Families Already Drowning in Utility Debt Now Face $800 a Year Increase from NYSEG as Profits Soar

Niagara Action
Nov 11
3 min read

Consumer, environmental, and affordability advocates are pushing state regulators to reject a sweeping proposal from New York State Electric & Gas (NYSEG) and Rochester Gas & Electric (RG&E). The plan could add as much as $800 per year to some households’ utility bills.

In a filing before the New York State Public Service Commission (PSC), the companies outlined rate increases that would raise monthly delivery charges between 34% and 48%, depending on service type and customer class. Opponents say the hikes would fall hardest on low-income families who are already buried under high energy bills and mounting arrears.

The request arrives just two years after a 2023 case that increased residential delivery fees an average of 62%. Advocacy groups argue that families have not recovered from that spike, even as the utilities’ parent company, Avangrid, continues to grow its profit margins. According to Renewable Heat Now, Avangrid’s net earnings nearly doubled since 2015 rising from $135.7 million to $387.2 million in 2024.

Jessica Azulay, Executive Director of the Alliance for a Green Economy (AGREE), said the companies are making “historic profits while putting hundreds of thousands of New Yorkers into debt.” She argued that approving another round of major increases would contradict the state’s supposed affordability priorities, calling it a betrayal of any “affordability agenda” in New York.

Advocates also claim the proposal encourages more natural gas consumption, expands fossil fuel infrastructure, and undermines customers who invested in heat pumps and other high-efficiency systems. Critics say the plan contradicts the Climate Leadership and Community Protection Act by locking ratepayers into outdated, polluting energy systems.

Data from summer 2025 shows the scale of the financial strain:

-More than 183,000 households across NYSEG and RG&E territories were behind on payments

-Over 13,000 service terminations were reported

-Many households in Upstate New York are paying energy burdens far beyond affordability benchmarks

Kristen Van Hooreweghe, Senior Director of the Climate Solutions Accelerator, pointed to a recently released audit that found gaps in climate compliance oversight, poor transparency in spending, and inadequate support for low-to-moderate-income customers. She said the companies lack credibility to request increases of this size while families are already paying extreme amounts.

Advocates also highlight a long-standing pattern of billing errors, customer complaints, and regulatory investigations. Adam Flint of the Network for a Sustainable Tomorrow noted that state auditors found 128 operational issues within the companies, several serious enough to trigger violation notices.

Multiple state legislators have also warned of significant financial consequences. Senator Jeremy Cooney said the increases would “hurt the pocketbooks of New Yorkers” during a statewide affordability crisis.

Senator Lea Webb reported her office is still receiving calls from residents panicking about the potential hikes, urging constituents to speak up.

Assemblymember Anna Kelles stressed that customers already experienced more than a 60% jump in delivery fees. She cited residents choosing between food and electricity, including one family that received a $2,600 electric bill in a single month.

Kelles said NYSEG and RG&E continue to pour money into aging gas infrastructure while Avangrid’s profits soar, calling utility affordability a necessity, not a luxury.

In a statement, NYSEG told CBS6 that utilities are legally required to submit rate cases in order to invest in system upgrades and maintain reliability. The companies said the filing reflects a five-year plan to modernize infrastructure and improve service. They also noted that PSC approval is required for any increase, and argued that the initial numbers reported publicly are unlikely to represent the final outcome.

The utilities also pushed back on claims about profits being sent overseas, noting that from 2015–2024, NYSEG and RG&E received $1.19 billion more in capital contributions from Avangrid than they paid in dividends.