New York Public Service Commission Approves Avangrid Utilities’ Rate Increases and $5.2 Billion Investment Initiative
Regulators have given their unanimous approval for the rate increases, though some commissioners expressed reluctance during the decision-making process, as reported by local media outlets. The New York Public Service Commission (PSC) emphasized that the approved rates represent a reduction of nearly 50% from the utilities’ initial rate requests.
Commissioner John Maggiore described the rate increase as “unusually high” during the PSC meeting, as noted by the Democrat & Chronicle.
NYSEG had originally requested a first-year electric revenue increase of $274 million, equivalent to a 16.8% boost in total revenues. Meanwhile, RG&E had sought a first-year electric revenue increase of $93.8 million, reflecting an 11.3% increase in total revenues.
Instead, the regulators approved a levelized electric rate increase for NYSEG for the rate year starting May 1, 2023, with increments of $137.3 million for 2023, $160.7 million for 2024, and $200.6 million for 2025. For RG&E, the approved increases are $50.9 million, $56.6 million, and $65.3 million. Gas rates will also experience an increase.
The decision, according to NYSEG and RG&E President and CEO Trish Nilsen, will enable critical investments in gas and electric infrastructure to enhance reliability, expand energy efficiency offerings, conduct essential pilot projects to test new technologies supporting a green energy future, and provide additional assistance to those in need. The approval encompasses a total investment of $5.2 billion for both utilities, with $1 billion specifically allocated to customer service improvements, including increased bill assistance and enhanced protections during extreme weather events.
Infrastructure investments will encompass a circuit breaker replacement program, initiatives to repair or replace transmission line infrastructure, a distribution load relief program targeting power transformer capacity overload, substation rebuilds, and more.
NYSEG serves over 905,000 electricity customers, while RG&E serves approximately 389,000 in the upstate region of New York.
Consumer advocates have raised concerns that these rate increases could disproportionately impact vulnerable customers, particularly considering the utilities’ past issues with customer service.
“Even before these rate hikes are imposed, 13% of NYSEG and RG&E customers are more than 60 days behind on their bills, and 5,500 had their service terminated in August alone,” noted Irene Weiser, the coordinator of Fossil Free Tompkins.
