Both NYSEG and RG&E customers will see double-digit rate increases on their electric bills starting next month.
The changes for electric and gas utilities were awaiting approval from the state’s Public Service Commission, which voted unanimously in favor of the increase on Thursday.
“I think this is an unusually large rate hike,” Commissioner John Maggiore said during Thursday’s meeting. “Of the two options available to this commission today – a yes or a no vote – a yes vote will most likely result in a less dire outcome for ratepayers.”
If the proposal was rejected, customers might have seen even higher rates.
How much will my electricity and utility rates increase in New York?
The rate increases proposed by NYSEG and now accepted are 22.1% for electricity consumption And 6.1% for gas over three years. RG&E customers will experience rate increases from 16% for electric And 10.9% for gas over three years.
This is how it breaks down:
NYSEG Electric: 2023 Monthly Bill Increase
Under the new rate plan, NYSEG residential electric customers who use 600 kWh per month would receive an average total monthly bill Increase of $9.94 or 10.3% in November this year.
From May 2024, customers will see one $8.88 or 8.4% increase and in May 2025 $11.34 or 9.9% increase.
NYSEG Gas: Monthly Bill Increase 2023
NYSEG residential gas heating customers who use an average of 100 boilers per month would receive an average total monthly bill Increase of $4.96 or 3.6% in November this year.
In the second year, customers see a $2.13 or 1.5% increase and in the third year, a $4.10 or 2.9% increase.
RG&E Electric: 2023 Monthly Bill Increase
RG&E residential electricity customers using 600 kWh per month would receive an average total monthly bill Increase of $6.47 or 7.4% in November this year.
From 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: 2023 Monthly Bill Increase
RG&E residential gas heating customers who use an average of 100 boilers per month would receive an average total monthly bill Increase of $5.29 or 4.6% in November this year.
In the second year, customers see a $5.44 or 4.5% increase and in the third year, a $5.41 or 4.3% increase.
What you should know: Gas and electricity customers could face double-digit rate increases
Why are electric bill prices rising so much in New York?
Over the next three years, Avangrid companies plan to spend $2.1 billion to replace aging poles, lines and substations, cut down trees that can cause power outages and modernize systems to detect outages and restoring power after major storms, which are becoming increasingly common.
The companies will invest an additional $900 million in transmission projects and other upgrades to help the state meet its goals of a carbon-free electric grid. The state wants to send renewable solar and wind energy generated upstate to New York City, which relies almost entirely on fossil fuels for its electricity.
Another $1 billion in 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 respond
NYSEG has more than 1 million electric and gas customers in 40 counties across the state and RG&E has a total of 710,000 customers based in Rochester.
Tariff advocates at AARP say more than 127,000 NYSEG customers and more than 78,000 RG&E customers are 60 days behind on their electric bills as of August of this year, a total cost to the utilities of more than $145 million.
“These rate increases are prohibitive and outrageous under any circumstances, but especially in light of ongoing widespread billing problems, recent serious safety deficiencies, poor customer service records, and inadequate rate filing that neither complies with the state’s climate law nor provides cost justifications,” Fossil Free Coordinator Tompkins, Irene Weiser, said in a written statement Thursday.
“These rate increases will put more people in debt, make housing more unaffordable and burden small businesses still recovering from COVID…This is a sad day for the residents of New York State.”
Trish Nilsen, president and CEO of NYSEG and RG&E, released a statement: “Reliable Energy New York’s plan will enable us to make critical investments in our gas and electric infrastructure to improve reliability, expand our energy efficiency offerings, and to undertake important pilot projects to test new technologies to support our green energy future and provide additional help to those who need it.”
New York State team reporter Thomas C. Zambito contributed to this report.
Emily Barnes is a New York State team consumer reporter for the USA TODAY Network. Contact Barnes at [email protected] or on Twitter @byemilybarnes.
For unlimited access to the latest news, please subscribe or activate your digital account today.