New York regulators approved temporary rate increases Thursday for customers of New York State Electric & Gas and Rochester Gas and Electric, offering short-term relief from the far steeper hikes utilities originally sought — but signaling that larger increases could still arrive later this year.
The temporary rates, approved by the New York State Public Service Commission, take effect June 1 while regulators continue reviewing sprawling rate cases that have drawn tens of thousands of public comments and widespread criticism from customers already struggling with rising utility costs.
While state officials framed the move as a way to shield consumers from massive automatic increases, the decision still raises bills for many customers and leaves the door open for significantly larger permanent hikes later in 2026.
Under the temporary plan, annual revenue increases were set at 3.7% for NYSEG electric service, 0.5% for NYSEG gas service, 4% for RG&E electric service and 1.5% for RG&E gas service.
State estimates project average residential bill increases of 0.2% for NYSEG electric customers, 1.7% for NYSEG gas customers, 2.9% for RG&E electric customers and 1.2% for RG&E gas customers.
Those numbers are far below the utilities’ original requests, which sparked backlash across upstate New York.
According to the Department of Public Service, NYSEG initially sought increases that would have raised a typical residential electric bill by nearly 24%, or roughly $33 more per month, while gas bills would have climbed more than 33%, also around $33 monthly.
RG&E’s original proposal included electric bill increases of approximately $33 per month and gas bill increases approaching $19 monthly for typical residential customers.
Still, Thursday’s ruling does not reject those larger requests outright. Instead, regulators said the temporary rates are needed because the cases have become increasingly complex and cannot be finalized before current rates expire.
Commission Chair Rory M. Christian said the temporary rates give regulators more time to review the utilities’ proposals and establish final rates later this year.
The scope of the proceedings has grown significantly over recent months, according to state officials. Regulators said the cases now involve more than 20 parties, over 10,000 pages of hearing transcripts, nearly 1,200 exhibits and roughly 26,700 public comments.
The utilities have argued the increases are necessary to maintain reliability, modernize aging infrastructure and continue system investments. Critics, however, have increasingly questioned whether customers are being asked to shoulder the financial burden of grid upgrades while utility companies continue operating under guaranteed-profit regulatory structures.
The temporary increases also arrive amid broader affordability concerns across New York, where rising electric, heating and housing costs have become a growing political and economic issue for households already under financial strain.
Final decisions on permanent utility rates are expected later this year.
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