National Grid gets OK to upgrade the power grid. Will it affect my electricity bill?

November 5, 2024

Some Central Massachusetts residents will eventually see a modest increase in their monthly electricity bill after state officials approved National Grid’s upgrades to sections of the aging power grid. 

The move helps the state meet its goal of reaching net-zero carbon emissions by 2050. 

Monthly bills will increase between 2 and 13 cents for 20 years. The money will help cover the cost of National Grid’s $217 million capital investment projects approved by the state Department of Public Utilities. 

The upgrades are needed so future solar and energy storage projects can connect to the grid. Those projects supply clean, renewable energy, free of fossil fuels as the state aims to reach its net-zero goal in 26 years. 

“With this Order these CIP projects can move forward and help to continue the Commonwealth’s transition to a clean energy future,” said Cecile Fraser, one of three appointed members of the Commonwealth Utilities Commission that oversees the state Department of Public Utilities, in a prepared statement. “These upgrades will provide important benefits for Worcester County residents.”  

Miles of work

In total, National Grid said the projects will include one new substation and the upgrade or rebuild of seven more. Plus, approximately 48 circuit miles of overhead distribution line and five miles of underground distribution will be rebuilt. 

The developers of the large renewable solar and energy storage projects will assume approximately 72% of the distribution costs, according to National Grid.

“These substation and distribution line upgrades are designed to support Massachusetts’ clean energy goals and enable the integration of new renewable energy resources, such as solar and battery storage as well as addressing constraints and enhancing customer reliability,” said a company statement.

National Grid has four years to finish the upgrades. If it doesn’t, then it must get an extension from the state.

4 areas to get grid upgrades

The investor-owned utility received approval for grid upgrades in four geographic areas: Spencer-Rutland, Barre-Athol, Gardner-Winchendon and Monson-Palmer-Longmeadow. 

A breakdown of the eventual monthly rate increase includes 2 cents in Barre-Athol and Monson-Palmer-Longmeadow, 11 cents in Gardner-Winchendon and 13 cents in Spencer-Rutland. Besides electricity customers, the solar facilities that connect to the grid will pay a portion of the upgrades. 

Combined, the large solar projects will generate more than 300 megawatts of power, while smaller projects will add an additional 27 megawatts. 

A megawatt equals 1,000 kilowatts. Utility companies estimate the typical Massachusetts customer uses an estimated 550 to 650 kilowatts monthly, according to the state Department of Public Utilities. 

More numbers

A deeper dive into the numbers shows the grid upgrades and subsequent connection by solar projects will create 113.1 megawatts for Spencer-Rutland along with 16 renewable energy projects identified for potential construction. 

Power numbers and corresponding renewable energy projects for the other areas include Barre-Athol (81.5 megawatts/9 projects identified); Gardner-Winchendon (60.6 megawatts/8 projects identified) and Monson-Palmer-Longmeadow (84.6 megawatts/7 projects identified). 

It is unclear which solar companies are working with National Grid. That information between the utility and the solar development companies is confidential, according to the Department of Public Utilities. The agency does not regulate third-party solar developers.

Details of the $88 million work to be done in the Spencer-Rutland area include building a new substation, retiring another and upgrading two existing stations. In addition, 18 miles of overhead and three miles of underground distribution items will be rebuilt or added to the network.

The $22 million spent in the Gardner-Winchendon area will entail upgrading a substation and rebuilding or adding six miles of overhead and some underground distribution items. It will cost $67 million in the Barre-Athol area to upgrade three substations and rebuild or add 15 miles of overhead and one mile of underground distribution items.

In Monson-Palmer-Longmeadow, $40 million will cover the cost of upgrading one substation and rebuilding or adding eight miles of overhead and one mile of underground distribution items.

Meanwhile, disadvantaged communities stand to benefit from the grid upgrades. Many of the projects are low-income community solar projects, according to the Department of Public Utilities. That means 50% or more of the bill credits they produce will go to low-income households, cutting their energy costs.   

Contact Henry Schwan at henry.schwan@telegram.com. Follow him on X: @henrytelegram.

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