National Grid Rate Hike: What the Approved Increase Costs

On August 14, 2025, New York's Public Service Commission approved a three-year rate increase for National Grid's upstate customers. For the average household, it adds up to about $600 a year once fully in place.

National Grid says the money is needed to keep the grid safe and reliable. Many families, seniors, and people on fixed incomes say the timing couldn't be worse.

Here is what regulators approved, how it hits monthly bills, and the push to give state lawmakers a say in future rate increases.

How Much Is National Grid Raising Rates?

The PSC approved about $900 million in combined electric and gas revenue increases for National Grid over three years, after cutting the utility's first-year request by 67% for electric and 63% for gas, according to the PSC.

National Grid originally asked for $509.6 million in electric and $156.5 million in gas increases. The approved amounts:

• ●Electric. $167.3 million in Year 1, $297.4 million in Year 2, and $243.4 million in Year 3.
• ●Gas. $57.4 million in Year 1, $64.5 million in Year 2, and $71.8 million in Year 3.

The plan supports about $4.3 billion in electric infrastructure and $1 billion in gas infrastructure. It also expands outreach for the state's Energy Affordability Program.

How Will the Increase Affect Monthly Bills?

A typical residential customer using 625 kWh a month will see electric bills rise $14.32 a month in the first year, then another $6.44 and $4.34 in years two and three, according to WAMC. Gas bills rise $7.66, $8.08, and $9.18 a month over the same three years.

The increases stack on top of each other. By Year 3, the average household is paying about $600 more a year for electricity and gas combined than before the increase.

For families already stretched by rising costs, that's a meaningful hit. For businesses with larger loads, the dollar impact is bigger still.

Why Does National Grid Say It Needs the Increase?

National Grid says the increase funds investments that keep the grid safe and reliable while balancing affordability. Spokesperson Patrick Stella told WAMC: "We tried to balance affordability with investments and operations that will enhance reliability."

Utilities across the country are making the same case. Aging poles, wires, and substations need replacing. Extreme weather causes more damage. And rising demand requires new capacity.

In New York, utilities make that case through formal rate cases. The PSC reviews the request, holds public hearings, and staff and outside parties can challenge the numbers before commissioners vote. That process is why the approved increase ended up far below what National Grid first asked for.

The question isn't whether the grid needs investment. It's how much, how fast, and who pays. We explored that tension in the $186 billion question of who benefits from utility grid spending.

Families need power they can count on. They also need bills they can afford.

Should Lawmakers Be Able to Overturn Rate Increases?

Assemblymember Angelo Santabarbara introduced the "Utility Rate Hike Legislative Review Act," which would let the state legislature review, reduce, or reverse PSC rate decisions, according to WAMC.

The proposal would create a 60-day review period before rate decisions take effect. Lawmakers could pass a resolution to reduce or reverse a decision.

"We should have the legislature take a look at these decisions, have a review period, and have the power to either reduce or reverse these decisions," Santabarbara told WAMC.

Supporters say decisions with this much impact shouldn't rest only with appointed regulators. Critics worry it would politicize technical rate-setting and make long-term utility planning harder.

Is This Happening Elsewhere in New York?

Yes. Utilities across New York have sought large increases. Con Edison asked for double-digit increases to fund grid upgrades in New York City and Westchester, and regulators cut that request sharply in January 2026.

It's a national pattern too. Utilities in Maine and Arizona have sought double-digit increases, and electricity prices have been rising faster than wages in much of the country.

How Can Customers Protect Themselves From Rising Rates?

Households and businesses can reduce exposure to rate increases by using less grid power, through efficiency, on-site solar, storage, or community solar.

Options to consider:

• ●Energy efficiency. Every kilowatt-hour saved avoids every future rate increase on it.
• ●On-site solar. Offsets daytime energy purchases for homes and businesses.
• ●Battery storage. Cuts peak demand charges and provides backup power.
• ●Community solar. Bill credits for customers who can't install panels.
• ●Assistance programs. Eligible households can apply for the Energy Affordability Program.

What Does This Mean for Existing Solar Owners?

Rising rates make every kilowatt-hour from a working solar system more valuable, because it offsets power that keeps getting more expensive.

That value only counts if the system is producing. Many commercial systems in upstate New York were installed in the 2010s and are now losing output to aging inverters or degraded panels.

Repowering an aging PV system can restore that output using the site and grid connection already in place.

Start With a Ballpark Estimate

Upstate rates will keep climbing through this three-year plan. Find out what your existing solar project may be worth before deciding whether to repair, repower, or sell.

Sources: NY Public Service Commission, August 14, 2025; WAMC, "Following National Grid rate hike, a New York assemblyman wants to give the legislature the power to control such increases"; Times Union, "PSC approves National Grid rate increase"