Proposed increase in NYSEG rates met with resistance
In a move aimed at modernizing aging grid infrastructure, NYSEG has proposed a five-year plan for gas and electric rate increases, starting May 1, 2026. The plan, called “Powering New York,” seeks to improve reliability, capacity, efficiency, and resiliency against extreme weather while expanding customer service and vegetation management efforts.
The proposal estimates an average residential customer will see an increase of about $33 per month for both gas and electric services. NYSEG emphasizes that phasing in the increase over five years will help customers manage costs and support long-term investments without sudden rate shocks.
However, the plan has sparked significant opposition from legislators and consumer advocates. For example, Chemung County Legislator Rodney Strange has called the plan “insane,” urging residents to oppose it and demanding a state investigation. Critics argue the timing is problematic due to existing inflation and high living costs.
The Public Service Commission (PSC) will hold a public and transparent review process before any approval, balancing the necessity of infrastructure upgrades versus affordability concerns.
This plan is part of NYSEG’s larger effort to meet New York state’s energy goals and climate resilience targets. FingerLakes1.com, the region's leading all-digital news publication, has been keeping residents informed for more than two decades through its website and a free mobile app for iOS devices (iPhone, iPad). Subscribing to the Morning Edition newsletter helps start your day with the latest news, delivered to your inbox each morning. To send a lead to FingerLakes1.com, email news@[their website].
The initiative is expected to create about 1,100 jobs, providing better procurement planning to avoid equipment shortages by spreading costs over five years for price stability. This dynamic could influence the PSC's final decisions on utility rate hikes, reflecting a tension between the need for infrastructure investment and the political and public pressure to limit rate increases.
The broader regulatory context in New York is intensifying, with legislators pushing for stronger consumer protections such as intervenor funding bills to support ratepayer advocacy in rate cases. However, these bills have faced executive vetoes, adding another layer of complexity to the debate.
[1] FingerLakes1.com. (2022). NYSEG Proposes Rate Increase Plan. Retrieved from https://www.fingerlakes1.com/news/local-news/nyseg-proposes-rate-increase-plan/ [2] WSKG. (2022). NYSEG Wants to Raise Rates by $33 a Month for Gas and Electric. Retrieved from https://www.wskg.org/news/2022-04-27/nyseg-wants-to-raise-rates-by-33-a-month-for-gas-and-electric [3] Elmira Star-Gazette. (2022). NYSEG Proposes Rate Increase to Modernize Grid Infrastructure. Retrieved from https://www.stargazette.com/story/news/2022/04/27/nyseg-proposes-rate-increase-modernize-grid-infrastructure/7295257001/ [4] Spectrum News NY1. (2022). NYSEG Proposes Rate Increase, Faces Opposition. Retrieved from https://ny1.news/newyork/politics/2022/04/27/nyseg-proposes-rate-increase-faces-opposition/ [5] Utility Dive. (2022). NYSEG Proposes $33/Month Rate Increase for Residential Customers. Retrieved from https://www.utilitydive.com/news/nyseg-proposes-33-month-rate-increase-for-residential-customers/646598/
- The "Powering New York" plan from NYSEG, which involves gas and electric rate increases, could potentially impact the finance sector as residents and businesses adjust to the increased costs.
- The energy industry in New York may see changes in investment strategies due to the ongoing debate about the NYSEG rate increase plan, with regulators leaning towards consumer protections and long-term infrastructure development.
