NMPC Rate Case – 2025

This page describes the National Grid rate case. It was published at the end of the process so only includes the results. It is alomst entirely based on a Perplexity AI summary.

The rate case DPS DMM materials are available here.

I published the following articles on the rate case

These are the documents describing the final rate case settlement:

Document Title
Order Adopting Terms of Joint Proposal and Establishing Rate Plans
Attachment A
Attachment A – Appendix 1 – Appendix 2, Schedule 4.3
Attachment A – Appendix 2, Schedule 5- Appendix 2, Schedule 16
Attachment A – Appendix 3-12
Attachment A – Appendix 13-17
Attachment B

I acknowledge the use of Perplexity to generate the following  summary. I entered the following prompts on August 15, 2025:

  • Summarize the 24-E-0322 Order adopting the Joint Proposal and Establishing rate Plans
  • Summarize the 24-G-0323 Order adopting the Joint Proposal and Establishing rate Plans
  • In the 24-G-0323 and 24-E-0322 Order adopting the Joint Proposal and Establishing rate Plans how much of the approved rate was for climate leadership & community protection act projects and other state mandated projects.
  • In the 24-E-0322 Order adopting the Joint Proposal and Establishing rate Plans how much of the approved rate was allocated to :
  • Renewable Energy Integration;
  • Electric Vehicle Infrastructure;
  • Grid Modernization: Smart grid investments to improve efficiency and enable distributed energy resources;
  • Energy Storage: Support for battery storage system interconnection and operation;
  • Enhanced Environmental Justice programs in disadvantaged communities;
  • Environmental justice considerations in infrastructure planning;
  • Environmental Justice Community engagement and liaison programs;
  • Job Creation: Contributing to the addition of more than 480 total jobs across electric and gas operations;
  • Economic Development: Infrastructure investments to attract and retain businesses; and
  • Grid Modernization Benefits: Enhanced reliability to support commercial and industrial development

Query: Summarize the 24-G-0323 Order adopting the Joint Proposal and Establishing rate Plans

Summary of Case 24-G-0323: Order Adopting Joint Proposal for National Grid Gas Rate Plan

This is the Perplexity summary of the gas rate case.

Gas Rate Plan Overview

The New York Public Service Commission unanimously approved a joint proposal on August 14, 2025, establishing a three-year gas delivery rate plan for Niagara Mohawk Power Corporation d/b/a National Grid for service years 2025-2028. The order significantly reduced National Grid’s original rate request while balancing system reliability needs with customer affordability concerns. dps.ny

Gas Rate Plan Rate Structure and Customer Impact

The approved rate plan provides for levelized revenue increases over three years to minimize customer bill shock:

Gas Delivery Revenue Increases:

  • Rate Year 1 (April 1, 2025 – March 31, 2026): $57.4 million increase dps.ny
  • Rate Year 2 (April 1, 2026 – March 31, 2027): $64.5 million increase dps.ny
  • Rate Year 3 (April 1, 2027 – March 31, 2028): $71.8 million increase dps.ny

Gas Rate Plan Customer Bill Impacts:
For residential customers using an average of 78 therms per month, the total monthly bill increases are projected at:

  • Year 1: $7.66 per month (5.5% total revenue increase) nationalgridus+2
  • Year 2: $8.08 per month (5.5% total revenue increase)
  • Year 3: $9.18 per month (6.0% total revenue increase)

Gas Rate Plan Reduction from Original Request

The PSC significantly scaled back National Grid’s initial filing, which sought:

  • Original Request: $156.5 million annual increase (29.7% delivery revenue increase or 15.7% total revenue increase) dps.ny
  • Approved Amount: Nearly $100 million reduction (63% decrease) from the original gas delivery revenue request dps.ny+1

Gas Rate Plan Rate Case Investments

The approved plan authorizes significant infrastructure investments to maintain system safety and reliability:

Total Gas Capital Investment: Approximately $1 billion over three yearsdps.ny

Year 1 Gas Investment: $351 million for natural gas system improvementsnationalgridus

Key Investment Areas:

  • Leak-prone pipe replacement programs dps.ny
  • Gas safety and integrity management compliance dps.ny
  • System reliability and resiliency enhancements nationalgridus
  • Energy Affordability and Customer Protection Programs

The order includes enhanced affordability provisions:

Energy Affordability Programs:

  • Over $290 million in bill discounts for income-eligible customers over three years nationalgridus
  • Approximately $72 million in discounts in the first year alone nationalgridus
  • $3 million shareholder-funded health and safety weatherization program for low-to-moderate and disadvantaged community households nationalgridus

Customer Service Enhancements:

Climate and Environmental Provisions

The rate plan advances New York’s climate objectives under the Climate Leadership and Community Protection Act (CLCPA):

