipe lining and cast-iron sealing robot (CISBOT) technology used to seal cast iron pipe joints. The filing also requests recovery of estimated expenses associated with the repair of environmentally significant grade three leaks (G3SEI). The proposed GSEAFs, if approved, would become effective May 1, 2024.

Based on rates effective November 1, 2023, and this past Off Peak season’s rates, for a typical Boston Gas division residential heating customer, the monthly bill impact would be an Off-Peak period increase of $1.04, or 2.5%, based on 27 therms/month, and a Peak period increase of $4.90, or 1.9%%, based on 115 therms/month. For a typical Colonial Gas residential heating customer, the monthly bill impact would an Off-Peak period increase of $0.34, or 0.9%, based on 27 therms/month, and an estimated Peak period increase of $1.61, or 0.7%, based on 107 therms/month.

“National Grid is committed to exploring targeted electrification and networked geothermal, which, if shown to be a cost-effective and practical solution for customers, could provide an alternative to leak-prone pipe replacement on selected segments of the network,” said Caroline Hon, Head of Gas Network Strategy and Planning, National Grid New England. “At the same time, we have a responsibility to maintain our existing network to serve our over 900,000 natural gas customers safely, reliably, and affordably, even as we help to enable our gas customers to access clean heating solutions for their homes and businesses.”

National Grid’s vision is to be fossil-free by 2050. In the meantime, main replacement is expected to yield a significant reduction in projected methane emissions from natural gas systems. The total emission reduction resulting from main replacement over the next five years is estimated to be approximately 19,000 Metric Tons in CO2 reductions and approximately 800 Metric Tons in CH4 reduction. This is equivalent to removing over 4,097 vehicles from the road, replacing 721,184 incandescent light bulbs with compact fluorescent bulbs, or eliminating nearly 6,451 tons of waste sent to a landfill.

The filing also highlights, but does not request cost recovery for, two networked geothermal projects and one Non-Pipeline Alternative (NPA) electrification project planned for 2024.

Networked Geothermal

National Grid has previously announced that it has selected a location in the City of Lowell’s Acre neighborhood for its first network geothermal pilot project site. During 2023, the Company drilled test holes at the proposed bore field site at the University of Massachusetts-Lowell. Information gathered from the boreholes will help National Grid design a networked geothermal energy system — which uses the thermal properties of subsurface rock to help heat and cool buildings more efficiently — that will reduce greenhouse gas emissions by providing more efficient heating and cooling to a neighborhood adjacent to UMass Lowell’s South Campus, which is currently served by natural gas. National Grid has begun design and estimating work and has performed extensive customer outreach to businesses and residents in the area. Construction is expected to begin in early 2024.

Heating homes and businesses currently represents more than a quarter of total carbon emissions. National Grid envisions most buildings will be electrified by 2050 and significant energy efficiency will eliminate a full one-third of greenhouse gas emissions from buildings.  Geothermal energy is an important component of that plan because of its potential to harness the Earth’s energy to provide carbon-free geothermal heating and cooling.

The Company will also be exploring a second project, to be announced in 2024.

Targeted Electrification

Targeted electrification is a pillar of the Company’s Clean Energy Vision. In 2024, National Grid intends to initiate an NPA project in which it will decommission one or more segments of leak prone gas pipe (LPP) and fully electrify energy use with air source heat pumps for all customers currently served on those LPP segment(s).  National Grid is working to select a municipality where it provides both gas and electric services, where the LPP can be retired without negatively impacting other segments of the gas system and where minimal upgrades are necessary to the electric infrastructure.

The planned pilot is intended to provide an initial step to better understand how targeted electrification can be informed by integrated energy planning. Both the electricity and gas networks will need to plan for changes in customer demand, capital planning, and operations in the short, medium and long term. National Grid is designing its targeted electrification NPA pilot to provide learning and best practices for integrated gas, electric planning (including new tools necessary for load forecasting, analysis and planning), and customer adoption.

With this transition into a decarbonized future, there is an opportunity to optimize network investments and customer outcomes through integrated energy planning to provide for a more reliable and affordable whole energy system.

National Grid anticipates lessons learned from the targeted electrification NPA pilot will help identify locations for targeted electrification and strategic decommissioning of segments of the gas network, help identify areas where the accelerated deployment of heat electrification can enable strategic decommissioning of gas infrastructure and avoid LPP replacement investments with new gas pipe.

About National Grid

National Grid (NYSE: NGG) is an electricity, natural gas, and clean energy delivery company serving more than 20 million people through our networks in New York and Massachusetts. National Grid is focused on building a smarter, stronger, cleaner energy future — transforming our networks with more reliable and resilient energy solutions to meet state climate goals and reduce greenhouse gas emissions.