The utility National Grid has filed a proposal with New York’s Public Service Commission to hold the current gas delivery portion of customer bills steady through March 31, 2028. If regulators accept the filing, roughly 2 million customers in New York City and Long Island would see no further increases to that portion of their bills for the next two years, even after a series of recent hikes.
The move arrives amid mounting concern about household costs across the region. National Grid frames the filing as a measure to alleviate near-term pressure on families and businesses while keeping safety and system reliability on track.
What the proposal would do and why
Under the filing, the delivery charges that appear on customer bills would remain at the levels set earlier this year. The company says the freeze is intended to provide affordability relief after multiple recent increases and a winter that strained system demand. National Grid also plans to designate $250 million in customer credits for ongoing gas distribution infrastructure work.
National Grid’s New York president described the plan as a balance between easing costs for ratepayers and continuing investments so the system can handle extreme weather and high demand. Regulators must review and approve the filing before it takes effect; if a new increase is sought later it could not be implemented until 2028 under current timing.
Recent rate history and customer impact
Customers in the downstate region have already experienced several recent hikes. Bills were raised in September 2026, April 2026, and again in April this year. Taken together, those adjustments translated to average monthly bill increases that the company has tallied in cumulative terms, reflecting tens to hundreds of dollars of extra expense per household over the period.
Newsday reporting noted that earlier rate increases raised average monthly bills by meaningful percentages year over year: for example, the 2026 adjustment added nearly 9.7% in one step, and prior years added larger shares. Those cumulative changes contributed to the company’s rationale for seeking a temporary pause to ease customer strain.
Supply volatility and regional pressures
Beyond delivery fees, the cost of the fuel itself has been volatile. National Grid data show that gas supply charges for many Long Island customers jumped roughly 65% in March compared with the prior year, reaching a multiyear peak measured in cents per therm. Those supply swings reflect broader market dynamics that can amplify what consumers ultimately pay.
Pipeline project and infrastructure questions
National Grid’s filing comes as the region prepares to receive additional gas capacity from the planned Northeast Supply Enhancement (NESE) project, which is expected to bring more gas into the downstate network. NESE would raise supply to the area by about 13%, potentially lowering wholesale supply costs, but the pipeline’s construction carries its own price tag—reported to be over $1 billion—that could translate into a modest increase in average bills if its costs are recovered through rates.
The company has said the $250 million in customer credits tied to the current proposal are earmarked for ongoing distribution work and are not meant to cover NESE. How the pipeline’s costs would be reflected in customer bills—whether in delivery charges or another component—remains unclear pending regulatory decisions.
Programs preserved under the filing
National Grid indicated the freeze would preserve programs approved in the prior rate case, including certain energy efficiency initiatives, affordability measures and emissions-reduction efforts aimed at disadvantaged communities. That continuity is presented as part of the company’s effort to protect vulnerable customers while continuing infrastructure upgrades.
Reactions from officials and advocates
State officials welcomed the prospect of relief. A statement from the governor’s office described the filing as a constructive step to limit rate pressure for nearly 2 million gas customers. Meanwhile, clean-energy advocates gave a mixed reaction: some praised the short-term pause but warned it may be temporary.
Environmental and renewable energy campaigners pointed out that while a rate freeze helps now, the company could return to seek hikes later. Advocates also reiterated concerns that investments in long-lived gas infrastructure may lock the region into fossil fuel dependence for decades.
Regulators will examine the proposal, its details about the use of credits, and how existing and future projects—like NESE—should be treated in the overall rate framework. Decisions will determine whether the delivery portion of bills stays flat through 2028 and how infrastructure costs are allocated.
