NYSEG Seeks Approval for Large Utility Rate Hikes in New York

Residents across New York may soon see sharp increases in their monthly utility bills if a proposal from New York State Electric and Gas Company (NYSEG) gains regulatory approval. The company has asked state officials for permission to boost both gas and electric rates to help fund a sweeping upgrade to aging infrastructure.

The plan, submitted in late June, would raise costs significantly for the average residential customer. According to NYSEG’s request, households using 600 kilowatt-hours of electricity each month would pay about $33.12 more on their electric bill. Gas service would rise by a similar margin, with average customers paying an extra $33.57 per month.

The utility says these funds are essential to support its “Powering New York” modernization program, but opponents argue the rate hikes come at a time when many families are already under financial pressure from inflation and higher living expenses.

NYSEG is asking to roll out the increases gradually over a five-year period, beginning May 1st, 2026, instead of implementing them all at once. Company representatives say this staggered schedule would help customers better manage costs while avoiding disruptions from equipment shortages and supply chain delays that have affected projects nationwide.

The extra time, NYSEG says, would also allow it to secure critical equipment such as transformers well in advance, minimizing construction slowdowns.

NYSEG points to three primary priorities in its five-year investment strategy:

1. Reliability and resilience: Severe storms in recent years have caused widespread outages, highlighting weaknesses in the grid. The company plans billions in upgrades, including new smart meters for faster outage detection, quicker restoration times, and improved communication with customers during emergencies.

2. Customer service improvements: With customers voicing frustration over billing issues and service delays, NYSEG proposes hundreds of millions in upgrades to call centers, billing systems, and online service tools. Of this, $413 million would be earmarked for programs helping low-income customers offset the impact of rising rates.

3. Vegetation management: Tree-related incidents account for about half of power outages in NYSEG’s territory. The plan would direct $525 million to expanded tree trimming and maintenance along power lines to help prevent weather-related disruptions.

NYSEG estimates its overhaul would create roughly 1,100 jobs across the state in construction, maintenance, and support services tied to the grid and gas system improvements.

The New York State Public Service Commission will now examine the proposal through a public review process, allowing residents to comment and scrutinize NYSEG’s justifications.

The request follows a rate increase that took effect in May 2025 as part of an earlier multi-year plan, raising concerns about the cumulative financial strain on customers.

The commission’s eventual ruling will determine whether millions of New Yorkers will face these higher costs starting in 2026.

NYSEG Seeks Approval for Large Utility Rate Hikes in New York