Both NYSEG and RG&E customers will see double-digit rate hikes on their utility bills starting next month.
The changes for electric and gas utilities were waiting on approval from the state’s Public Service Commission, who voted unanimously for the raise Thursday.
“I see this as an unusually high rate increase,” Commissioner John Maggiore said during Thursday’s session. “Of the two options available for this Commission today — a yes or a no vote — a yes vote is most likely to result in the less bad outcome for ratepayers.”
If the proposal was rejected, customers may have seen even higher rates.
How much will my electricity, utility rates go up in New York?
NYSEG’s proposed, and now accepted, rate increases are 22.1% for electric use and 6.1% for gas over three years. RG&E customers will see rate increases of 16% for electric and 10.9% for gas over three years.
Here’s how this breaks down:
NYSEG Electric: Monthly bill hike 2023
Under the new rate plan, NYSEG residential electric customers using 600 kwh per month would see an average total monthly bill increase of $9.94 or 10.3% in November of this year.
Starting May 2024, customers will see an $8.88 or 8.4% increase and in May 2025, an $11.34 or 9.9% increase.
NYSEG Gas: Monthly bill hike 2023
NYSEG residential gas heating customers using an average of 100 therms per month would see an average total monthly bill increase of $4.96 or 3.6% in November of this year.
In the second year, customers will see a $2.13 or 1.5% increase and in the third year, a $4.10 or 2.9% increase.
RG&E Electric: Monthly bill hike 2023
RG&E residential electric customers using 600 kwh per month would see an average total monthly bill increase of $6.47 or 7.4% in November of this year.
Starting May 2024, customers will see a $5.98 or 5.5% increase and in May 2025, a $6.90 or 6% increase.
RG&E Gas: Monthly bill hike 2023
RG&E residential gas heating customers using an average of 100 therms per month would see an average total monthly bill increase of $5.29 or 4.6% in November of this year.
In the second year, customers will see a $5.44 or 4.5% increase and in the third year, a $5.41 or 4.3% increase.
What to know: Double-digit rate hikes for gas, electric customers could be on the way
Why are NY utility bill rates going up so much?
Over the next three years, the Avangrid-owned companies plan to spend $2.1 billion replacing aging poles, wires and substations, trimming trees that can lead to power outages and upgrading systems to detect outages and restore power after major storms, which are occurring more frequently.
The companies will invest another $900 million for transmission projects and other upgrades to help the state achieve its goals of a carbon-free electrical grid. The state wants to send renewable solar and wind energy generated upstate to New York City, which relies nearly entirely on fossil fuels for its electricity.
Another $1 billion of NYSEG and RG&E funding will go toward “improving customer service” at both utilities, including plans to hire 231 full-time employees.
How ratepayer advocates are responding
NYSEG has more than 1 million electric and gas customers across 40 counties in the state and RG&E totals 710,000 Rochester-centered customers.
Ratepayer advocates from AARP say over 127,000 NYSEG customers and over 78,000 RG&E customers are 60 days behind on their energy bills, as of August of this year, amounting to more than $145 million owed to the utilities combined.
“These rate hikes are unaffordable and outrageous under any circumstance, but especially given the ongoing widespread billing problems, the recent egregious safety failures, the poor customer service record and the inadequate rate filing that does not uphold the state’s climate law nor provide cost justifications,” the coordinator of Fossil Free Tompkins, Irene Weiser, said in a written statement Thursday.
“These rate hikes will put more people in debt, make housing more unaffordable and will strain small businesses still recovering from COVID … This is a sad day for Upstate New Yorkers.”
NYSEG and RG&E President and CEO Trish Nilsen released a statement: “The Reliable Energy New York plan will allow us to make critical investments in our gas and electric infrastructure to improve reliability, expand our energy efficiency offerings, execute on important pilots to test new technologies to support our green energy future, and provide additional assistance to those who need it.”
New York State Team reporter Thomas C. Zambito contributed to this report.
Emily Barnes is the New York State Team consumer advocate reporter for the USA TODAY Network. Contact Barnes at ebarnes@gannett.com or on Twitter @byemilybarnes.
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