Local Leaders Oppose NYSEG's Proposed 31% Electricity Rate Increase

HUDSON VALLEY, NY — Local leaders made their strong opposition very clear at a public hearing the New York State Electric & Gas Corporation's request that the New York State Public Service Commission approve its proposed 31 percent rate hike for electricity and a 19 percent increase for natural gas.

The changes to electric and natural gas delivery rates and practices would be effective May 1, 2023.

The change only applies to one portion of your monthly bill.

An electric or gas bill consists of two parts: a supply charge and a delivery charge, PSC officials explained. Through the supply charge, the utility recovers the cost of the electric or gas commodity. The cost of the commodity is determined by the competitive marketplace and is not set by the Commission or the utility. Through the delivery charge, the utility recovers the cost to transport electricity or gas to customers through the utility’s delivery system. The delivery charge is regulated by the Commission.

NYSEG is proposing to increase its electric delivery revenue by $274 million (a 31 percent increase in base delivery revenues), and its natural gas delivery revenue by $43.4 million (a 19 percent increase in base delivery revenues), according to its filing with the PSC.

NYSEG wants to use the money for emergency response improvements, including an automated system to contact life support equipment customers; replacement of aging infrastructure; reaching and maintaining a five-year cycle for trimming trees and overgrowth; improving its mobile/digital interface options for customers; and leak-prone pipe replacement.

Assemblyman Kevin Byrne, running unopposed for Putnam County Executive, asked the PSC in August to hold a local hearing on the proposed rate hikes. In a letter, he and Yorktown Town Supervisor Matt Slater said "Maintenance costs should be viewed as an inherent part of NYSEG's operational expenses, especially considering consumers already pay some of the highest energy costs in the country."

At a virtual public hearing Wednesday, Slater urged the state regulators to reject the proposed increase.

"Families, seniors and businesses are all trying to figure out how they will keep their lights and heat on this winter," Slater said. "A 31% rate increase would be catastrophic and force many, especially our seniors on a fixed income, to choose between purchasing lifesaving medication and keeping their lights on. That is a wholly unacceptable proposition which is why the Public Service Commission must reject this proposed rate hike."

Somers Supervisor Rob Scorano said the town plans to join the Yorktown town board in opposition. "The Somers Town Board is preparing to formally oppose the NYSEG rate hike which will only add to the financial pain we are all experiencing."

AARP New York also called on regulators Wednesday to reject the proposed rate hikes by NYSEG and Rochester Gas & Electric, saying the biggest proposed utility energy delivery rate hikes in state history were inappropriate with consumers already bracing for huge increases in heating bills this winter due to the quadrupling of the costs of natural gas.

Already, over 106,000 NYSEG customers and 65,000 RG&E customers are at least 60 days behind on their bills, with the two companies having sent notices this month threatening shutoffs to over 100,000 customers (66,000 by NYSEG), according to reports filed with the New York State Public Service Commission, AARP officials said in a news release.

"People need to be able to buy groceries, medications and other necessities; the last thing they need are historic increases in the cost of having their energy sent through wires and pipelines to their homes," said AARP New York State Director Beth Finkel.

The commission will hold its third virtual public hearing about the rate hike requests twice on Oct. 18.

• TIME: 1 p.m. Event Number: 2349 583 6026 Password: Oct18-1pm Phone Access: 518-549-0500. Access Code: 2349 583 6026

• TIME: 5 p.m. Event Number: 2346 895 0569 Password: Oct18-5pm Phone Access: 518-549-0500 Access Code: 2346 895 0569

Anyone wishing to comment must pre-register by 4:30 p.m. the day before the relevant hearing.

Participants who would like to provide a statement at any hearing, and will log in to the hearing electronically, must pre-register by visiting www.webex.com by 4:30 p.m. on the day before the hearing. From the Webex homepage, registrants should click “Join” at the top right-hand corner of the screen, enter the appropriate event number (listed above), and provide all requested information.

Or call 1-800-342-3330 to register by phone.

Speakers will be called in the order in which they registered.

Details on how to participate at the public hearing and how to submit comments are available in the Notice of Public Statement Hearings.

Information about the filing can be found at www.dps.ny.gov. From the homepage, click on “Search,” and enter the associated case number (22-E-0317, 22-G-0318, 22-E-0319, or 22-G-0320) in the “Search by Case Number” field.