Contributed by Matt Freeze, Sayre Morning Times —<\/p>\n
Possible utility delivery rate hikes are on the horizon for NYSEG customers following action taken Tuesday, as a proposal was submitted for state approval.<\/p>\n
NYSEG is reportedly requesting a 33.5% increase in natural gas delivery rates and a 23.7% increase in electricity delivery rates.<\/p>\n
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).<\/p>\n
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.<\/p>\n
NYSEG said its modernization began with rate increases in 2023, but with Tuesday\u2019s filing, up to 40% of that request accounts for legacy costs not covered by the previous increases.<\/p>\n
\u201cWith thousands of miles of wire, aging substations, and utility poles over 40 years old throughout their service area, NYSEG and RG&E\u2019s 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,\u201d NYSEG said in a statement.<\/p>\n
Also, the state has mandated new utility poles to support broadband internet upgrades, as well as grid modernization to meet New York\u2019s \u201cclimate goals.\u201d<\/p>\n
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.<\/p>\n
Gov. Kathy Hochul said Tuesday that she is \u201cdemanding\u201d the state DPS scrutinize the rate hike proposal in order to protect consumers from not making additional profit off of ratepayers.<\/p>\n
\u201cAt a time when New Yorkers are struggling to meet everyday costs, NYSEG \u2026 must find a way to avoid these unacceptably high rate hikes,\u201d Hochul said. \u201cI 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.\u201d<\/p>\n
While Hochul\u2019s statement warned against profiting from the upgrades and cautioned against \u201csky-high utility costs that are making New York State less affordable,\u201d she did not comment on the inherent increased delivery cost that is proposed by the \u201cPowering NY\u201d plan.<\/p>\n
In NYSEG\u2019s 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.<\/p>\n
Additionally, Greater Binghamton Chamber of Commerce CEO Stacey Duncan approved of the plan.<\/p>\n
\u201cReliable energy infrastructure is among the best selling points that we have for attracting new businesses and encouraging growth among the Southern Tier\u2019s leading employers,\u201d Duncan said. \u201cThe 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.\u201d<\/p>\n
New York State Economic Development Council Executive Director Ryan Silva called the plan a necessity.<\/p>\n
\u201cProviding affordable and reliable energy is necessary to provide economic opportunity and an increased quality of life,\u201d Silva said. \u201cTheir 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.\u201d<\/p>\n
NYSEG points to key investments of the five-year plan, which include billions of dollars invested in grid improvements, customers\u2019 billing experiences, and allocating $525 million toward tree management around electric transmission and distribution corridors \u2014 NYSEG said half of all outages are related to downed trees or limbs.<\/p>\n
The increase will only impact the delivery portion of bills \u2014 approximately a third of total monthly energy costs for most consumers, NYSEG said.<\/p>\n
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.<\/p>\n","protected":false},"excerpt":{"rendered":"
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