National Grid Files Rate Review Proposals for Downstate New YorkApr 30, 2019
Filings will Improve Safety and Customer Service, Upgrade Infrastructure, and Help Prepare for a Cleaner Energy Future for 1.85 Million Customers in New York City and on Long Island
BROOKLYN and MELVILLE, N.Y. – In order to continue meeting customers’ needs now and in the future, National Grid today filed a request with the New York State Public Service Commission (NYSPSC) to update its natural gas delivery rates. The proposed new delivery rates will allow National Grid to continue investing in the natural gas networks making them safer and more reliable, advancing a cleaner energy future, and improving service to 1.85 million customers in New York City and Long Island.
If approved, a typical residential heating customer on Long Island and the Rockaway Peninsula will see a $6.53 monthly delivery increase, equating to 6.92% (5.15% for the total bill). A typical residential heating customer in New York City (Brooklyn, Staten Island and parts of Queens) will see a $16.50 monthly delivery increase, equating to 17.78% (11.99% for the total bill). National Grid’s typical residential heating customer uses 83 therms of natural gas a month.
Construction and operating costs in New York City vary from Long Island due to increasing capital investments, compliance with new gas safety and paving regulations and ongoing responsibility for environmental stewardship. These costs are less pronounced in the Long Island service area.
The effect of the increase on individual monthly bills will vary depending on usage and customer classification. While the filings propose new delivery rates for one-year, National Grid is interested in exploring a multi-year rate plan settlement that would allow the company to maximize efficiencies over a three to four-year period to help lessen the monthly impact on customers’ bills.
To ensure the company invests, operates and maintains its distribution system wisely, the proposal will undergo a thorough review process by the NYS Department of Public Service that typically lasts 11 months. If approved, the new charges would take effect on April 1, 2020.
“The energy landscape has evolved since we filed for new delivery rates back in January 2016,” said John Bruckner, president of National Grid in New York. “Technology and innovation are driving change, and requires National Grid to provide dynamic, efficient, and interactive services to meet increased customer expectations. At the same time, our industry focus on gas safety and the need to decarbonize energy infrastructure demands that we rise to the challenge of delivering a safer, more sustainable energy future.”
HIGHLIGHTS OF THE PROPOSALS
The rate review proposals will allow National Grid to:
Improve safety and upgrade infrastructure
- Make further investments to modernize the gas infrastructure, monitor and replace aging pipelines, enhance storm response and recovery, and reduce methane emissions.
- Replace 310 and 620 miles of aging pipeline for New York City and Long Island respectively over a four-year period.
- Meet mandated federal, state, and local regulatory requirements, which now account for more than 60 percent of total capital expenditures.
- Enhance safety by applying improved training, oversight, inspections and quality control programs.
Improve customer service
- Implement a new Customer Information System and other digital solutions.
- Provide further support for economic development and energy efficiency.
- Enhance Energy Affordability programs and services.
Proposals to stimulate clean energy alternatives and the future of heat
- A green gas tariff that will give customers the choice to supplement their natural gas usage with renewable natural gas (RNG).
- A power-to-gas pilot project to create RNG by converting excess renewable electricity to hydrogen through electrolysis of water.
- A hydrogen blending study to assess how much hydrogen can safely be blended into the existing system.
- A program to facilitate RNG interconnections by lowering the cost to connect RNG facilities to the network.
- An enhanced gas demand-response program that will give customers the choice to modify their gas consumption in response to price signals.
- An expanded geothermal pilot to test out a utility-ownership business model and its ability to complement gas network operations.