NYPSC unanimously approves KEDNY and KEDLI rate case proposals

By Ken Daly, President of National Grid New York

New delivery rates effective in 2017

3-year rate plan levelizes bill impacts and provides revenue to modernize our gas system

I am pleased to report that today the New York Public Service Commission unanimously approved our KEDNY and KEDLI rate proposals. The decision outlines a three-year rate plan for our 1.8 million natural gas customers in downstate New York, effective January 1, 2017.

After a decade of rate stability, our new delivery rates will help fund the increasing investments in our gas networks in both New York City and Long Island to make them safer, stronger and more reliable. Specifically, the new rate plans will allow us to better meet our customers’ needs now and in the future, in the following ways:  

  • Modernizing our gas systems – investing $3 billion and replacing 585 miles of aging pipes in New York City and Long Island by the end of 2019.
  • Leveraging gas operations technologies – using state-of-the-art robotic joint sealing and pipe lining technology to extend the life of aging pipes.
  • Improving gas safety and compliance – incorporating measures and ambitious targets to enhance the safety of our gas systems.
  • Expanding the use of natural gas – using innovative programs and incentives to bring natural gas to new customers in downstate New York.
  • Incorporating innovative REV (Reforming the Energy Vision) solutions – delivering gas demonstration projects to drive innovation, make our networks safer, smarter and more resilient, while also protecting the environment.
  • Enhancing the customer experience – driving increased customer service through new outreach centers, improved processes to improve call waiting times and an expanded Automated Meter Reading program in New York City.
  • Improving funding for our low-income programs – boosting funding allows us to improve assistance to our most vulnerable customers; we will also implement a comprehensive outreach plan to better identify these customers.
  • Increasing economic development and energy efficiency programs – helping create jobs and promote clean energy and new technologies for businesses and our communities.
  • Funding 380 new positions – supporting implementation of our new rate plans with new management and union positions.  

New rate structure and bill impacts
The approval establishes gas delivery rates that levelize the increase on an equal percentage basis over three years. This approach allows us to minimize impact to bills. If customers want help on how they can better manage their bills, please direct them to ngrid.com/billhelp.

The approximate bill impact for a typical residential heating customer in Brooklyn, Staten Island and parts of Queens (KEDNY) using 1,000 therms on an annual basis in 2017 will be $9 per month or 9% on the total bill (15% on delivery portion). For a customer on Long Island and in the Rockaway Peninsula (KEDLI), the bill impact will be $6 per month or 5% on the total bill (9% on delivery portion).

Additional bill impacts in 2018 and 2019 for all customers, including larger customers, would be for similar percentages. It is also important to remember that the total bill impacts (delivery plus commodity costs) will continue to be offset to some extent by low natural gas supply prices, which underpin a 50% discount in overall natural gas bills when compared to competing heating fuels. 

Thank you to all of you who have supported the rate cases over the last 20 months. Going forward, we will all play a role in meeting the commitments of our new plans. Our hard work will help provide customers and other stakeholders with a 21st century clean energy economy for years to come.  

For further details, please see our rate case series featured on ournationalgrid.com.

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