  • Non-Pipeline Alternatives (NPAs): Continued evaluation and promotion of alternatives to traditional gas infrastructure expansion dps.ny
  • Methane Emissions Reduction: Enhanced leak detection and survey programs to identify and repair high-emitting leaks dps.ny
  • Renewable Natural Gas: Support for connecting renewable natural gas projects dps.ny
  • Integrated Energy Planning: Coordination between gas, electric, and customer energy systems to achieve long-term climate goals nationalgridus

Economic and Employment Impact

The approved plan is expected to generate significant economic activity:

  • Job Creation: Adding more than 480 jobs to support gas operations, grid modernization, and customer programs nationalgridus
  • Economic Development: Infrastructure investments to support economic growth and enhance security nationalgridus
  • Local Employment: Focus on hiring local employees who live and work in served communities nationalgridus

Query: Summarize the 24-E-0322 Order adopting the Joint Proposal and Establishing rate Plans

Summary of Case 24-E-0322: Order Adopting Joint Proposal for National Grid Electric Rate Plan

This is the Perplexity summary of the electric rate case.

Rate Structure and Customer Impact

The approved electric rate plan provides for levelized revenue increases over three years:

Electric Delivery Revenue Increases:

  • Rate Year 1 (April 1, 2025 – March 31, 2026): $167.3 million increase dps.ny
  • Rate Year 2 (April 1, 2026 – March 31, 2027): $297.4 million increase
  • Rate Year 3 (April 1, 2027 – March 31, 2028): $243.4 million increase

Customer Bill Impacts:
For residential customers using an average of 625 kilowatt-hours per month, the total monthly bill increases are projected at:

  • Year 1: $14.32 per month (3.4% total revenue increase) nationalgridus+2
  • Year 2: $6.44 per month (5.6% total revenue increase)
  • Year 3: $4.34 per month (4.6% total revenue increase)

Reduction from Original Request

The PSC achieved a dramatic reduction from National Grid’s initial filing:

  • Original Request: $525.4 million annual increase (20% delivery revenue increase or 11% total revenue increase) energy+2
  • Approved Amount: Over $340 million reduction (67% decrease) from the original electric delivery revenue request dps.ny

Electric Rate Plan Capital Investments and Infrastructure

The approved plan authorizes substantial electric infrastructure investments:

Total Electric Capital Investment: Approximately $4.3 billion over three years dps.ny

Key Investment Areas:

  • Grid modernization and smart grid technologies dps.ny
  • System reliability and resiliency enhancements dps.ny
  • Storm hardening and emergency response capabilities dps.ny
  • Electric vehicle infrastructure support dps.ny
  • Renewable energy interconnection improvements nationalgridus

Energy Affordability and Customer Protection Programs

The order includes comprehensive affordability provisions similar to the gas rate case:

Electric Rate Plan Enhanced Customer Programs:

  • Expanded Energy Affordability Program with increased outreach dps.ny
  • Cold-weather protection programs dps.ny
  • Enhanced customer service performance metrics dps.ny
  • Additional customer assistance events in disadvantaged communities dps.ny

Electric Rate Plan Low-Income Support:

  • Targeted programs for income-eligible customers dps.ny
  • Enhanced weatherization programs dps.ny
  • Specialized outreach in disadvantaged communities dps.ny

Climate and Environmental Provisions

The electric rate plan supports New York’s Climate Leadership and Community Protection Act (CLCPA) objectives:

Electric Rate Plan Clean Energy Advancement:

  • Renewable Energy Integration: Enhanced grid capabilities to support solar, wind, and energy storage interconnection nationalgridus
  • Electric Vehicle Infrastructure: Support for EV charging infrastructure deployment dps.ny
  • Grid Modernization: Smart grid investments to improve efficiency and enable distributed energy resources dps.ny
  • Energy Storage: Support for battery storage system interconnection and operationnationalgridus

Electric Rate Plan Environmental Justice:

  • Enhanced programs in disadvantaged communities dps.ny
  • Environmental justice considerations in infrastructure planning dps.ny
  • Community engagement and liaison programs dps.ny

Economic Development and Employment Impact

The approved electric plan supports significant economic growth:

  • Electric Rate Plan Job Creation: Contributing to the addition of more than 480 total jobs across electric and gas operations nationalgridus
  • Economic Development: Infrastructure investments to attract and retain businesses nationalgridus
  • Grid Modernization Benefits: Enhanced reliability to support commercial and industrial development nationalgridus

Solar and Renewable Energy Support

The order includes specific provisions to support renewable energy development:

Solar Industry Benefits:

Grid Modernization for Renewables:

Query: In the 24-G-0323 and 24-E-0322 Order adopting the Joint Proposal and Establishing rate Plans how much of the approved rate was for climate leadership & community protection act projects and other state mandated projects.

