National Grid Files for Rate Increase That Would Raise Massachusetts Gas Bills 10% by 2027

National Grid will file a rate increase request in mid-January. Bills could jump 10% for its 950,000 gas customers across Massachusetts. If state regulators approve the plan, new rates start in January 2027.

The utility notified municipalities Wednesday about the coming rate request. Officials want to update the base distribution rate plan, which hasn't changed in five years, to account for rising costs of delivering gas to homes and businesses.

Winter bills would climb 8.4% in the Boston Gas territory and 9.4% in the Colonial Gas territory, according to the Boston Globe. That's an extra $24 each month for Greater Boston and Central Massachusetts residents. Cape Cod and parts of the Merrimack Valley would see $25 added monthly.

Looking at a full year, Boston Gas customers face a 9.8 percent increase. Colonial Gas bills would rise 10.9 percent. The company plans to spread costs across all seasons rather than concentrating them in winter months, softening the blow when demand peaks.

Lisa Wieland, New England president for the utility, said her team weighs affordability when drafting this rate filing. "We understand those cost pressures facing ... customers," Wieland said. "It's why we're really trying to use every tool we have ... while also making these critical investments."

Wieland said "a lot has changed" since the company filed its last rate case in 2020. Material prices have soared. Labor costs have jumped. Safety requirements have gotten stricter. The utility hasn't requested a base rate increase in roughly five years.

The rate filing arrives as the DPU, under direction from Governor Maura Healey, has zeroed in on affordability and controlling costs. Monday brought an announcement: the DPU was opening an investigation into energy price swings on electric and gas bills.

The company operates about 11,000 miles of gas distribution pipes in Massachusetts. Nearly one-third were installed before 1970. Some money will fund projects already underway, like a pipe tunnel in Lowell and compressor upgrades at the liquefied natural gas storage plant in Dorchester.

The DPU won't decide until late 2026. About 730,000 Boston Gas customers and nearly 220,000 Colonial Gas customers would feel the impact, with more than 90% being residential or small business customers.