CAPITOL — National Grid on Monday released details of a three-year, $220 million electric and gas energy efficiency program aimed at reducing consumption through promotion of energy-efficient technology. National Grid wants to pay for the program by raising electricity rates and adding a new charge.

Company officials said the New York Public Service Commission, which regulates the state’s utility companies, has been asked to expedite consideration and approval of the plan by October. If the PSC agrees, an additional $1.50 system benefits charge will be added monthly to both the electric and natural gas bills of residential, commercial and industrial customers in National Grid’s New York service territory.

Under National Grid’s proposal, the money collected from the charge would be used to pay for programs similar to some programs offered by the New York State Energy Research and Development Authority, which itself receives funding from National Grid and existing system benefits charges.

“We do not expect to compete with NYSERDA in any way. Our programs are designed to enhance and complement NYSERDA’s current program,” said Susan Crossett, National Grid’s vice president for energy solutions in upstate New York.

National Grid customers who choose to participate in the energy savings programs could receive up to 75 percent of the cost of installing up to $5,000 worth of new insulation. Other incentives offered in the program include $50 toward the purchase of an energy-efficient clothes washer, $10 per window toward the price of energy-efficient windows and $25 for programmable thermostats.

In addition to the systems benefit charge, National Grid wants to raise its energy rates to make up for lost revenue likely to occur when less energy is consumed.

“When we run a program like this, we lose revenue,” Crossett said. “Under the current process for setting our utility rates, our company’s revenues increase when energy use goes up [but not when] customers reduce consumption through actions such as energy efficiency. As part of this initiative, we’re proposing that we be allowed to recover the loss of delivery revenue that would result from the successful implementation of the program.”

National Grid officials estimate the 4.4 million megawatts of electricity consumption the program is expected to eliminate is worth $350 million.

PSC spokesman James Denn said any utility can pass on increased fuel costs to consumers in the form of rate hikes without PSC approval, but a utility may only raise electricity rates based on transmission costs if the PSC approves the rate increase, usually after a review process of 11 months.

“[National Grid’s] current rate plan runs until 2011; they had a 10-year rate plan. Every two years they can come in and ask for an adjustment if they need to. [This proposal] is not considered a rate filing, so there’s no clock on it,” Denn said. “They have the ability to request to pass program costs on to the consumer. This petition will be reviewed.”

National Grid’s vice president of energy efficiency, Tim Stout, said National Grid’s plan would enable them to raise electricity rates in equal proportion to whatever revenues are lost.

Crossett said National Grid’s proposal should help New York state meet a 15 percent reduction in electricity consumption by 2015, the “15 by 15” program championed by former Gov. Eliot Spitzer and continued by Gov. David Paterson. She said electricity consumption reductions should also reduce carbon dioxide emissions linked to global warming.

The New York Public Interest Research Group criticized the plan.

“This is not a good deal for consumers,” NYPIRG Legislative Counsel Russ Haven said. “In the past, power companies had a fixed rate of return, where now it’s a free market and they only make money if they sell energy, and it’s clear we need to conserve energy to save people money and protect the environment. So they’re saying that ‘we need to be assured that we’ll be compensated if we do a good job at it.’ ”

Stout argued that the rate increases will provide an even stronger incentive to consumers to participate in the energy savings programs.

“With higher energy prices, we expect that once the programs are well established, a lot more customers will be coming to us to participate, as opposed to being driven by the marketing of the program,” he said. “While they can’t all participate in one year, because of a limited budget, they can all participate over time, so it’s to the advantage of every customer to participate in the program.”

If National Grid’s plan is approved, electricity rates won’t go up until after the first year of the program, officials said. Customers also will gain access to the programs on a first-come, first-served basis, as funding will be limited.

“You can’t take care of everybody, with 1.5 million customers, all at once,” Crossett said.