NYSEG’s Grid Modernization Plan Means Much Higher Bills for New Yorkers

Customers across New York could soon see an increase in their monthly utility bills under a proposal unveiled by New York State Electric and Gas (NYSEG). In July, the company rolled out its “Powering NY” initiative, which is a sweeping plan to overhaul the state’s aging electric grid and bring it in line with long-term climate goals.

The proposal would raise rates for both gas and electric users to help fund billions in infrastructure improvements. The upgrades are designed to enhance reliability, expand capacity, and support the clean-energy targets set under the 2019 Climate Leadership and Community Protection Act, which requires sharp reductions in carbon emissions and more sustainable statewide infrastructure.

According to NYSEG, the program would involve an estimated $16 billion investment, including $244 million for load relief and $236 million to replace over 75 circuit breakers each year. To minimize financial shock to consumers, the company plans to spread the increases across a five-year period.

“Our Powering New York plan brings together the competing demands of state and legacy cost drivers, like storm restoration costs and the massive arrears that built up during and after the pandemic, while also supporting economic development through new jobs and grid improvement to attract and retain businesses,” said NYSEG and RG&E CEO Patricia Nilsen in a press release. “Our customers deserve a modern, resilient grid and top-notch customer service, and this plan enables us to continue our forward momentum.”

Still, the proposal faces pushback. Utility companies have been under growing scrutiny, particularly since Congressman Josh Riley opened an inquiry in April into billing practices following widespread complaints about soaring charges. Riley demanded NYSEG provide customer billing records dating back to January 2023, along with internal analyses explaining recent price hikes.

At the same time, state lawmakers have voiced concerns about affordability. State Senator Lea Webb told Pipe Dream that she could not support NYSEG’s request, pointing to the hardships already faced by Binghamton residents.

“In my office, we are constantly hearing stories from constituents about incorrect bills, late bills, multiple months of bills arriving in their mailboxes in staggering amounts, and service challenges,” Webb said. “National Grid’s rate increase and NYSEG’s requested increase could not come at a worse time.”

Lawmakers have also accused utility companies of prioritizing profits over customers, questioning whether recent rate hikes are tied to corporate earnings rather than system needs. NYSEG, which supplies power and natural gas to more than 1.9 million customers in Upstate New York, is owned by Avangrid, a subsidiary of the global energy giant Iberdrola, based in Spain.

NYSEG has requested a 34.7% increase in delivery rates, which would raise overall residential bills by about 23.6%. If the proposal is approved, commercial customers would see their costs climb by 17.2%, while industrial users would face a 10.9% increase.

NYSEG’s Grid Modernization Plan Means Much Higher Bills for New Yorkers