Binghamton residents may soon face higher utility bills under a new plan proposed by New York State Electric and Gas. Released in July, the “Powering NY” plan would subsidize efforts to improve New York’s aging electric grid by increasing rates for electric and gas customers.

The plan aims to increase reliability, expand system capacity and modernize the grid to achieve statewide climate goals set by the Climate Leadership and Community Protection Act.

Signed in 2019, the law aims to reduce the state’s carbon emissions and build more efficient and climate-friendly infrastructure. NYSEG’s plan will likely be reviewed by the New York State Department of Public Service and other third parties.

With these upgrades, the plan is expected to have a heavy price tag. NYSEG’s plan involves an approximately $16 billion investment in an improved electric grid, including a $244 million investment in load relief and an allocation of $236 million to replace more than 75 circuit breakers annually. To avoid a steep increase for customers, NYSEG is expected to roll out the plan in phases over five years.

“Our Powering New York plan brings together the competing demands of state and legacy cost drivers, like storm restoration costs and the massive arrears that built up during and after the pandemic, while also supporting economic development through new jobs and grid improvement to attract and retain businesses,” said NYSEG and RG&E CEO Patricia Nilsen in a press release. “Our customers deserve a modern, resilient grid and top-notch customer service, and this plan enables us to continue our forward momentum.”

Over the past few months, utility companies have faced increased scrutiny by state lawmakers. In April, Congressman Josh Riley launched an investigation into the billing practices of utility companies after constituents complained about increasing energy bills. Riley also issued a formal request to NYSEG demanding access to customer billing and other data from January 2023, along with access to NYSEG’s analysis of factors that may have contributed to price hikes.

In a statement to Pipe Dream, State Sen. Lea Webb ‘04 said she opposed NYSEG’s plan, citing how many Binghamton residents struggle with increased costs of living.

“In my office, we are constantly hearing stories from constituents about incorrect bills, late bills, multiple months of bills arriving in their mailboxes in staggering amounts, and service challenges,” Webb said. “National Grid’s rate increase and NYSEG’s requested increase could not come at a worse time.”

Riley also questioned the relationship between recent price hikes and an attempt by utility companies to boost corporate profits. NYSEG is responsible for providing electricity and gas for over 1.9 million customers in upstate New York. The company is owned by Avangrid, a subsidiary of Iberdrola, a Spanish multinational electric utility corporation.

After the proposed plan was released in July, Riley called on NYSEG to be fully transparent about its financial dealings and urged the company to hold community hearings across the 19th congressional district about the plan.

“Growing up, I remember my parents would sit at the kitchen table each week, sorting our budget into envelopes–one for the mortgage, one for groceries, one for school clothes, and so on,” Riley said in April. “Today, too many families across Upstate New York have too many envelopes and not enough money to fill them.”

“Meanwhile, utility companies are jacking up rates and bragging to investors about record profits,” he continued. “Folks deserve answers and action, and that’s what I’m fighting to deliver.”