fbpx
1143 Dryden Rd Ithaca, NY 14853 1.866.669.1786

Rate Increases for NYSEG and RG&E

Rate Increases for NYSEG and RG&E

RATE INCREASES FOR NYSEG AND RG&E

Increasing Prices

If you live in upstate New York and are paying for gas and electric, chances are you’ve heard of New York State Electric & Gas and Rochester Gas & ElectricNYSEG and RG&E are subsidiaries of AVANGRID and are two major companies that provide electric and gas to residential areas. Recently, there has been talk of rate increases for NYSEG and RG&E.

For the past year, NYSEG and RG&E have been proposing an increase in the prices of their delivery services. Aagreement was reached at the beginning of 2020 and was supposed to be implemented in May. Due to the pandemic, however, the companies held off on raising their rates. In June, a settlement was reached with the New York Public Service Commission that starting in October, the rates for utilities will be increasing significantly. The rate increases for NYSEG and RG&E will continue to grow over the next three years.  

So, How Much More am I Paying?

NYSEG customers should expect an overall increase of 24.5%. The first year increase is $2.49 more a month, and second and third year increases will bring the average monthly bill up to $57 a monthRG&E customers have a projected overall increase of 13.3%. A first year increase of 37 cents more a month combined with second and third year increases will bring the average monthly bill up to $60 a month. These rate increases for NYSEG and RG&E are reflective of electric bills, the gas rates are a little different.  

  • NYSEG
  • RG&E

For NYSEG customers, gas bills will rise 0.8% in year two and 1.6% in year three. RG&E clients will have a 0.3% increase in the second year, and a 1.3% in the third year. The total dollar rate increases for NYSEG and RG&E customers are $1.75 and $1.03 respectively. 

What Does this Mean?

NYSEG and RG&E are the only owners of pipes and wires in the territory that will be affected by these increased prices. Because the territory that they have control over is so large, utility regulators must approve the filed settlement. Currently, this agreement is still awaiting approval. Support for this agreement comes from over 20 different parties who have all signed the settlement. The goal of this bill is to make sure that customers receive safe and reliable services at low rates.  

NYSEG has 900,000 electric customers and 260,000 natural gas clients over different areas of New York totaling 20,000 square miles. This is about 40% of the upstate New York region. RG&E has 375,000 electric customers and 308,000 natural gas clients in the nine county service territory centered around Rochester, approximately covering 2,700 square miles. 

These two companies are major powerhouses when it comes to the electric and gas industry. They appear to be the primary companies in most residential areas of upstate New York. However, utilities maintain that even after this three-year rate increase is fully functioning, the NYSEG and RG&E will have the lowest delivery rates in the state among investor-owned companies. 

What Can I Do?

By increasing their rates so greatly with no real projected benefits, these companies are taking advantage of their customers during this pandemic. Right now, virtual public hearings are being held to receive comments on the proposal. While it may feel like these decisions are being made with no regard for your opinion, there are chances to weigh in and give opinions.  

If speaking out against these rate changes isn’t really your style, that’s okay. Although NYSEG and RG&E may be all that you know, there are more options when it comes to your energy. Now is the time to make the switch from electric to solarElectric price increases are the perfect opportunity for someone who was hesitant about switching to get on track. If this sounds like you, check out our website to see if IGS can help you get started on the path to solar!