Residents of Rochester, New York, have expressed concern over a proposal from local gas and electricity providers to increase customers’ bills by double digits, which they described at a public hearing on Tuesday as “outrageous.”
Rochester Gas & Electric (RG&E), which serves over 300,000 people in and around Rochester, requested to increase its electric bills by 26 percent (bringing them up to over $33) and its gas bills by 22.2 percent (bringing them up to $18.87). That would add up to an extra $600 per year.
New York State Electric & Gas (NYSEG), which serves over 900,000 electricity customers and more than 270,000 natural gas customers across over 40 percent of upstate New York, has proposed a $33 increase for its electric bills and a $33.50 increase for its gas bills.
Both companies, which are owned by Avangrid, state that the increases are necessary to meet growing demand and modernize their aging infrastructure. They claim that the increases will support investment in updating the existing infrastructure and improving the companies’ customer service, a move that they say would add 1,100 jobs in New York State.
They also aim to increase their return on equity, which is currently capped by regulators at 9.2 percent, to 10 percent, resulting in a total increase of $16.2 million.
Newsweek reached out to RG&E and NYSEG via email for comment.
What Do Residents Think About the Proposed Increases?
On Tuesday, state regulators held the first two of several public hearings planned to allow the public to comment on the proposed increases. Dozens of community members have expressed dissatisfaction with potential increases, regardless of their size.
RG&E and NYSEG have recently been ordered to pay a combined $20 million in penalties after being found guilty of failing to meet customer service standards.
According to local reports, one speaker at the public hearing at Rochester Public Hall on Tuesday suggested that the requested increases are a distraction, and that if lower rate hikes are approved, the impact would not be significant.
“If we want to continue being the state of opportunity, one with lower bills and cleaner, more reliable energy, we will reject these proposals, including the increase in return [on equity] and ensure that a real transition from gas is put into place,” Kyle Rosenthal said, as quoted by the Democrat and Chronicle.
Suzanne Shady, an advisory member of the Eastern Service Workers Association, was quoted by Rochester news station WHAM as saying that she is “absolutely against” RG&E raising rates.
“I believe that we in this community, as well as in the state have an obligation to do everything we can to try to make life more sustainable, and positive for all people,” she said.
City authorities are understanding of residents’ dismay at the prospect of future increases in their electricity and gas bills.
City Council President Miguel Melendez, according to RochesterFirst, told the judge on Tuesday: “I remain committed to working with all stakeholders, including RG&E, to pursue an energy future that prioritizes affordability, innovation, and reliability without placing the burden solely on customers through repeated rate increases.”
He added: “It is undeniable that our grid is outdated and demand for reliable service continues to grow, however, we must find smarter, more sustainable ways to generate and deliver local energy rather than relying on costly delivery models.”
City Councilmember Michael Patterson called the rate hike request “outrageous,” local news media reported.
“This rate increase is not graduated. It is not based upon your income. It is simply, ‘You use it, we’re going to take it and if you don’t pay us, we’re going to shut you off,’” he said.
What Happens Next?
The Public Service Commission (PSC) will have the final say on any rate hikes if RG&E’s and NYSEG’s requests are approved.
“This is only a proposal,” Alexis Arnold, communications manager for Avangrid, RG&E and NYSEG’s parent company, said Tuesday. “So we need to find out what the final settlement is, what we end up settling on, and then that’ll be worked out in terms of what the increase will be over the course of two, three, four, maybe even five years.”
Two more public hearings will be held on October 8 at the Ithaca Town Hall in Ithaca, New York.
