Syracuse residents could see their electricity and gas bills go up if a proposed rate increase is implemented by National Grid in the next few months.

Several local groups, such as the Syracuse United Neighbors and Alliance for a Green Economy, oppose the proposal. Representatives for the organizations said they believe the rate hike will negatively affect low-income residents.

Gwen Chaffin, community organizer for SUN, said the group feels “awful” because Syracuse residents already have high heating and electricity bills. Those bills will become more expensive as rates go up and the weather gets colder in Syracuse, Chaffin said.

The New York Public Service Commission, a state agency responsible for managing utility rates, must approve the proposal. If approved, the rate increase will take effect in April or May, a National Grid spokesperson said.

The rate increase, proposed by the electric utility company, would total an average of roughly $16 per year in additional costs after the third year of implementation. The rate would be phased in over the course of three years.

The proposed hike would increase electric rates by about 3 percent in the first year and 4 percent in the second and third years, respectively, said Virginia Limmiatis, a media representative for National Grid’s central New York division.

An average gas rate would increase by 2 percent in the first year and 4.5 percent in the second and third years, she said.

This joint proposal between National Grid and the PSC would cost residents an additional $2.22 per month for electricity and an additional $1.20 per month for natural gas heating, according to a press release from National Grid.

Limmiatis said National Grid hopes the rate hike will help fund some rebuilding of its infrastructure. This includes delivery infrastructure of electric and gas services, she said.

At present, current rates are frozen until the proposal is approved or denied.

Chaffin said SUN sent 2,000 postcards to Albany, the state’s capital, in opposition of the rate hike.

“People in the community call it National Greed — people talk about National Greed. They have been upset for a long time and this rate hike will not help the company’s reputation,” said Howie Hawkins, a local activist who has voiced support for publicly-owned power utilities.

Hawkins campaigned for mayor this past fall on the Green Party ticket.

Chaffin said she also fears there will be more shut-offs — energy or heating services turned off because residents could not pay bills. She said this will affect those with poorly insulated houses.

“There are going to be more shut-offs because people will not be able to pay their bills and that would ruin their credit. It is not going to be good. It is going to be a hardship,” Hawkins said.

Jessica Azulay, program director of the Alliance for a Green Economy, said the plan will negatively affect low-income households and harm the environment.

“The gas expansion that all the ratepayers, in this case, will have to pay for is going in the wrong direction,” Azulay said.

The Energy Affordability Program, which cuts monthly energy bills for eligible low-income customers, will continue, according to a press release from National Grid. The rate hike will also help create more than 250 jobs in the next three years, per the release.

The Alliance for a Green Economy will have to focus on advocating for people in the community, as a rate hike will affect lower-income residents, Azulay said.

“This rate proposal has a low-income division, but it’s those people that are working above the threshold but not rich … lower income workers, those are the people that are going to get hit the hardest and face the choice between heat and groceries,” Hawkins said.

Published on January 28, 2018 at 10:26 pm

Contact Bianca: bmoorman@syr.edu