Contributed by Matt Freeze, Sayre Morning Times —
Possible utility delivery rate hikes are on the horizon for NYSEG customers following action taken Tuesday, as a proposal was submitted for state approval.
NYSEG is reportedly requesting a 33.5% increase in natural gas delivery rates and a 23.7% increase in electricity delivery rates.
The company, along with its sister company, Rochester Electric and Gas, submitted the proposed changes to the New York State Department of Public Service (DPS).
Their Powering NY plan proposes rate increases to pay for rebuilding an aging power grid while expanding its capacity to meet growing service and demand needs.
NYSEG said its modernization began with rate increases in 2023, but with Tuesday’s filing, up to 40% of that request accounts for legacy costs not covered by the previous increases.
“With thousands of miles of wire, aging substations, and utility poles over 40 years old throughout their service area, NYSEG and RG&E’s plan will modernize infrastructure so that customers see improved reliability, efficiency, and resiliency in an era of more extreme weather while also increasing capacity to serve new business and economic growth,” NYSEG said in a statement.
Also, the state has mandated new utility poles to support broadband internet upgrades, as well as grid modernization to meet New York’s “climate goals.”
NYSEG also said the filing outlines funds needed to address legacy costs and comply with both current and new state requirements, as well as create 1,100 jobs to do the work statewide.
Gov. Kathy Hochul said Tuesday that she is “demanding” the state DPS scrutinize the rate hike proposal in order to protect consumers from not making additional profit off of ratepayers.
“At a time when New Yorkers are struggling to meet everyday costs, NYSEG … must find a way to avoid these unacceptably high rate hikes,” Hochul said. “I am calling on the DPS 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.”
While Hochul’s statement warned against profiting from the upgrades and cautioned against “sky-high utility costs that are making New York State less affordable,” she did not comment on the inherent increased delivery cost that is proposed by the “Powering NY” plan.
In NYSEG’s press release, the plan was lauded by a couple of representatives of the International Brotherhood of Electrical Workers (IBEW), saying that the move would improve customer systems and resiliency and propel the state into the future.
Additionally, Greater Binghamton Chamber of Commerce CEO Stacey Duncan approved of the plan.
“Reliable energy infrastructure is among the best selling points that we have for attracting new businesses and encouraging growth among the Southern Tier’s leading employers,” Duncan said. “The investments outlined in the Powering NY plan are critical not only for maintaining but for upgrading our energy system so it can enable a brighter, more economically secure future for people across Broome County and upstate New York.”
New York State Economic Development Council Executive Director Ryan Silva called the plan a necessity.
“Providing affordable and reliable energy is necessary to provide economic opportunity and an increased quality of life,” Silva said. “Their commitment to infrastructure investments and new technology deployment has made tremendous progress across New York State, yet more work needs to be done to meet our economic and climate goals. The Powering NY Plan builds off their previous work and will help to better serve the future of New York, and the NYSEDC fully supports it.”
NYSEG points to key investments of the five-year plan, which include billions of dollars invested in grid improvements, customers’ billing experiences, and allocating $525 million toward tree management around electric transmission and distribution corridors — NYSEG said half of all outages are related to downed trees or limbs.
The increase will only impact the delivery portion of bills — approximately a third of total monthly energy costs for most consumers, NYSEG said.
The PSC will make a final determination on the rate hikes next year, after a process that will include discovery, testimony, settlement negotiations, and a possible multi-year agreement, NYSEG said.
Quite frankly, I can’t afford an increase like that. I live in a well insulated 1 story 1600 ft ranch and pay 600 a month and still behind on my payments. EVERY light in my house are led and I heat with mostly gas, a gas stove and dryer. Thinking I need to have power shut off and run off a generator!
Enough is enough. It seems very year they want an increase. Electric and gas is extremely high now and hard to make payments on now.
They don’t need more increases nor do the customers
Please be mindful of seniors who have to give up meals and other essentials like medications to pay the already increased rates. They cannot afford to pay even higher electric rates. And it is frustrating to see NYSEG employees running around in NYSEG vehicles to go home to lunch, let their dogs out, get rides to and from work in NySEG vehicles etc. I’ve seen it wirh my own eyes. Why not look to save within the organization instead of making people pay more.
Questions must be answered and why is there no transparency when it comes to how much work has been done already? I din’t think there is any question why these proposals look more than attractive to the IBEW and others that stand to benefit financially from such work brought on by these stunning high rate hikes. Please consider thestate of New York’s Dept before allowing more pain on open wounds…
Can’t afford it now what do you do if they raise rates. I work forty hours already at 61.
Another reason New York state is becoming more and more unaffordable.
This is insane.What work has already been done with the crazy high rates we’re already suffering from and with everything else still rising in cost,low and fixed income people are falling further behind by the month. They wonder why the homeless population is growing or why people aren’t paying their entire bills… .. because we can’t afford it. But government and utility company employees are sure living their best life.