The New York State Public Service Commission announced on May 14 that it has set temporary rates for New York State Electric & Gas Corporation (NYSEG) and Rochester Gas and Electric Corporation (RG&E), which are significantly lower than the increases the companies requested. The decision aims to protect customers from steep rate hikes while allowing time for further review before permanent rates are established in the coming months.
This action matters because it balances the need for continued utility investment in safety and reliability with concerns about affordability for ratepayers. The Commission said that setting temporary rates prevents automatic approval of much higher tariffs due to statutory deadlines, giving regulators more time to scrutinize proposals.
“Governor Hochul is demanding strict fiscal discipline from the utilities and has directed the Department of Public Service to prioritize affordability for ratepayers while scrutinizing any rate increase proposals to ensure the lights and heat stay on,” said Commission Chair Rory M. Christian. “The Commission’s authority to establish temporary rates during the course of a rate proceeding for electric and gas utilities is well-founded. We have determined that a temporary rate, in the context of these major rate proceedings, is the best tool available to provide the additional time necessary to thoroughly review the proposals and make our final determination to establish just and reasonable rates.”
The Department of Public Service staff, along with other parties, have been litigating over proposed increases by NYSEG and RG&E after initial settlement talks failed. Administrative Law Judges continue their evidentiary work as part of this process. The establishment of temporary rates relieves some pressure on all parties involved, allowing more thorough consideration or possible resumption of settlement negotiations.
Temporary revenue increases starting June 1 will be: 3.7 percent for NYSEG electric, 0.5 percent for NYSEG gas, 4 percent for RG&E electric, and 1.5 percent for RG&E gas services—far less than what was requested by both companies under their proposed tariff changes filed last year.
For residential customers, these adjustments mean estimated total bill impacts ranging from an increase as low as 0.2 percent up to a maximum of about 2.9 percent depending on service type—a substantial reduction compared with potential double-digit percentage hikes if original requests were approved without modification.
Background materials indicate that more than twenty parties participated in hearings resulting in over ten thousand pages of transcripts; public input included nearly twenty-seven thousand written comments highlighting widespread concern about affordability amid current economic challenges.
In conclusion, while staff experts suggest some increase may ultimately be warranted when final determinations are made later this year or next—possibly around $66 million more annually each for both electricity providers—the Commission signaled ongoing caution given customer hardship across upstate regions served by NYSEG and RG&E.
