ALBANY — The state Public Service Commission has approved a rate hike pitched by National Grid that will initially add about $22 per month to the average upstate resident’s power and gas bill.

Meeting in the state capital on Thursday morning, the PSC approved the request from National Grid, which was negotiated down from an even higher, single-year increase through a months-long process with state officials, stakeholders and the utility.

Under the new rate plan, rate hikes will occur at regular intervals through April of 2027, with the first bill bump coming as soon as next month. That first bump will add about $22 to the average gas and power users’ bill, but by the end of the increase schedule, total costs will have gone up by 28% for power and 36% for natural gas.

The increase will net $1 billion in revenue for the London-based company once completed, adding to the profits of an already very profitable company that reported a 20% increase in pre-tax revenue last year.

It will also add onto New York’s already high power costs; state ratepayers already carry power and gas bills that are more than 38% higher than the national average.

The Public Service Commission, which regulates utilities in New York and works in consultation with the utilities to set rates, framed the approval as a positive development because it came in well under what the utility originally requested.

“The commission’s action will significantly reduce the company’s request for total electric revenues by over $340 million (87% decrease from request) and total gas delivery revenues by nearly $100 million (63% decrease from request) in the first year,” a statement from the commission reads. “The adopted joint proposal delivers $110 million in annual efficiency savings, defers non-essential capital projects and supports energy affordability programs and protections for vulnerable customers.”

Rather than affecting the price hikes in one year, the commission-approved plan spreads those increases out over a little less than three years.

“The adopted joint proposal meets the legal requirement that the company continue to provide safe and adequate service at just and reasonable rates,” said Commission Chair Rory M. Christian. “The three-year rate plan is in the public interest. It is a forward-looking plan that benefits customers and includes provisions that further important state and Commission objectives, while keeping customer affordability first and foremost in mind.”

In a statement after the vote, Gov. Kathleen C. Hochul denounced the rate hikes.

“While I appreciate that the New York Public Service Commission worked to significantly lower the outrageously high initial rate proposals, it’s still not enough,” Hochul said. “I have been crystal clear that utilities must make ratepayer affordability the priority. Since taking office, my administration has prioritized energy affordability, particularly for our most vulnerable and we need the utilities to take it seriously as well. That means at a time when worried New Yorkers are being forced to tighten their budgets, all utilities must follow suit. This is no time for bonuses and big raises for executives, especially if they are going to be looking to raise rates on their customers.”