NYSEG’s proposed electric and gas rate increases in Putnam and parts of northern Westchester counties, which would start May 1, 2026, are drawing criticism from area county and state lawmakers.
Westchester County Board of Legislators “is appalled by the proposed rate hikes” NYSEG submitted to the state Public Service Commission on Monday, June 30, a news release said.
If approved, residential energy bills would rise by an average of 23.7% for electricity and 33.5% for gas starting May 1, 2026, said the county legislators’ release and a summary by the state Department of Public Service. The DPS summary said those percentage increases are estimated for a typical residential customer. They would be for the rate year ending April 30, 2027.
“For families already drowning in utility costs, these increases will devastate household budgets and force impossible choices between basic needs like food, medicine, and keeping the lights on,” the county legislators’ release said, calling on the state to “reject these punishing increases that will harm all residents — seniors, families, and small businesses alike.”
NYSEG — New York State Electric and Gas — serves customers in Putnam County and in five northern Westchester municipalities. The state Public Service Commission last approved a rate plan for NYSEG that started on May 1, 2023, and runs through April 30, 2026.
NYSEG’s filing for proposed new rates after that period ends covers increased expenses for both the electric and gas arms of the utility company. Increased expenses for electric include storm and vegetation management, investments to deal with aging infrastructure and to increase capacity, upgrading information technology, and managing storm events under 72 hours to meet growing customer and community demands.
On the gas business side, the proposal notes prevailing wage requirements, federal and state pipeline safety mandates for systems investments and upgrades, and meeting clean energy goals are all driving up costs.
“These pressures, combined with persistent inflation, supply chain constraints, labor market tightness, and increased contractor costs, underscore the urgent need for rate adjustments that more accurately reflect today’s cost environment and tomorrow’s investment imperatives,” NYSEG’s filing says.
NY lawmakers decry proposed NYSEG rate increases
State Assemblyman Matt Slater (R, C-Yorktown) said in a statement that taxpayers have been “crushed by soaring energy costs and now NYSEG has filed another rate increase.” He added that NYSEG’s proposal “must be dead on arrival to the Public Service Commission. Families and businesses cannot be expected to endure these increased costs and survive in New York.”
State Sen. Pete Harckham (D, WF-40) called the proposed increase “unaffordable to many families and seniors, who are still reeling from thousand dollar utility bills earlier this year. While investment in customer service and improved reliability is noteworthy, it is unacceptable to place the expense underinvestment solely on the backs of those who can least afford it. The last thing we need are more financial burdens for folks struggling to make ends meet.”
NYSEG said its filing outlines money needed to address costs and comply with current and new state requirements. The new rates would help to invest $18 billion in critical infrastructure to meet growing energy needs, NYSEG said. It’s requesting an increase in annual electric revenues of about $464.4 million and an increase in annual gas revenues of about $93 million, the state PSC’s summary said.
“These investments would also support the state’s clean energy goals, while also supporting cost stabilization for our customers,” the release said.
NYSEG says proposal first step in long process
A NYSEG spokesperson said the filing with proposed rates is the first step in a long process – the numbers filed this week are not the final numbers that will affect bills. That will be determined next year by the state Public Service Commission.
NYSEG and RG&E’s proposal will “undergo comprehensive review by the state Department of Public Service staff and multiple third parties,” according to the companies’ news release, the Democrat & Chronicle reported. After that process is completed, the companies will pursue a settlement with both the DPS and the third parties to determine how customers’ rates will be affected.
The filings with the state commission by NYSEG and upstate RG&E — Avangrid is their parent company — includes a significant share for storm recovery expenses, which averages $200 million yearly, the companies said, and the plan for both utilities includes:
The companies have proposed to divide the plan’s cost over five years, asserting that would minimize yearly delivery charge increases.
Contributing: USA TODAY Network’s New York Connect Team, the Democrat & Chronicle
This article originally appeared on Rockland/Westchester Journal News: NYSEG’s proposed utility rate increases in Putnam, northern Westchester draw criticism
Reporting by Michael P. McKinney, Rockland/Westchester Journal News / Rockland/Westchester Journal News
USA TODAY Network via Reuters Connect
