BUFFALO, N.Y. — If you're a NYSEG customer, your electric rates could be going up with the current rate hike proposal in front of the State Public Service Commission.
The utility company says it is primarily to provide greater service reliability for customers, but there are also provisions in the plan that ratepayers would have to cover for the state's climate change action plan.
NYSEG actually proposes a three-year, 22 percent electric cost increase, meaning about $30 more per month at the end of those years for the average residential customer. This is in place of their original now-discarded request last year for a 22 percent rate boost all in one year. Instead, they are now spreading it out over three years.
Patricia Nilsen is the president and CEO of New York State Gas and Electric who explained it to 2 On Your Side.
"It softens the impacts for customers on their bills, and it also, by being three years, let's us plan reliability projects on a long term basis," she said.
Reliability means replacing 45,000 older utility poles, upgrading equipment, and regular tree trimming to protect power lines amidst inflationary costs for NYSEG as well.
In February, the State Public Service Commission, with some notable no votes, did approve a separate $4.4 billion state plan requiring NYSEG and National Grid to upgrade their main transmission lines to connect with more renewable energy sources as part of the state's goals.
In addition, the state wants more electrification of homes including installation of heat pumps in place of natural gas furnaces. Some requirements were lifted as state lawmakers objected, but rules remain for new home construction, so there is the need for more electric system capacity.
Nilsen pointed out: "The money is tied to the improving capacity in neighborhoods so that they can either go to full electrification or be able to serve our customers. In some cases, electricity growth has grown to the point that our systems can't absorb it."
The NYSEG rate hike plan does, in fact, propose $900 million in investments to support the state's climate goals with power grid upgrades, and includes $250 million in energy efficiency and heat pump incentive plans.
The Public Utility Law Project of New York actually applauds NYSEG's plan for more regularly scheduled tree trimming to reduce possible power outages.
But the organization feels lower income and senior citizen customers will be hard pressed to pay more for their electric bills as they try to cope with overall higher household prices with inflation.
Ian Donaldson of PULPNY says 600,000 of NYSEG customers are currently behind on their NYSEG bills.
"We do hope that the Public Service Commission will strike in the middle to balance the reliability concerns with the affordability concerns," Donaldson said.
Donaldson said this regarding costs for the state climate's action goals: "We certainly have these really, really important energy goals, but I think as we move closer, especially to 2030, when we have to start hitting those targets, there needs to be much, a more equitable sharing of those cost implications."
The Public Service Commission is accepting comments online. A public hearing is also planned for July 17 before a vote later this year.