National Grid Plans 10% Hike in Annual Gas Bills

National Grid has announced plans to increase gas rates for approximately 950,000 customers in Massachusetts. Starting in January 2027, customers can expect a rise of about 10% in their annual gas bills. This notification was shared with municipalities recently, and the utility is preparing to file the official request with the state Department of Public Utilities (DPU) in mid-January. This adjustment will update the utility’s “base distribution rate plan” to reflect rising costs in natural gas distribution services.

Details of the Proposed Rate Increase

This marks the first increase in five years for National Grid. Although the utility reviews its rates every six months to reflect changing fuel costs, this rate case focuses specifically on distribution services.

Impact on Customers

• The average winter bill increase is projected at 8.4% for customers in the Boston Gas area, which includes Greater Boston and Central Massachusetts.
• Colonial Gas customers can expect an average increase of 9.4% from Cape Cod and parts of the Merrimack Valley.
• This translates to an additional $24 monthly for Boston Gas customers and $25 for Colonial Gas customers.

Overall, for a full year, Boston Gas customers would see an increase of 9.8% in their bills, while Colonial Gas customers would face a 10.9% hike.

Addressing Affordability Concerns

The DPU has been urged to focus on affordability, as directed by Governor Maura Healey. Recently, the DPU initiated an investigation into energy price volatility tied to both electric and gas bills.

Lisa Wieland, National Grid’s New England president, emphasized that the utility is considering customer cost burdens in its rate filing. She stated, “We understand those cost pressures facing our customers.”

Specifics of the Rate Filing

The request will exclude charges related to government policies, such as the Mass Save energy conservation initiative and a mandatory gas pipe replacement program. Wieland noted significant changes since the last rate request in 2020, including increases in material and labor costs and heightened safety standards.

National Grid aims to spread distribution costs more evenly throughout the year, addressing winter volatility. Additionally, they plan to introduce a tiered discount program for income-eligible customers, which will replace a fixed 25% discount. However, they do not intend to expand eligibility for the program.

Infrastructure Investments

Some of the funds from the proposed rate increase will be allocated to essential projects, including:

• A pipe tunnel project in Lowell to enhance reliability.
• Upgrades to compressors at the liquefied natural gas storage facility in Dorchester.

National Grid oversees approximately 11,000 miles of gas distribution pipelines in Massachusetts, with almost one-third built before 1970. The DPU is expected to make a decision by the end of 2026, with new rates applying to around 730,000 Boston Gas customers and close to 220,000 Colonial Gas customers, predominantly residential or small business customers.

“Investments like these are crucial for reinforcing and modernizing vital infrastructure,” Wieland concluded.