Proposed National Grid “Rate Stabilization Plan” is a Rate Hike In Disguise

Today, Alliance for a Green Economy (AGREE) joined hundreds of New Yorkers in raising concerns about National Grid’s proposed “rate stabilization” plan. Earthjustice submitted comments to the NYS Public Service Commission on behalf of AGREE to oppose National Grid’s proposal, which would hold gas rates artificially high, allow National Grid to spend more than a billion dollars to expand and reinforce the gas system, and lock customers into paying even higher utility bills in the future.

National Grid asks the Public Service Commission to unlawfully grant this request without going through the normal process for setting rates, a process that normally results in lowering utility spending and costs for customers below the utility’s request.

According to a 2026 AARP study, 1.3 million New York customers are falling behind on their gas and electric bills. As New Yorkers struggle to pay for their energy needs, National Grid is asking to keep rates at their current unaffordable level for a year while the company increases spending on expanding and reinforcing its gas system, and for the right to put customers on the hook for paying that bill starting in 2028. At its core, the petition is National Grid’s attempt to disguise a massive rate hike as a benevolent gift.

“National Grid is trying to pull the wool over the eyes of ratepayers and the Public Service Commission,” said Hillary Aidun, Senior Attorney at Earthjustice. “New Yorkers have a right to understand, scrutinize, and provide input on utilities’ plans to spend their money and shape the future of our energy system.”

Under New York’s regulatory framework, utilities seeking to increase rates are typically required to undergo a formal rate case process. During that process, utilities must provide detailed documents explaining how they plan to spend ratepayer money and justify their investments, while consumer advocates, community organizations, and other stakeholders have an opportunity to examine the company’s claims, ask questions, challenge unnecessary costs, provide expert testimony, and advocate for safety and environmental protections before regulators determine what customers will ultimately pay. These proceedings are often resolved through settlements that reduce rates from what the utilities ask for and include customer benefits designed to advance our transition to clean energy.

Two of National Grid’s downstate gas utilities, KeySpan Energy Delivery New York (KEDNY) and KeySpan Energy Delivery Long Island (KEDLI), were expected to file for a rate increase and  undergo that public review process starting in April 2026. They also could have chosen to “stay out,” or file nothing, and rates would have dropped starting next April. However, the utility took a different path and filed the “rate stabilization proposal” instead, seeking to keep rates at today’s levels and hike customers’ bills starting in 2028.

“We want real relief for New Yorkers struggling with their energy bills. National Grid’s proposal is not that. It keeps bills high today, locks in higher spending on fossil fuel pipelines, and asks customers to pay even more later, all while skipping the public review this kind of decision deserves,” said Jessica Azulay, Executive Director of Alliance for a Green Economy.

Without the proposed filing, customers in New York City and Long Island could have benefited from lower utility bills when existing charges determined in a prior rate case expired. Instead, National Grid is seeking to continue collecting approximately $250 million in charges that otherwise could have come off customer bills.

In addition to holding rates high, the proposal includes plans for approximately $1.7 billion in near-term gas infrastructure spending, with costs to appear on customers’ bills starting in 2028. These costs include over $60 million dollars to upgrade an aging and polluting liquified natural gas facility in Greenpoint, Brooklyn that may not be needed. Once those costs begin appearing on customer bills, customers will also be on the hook for significant carrying charges due to the delay in collecting costs.

Along with concerns about affordability, the proposal would deepen the state’s dependence on fossil fuel infrastructure at a time when New York has established climate mandates and should be working toward reducing greenhouse gas emissions and transitioning to renewable energy sources.

State officials, including Governor Kathy Hochul, have promoted the plan as a way to “hold the line on rate hikes for nearly 2 million gas customers.” However, the proposal does not provide meaningful relief from bills that are unaffordable now and fails to take the important steps needed to lower energy bills for the long term, like reducing exorbitant spending on the gas system, helping customers weatherize their homes to use less energy, and promoting more efficient solutions like heat pumps. AGREE’s filing asks the Commission to closely scrutinize and reject National Grid’s plan.

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