Roughly 2 million National Grid customers in New York City and Long Island could see their gas delivery rates remain frozen for the next two years following a new proposal filed with the state’s Public Service Commission on Friday.
If the proposal is approved, current gas delivery rates would remain steady until March 31, 2028. This potential freeze comes as millions of New Yorkers navigate a widening affordability crisis characterized by rising utility costs.
A Proposal for Financial Relief
The filing arrives after a series of rate increases for National Grid customers in the New York City and Long Island areas, with hikes recorded in September 2024, April 2025, and April of this year. State regulators approved a rate hike for Con Edison customers earlier this year.
In addition to the rate freeze, National Grid is proposing to funnel $250 million in customer credits to help fund its gas distribution infrastructure.
“With so many households and businesses across New York City and Long Island facing the pressures of inflation and a rising cost of living, we identified an opportunity to provide meaningful financial relief for our customers by freezing our gas delivery rates until 2028,” said Sally Librera, president of National Grid New York, in a prepared statement on Friday.
Context and Skepticism
Librera noted that the proposal is a response to a harsh winter that resulted in record demand for gas. She stated the move aims to address affordability while ensuring the company can continue to deliver reliable energy during periods of extreme weather.
However, the proposal has met with skepticism from climate advocacy groups. While acknowledging the short-term relief, some activists suggest the move may be tied to political timing during an election year.
“Thanks to our intense pressure campaign, National Grid has second-guessed themselves and their original desire to jack up New Yorkers’ energy bills this year,” said Kim Fraczek, director of the Sane Energy Project. “This is an immediate win, but do not be fooled — the company is likely sitting on its hands for the sake of their ally, Gov. Hochul, as her popularity craters during an election year.”
If approved, the freeze could provide stability for millions of residents through early 2028. However, based on the concerns raised by advocacy groups, the company may return to seeking rate increases as early as next year.
Frequently Asked Questions
How long would the gas rate freeze last if approved?
If the proposal is approved, gas delivery rates would remain frozen until March 31, 2028.
Which areas would be affected by this proposal?
The proposal affects roughly 2 million National Grid customers located in New York City and Long Island.
What is the purpose of the proposed $250 million in customer credits?
National Grid is proposing to use these credits to help fund its gas distribution infrastructure.
Do you believe utility rate freezes are an effective way to manage the rising cost of living?
