Rate hikes delayed
Planned hikes would have added about $6.50 to average Grid bill
Pandemic is forcing National Grid to postpone gas and electric rate hikes for a second time this spring.
The coronavirus pandemic is forcing National Grid to postpone gas and electric rate hikes for a second time this spring — and possibly delay the filing of more rate hike requests that could take place in 2021.
And Central Hudson Gas & Electric, which serves parts of the Capital Region as well, is delaying until October rate increases scheduled to take place in July.
National Grid, which has also suspended collections and service disconnections in order to provide customers with relief during the pandemic, originally postponed April rate increases for gas and electric customers until July. The postponement was eagerly approved by the state Public Service Commission, the state board that regulates utilities in New York.
The rate increases would have added nearly $6.50 to the average National Grid gas and electric bill in upstate New York.
However, as the coronavirus pandemic has continued in New York state, National Grid decided to postpone the rate increases again, until August, delaying millions of dollars in new revenue for the utility.
National Grid’s annual electric delivery revenues were supposed to increase by $89.6 million while its annual gas delivery rates were set to increase
by $21.5 million. Delivery rates account for about half an average National Grid bill, while the other half is the actual electricity or gas supply costs, which varies throughout the year and which National Grid does not mark up or profit from.
PSC Chairman John Rhodes approved National Grid’s second rate hike postponement on May 29.
In approving the rate hike postponements, Rhodes said that utility rate increases at this time “would only serve to inflict further financial hardship” on its customers, many of whom have been out of work or are working reduced hours amid the state’s mandatory business closures and stay-athome orders.
“While these measures are necessary to protect the health and safety of the public, it inevitably impacts the financial wellbeing of residents across the state,” Rhodes wrote in his order approving the rate hike delay.
National Grid also postponed a reduction in bill discounts for low-income customers.
Customers unfortunately would have to make up for the rate hike postponements after August, by which time National Grid will likely have to file a new rate hike request with the PSC.
That rate hike request would normally take effect on April 1, 2021, although the coronavirus pandemic — and the aftereffects of its impact on New York’s economy — could complicate that request, National Grid has informed the PSC. The coronavirus is the virus that causes the sometimes deadly respiratory disease known as COVID-19.
“New York has been ‘ground zero’ for the pandemic, experiencing the most cases and the largest loss of life of any state in the country.” National Grid said in a recent filing with the PSC. “While there are preliminary indications that the number of new COVID-19 cases are declining and that New York may be moving toward gradual reopening of its economy, the outlook for the future remains unclear.”
Because of that uncertainty, National Grid has also postponed filing its 2021 rate plan with the PSC, which normally would have taken place in April or May, until July or August.
Central Hudson, which serves parts of southern Albany and Greene counties, has also postponed millions of dollars in new rate increases scheduled to take effect in July for its gas and electric customers until October. The rate increases would have increased monthly gas and electric bills by $12.