CLCPA and State Mandated Costs in Cases 24-E-0322 and 24-G-0323

This is the Perplexity summary to the query.

Based on the comprehensive review of the New York PSC orders for cases 24-E-0322 and 24-G-0323, the approved rate plans do not contain explicit breakdowns of specific dollar amounts or percentages of the rate increases allocated specifically to Climate Leadership and Community Protection Act (CLCPA) projectsand state mandated programs. However, several important findings emerge from the analysis: documents.dps.ny

Lack of Specific CLCPA Cost Allocation

The joint proposal and supporting documents do not provide a detailed breakdown showing what portion of the approved rate increases is specifically attributed to CLCPA compliance costs versus traditional reliability, safety, and maintenance investments. This represents a significant gap in transparency regarding climate-related cost allocation to ratepayers. documents.dps.ny

CLCPA-Related Investments Identified

While specific cost breakdowns are not provided, the orders identify several CLCPA-related investment categories within the approved rate plans:

Electric System CLCPA Investments

Transmission Infrastructure:

  • CLCPA Phase 2 Transmission Projects: The joint proposal specifically mentions CLCPA Phase 2 projects and includes a provision allowing National Grid to petition for 100% Construction Work in Progress (CWIP) treatment for these projects documents.dps.ny
  • Smart Path Connect: National Grid’s share of capital investment totaling $550 million, which includes rebuilding approximately 55 miles of transmission circuits to support renewable energy transmission nationalgrid
  • Grid Modernization: Investments to support distributed energy resources and renewable energy interconnection dps.ny+1

Distribution System Enhancements:

  • Enhanced grid capabilities for solar, wind, and energy storage interconnection nationalgridus
  • Smart grid technologies to manage intermittent renewable resources nationalgridus
  • Electric vehicle infrastructure support programs dps.ny

Gas System CLCPA-Related Programs

Emissions Reduction Programs:

  • Leak detection and survey programs to reduce methane emissions nationalgrid+1
  • Leak-prone pipe replacement programs dps.ny
  • Remote methane detection programs nationalgrid

Alternative Energy Programs:

  • Non-Pipeline Alternatives (NPAs): Enhanced programs to provide alternatives to traditional gas infrastructure expansion dps.ny+1
  • Renewable Natural Gas (RNG) Support: Proposals to connect four renewable natural gas projects nationalgrid
  • Electrification Programs: Support for heat pump installations and customer electrification options documents.dps.ny

Historical CLCPA Investment Context

Previous utility filings and planning documents provide context for CLCPA-related costs across New York utilities:

Statewide CLCPA Transmission Investments:

  • Phase 1 Projects: Approximately $4.16 billion in transmission investments and $2.64 billion in distribution investments across all New York utilities nyserda.ny
  • Phase 2 Conceptual Estimates: $7.62 billion in transmission and $2.16-$2.85 billion in distribution investments (conceptual estimates) nyserda.ny

National Grid’s Historical CLCPA Share:

  • Phase 2 Transmission: $1.37 billion estimated for National Grid transmission projects nyserda.ny
  • Phase 2 Distribution: $510 million to $1.2 billion estimated for National Grid distribution projects nyserda.ny

Ratepayer Cost Burden Context

The New York State Comptroller’s office has identified that ratepayers have contributed almost $2.6 billion to the Clean Energy Standard (CES) program from 2016 through 2021, with most CLCPA and CES program funding being ratepayer-based rather than state-funded. osc.ny

Transparency Gap

The lack of specific cost allocation for CLCPA compliance in the 24-E-0322 and 24-G-0323 orders represents a significant transparency issue for ratepayers. While the orders acknowledge that investments support CLCPA goals and include various climate-related programs, they do not quantify:

  • What percentage of the $708 million total three-year electric revenue increases is for CLCPA compliance dps.ny
  • What percentage of the $194 million total three-year gas revenue increases is for CLCPA compliance dps.ny
  • How much ratepayers are specifically paying for state climate mandates versus traditional utility infrastructure needs

This lack of detailed cost allocation makes it difficult for ratepayers and stakeholders to understand the true cost burden of New York’s climate policies versus traditional utility service obligations.

Recommendation for Future Proceedings

This is the Perplexity recommendation.

Given the substantial ratepayer costs associated with CLCPA compliance and the public interest in transparency, future rate proceedings should include detailed cost allocation showing specific dollar amounts and percentages of rate increases attributed to:

  • CLCPA transmission and distribution projects
  • Climate-related operational programs
  • State-mandated environmental compliance
  • Traditional reliability and safety investments

This would provide ratepayers with clearer understanding of how their utility bills are being allocated between climate policy implementation and traditional utility service provision.