PSC Dramatically Reduces Gas Utilities’ Rate Request

ALBANY — The New York State Public Service Commission (Commission) today established a three-year gas rate plan for customers of KeySpan Gas East Corp. and Brooklyn Union Gas Co., both subsidiaries of National Grid. The two utilities serve approximately 1.9 million gas customers in parts of Brooklyn, Queens, Staten Island, and Long Island and the Rockaway Peninsula.

“The forward-looking plan we have adopted benefits customers and includes provisions that further important State and Commission objectives,” said Commission Chair Rory M. Christian. “With today’s decision, the two gas utilities will be required to pursue important energy-efficiency initiatives among other progressive policies while mitigating bill impacts for low-income customers as part of New York’s energy affordability policy.”

The Commission adopted the terms of a joint proposal for three-year gas rate plans for Brooklyn Union and KeySpan, inclusive of the disposition of a sales tax refund of $3.135 million that will be deferred for customer benefit. The joint proposal was signed by the companies, Department of Public Service (Department) staff, the City of New York, and the Environmental Defense Fund.

The two utilities' initial filing sought a combined $642 million revenue increase in the first year. Instead of granting the full amount, the Commission approved a first-year delivery revenue increase of $404 million, a 37 percent reduction to the companies’ initial request. New rates are designed to recover the first-rate year increase and will become effective September 1, 2024.

For Brooklyn Union, the joint proposal establishes a levelized revenue increase of $256.9 million in the first year, $287.5 million in the second year, and $320.1 million in the third year. On a total bill basis for a typical residential heating customer (using 83 therms per month), the results yield total bill increases of 19.4 percent effective September 1, 2024, 5.1 percent effective April 1, 2025, and 11.1 percent effective April 1, 2026.

For KeySpan, the joint proposal establishes a levelized revenue increase of $147.1 million in the first year, $163.1 million in the second year, and $180.4 million in the third year. On a total bill basis for a typical residential heating customer (using 83 therms per month), the results yield total bill increases of 22.3 percent effective September 1, 2024, 4.4 percent effective April 1, 2025, and 9.7 percent effective April 1, 2026.

Importantly, the approved agreement contains several customer service initiatives, energy efficiency measures, energy affordability provisions, and gas safety and customer service performance metrics. It encourages the companies to pursue non-pipeline alternatives and includes funding for renewable natural gas interconnections.

The significant reduction in the rate increase requested by the companies was made possible by the transparent and thorough review of all cost drivers by Department staff and other parties. In developing this decision, the Commission reviewed a detailed record that included the testimony of parties, and well over 2,100 public comments received, both directly and at the nine public statement hearings that were held.

Today’s decisions may be obtained by going to the Commission Documents section of the Commission’s website at www.dps.ny.gov and entering Case Numbers 23-G-0226, 23-G-0200, or 23-G-0225 in the input box labeled "Search for Case/Matter Number". Many libraries offer free internet access. Commission documents may also be obtained from the Commission’s Files Office, 14th floor, Three Empire State Plaza, Albany, NY 12223 (518-474-2500). If you have difficulty understanding English, please call us at 1-800-342-3377 for free language assistance services regarding this press release.

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