State approves increased electric and gas delivery rates for O&R customers

The New York State Public Service Commission has approved increased electric and gas delivery rates for Orange and Rockland Utilities (O&R) for the period from Jan. 1, 2025, to Dec. 31, 2027, according to a press release from O&R last week.

The new rates are expected to result in revenue increases for both services.

As a result of the expiration of temporary electric and gas credits from O&R’s previous rate plan, as well as the delay in the implementation of new rates until April 1, average monthly total electric bills for a residential customer using 600 kilowatt hours per month will increase by 4.6 percent in 2025, 3.3 percent in 2026 and 3.5 percent in 2027, according to O&R.

As for average monthly total gas bills, the utility said that residential heating customers using 100 cubic feet per month would see an increase of 10.9 percent in 2025, 3.5 percent in 2026, and 3.8 percent in 2027.

The joint proposal – which included input from O&R, state agencies, energy industry representatives, consumer advocacy groups, environmental advocacy groups and local governments – establishes electric revenue increases over the three-year rate plan of zero in 2025 and an increase of approximately $17.7 million in both 2026 and 2027 and gas revenue increases of approximately $10.4 million in 2025, 2026 and 2027.

The energy concern said revenue increases will be put toward the ongoing development of clean and resilient energy projects, additional storm hardening programs and continuation of energy affordability programs for low-income customers.

Lawmakers seek changes in the PSC

Meanwhile, state Senators James Skoufis (D-Orange County) and Shelley Mayer (D-Westchester) are calling for the immediate overhaul of the Public Service Commission.

“Enough is enough: the time to overhaul the PSC is now,” said Skoufis, Chair of the Senate Investigations & Government Operations Committee. “The Commission continues to exercise little more than a wrist-slap for greedy utility companies: at the same time that O&R is crying poverty to the PSC, they’re reporting corporate returns of 7-10 percent. I’m sick and tired of watching my constituents be taken for a ride by these fat cats, and the legislature must act now to protect consumers.”

The Commission consists of up to seven members who are appointed by the Governor and confirmed by the Senate for a term of six years. Only one commissioner is required to have experience in utility consumer advocacy at any given time, and commissioner education/training varies widely.

The legislators will pursue proposals to cap utility profits and executive pay; prohibit rate hikes for certain operating expenses; require a comprehensive, third-party audit of all utility expenses, and dismantle the PSC – to be replaced by a pro-consumer regulatory body.

With electricity demand expected to rise by 50-90 percent over the next 20 years, according to a report by the New York Independent System Operator, New York’s ratepayers can’t wait, Skoufis said.