Hearing set on National Grid's rate request to hike average bills $28 a month
Commercial gas meter in Riverhead for National Grid. Credit: Newsday/Mark Harrington
The state Public Service Commission will hold a public hearing in Nassau County on Nov. 15 on a proposed National Grid natural gas rate hike that would see average customer bills jump $28.52 a month next year, if approved by regulators.
In its previously filed rate increase request for 2024, National Grid cited increased costs tied to inflation, critical infrastructure investments and the cost of meeting energy efficiency and demand reduction requirements of state and federal governments.
The PSC will ultimately decide on whether to grant the increase, in part based on customer input. The hearing is set for the Nassau County Legislative Chamber at 1550 Franklin Ave. in Mineola at 6 p.m.
The new National Grid rates, which would become effective March 31, seek to raise $228 million in new revenue, a 14% overall jump, or a 24% increase in delivery revenue.
The rate increases being sought by National Grid are separate from the cost of natural gas, known as the commodity charge, which is based on market prices for gas. This month, National Grid reported the price per unit of natural gas jumped to 44 cents per therm for average customers for November, compared with 33.7 cents in October and 29.7 cents in September. In November 2022, the cost was 73.4 cents per therm — nearly double.
A recent analysis from the American Gas Association projected that natural gas prices would moderate this year compared to last year’s highs, which were tied to supply constraints and geopolitical factors including the war in Ukraine.
The AGA’s 2023 Winter Heating Outlook projects that prices this winter are like to resemble the “2021 norm rather than the elevated prices of 2022,” in part because of increased natural gas production and inventories that are above the five-year average.
“The return to lower pricing means natural gas bills are expected to decline this winter, even under colder conditions,” said Richard Meyer, vice president of energy markets for the AGA, in a report on pricing trends.
Long Islanders who heat their homes with oil are also seeing a seasonal uptick in pricing, but nowhere near the highs of 2022, according to a state dashboard of heating oil prices. Around 40% of Long Island homes heat with fuel oil. For the week ending Oct. 30, Long Islanders paid an average $4.51 a gallon for heating oil, compared with $5.99 per gallon a year ago, a 25% drop, according to the state. Heating oil prices on Long Island topped $6 a gallon last November, a record.
PSEG Long Island and LIPA, meanwhile, are expected in coming weeks to announce new rates for 2024, though the increase isn’t expected to exceed the 2.5% amount that would trigger a full Department of Public Service review.
Power supply charges, which are based on the commodity cost of power and tied to natural gas, also have moderated from 2022 levels. November’s power supply charge was 10.1 cents per kilowatt-hour, compared with 13.8 cents a year ago. November’s rate is also lower than last month's 10.2 cents a kilowatt-hour.
Mark Harrington, a Newsday reporter since 1999, covers energy, wineries, Indian affairs and fisheries.
