Plan includes innovative programs and
foundational investments to increase energy equity, advance
electrification, enhance safety and reliability, and hold the
company accountable for delivering for customers, communities and
the state
Highlights of National Grid's Comprehensive Performance and
Investment Plan and Rate Review Filing:
- The state's first-ever equity-based approach to discount
rates for income-eligible customers.
- An innovative electrification rate to support customers'
choices and enable the energy transition.
- Targeted programs and dedicated teams to better serve
customers and meet their needs.
- Enhanced system resiliency and reliability measures to avoid
and reduce the impact of outages.
- Grid investments to support economic development, connect
clean energy, enhance security.
- A transparent system to review, track, and pay for major
electric system investments.
- A performance-based approach to drive the company to manage
costs and improve efficiencies.
- Measures holding the company accountable to deliver outcomes
of investments and programs.
- Incremental economic activity across Massachusetts totalling nearly $750 million, supporting more than 6,000
additional full and part time associated jobs.
WALTHAM,
Mass., Nov. 17, 2023 /PRNewswire/ --
Massachusetts Electric Company and Nantucket Electric Company,
which are part of National Grid, filed with the Massachusetts
Department of Public Utilities (DPU) a Comprehensive Performance
and Investment (CPI) plan, as part of its required Rate Review
filing, designed to deliver the fair, affordable and clean energy
transition, reinforce the local energy grid, and hold the company
accountable to achieving a smarter, stronger, cleaner and more
equitable energy future for the 1.3 million customers the company
serves across the Commonwealth.
"The proposal we've filed today, coupled with our electric
sector modernization plan, Future Grid, will deliver the fair,
affordable and clean energy transition for all our customers and
communities," said Nicola Medalova, the COO of Electricity for
National Grid New England. "Fulfilling this mission requires a
smarter, stronger, cleaner grid that can meet the rising power
demand driven by electrification to support the Commonwealth's
climate and clean energy goals, while ensuring the system is there
when customers need it – no matter the weather. Today's proposal
reflects the core investments necessary to strengthen the local
electric grid, while holding ourselves accountable to meeting our
customers' expectations."
Building the Foundation for the Future
The CPI plan details the core investments needed in the system
over the next five years to build the foundation for the clean
energy future, including hundreds of projects to modernize and
reinforce the local energy grid and improve system performance
through the replacement and upgrade of substations, poles and
wires, the implementation of technology and programs designed to
help avoid power outages that can be prevented and restore power
faster to customers for outages that can't be prevented, and the
expansion of system capacity to meet growing customer and community
needs and ensure the grid is ready when they need it.
The plan also includes innovative rates and programs to drive
energy equity, support electrification, and improve the overall
customer experience by providing more and easier to access
information on clean energy solutions and services and bill
management options.
Delivering a More Equitable, Resilient and
Customer-Centric System
As proposed in the CPI plan, National Grid will deliver an
energy future that is more equitable, more reliable, and resilient,
and improves the overall customer experience, by:
- Supporting Affordability and Equity. Implementing a
tiered discount rate program – a first for Massachusetts – that provides larger discounts
for some income-eligible customers, coupled with a robust and
sustained outreach and awareness campaign. Currently customers
eligible for a reduced electric rate receive a 32% discount. The
company is proposing a more equitable approach which would result
in discounts of 32% up to 55%, depending on income and energy
burden, for customers earning 60% of the state median income or
less. The filing also proposes a dedicated team to engage eligible
customers through in-person events and targeted outreach to
increase program participation.
- Enhancing Reliability and Resilience. Deploying technology –
known as reclosers – to automatically restore power to as many
customers as possible as quickly as possible, in the event of a
system fault, expanding an enhanced tree trimming program, and
deploying "tree resistant" wires to minimize system impacts from
fallen limbs. Over the past decade, National Grid experienced
more severe storms across its system, more than doubling from an
average of 4 per year to 10 per year. These and other investments
will ensure customers continue to experience the high levels of
system reliability they do today and reduce the costs of increased
storm-related damage.
