NYSEG and RG&E Propose Steep Rate Hikes, Sparking Backlash Across Upstate NY

Residents across upstate New York could soon see a sharp rise in their utility bills. New York State Electric & Gas (NYSEG) and Rochester Gas & Electric (RG&E), both subsidiaries of the multinational utility giant Avangrid, have submitted proposals for one year rate increases that could raise average monthly bills by more than 30% for some customers.

The utilities say the hikes are necessary to address aging infrastructure, regulatory compliance, and financial pressures. But the proposal has sparked a wave of backlash from consumer advocates, elected officials, and even state regulators, who are questioning whether these increases are justified—or even fair.

“These companies are requesting increased rates at a time when they’re already facing a lot of criticism for the current cost of service,” said Liam Mayo, reporter for The River Reporter, in an interview discussing the developments. “People already saw big spikes in their utility bills this past winter, and now this proposal adds insult to injury.”

What’s in the Proposal?

Under the one-year proposal covering May 1, 2026 through April 30, 2027, NYSEG customers could see an average electric bill rise from $139 to $172 per month—a 23.7% increase. Some increases, depending on service and customer usage, could reach or exceed 33%.

The companies say the increases are unavoidable. In filings submitted to the New York State Public Service Commission (PSC), NYSEG and RG&E cite several drivers for the proposed hikes: long-overdue infrastructure upgrades, compliance with evolving state regulations, and limited access to capital markets due to poor credit metrics.

But critics are skeptical.

Audit Raises Serious Concerns

A recently released audit commissioned by the PSC found significant management and operational deficiencies within both utilities. The audit, completed in February but made public more recently, found that corporate decision-making at the parent company, Avangrid, has interfered with the operations of NYSEG and RG&E. The report concluded that Avangrid often prioritizes profits and shareholder returns over infrastructure investment and customer needs.

One line in particularly from the audit stood out: “Avangrid prioritizes corporate earnings, not the needs of NYSEG and RG&E.”

In response, the utilities complained that the audit presented an “overwhelmingly negative tone”—a rebuttal that has done little to reassure some skeptical stakeholders.

Political Pushback

The proposal has drawn fierce responses from elected officials. Governor Kathy Hochul called on the PSC to carefully scrutinize the request and emphasized that utilities must not profit “off the backs of the ratepayer.”

Representative Josh Riley, who represents New York’s 19th Congressional District, condemned the proposal as “a slap in the face,” and vowed to fight it. “We’re talking about a foreign-owned monopoly raking in massive profits while failing over 100 basic operational functions,” Riley said.

State Senator Peter Oberacker went further, calling the proposal part of a “pattern of abuse” and saying it’s long past time that the companies be held accountable.

What Happens Next?

The PSC will now evaluate the rate proposal and determine whether to approve it, reject it, or settle on a modified version. Historically, regulators have often approved smaller increases than those requested. Public hearings and comment opportunities are expected in the coming months.

“There’s already an open door for negotiation,” Mayo said. “NYSEG and RG&E have said they’re willing to work on a five-year rate plan to bring more stability. But the real question is: will the compromise favor the utilities or the ratepayers?”

A Broader Crisis in Utility Oversight?

As Mayo notes, the situation may reflect a broader challenge in New York’s energy landscape. “We’re seeing utilities operating under outdated infrastructure and complicated corporate structures, all while ratepayers are left to foot the bill,” he said.

Public comments can be submitted to the PSC through their website at www.dps.ny.gov.

Image Credit: Jillian Forstadt/WSKG