NYSEG seeks state approval for steep rate hikes for gas, electric customers

Yahoo

03-07-2025

NYSEG and RG&E are proposing additional rate hikes, meaning more money may come out of New Yorkers' pockets.
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 news release shared by both companies on July 1. Customers could see total utility bill increases between 22.2%-33.5% if the plan is approved.
"Our Powering New York plan brings together the competing demands of state and legacy cost drivers, like storm restoration costs and the massive arrears that built up during and after the pandemic, while also supporting economic development through new jobs and grid improvement to attract and retain businesses," according to NYSEG and RG&E CEO Patricia Nilsen.
"Our customers deserve a modern, resilient grid and top-notch customer service, and this plan enables us to continue our forward momentum," Nilsen added.
Here's what to know.
NYSEG and RG&E say the plan, which includes raising customers' rates, will improve the reliability, efficiency and resiliency of the grid for its customers as well as increase its capacity.
Up to 40% of the companies' filing accounts for legacy costs like storm recovery — which now averages $200 million annually, the companies say — state mandates like new utility poles to support broadband internet upgrades and the rising cost of arrears. The plan will also cover costs for customer support programs and a new in-state call center, which the companies say make up around 22% of customers' bills.
Here's what else is included in the "Powering NY" plan:
Hiring of 570 full-time employees for the expanded investments and an additional 539 full-time employees to comply with the state's new Call Center Law
Billions in grid investments
Hundreds of millions in customer service improvements
$413 million invested to provide financial assistance to low-income customers
$525 million to continue their existing tree trimming efforts
The companies have proposed to divide the plan's cost over five years, which they claim will minimize delivery charge increases each year.
Through the companies' proposed "Powering NY" plan, NYSEG is seeking an increase in annual gas revenues of around $93 million, or a 39.4% increase to delivery revenues, and electric revenues of about $464 million, which amounts to a 35% increase to delivery revenues, according to the New York State Department of Public Service.
RG&E is looking for an approximately $72.9 million increase in annual gas revenues, which amounts to a 32% increase to delivery revenues, and an increase in annual electric revenues of around $220.2 million, or a 36% increase to delivery revenues, the state Department of Public Service says. 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," the companies' July 1 news release said.
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Monthly gas bill increases for typical residential heating customers using 83 therms would be as follows, according to the state Department of Public Service:
NYSEG: $33.57 (33.5% increase to total bill)
RG&E: $18.87 (22.2% increase to total bill)
Monthly electric bill increases for typical residential customers using 600 kilowatt-hours would be as follows, according to the state Department of Public Service:
NYSEG: $33.12 (23.7% increase to total bill)
RG&E: $33.01 (26% increase to total bill)
Shortly after the companies announced the filing of their proposed plan Tuesday, Gov. Kathy Hochul chimed in, calling for a close analysis of the proposed rate hikes and releasing the following statement:
'At a time when New Yorkers are struggling to meet everyday costs, New York State Electric and Gas (NYSEG) and the Rochester Gas and Electric Corporation (RG&E) must find a way to avoid these unacceptably high rate hikes. 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.'
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NYSEG and RG&E's proposal will "undergo comprehensive review by the state Department of Public Service staff and multiple third parties," according to the companies' news release. After that process is completed, the companies will pursue a settlement with both the DPS and the third parties to determine how customers' rates will be affected.
Before any rate increases go into effect, they'll need to receive approval from the state Public Service Commission.
Emily Barnes reports on consumer-related issues for the USA TODAY Network's New York Connect Team, focusing on scam and recall-related topics. Follow her on X and Instagram @byemilybarnes. Get in touch at [e-mail].
This article originally appeared on Rochester Democrat and Chronicle: NYSEG requesting gas, electric rate hike that could increase bills 33%