One of NYSEG smart meters that automatically collects usage data providing customers with an actual read instead of an estimated read when compared to the old metersss.
One of NYSEG smart meters that automatically collects usage data providing customers with an actual read instead of an estimated read when compared to the old metersss.
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NYSEG proposal would raise rates. How Southern Tier residents can weigh in on plan

New York State Senator Lea Webb says one in every four calls her office receives is from a resident expressing concerns about New York State Electric & Gas billing rates and customer service.

NYSEG presented the New York Public Service Commission with its “Powering New York” proposal in June, including plans to increase customer rates.

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Starting May 1, 2026, the proposed increase could mean residential customers using about 600 kilowatt-hours would pay an additional $33.12. Commercial customers using 3,650 kilowatt-hours a month with a 25-kilowatt monthly demand could see an overall $155.37 bill increase. A total 10.9% bill increase for industrial customers could add $8,679.98.

Residential gas customers using 83 therms — the unit of measure for heat energy — could see $33.57 added to their overall bill that year.

NYSEG and RG&E Director of New York Communications Shelby Cohen said the rate increases cover needed upgrades.

Webb joined Assemblywoman Donna Lupardo and the Public Utility Law Project of NY Executive Director and General Counsel Laurie Wheelock on Oct. 1 to encourage residents to voice their concerns for the proposed rate increases at upcoming in-person and virtual hearings in the Southern Tier.

“People aren’t just confused and concerned, they’re worried,” Lupardo said. “They’re worried about being able to keep their lights on. They’re worried about what it means for their families. They’re worried about what it means for them to stay housed.”

How NYSEG will use additional funds

Cohen said the “Powering New York” proposal would create 1,100 jobs across New York, including the recruitment of line workers she said would aid in storm costs and limit the use of outside contractors.

The more in-house line workers “will eventually make storm cost decrease and lower cost in the future for our customers,” she said.

NYSEG is also targeting investment in areas including energy demand, upgrading aging infrastructure and systems for reliability and customer service, storm/vegetation management expenses, wage requirements, federal and state pipeline safety mandates, and clean energy goals.

As part of addressing the energy demand and aging infrastructure, new transformers have to be made — the custom equipment takes four years to build. The “skyrocketing” energy demand, Cohen said, is being seen across the state and requires a grid expansion to keep up with the growing economic development.

In 2022, NYSEG received eight new power requests for the whole division in the Catskills. By 2024, that number jumped to 49 requests, which the company did not anticipate in its last rate case.

“There’s a ton of new businesses coming. We’ve got to upgrade our infrastructure to serve them,” Cohen said. “The existing substations serving these areas can’t handle that much more power running through them.”

What to know about rate approval process

Cohen said the data included in the proposal supports a five-year plan. In previous years, the multi-year agreement spanned three years, and was switched to five years for better planning.

“We have proposed a multi-year agreement so that we can spread the increases out over multiple years,” Cohen said.

For example, a NYSEG customer could see the $33.12 applied to their bill in divided, monthly increments instead of one lump-sum fee.

The 11-month rate case process began in July. As of Oct. 1, the company is still in the negotiating stage. The PSC will decide whether the agreement will be approved for a one- or multi-year plan.

At the Oct. 1 event, Webb described the findings from audits and investigations conducted by the PSC as “very challenging.”

An audit released in May 2025 found 128 corrective actions for NYSEG to address, including cost allocation simplification, revision of the Cost Allocation Manual, a third-party review of individual CEO metrics, new cybersecurity systems, implementation of an asset management system and upgrading customer service operations.

“We are saying NYSEG must get their house in order before asking for another rate hike that our constituents quite frankly can’t afford, nor should flip the bill for,” Webb said.

In-person and virtual hearing information

Oct. 7: 1, 6 p.m. Binghamton City Hall, 38 Hawley St., Binghamton.

Oct. 8: 1, 6 p.m. Ithaca Town Hall, 215 Tioga St., Ithaca.

Oct. 21: 1, 6 p.m. virtual hearing on Webex.

For NYSEG customers who would like to speak during the virtual meeting, registration is required. The deadline to register is Oct. 17.

All hearings are overseen by the PSC as part of the rate case process, which will be included in the official case record and could impact the overall outcome.

Concerns and statements can be submitted via phone or mail up to Oct. 24 under the “Other Ways to Comment” section at dps.ny.gov.

Kalyn Grant reports on public service issues for the Press & Sun-Bulletin, focusing on schools and community impact. Have a story to share? Follow her on Instagram @KalynCarmen and on Facebook under Kalyn Kearney. Get in touch at kcgrant@gannett.com. 

This article originally appeared on Binghamton Press & Sun-Bulletin: NYSEG proposal would raise rates. How Southern Tier residents can weigh in on plan

Reporting by Kalyn Grant, Binghamton Press & Sun Bulletin / Binghamton Press & Sun-Bulletin

USA TODAY Network via Reuters Connect

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