National Grid Files Plan to Build a Better Energy Future for Downstate New York

Source: www.gulfoilandgas.com 4/28/2023, Location: North America

National Grid filed its rate proposals to build a better energy future with the New York State Public Service Commission that will enable critical investments to support the state’s clean energy goals, ensure the reliability and safe operation of the distribution networks and expand and enhance programs that support the company’s 1.9 million customers in New York City and on Long Island.

National Grid’s plan for the future includes targeted investments and programs that will help drive down emissions, strengthen the safe delivery of energy, increase energy efficiency offerings and other programs to help customers reduce natural gas usage and support connecting renewable energy projects to the networks. In addition, the plan will improve the overall customer experience with adoption of new technology to provide more self-service options, increase the number of consumer advocates to assist the most vulnerable customers, as well as eliminate credit card fees for residential bill payments -- providing immediate customer savings.

“Prioritizing the energy needs of our customers is vital, and nothing is more important than the safe operation of our networks as we look for new ways of delivering energy for all our customers,” said Philip DeCicco, Vice President and Deputy General Counsel Regulatory, National Grid New York. “We have identified essential investments in this rate proposal and we will ensure no customer is left behind in their access to reliable and affordable energy as we continue on the clean energy transition.”

National Grid remains steadfast in its commitment to implement new projects, programs and increase community engagement to support and advance New York’s Climate Leadership and Community Protection Act (CLCPA). As part of its commitment to a clean energy future, National Grid remains focused on achieving emission reduction goals, including helping customers use less natural gas through energy efficiency programs, and promoting non-gas alternatives, including electrification. At the same time, the company has managed expenses over the term of the last rate plan period by identifying efficiencies to reduce the combined revenue requirements by more than $70 million, providing additional savings to customers.

National Grid’s focus for the future builds upon the real and measurable progress made over the past several years, including:
Increased Energy Efficiency – 50 percent more savings in 2022 than the previous two years -- the company launched new weatherization programs in 2021 and has reduced peak gas usage through demand response programs that saw a 250 percent increase in participation levels since 2019, including more than 18,000 residential customers enrolled in the smart thermostat program.
Reduced Emissions – retiring more than 1,500 miles of gas main since 2013, including 500 miles over the past three years -- lowering system emissions by 102,385 metric tons of CO2e which is equivalent to removing 22,257 cars from the road.
Improved Safety and Reliability – increased safety inspections, surveys and targeted improvements have made the networks safer, more reliable and capable of keeping customers warm when put to the test during severe cold weather events this past winter.
Better Customer Service and Financial Assistance – met or exceeded service quality metrics every year during the current rate plan, Energy Affordability Programs have reduced customer bills by $50 million per year while also directing $150 million in financial relief to 133,000 customers struggling as a result of the COVID-19 pandemic.

Bill Impacts
The rate filing, and the future goals it prioritizes, will focus on providing safe, reliable and affordable energy to all customers who rely on the company every day, while progressing new ways of doing business that reflect the company’s sustainability commitment and strong support of New York’s clean energy goals.

The proposal seeks $414 million in revenues for New York City and $228 million for Long Island for the most critical investments to enable the company to deliver safer, more reliable and cleaner energy. If approved, a typical residential heating customer in New York City (Brooklyn, Staten Island and parts of Queens) using 99 therms of natural gas a month could see a total bill increase of 17.2 percent or $30.95 a month. Customers on Long Island and the Rockaway Peninsula using 102 therms of natural gas a month could see a total bill increase of 16.3 percent or $28.52 a month. Actual impacts will vary depending on usage and service classification. The company also proposes to phase in the proposed increase over multiple years to better manage customer bill impacts.

Supporting Customers and Public Review Process
To help support the most vulnerable customers, National Grid is delivering $72 million in savings and efficiencies, funding affordability programs with $86 million in low-income bill credits and $70 million annually for weatherization and other programs to help customers reduce usage.

“We’re committed to doing all that we can to minimize any impact on our customers while delivering on the critical safety, reliability and clean energy priorities our customers expect and deserve,” DeCicco added. “Approximately 70 percent of the proposal is driven by federal and state safety mandates, as well as increased property taxes and the costs to deliver expanded energy efficiency and other demand reduction offerings necessary to meet State climate targets. National Grid is determined to build a better energy future while keeping energy as affordable as possible. We look forward to an open and transparent public review process and encourage customers to become involved in how we can build a better energy future for all the communities we serve.”

To ensure the company invests, operates and maintains its distribution system in a prudent manner, the proposal will undergo a thorough review process by the NYS Department of Public Service. The proposal was shaped following the company conducting extensive listening sessions with customers, communities and key stakeholders. If approved, the new charges would take effect on April 1, 2024.


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