- Empowering Customers and Improving Their Experience.
Enhancing the customer experience by improving customer interfaces
for transactions – including customer connections – and expanding
customer offerings and digital options. The company is also
proposing an opt-in electrification rate to support customer energy
choices and the transition to cleaner energy, while upgrading its
customer systems and establishing dedicated teams to provide more
tailored and relevant information and communications to help
customers manage bills, reduce costs and access energy efficiency
and clean energy solutions.
Driving Performance, Accountability and
Transparency
To deliver on the CPI plan, the company has proposed a
regulatory mechanism that will drive accountability, transparency,
performance, and predictability for customers by requiring National
Grid to proactively lay out its investment needs, plans and
associated costs over the next five years, while placing the onus
on the company to deliver customer, climate and reliability
outcomes within an approved budget, or risk penalties. For
example, the company has proposed metrics to hold it to account
for, among other things, enrolling eligible customers in discount
rate programs, on-time and on budget delivery of construction
projects, adoption of clean energy requirements and reducing
greenhouse gas emissions.
How Today's Filing Supports National Grid's Future Grid
Plan
The work included in today's filing sets the foundation for the
investments that are part of the company's Future Grid plan,
which was submitted as National Grid's Electric Sector
Modernization Plan to the Grid Modernization Advisory Council on
September 1, 2023. The
company's Future Grid plan focuses on investments needed in
addition to the core investments included in today's filing to meet
Massachusetts' climate, clean
energy and electrification goals. The electric system must be
more resilient and reliable to meet the expected growing demand for
electricity as more customers adopt electrified technologies like
cars and heat pumps.
Impacts on Customer Bills
To ensure the company invests, operates, and maintains its
distribution system wisely, the proposal will undergo a thorough
review process by the DPU that typically lasts 10 months and
provides for public input and comment. If approved, the proposals
would take effect October 1, 2024,
with new bills being issued starting November 1, 2024.
If the plan is approved, a typical residential customer using
600 kWh per month would experience an annual average increase of
2.2% per year over the 5-year investment period, or $4.86 increase in a monthly bill, resulting in an
increase of approximately $110
million in revenues per year over the same period.
The increase would take effect October 1,
2024, for the first year of the rate term with a
$7.86 (3.7%) impact in a monthly bill
for an average customer, with further increases averaging 1.8% per
year for the remaining four years of the rate plan term,
translating into a 2.2% average annual impact over the five years
(2024-2029).
As part of today's filing, the company also identified the costs
associated with its Future Grid plan and requested that the DPU
allow the company to use the proposed cost recovery mechanism in
the CPI plan to recover associated investments. The company
will make its formal Future Grid plan filing with the DPU in
January 2024, which will also undergo
a thorough review process that provides for public input and
comment. If the Future Grid plan is approved, the average
customer would see an additional impact of less than 1% on their
monthly bill, for a total of approximately 3.0% increase on an
average annual basis over the 2024-2029 period. If the Future Grid
proposal was approved, it would result in an additional
$44 million-a-year in revenues over
the five-year rate term.
What Happens Next?
The DPU will begin its review of the filing and will schedule
public hearings across the state providing an opportunity for
public comments from customers and interested members of the
public. The dates, times, and locations of those hearings and
comment period will be available on the DPU's website and will also
be included on our Massachusetts Grid Modernization website.
About National Grid
National Grid (NYSE: NGG) is an electricity, natural gas, and
clean energy delivery company serving more than 20 million people
through our networks in New York
and Massachusetts. National Grid
is focused on building a smarter, stronger, cleaner energy future —
transforming our networks with more reliable and resilient energy
solutions to meet state climate goals and reduce greenhouse gas
emissions.
For more information, please visit our website, follow us
on Twitter, watch us on YouTube, like us
on Facebook and find us on Instagram.
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SOURCE National Grid