The PSC met Thursday and approved three-year rate plans for National Grid.
For the first year, electric rates would go up 1.7%, and natural gas 2.4%.
That’s much lower than the company requests of 13 and 14%.
As part of the agreement, National Grid will invest $2.5 billion over three years to reinforce and modernize its electric grid, including storm hardening.
National Grid was only allowed to propose a one-year rate plan, but says it is pleased to negotiate the three-year, more encompassing agreement.
Here’s how the PSC describes the rate increases:
Under the new rate plan, a typical residential customer using 600 kWh of electricity per month would see a total monthly bill increase of:
- $2.22 or 2.9% in the first year starting in April 2018
- $3.03 or 3.8% in the second year starting in April 2019
- $3.25 or 3.9% in the third year starting in April 2020
A typical residential customer using 77 therms of gas per month would see a total monthly bill increase of:
- $1.20 or 1.7% in the first year
- $3.10 or 4.5% in the second year
- $3.18 or 4.4% in the third year
Eligible low-income electric customers will see a bill reduction of up to 55%.
The Commission will allow National Grid to invest $2.5 billion over three years to reinforce and modernize its electric transmission and distribution system, including investments to address the increased frequency and severity of storms. Additionally, the Commission directed the company to seek out non-wires alternatives that allow it to provide safe and reliable service at a lower cost than traditional infrastructure investments.