UPSTATE NEW YORK (01/25/2012)(readMedia)--

• Business and Residential customers to see reductions of 4 to 23 percent

• Competitive Transition Charge ends resulting in reduced bills in 2012

• Provides prolonged rate stability, opportunity for economic development

Jan. 25, 2011 – National Grid residential and business customers will be seeing reduced electric bills starting this month, thanks to lower rates approved by the New York Public Service Commission in December. Reductions in bills range from about 6 percent for residential and small business customers to up to 23 percent for large commercial customers. The reductions come at a time of economic challenges, easing budgets for residential customers and assisting commercial customers in reducing costs and investing in their businesses.

Ken Daly, President of National Grid for New York said, "At a time when costs are rising at a rapid pace, this reduction can help counteract those trends and stimulate local businesses and communities across upstate New York."

IMPACT OF REDUCTIONS ON DELIVERY PORTION OF BILL & TOTAL BILL

In terms of dollars, a residential customer in upstate New York who uses 500 kWh of electricity would pay about $80 per month prior to January 1, 2012. Under the new rate structure that customer would pay about $74.

A small, non-demand commercial customer in upstate New York using 500 kWh of electricity per month would pay about $93 per month under the previous rates. After January 1, 2012, that customer would pay about $86 for the same amount of electricity.

A mid-sized industrial customer using 750kw of electricity paid about $37,380 per month for electricity supply service in the past. Under the new plan, that same customer using 750 kw would pay $29,075 per month.

Large industrial customers would see the biggest difference. A customer in this rate class using 4,000 kw per month would pay $139,400 for the month prior to January 1, 2012. Under the new plan, that customer would pay about $120,100 (a drop of about $19,300).

National Grid commercial customers across upstate New York are looking forward to the reduced costs in a challenging economic environment.

Eastern New York State

Finch Paper in eastern New York operates a facility that employs about 700 people. The company will see a reduction in their electric bill of several hundred thousand dollars a year as a result of the new bill structure.

"The reduction in our National Grid bill will play a vital role in the company's continued cost-reduction efforts and help to offset the need for cost reductions in payroll and other areas," said Finch Chief Financial Officer Steve McDonald. "Energy is the third-largest cost for the company behind labor and essential raw materials, and New York's energy costs put Finch Paper at a distinct competitive disadvantage as it competes with manufacturers in lower-cost states and nations in the most challenging economic climate in recent memory."

Central New York State

Dellas Graphics in Syracuse, New York will see a savings of about $20,000 per year on their energy bill.

Owner Thomas Dellas said, "Wow! We'll put that $20,000 savings right into our facility and increase our savings by making it more energy efficient with things like new lighting and insulation. Since we are in the midst of purchasing a new Press, we can now look for a larger press knowing our operating cost will be lower."

Western New York State

The HSBC Center in Buffalo, New York will see significant savings as well.

"Electricity has always been at or near the top of the list for line item expenses in the operation of One HSBC Center," said Steve Fitzmaurice, chief operating officer for Seneca One Realty, the company that owns the center. "Recently, National Grid was able to gain approval for a rate application which will see the end of the Competitive Transition Charge. We anticipate that this change will reduce the cost of electricity in our building by over $200,000 annually or 23% of our transmission and delivery charges. Because of the lease structures in our building, over 90% of this savings will be passed on to our tenants improving their respective bottom lines. In this economy especially, it's always great news to hear about significant cost reductions."

Daly said that New York electric delivery rates have remained stable for more than a decade. Company officials anticipate submitting a proposal in the spring of 2012 for new rates to take effect in 2013. This rate reduction is part of National Grid's on-going efforts to mitigate the effects of recovering the costs of doing business, while continuing to allow for the investment needed in upstate New York's electricity networks. The timing of the proposal for new rates becoming effective is intended to coincide with the expiration of the current 15-month surcharge for deferred cost recovery in 2013, thus minimizing the effect on customers.

"This continues a trend of relative stability in delivery rates for customers that will now carry into 2013, and ideally beyond," Daly said. "Our goal is to keep rates as low as possible while continuing the investment needed in our infrastructure and maintain a safe and reliable electric system in upstate New York."

"National Grid's commitment to our customers includes opportunities to lower customer costs to stimulate economic growth. We will use this opportunity to be even more active in helping our communities to thrive through our economic development programs and partnerships," Daly said. "We must do more to invest in our aging networks for the benefit of our customers and the communities we serve, and we believe we can do so in an environment of rate stability for the next few years."

NATIONAL GRID

National Grid (LSE: NG; NYSE:NGG) is an electricity and gas company that connects consumers to energy sources through its networks. The company is at the heart of one of the greatest challenges facing our society - to create new, sustainable energy solutions for the future and developing an energy system that underpins economic prosperity in the 21st century. National Grid holds a vital position at the center of the energy system and it 'joins everything up'.

In the northeast US, we connect more than seven million gas and electric customers to vital energy sources, essential for our modern lifestyles. In Great Britain, we run the gas and electricity systems that our society is built on, delivering gas and electricity across the country.

National Grid delivers electricity to approximately 3.3 million customers in Massachusetts, New Hampshire, New York and Rhode Island. It manages the electricity network on Long Island under an agreement with the Long Island Power Authority (LIPA), and owns over 4,000 megawatts of contracted electricity generation, providing power to over one million LIPA customers. It is the largest distributor of natural gas in northeastern U.S., serving approximately 3.4 million customers in New York, Massachusetts, New Hampshire and Rhode Island.

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Posted Wednesday January 25, 2012 at 12:09 pm by National Grid US