Metro Justice Calls on City Council to Back Public Utility Study Following Opposition to RG&E Rate Hikes

Metro Justice and the Rochester for Energy Democracy (RED) coalition have welcomed Rochester City Council’s public opposition to the latest RG&E rate hike proposal — but say words are not enough. The coalition delivered a statement Thursday, Nov. 13, during the Speak to Council session at City Hall, urging Council to take concrete action by advancing a City-led public utility study.

Pastor Wanda Wilson of RocACTS delivered the statement on behalf of the RED campaign, ahead of a planned community action at RG&E headquarters on Dec. 6 at noon. The action will call for “No Rate Hikes, No Shutoffs, Public Power Now,” and City Council members have been invited — contingent on their commitment to championing a municipal utility study.

“City Council spoke out against the rate hikes — now we’re asking you to use your power to help get us out of this mess,” Pastor Wilson said. “With RG&E proposing to raise energy bills by more than $600 a year, delayed HEAP assistance, and regulators still failing to act on their own audit findings, Rochester cannot afford to wait. We’re calling on Council to lead on a public utility study and show up on Dec. 6 if they’re ready to take that step.”

A video of the statement will be available on Metro Justice’s social media channels and through the City’s YouTube livestream of the Speak to Council session.

Background: Another 34% Rate Increase Proposal

RG&E’s previous rate hike — totaling 34% — fully took effect in May 2025. Immediately afterward, the utility submitted another proposal seeking a near-identical increase. If approved, the hikes would raise the average household’s annual gas and electric bill by $623. According to ACEEE data, the proposal would push an additional 50,000 households into energy poverty.

With Rochester’s median income hovering around $46,000, more than half of city households would become “at risk” (spending more than 6% of income on energy) under the proposed increase.

These requests come despite a recent audit revealing widespread mismanagement and safety failures at RG&E and its parent company Avangrid. The audit also raised questions about internal money transfers across Avangrid’s holdings. Even so, RG&E is requesting to raise its guaranteed shareholder profit rate from 9.2% to 10%, even as experts say a reasonable utility profit margin is closer to 6%.

RG&E and NYSEG are also seeking permission to shutter multiple customer walk-in centers, including the South Clinton Avenue office in Rochester and locations in Sodus, Oneonta, Ithaca, and Auburn.

A Rapidly Worsening Shutoff Crisis

RG&E’s shutoff crisis has escalated sharply alongside ongoing billing errors and unresolved customer service failures.

• 2024 shutoffs: 13,413 total (12,217 homes; 1,196 businesses) — triple the number from 2023.

• January–September 2025 shutoffs: 14,321 — already surpassing last year’s all-time high.

Metro Justice says these surging shut offs underscore the urgent need for structural reform and public accountability.

Profits Up as Energy Burden Deepens

Avangrid’s local profits have risen steadily:

• $90 million (a few years ago)

• $107 million (2023)

• $122 million (2024)

• $119 million (year ending April 2025)

Meanwhile, According to Metro Justice, Rochester faces one of the highest energy burdens in the nation:

• 29% of all homes spend 6–25% of income on energy

• 44% of Black and Latino homes fall into the same category

• 25% of low-income households spend more than 21% of income on RG&E bills

The proposed rate plan also includes using ratepayer dollars to expand fossil fuel infrastructure — including hydrogen projects and so-called “renewable natural gas” — which climate experts have flagged as costly, ineffective, or misleading.

Rate Hike Breakdown

Company	% Increase (Delivery)	Current Avg Bill	Proposed Avg Bill	Monthly Increase
RG&E Electric	36%	$126.91	$159.92	$33.01
RG&E Gas	32%	$84.84	$103.71	$18.87
NYSEG Electric	35%	$139.63	$172.75	$33.12
NYSEG Gas	39.4%	$100.07	$133.64	$33.57

Assumes usage of 600 kWh electricity and 83 therms of natural gas monthly.

Full rate case filings:25-G-0380 (RG&E Gas), 25-E-0379 (RG&E Electric), 25-E-0375 (NYSEG Electric), 25-G-0378 (NYSEG Gas).

RG&E says these rate increases are necessary to fund investments in system infrastructure: modernization of the grid, reliability improvements, operations enhancement, customer service upgrades, and safety/compliance programs.

They have also emphasized that the requested numbers are the beginning of a process, and that final approved increases may be lower:

“While the percentage of the one-year filing has gotten media coverage … those numbers are unlikely to be approved," the company said in a statement. "A rate case is a lengthy negotiation process. We come to the table with what we need, but those numbers are not approved and are unlikely to be the final increases on customer bills.”