RG&E and NYSEG Seeking Significant Rate Hikes

According to filings submitted Tuesday, Rochester Gas & Electric (RG&E) and New York State Electric & Gas (NYSEG) have formally asked the New York State Public Service Commission (PSC) for permission to significantly raise monthly delivery charges on both natural gas and electricity.

RG&E is requesting delivery charge increases of approximately 22.2 % for natural gas—adding $18.87 per month—and 26 % for electricity, an extra $33.01 monthly 

Meanwhile, NYSEG seeks a 33.5 % boost to natural gas delivery—around $33.57—and 23.7 % for electricity, or an additional $33.12 per month 

RG&E projects an average increase of $52/month on residential winter bills and NYSEG customers would see roughly $67/month in additional winter heating costs 

These are delivery-only increases—all on top of supply and usage charges. Delivery covers maintaining poles, pipelines, grid infrastructure--hikes affect customers regardless of how much energy they use; supply is what customers pay for the actual energy consumed.

RG&E states they don’t control supply costs and those have spiked this year—up by 50–67% in the winter months.

Both utilities argue that aging infrastructure—including thousands of miles of wiring, substations, and utility poles over 40 years old—requires immediate modernization. They also note the need to expand capacity to service new commercial developments and comply with state clean-energy mandates 

The filings form part of RG&E and NYSEG’s broader “Powering New York” plan, which outlines potential grid improvements, legacy cost recovery, and infrastructure expansion. The plan proposes collecting data over five years and implementing a possible multi-year settlement 

Governor Kathy Hochul urged the Department of Public Service to thoroughly vet the requests, stating that while grid reliability is essential, “the companies have to ensure they’re not making additional profit off the backs of ratepayers” 

Republican Assemblyman Jeff Gallahan of Manchester criticized the proposals, saying the increases would impose intolerable burdens on ratepayers who are already “struggling to meet everyday costs.” He warned that approvals could force residents to “choose between heating their homes or putting food on the table” 

The PSC will formally review the filings. Hearings and public comment sessions are expected before any decision is made. There is currently no timeline for when a ruling will be issued .

This follows the PSC’s approval in October 2023 of a three-year rate plan for both utilities—about half of the amount initially requested. The third year of that plan was implemented this past May 

Separately, both RG&E and NYSEG were recently fined by the PSC—$9.8 million in RG&E’s case—for failing to meet mandated customer service standards. The fine must be returned to consumers and reinvested into service improvements 

Both RG&E and NYSEG are subsidiaries of Avangrid, Inc., servicing upstate New York. Their proposed “Powering New York” infrastructure plan aims to address legacy costs, meet renewable-energy targets, and enhance reliability 

The PSC’s review will include technical analysis, legal hearings, and input from consumer watchdogs. Any approved increase would apply only to delivery charges—roughly one-third of total monthly bills—excluding the cost of energy supply