Massachusetts National Grid looking to increase rates this year, seeks approval to make annual adjustments

BOSTON, MA – The cost of electricity could be increasing this year in Massachusetts.

According to the Massachusetts Department of Public Utilities, Massachusetts Electric Company and Nantucket Electric Company (“Company” or “National Grid”) filed a base distribution rate case petition to adjust its rates.

DPUM stated that a regulated utility may recover reasonable and prudent, known and measurable costs incurred to provide safe and reliable service and have the opportunity to earn a fair and reasonable rate of return on prudently invested capital.

The Department suspended National Grid’s proposed distribution rates for 10 months until October 1, 2024, as they review the proposal.

The Department’s staff reviews written testimony and supporting detailed cost data, cross-examines witnesses in evidentiary hearings, and reviews public comments.

The Department will then issue a Final Order on the petition prior to October 1, 2024.

The Department’s Final Order affects the public because it determines the distribution rates that utility customers pay. Public participation in a rate case is important because those comments become part of the record and are considered by the Department’s Commissioners to make a decision in the rate case. You may find more information on how to file comments with the Department here.

National Grid has filed a petition with the Department to increase its electric base distribution rates to generate $131,232,856 in additional base distribution revenues. The Company proposes additional transfers, which result in a proposed overall increase to distribution revenues of $131,622,621, which the Company states represents a 12.7 percent increase effective October 1, 2024.

According to National Grid, “the proposal also seeks approval to make additional annual adjustments each year effective October 1 over the term of the five-year rate plan to increase rates to recover needed incremental investments to support core reliability as well as advance investments to support the clean energy transition. If approved by the DPU, a typical residential customer receiving basic service using 600 kWh per month would experience an increase of $7.86, or 3.7%, per month starting October 1, 2024, with further increases averaging 1.8% per year for the remaining four years of the rate plan term (an average increase of 2.2% per year over the five years).”

The Company’s proposed rate increase is in addition to changes to other rates, such as supply rates and reconciling mechanisms, that occur during the year, which may impact the actual costs customers experience.