New York Regulators Grant Limited Temporary Rate Increase for Avangrid Utilities, Extend Review

The New York State Public Service Commission on May 14 approved temporary delivery rate increases for New York State Electric & Gas Corporation (NYSEG) and Rochester Gas and Electric Corporation (RG&E) that are significantly lower than the utilities’ requested hikes, giving regulators additional time to review one of the largest utility rate cases in recent state history. The two utilities, subsidiaries of Avangrid, are seeking major increases in electric delivery revenues for the 12-month period ending April 30, 2027, prompting strong scrutiny from consumer advocates, state staff, and local stakeholders.

Under the temporary order effective June 1, 2026, the commission authorized annual revenue increases of 3.7 percent for NYSEG electric operations, 0.5 percent for NYSEG gas service, 4 percent for RG&E electric operations, and 1.5 percent for RG&E gas service. Regulators determined the temporary framework would prevent the companies’ filed rates from taking effect automatically under statutory deadlines while avoiding immediate and substantial customer bill increases.

The proceeding stems from filings in which NYSEG proposed increasing annual electric delivery revenues by about $464.4 million, representing a 35 percent rise in base delivery revenues. RG&E requested an additional $220.2 million in electric delivery revenues, equal to a 36 percent increase in base delivery revenues. State staff estimates indicated the original filings could have resulted in a 23.7 percent increase in the total bill for a typical residential electric customer, with similarly steep impacts projected for gas heating customers.

The commission noted the scale and complexity of the proceedings warranted additional review time. More than 20 parties participated in evidentiary hearings, producing over 10,300 pages of testimony transcripts and nearly 1,200 exhibits. Regulators also received roughly 26,700 written public comments alongside testimony from multiple public statement hearings across the utilities’ service territories.

Department of Public Service staff recommended lower revenue increases than those requested by the companies, including approximately $66.9 million for NYSEG electric operations and $68.9 million for RG&E electric operations. Staff also cautioned that broader economic pressures on customers may justify further reductions before final rates are approved.

The commission indicated permanent rates are expected to be decided in the coming months as litigation and potential settlement discussions continue.