Starting in November 2023, customers of New York State Electric & Gas (NYSEG) saw and will continue to see an increase in their utility bills. This was a result of the recent rate case agreement between the utility and the state regulating agency, the New York Public Service Commission.
Under the three-year agreement, NYSEG residential electric customers with average usage rates saw their monthly electric bill increase by just under $10 in November 2023. Their bill will increase by another $9 starting May 2024 and by another $11 starting May 2025. This adds up to an extra $30 a month for the average electric bill. Residential gas heating customers with average usage rates saw their monthly bill increase by nearly $5 in November 2023, and that will increase by another $2 in May 2024 and by another $4 in May 2025, a total of $11 during this period.
Most of this increase comes from an increased delivery charge (see image below). This charge is what NYSEG charges for delivering the energy through their network of transmission lines. Over the next year and a half, this charge will increase by 62% for electricity and by 17.6% for gas compared to October 2023 rates. The rest comes from an increase in the “basic service charge” on a bill, a fixed monthly charge to cover utility costs, which increased by $2 in November of 2023 for most electric and gas customers.