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Double-digit rate hikes could be on the horizon for RG&E and NYSEG customers

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RG&E and NYSEG are proposing double-digit rate increases for electric and gas service. And it’s drawn a quick rebuke from Gov. Kathy Hochul.

“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,” Hochul said in a statement.

The filing with the state Department of Public Service seeks to raise several hundred million dollars between the two companies. Average monthly residential bills would increase by $52 a month for RG&E customers, and $67 for NYSEG customers. The companies are requesting spreading that increase over five years, making for less dramatic annual adjustments.

This is the first step in a process that will involve an extensive state review and negotiation. A decision and settlement isn’t expected until sometime next year.

The upstate utilities must submit a plan for implementing dozens of recommended corrective actions, and respond to a list of apparent violations, within the next month.

“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,” Hochul said.

In a statement, parent company Avangrid said 40% of the proposed increase would go to legacy costs. Those are things like rebuilding an aging grid, new utility poles to support broadband internet upgrades, and storm recovery, which now averages $200 million a year, according to the company statement. The proposal also promises a better billing system and the hiring of hundreds of additional staff, many of those tied to call centers as state law requires those operations all be in-state.

“Our customers deserve a modern, resilient grid and top-notch customer service, and this plan enables us to continue our forward momentum,” said NYSEG and RG&E CEO Patricia Nilsen said in a statement.

Avangrid’s statement included endorsements from electrical workers’ unions and business groups.

Connections
Representatives from RG&E join WXXI's Connections with Evan Dawson to discuss a recent audit and their plans to improve service for customers.

Brian Sharp is WXXI's investigations and enterprise editor. He also reports on business and development in the area. He has been covering Rochester since 2005. His journalism career spans nearly three decades.