Take a NY Minute – Our KEDNY-KEDLI rate case proposals

This short article – our first in a series of ten – will help create awareness on the major components of our KEDNY/KEDLI rate case proposals.

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On September 7, 2016 National Grid filed a Joint Proposal with the New York Public Service Commission (NYPSC) that outlines a three-year rate plan for our downstate New York customers, effective January 1, 2017.

If approved, this would settle the KEDNY and KEDLI rate case proposals filed on January 29, 2016.

This Joint Proposal reflects the opinions and feedback from the Department of Public Service Staff and other parties, including consumer groups who represent the interest of customers.

Our January 29 proposals were the first in a decade and asked for an increase in our delivery rates, which are currently significantly lower than 1996 levels in real terms.

We filed the original rate proposals because we need to fund the increasing investments in our gas networks in both New York City and Long Island – an expected $3 billion through the end of 2019.

The majority of the revenue from our new delivery rates will be used to make our current gas networks safer, stronger and more reliable. For instance, we plan to replace an unprecedented 585 miles of aging gas pipes in New York City and Long Island through the end of 2019.

“We believe this mutually agreed upon proposed settlement achieves a fair and reasonable outcome for our customers and stakeholders,” says Ken Daly, National Grid President NY. “It levelizes our funding requirement and minimizes the impact to customers by spreading bill impacts over three years.”

The charts below compare the monthly total bill impacts (commodity and delivery) of a typical heating customer in Rate Year 2017 of our original filing with the three-year rate plan outlined in the Joint Proposal.

KEDNY Monthly Total Bill Impact

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KEDLI Monthly Total Bill Impact

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Additional bill increases in KEDNY and KEDLI for 2018 and 2019 would be similar percentages.

If approved, our proposals will provide our customers with:

  • A safer and more reliable gas service
  • Stronger storm resilient networks
  • Expanded gas service
  • Reduced methane emissions
  • Enhanced programs for low-income customers and local communities
  • New investments needed to modernize our gas infrastructure, and grow the system to meet the needs of a 21st century clean energy economy.
  • Funds for more than 300 new positions to support the Downstate NY business.

We expect the NYPSC to make a final decision on our rate case proposals in December 2016. If approved, new delivery rates will go into effect January 2017.

Read the complete series:
1 – Overview of our proposals
2 – Modernizing our gas system
3 – Leveraging gas operation technologies
4 – Gas safety performance metrics and compliance
5 – Gas expansion and growth
6 – Proposed REV Demonstration Projects in DNY
7 – Enhancing the customer experience
8 – Helping our most vulnerable customers
9 – What’s happening with Economic Development?
10 – Hitting the ground running – our implementation plan

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