Governor urges NYPA to back off rate hikes

Kathy Hochul

ALBANY – Gov. Kathy Hochul today came out against steep rate hikes proposed by the New York Power Authority.

NYPA is pushing for increases that is says are necessary to keep up with increased maintenance and operations costs.

Municipalities, school districts, businesses and nonprofits across New York State benefit from NYPA’s current preference power rate of $12.88 per megawatt hour.

The proposed rate hikes would take effect as follows: $17.61 for 2025, $21.66 for 2026, $26.72 for 2027 and $33.05 for 2028.

Hochul today urged NYPA to suspend the rate hike, saying it woud make the state less affordable.

“Today, I’m calling for an end to the Power Authority’s unacceptable proposal to raise electric rates on its customers statewide,” Hochul said. “Too many New Yorkers are already falling behind on their energy bills and I will do everything in my power to reign in these astronomical costs.

“While I recognize the Power Authority’s critical importance in providing invaluable, clean, baseload power from its large hydroelectric power plants Upstate, I expect NYPA to go back to the drawing board, shelve this existing proposal, and figure out a better way forward.”

The governor’s public comments were applauded by State Senate Republican Leader Rob Ortt.

He issued this statement: “My colleagues and I in Western New York and the Southern Tier called on NYPA to reconsider disastrous rate hikes that would have been detrimental to communities and businesses in our districts that rely on low cost power.

“The proposed increases would have only led to more businesses closing their doors and more New Yorkers fleeing for more affordable states. Today’s decision by the Governor to suspend the rate hike is welcome news for residents who are struggling to make ends meet amidst already soaring energy costs.”

The Buffalo Niagara Manufacturers Alliance & Manufacturers Association of the Southern Tier also praised the governor for pushing back on the rate hikes.

“We thank and appreciate Governor Hochul recognizing the disastrous impact the NYPA rate proposal was going to have on manufacturers and ongoing economic development initiatives across New York State,” the groups said.

“We look forward to continued dialogue with NYPA. NYPA has historically provided cost competitive, reliable and clean power that has helped keep manufacturers in New York State. As manufacturers operating in a high cost, high tax, high regulatory State, affordable and reliable NYPA power has helped manufacturers compete domestically and globally while retaining and growing jobs.

“We also thank those leaders from the manufacturing sector, and our Western New York delegation of elected leaders that have conveyed their concerns directly to NYPA, to their peers and to the Governor.”