National Grid asks for delivery rate increase

Albany -- Representatives from electric provider National Grid are asking state legislators for a $390 million per year increase in electric delivery rates. The company says it needs the near 20% increase to help cope with higher costs and lower sales.

Customers will see an extremely slight change in their bills, due to a delayed payment plan the company has proposed.

Delivery rates represent the portion of an electric bill that pays for the utility’s poles, wires, labor and other costs. Delivery rates are regulated by the state and provide the revenue from which Grid earns a profit. The company does not profit from sale of electricity, which is purchased on the wholesale market.

"This provides the company the financial stability to continue to invest in our networks and earn adequate returns to attract necessary capital,'' said Tom King, president of U.S. operations, in a prepared statement.

This is the first time National Grid has brought a rate case to the legislature since it purchased the former Niagra Mohawk in 2002.