Lawmakers Push Back Against More NYSEG Rate Hikes

By Holly Crocco

State lawmakers are demanding the Public Service Commission seriously investigate a proposal from New York State Electric & Gas and Rochester Gas & Electric that will lead to more rate hikes.

“Hudson Valley ratepayers have been crushed by soaring energy costs and now NYSEG has filed another rate increase,” said Assemblyman Matt Slater, R-Yorktown. “This proposal must be dead on arrival to the Public Service Commission. Families and businesses cannot be expected to endure these increased costs and survive in New York.”

“The proposed NYSEG rate increase is unaffordable to many families and seniors, who are still reeling from thousand-dollar utility bills earlier this year,” added State Sen. Pete Harckham, D-Peekskill. “While investment in customer service and improved reliability is noteworthy, it is unacceptable to place the expense underinvestment solely on the backs of those who can least afford it. The last thing we need are more financial burdens for folks struggling to make ends meet.”

Filed with the state’s Public Service Commission on June 30, the companies’ Powering NY plan is “designed to pay for rebuilding an aging grid and expanding its capacity to meet residents’ and businesses’ service demands,” according to a July 1 news release shared by the companies.

NYSEG customers could see total utility bills increase 33.5 percent if the plan is approved.

The companies say the plan will improve the reliability, efficiency, and resiliency of the grid for its customers as well as increase its capacity. They say the filing accounts for legacy costs like storm recovery, state mandates like new utility poles to support broadband internet upgrades, the rising cost of arrears, and customer support programs and a new in-state call center.

The Powering NY plan includes hiring more than 1,000 full-time employees, billions in grid investments, and hundreds of millions to go toward each customer service improvements, financial assistance for low-income customers, and continued existing tree trimming efforts.

Through the proposed Powering NY plan, NYSEG is seeking an increase in annual gas revenues of around $93 million, or a 39.4 percent increase to delivery revenues, and electric revenues of about $464 million, which amounts to a 35 percent increase to delivery revenues, according to the Department of Public Service.

All proposed changes are for the rate year ending April 30, 2027.

“While electric and gas bills in New York include the cost of energy supply, which the companies do not control nor profit from, as well as required government charges and taxes, Powering NY increases will apply only to the delivery portion of bills – approximately a third of total monthly energy costs for most customers,” according to NYSEG and RG&E.

According to the Department of Public Service, monthly gas bill increases for NYSEG’s typical residential heating customers using 83 therms would be $33.57 (a 33.5 percent increase to the total bill), and monthly electric bill increases for typical residential customers using 600 kilowatt-hours would be $33.12 (a 23.7 percent increase to the total bill).

Before any rate increases go into effect, the plan needs approval from the Public Service Commission.

Gov. Kathy Hochul is demanding the Department of Public Service dissect the proposed rate hikes.

“At a time when New Yorkers are struggling to meet everyday costs, NYSEG and RG&E must find a way to avoid these unacceptably high rate hikes,” she said. “I am calling on the Department of Public Service to scrutinize these proposals to ensure these companies have the resources to keep our energy grid going but are not making additional profit off the backs of ratepayers.”