National Grid, after 3 years of hikes, says it will hold natural gas rates steady next year

National Grid on Friday said it would hold rates steady next year as part of a rate-freeze filing with the state Public Service Commission, following a 2024 state-approved plan that has hiked average bills a cumulative $60 a month over the past three years. 

National Grid’s statement said the company intends to hold the delivery portion of bills to the same level they were this year. The 2026 hike increased average bills by $18.81 a month, or 9.7%. The prior two years saw increases of $33.35 a month, or 22%, in 2024, and $8.19 a month, or 4.39%, in 2025. The increases led average customers to pay a total of $233.45 more in rates in the first year of the increase, $331.73 more in the second and $557.45 more in the third, National Grid said.

If National Grid were to seek a new rate increase, it would not take effect until 2028. 

The company characterized the rate freeze in part as a recognition of the impact of rising gas prices starting this winter.

"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," Sally Librera, president of National Grid New York, said in a statement.

Gas supply costs for most of National’s Grid’s approximately 600,000 Long Island customers soared 65% in March compared with the prior year, hitting a four-year high. Residential supply charges peaked at 96.56 cents per therm in March, before falling to 83.02 cents in April and 67.95 cents in May. In November, gas costs were 57.08 cents per therm before starting a steady climb through March. The previous record was set in September 2022, when the cost hit $1.08 per therm.

The rate freeze comes as National Grid prepares to welcome a long-sought boost in natural gas supply into the downstate region by the end of next year from a project called Northeast Supply Enhancement. NESE is expected to be in place by the end of next year and could potentially lower supply costs by bringing less expensive gas into the region from Pennsylvania. National Grid has said the $1 billion-plus cost of the pipeline would hike average bills around 3.5%, or more than $7, Newsday has reported. NESE would increase downstate gas supply by around 13%. 

It’s unclear if the cost to build NESE will be built into the delivery portion of bills following the freeze, or in some other portion of customer charges.

Opponents of NESE have said current levels of gas into the region are adequate and the new pipeline enhancement will tie New York to gas for decades to come.

National Grid said the freeze would maintain customer benefits approved by the PSC from the prior rate case, which included certain energy efficiency and affordability programs. It would also extend emissions-reduction initiatives and disadvantaged community programs.

The company said the rate freeze proposal would also allow it to direct $250 million of customer credits to "fund critical infrastructure investments that enhance the safety and reliability of its Downstate gas distribution networks."

National Grid, in a statement, said the credits are for current infrastructure projects and will "not be used for NESE. The credits need to be applied toward projects and used in this fiscal year." 

In a statement, Gov. Kathy Hochul said she was "pleased National Grid was able to work with the Department of Public Service to find a way to [avoid or minimize rate hikes] for nearly 2 million gas customers in New York."

Green energy activist Kim Fraczek, director of Sane Energy, in a statement called the rate freeze "an immediate win, but do not be fooled – the company is likely sitting on its hands for the sake of their ally, Gov. Hochul ... in an election year." 

By Mark Harrington

mark.harrington@newsday.comMHarringtonNews

Mark Harrington, a Newsday reporter since 1999, covers energy, wineries, Indian affairs and fisheries.