Utilities Seek $2.4 Billion Over 5 Years to Upgrade Grid Amid Soaring Demand from Electric Vehicles and Heat Pumps
Meeting Growing Demand
Eversource and National Grid are seeking approximately $2.4 billion over five years to upgrade the power grid in response to increasing demand from electric vehicles (EVs) and heat pumps.
Projected Increase in Electricity Consumption
By 2050, homes in Massachusetts could consume nearly three times as much electricity as they do today, fueled by the widespread adoption of EVs and heat pumps by consumers and businesses.
Grid Infrastructure Investments
To meet this heightened demand, Eversource and National Grid will need to invest billions in upgrading the grid infrastructure, with a significant portion of the costs to be borne by ratepayers.
Request for Rate Hikes
Earlier this month, both utilities submitted requests to the state Department of Public Utilities to initiate the process of recovering their investments in modernizing the electric grid, proposing rate increases over a five-year period.
Financial Figures
Eversource is seeking approval to pass on nearly $400 million of its costs over the next five years, while National Grid aims to recoup about $2 billion. Additionally, both utilities are seeking to cover other grid improvements through regular rate filings.
Impact on Consumers
While the proposed rate hikes may seem relatively minor on an annual basis, they will accumulate over time. By 2027, the average residential customer for Eversource could see an increase of nearly $5 per month, while National Grid customers might face an additional charge of nearly $7 per month. Presently, the average electric bill for both utilities totals just over $200 per month in an average home.
https://www.bostonglobe.com/2024/02/16/business/electric-rates-grid-modernization/
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