Gothamist
A non-profit newsroom, powered by WNYC.
Gothamist
Listen Live
News
National Grid seeks to freeze rates, but watchdogs say the move is a hike in disguise
By
Rosemary Misdary
Published Aug 14, 2026
Share
FacebookTwitterRedditEmail
Never miss a story
Email address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .
Lindsey Nicholson/UCG/Universal Images Group via Getty Images
By
Rosemary Misdary
Published Aug 14, 2026
Share
FacebookTwitterRedditEmail
We rely on your support to make local news available to all
Make your contribution now and help Gothamist thrive in 2026. Donate today
Gothamist is funded by sponsors and member donations
National Grid says its recent request to freeze its rates for one year is rooted in addressing affordability for nearly 2 million customers in New York City and Long Island. Advocates, however, say the utility is finding a sneaky way to pass costs along to New Yorkers.
The company, which is the state’s largest natural gas provider, proposed to the Public Service Commission in May a plan to keep its rates stable through March 2028. The move was unusual because utility firms typically ask for rate increases through a public process to pay for expenditures such as new infrastructure and taxes.
The proposal included a request for National Grid to recoup property taxes and money spent maintaining its sites after the freeze expires in April 2028. The utility projected that it would make roughly $1.7 billion in capital investments during the freeze that it would seek to recover from customers after the rate freeze concludes.
Watchdogs, however, say the company is seeking to raise its rates without going through the typical rate case process.
”National Grid’s proposal to the Public Service Commission is a masked rate hike,” said Kim Fraczek, director of Sane Energy Project. “They're just basically kicking the can down the road, and they're going to then be building a bunch of stuff without our public input or scrutiny, and they will then come back next year and charge us for all of that infrastructure that they built this year.”
The company said it made the request with affordability in mind.
“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,” Sally Librera, president of National Grid New York, said in a statement. “Coming off a harsh winter that brought record demand for gas, this proposal directly addresses affordability while ensuring our dedicated employees continue to deliver the safe, reliable energy that heats homes and powers businesses — especially during periods of extreme weather.”
The utility's previous rate hike was approved in 2024, spreading rate increases over three years, resulting in average overall increases of more than 20% on gas bills, according to National Grid.
In a typical rate increase case, the Department of Public Service, the public and stakeholders have the opportunity to ask questions and get details on what the utility company is planning to use the ratepayer money for and how that will impact bills. The process can result in back-and-forth negotiations, public hearings, testimony and comments that can last up to a year. Advocates said National Grid’s latest request sidesteps that process.
”They want approval of a huge gas infrastructure investment budget, and then defer the collection for some of those costs until later,” said Jessica Azulay, executive director for Alliance for a Green Economy. “So later the bills would go up to pay for that, and normally this type of request would go through a long rate case process.”
The Public Service Commission told Gothamist that National Grid’s request is currently under review and the bid to recover future expenses is subject to caps and limitations.
Members of the public can comment on the proposal through Aug. 24. The public and stakeholders can submit comments on the commission’s site. If the Public Service Commission approves the rate freeze proposal, gas delivery rates would remain the same until the end of March 2028.
National Grid’s proposal to keep rates steady was hailed by Gov. Kathy Hochul as a major win for affordability and praised the agreement.
"The governor has been clear that utility companies should be providing relief to customers by delaying any plans for rate increases,” said Ken Lovett, a spokesperson for Hochul. “The governor remains focused on keeping the lights on and costs down for New Yorkers and believes utility companies need to be doing the same."
Tagged
Health and Science
new york
Rosemary Misdary
Rosemary is health & science reporter. Got a tip? Email [email protected] or Signal 646-544-9524.
Read more
Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
MORE news
Rape survivor services warn of New York state funding crunch
After too many groups applied for a finite pool of grants, some organizations may have to cut services.
By
Jimmy Vielkind
Published Aug 17, 2026 at 10:00 a.m. ET
Early Addition: What if your $5 million condo is directly above an allegedly noisy public bathroom?
Because it happened in Brooklyn Bridge Park, here are your early links: Elizabeth Street Garden party, New York Harbor boating woes, some people really hate jeans and more.
By
James Ramsay
News
Early Addition: What if your $5 million condo is directly above an allegedly noisy public bathroom?
Because it happened in Brooklyn Bridge Park, here are your early links: Elizabeth Street Garden party, New York Harbor boating woes, some people really hate jeans and more.
By
James Ramsay
Goodbye, food pantry line: Newark's fight against hunger looks more like a grocery store
By
Michael Sol Warren
A judge said Queens prosecutors hid evidence. A secret committee cleared them anyway.
By
Ryan Kost
NYPD officers fatally shoot man armed with butcher’s knife on Lower East Side, police say
By
Amanda Rozon
and
Phil Corso
Never miss a story
Catch up on the most important headlines with a roundup of essential NYC stories, delivered to your inbox daily.
Sign upEmail address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .