Buffalo, N.Y. (WBEN) - Concerns over the rising costs of utility bills continue for a number of Western New Yorkers and others in New York State. While this winter has played into it with some of the longest durations of cold temperatures, there's more that meets the eye.
State Sen. Patrick Gallivan points out the most recent increase with utility bills has to do with the Public Service Commission approving electric utility rates, or a surcharge on every single rate payer's bill to pay for the storms we've seen over the past couple of years.
"Of course, they have done this over time, all the utilities as far as recovery goes, passing that cost on to ratepayers. And in this case, it's no different. But specifically, it is a surcharge specifically to pay for the damages that were done by recent storms," explained Gallivan in an interview with WBEN. "Our concern, of course, is a continuing increase in utility rates. You have a high cost of living in New York State, high cost of doing business in New York State, and as we continue to increase costs, it just makes it that much harder for people to live and work in New York. So it's always a concern."
In Niagara County, concerns over the Public Service Commission's surcharges has led to lawmakers calling on Gov. Kathy Hochul to reject any plans for rate hikes on utility bills. Lawmakers also filed comments opposed to the rate hike with the New York State Department of Public Service.
"At our last legislature meeting, I was the primary sponsor of a resolution to call on the governor to kill the National Grid rate hikes," explained Niagara County Legislator Chris McKimmie with WBEN. "I've heard from many of my constituents that they're shocked that over the last year or so, they've seen their bills go up $200, $300, $400 for the year, and the current proposed rate hike of approximately $18.92 a household and $18.34 a household for gas by National Grid is absurd. My constituents just simply can't afford that."
McKimmie feels it's unfair to pass down any rate hikes to the residential consumer.
"I was just looking at my gas bill and having a conversation with some of my constituents. In my gas bill, under the delivery adjustment charge, it says on here that my increased delivery charges are directly related to investments and initiatives that support New York State's emissions reductions requirements. And the cost of utilities, and with inflation the way it is, my constituents can't afford to pay more for gas and electric."
In the years to come in New York, the costs of utility bills may only be compounded by the state's plans to go all-electric and move away from other energy sources like natural gas.
"The concern for the CLCPA [Climate Leadership and Community Protection Act] and the electrification of New York State is very real. The costs are unaffordable, the plan is unrealistic. Throwing all of our energy eggs into one basket, so to speak, is just not something that is good for everybody, especially those in Western New York with our cold winter climates, and the storms that we've seen and the power outages that we've seen," Gallivan said. "So it's problematic on many, many fronts, including, what will rates be going forward? How much will this cost going forward? And the money has to come from somewhere, it isn't going to drop out of the skies. It's either is going to come from taxpayers or ratepayers. Either way, it's not good, and until we get a handle on a realistic, affordable and reliable energy policy, it's going to continue to present problems for consumers and New York State residents."
Like many of his Republican colleagues across the state, Gallivan believes the goals and the plans of state lawmakers who were in favor of the CLCPA were unrealistic to begin with.
"We don't have the technology, we don't have the grid, we don't have the money to be able to implement the plan that is out there right now. So we have a long, long way to go," Gallivan noted. "And the hope, of course, is that all of state government, the executive, the entire legislature, comes to terms with that and puts forward more realistic and affordable policies."
McKimmie also strongly feels that New York is no where close to ready to go all-electric.
"One thing I hear from my constituents very regularly is they're opposed to the Climate Leadership and Community Protection Act. A lot of my constituents rely on natural gas for cooking and heating, and they're terrified that if they were forced to switch to an all-electric heating and cooking platform, or be forced to build new or move into a residence that only has electric, they would freeze in the winter and they wouldn't be able to cook, because their electricity goes out far more often than their gas service is interrupted," McKimmie said.
And if the state is mandating the transformation of grid infrastructure to try and meet the high demands, Gallivan knows it's creating a great deal of uncertainty for residents and businesses alike.
"Businesses, especially, they don't know what to do, whether they should grow here or move somewhere else. They're not able to predict their costs, they're not even able to predict whether or not there'll be energy to be able to supply their business. That, ultimately, presents problems. Businesses leave, businesses don't expand here, we don't have as many jobs," Gallivan noted. "We have fewer people being able to to afford to raise a family in New York, live in New York. None of this is good, which is why I think that people have to demand that their legislators do something about it, and put forward a realistic, sensible energy policy."
Gallivan feels residents in New York, now more than even, have to articulate their concerns over these ongoing issues to they're elected officials, the policy makers, and demand a plan that is realistic, achievable and sustainable for everyone.
"None of those things are the case right now. We can't do what this plan calls for. The grid cannot support it. We don't even know what its true cost is going to be, but for estimates, into the hundreds of billions of dollars," he said. "And so we have a long way to go to ensure that we have a realistic, affordable and viable energy plan in New York State."
As for a utility company like NYSEG, spokesperson Mike Baggerman says they have not had a rate increase for consumers.
"What's been happening over the last few months is that supply costs have nearly doubled versus last year. That charge is not something that is NYSEG related. So, there's a lot of a narrative out there that there's been a rate increase, NYSEG has not increased the rate," said Baggerman with WBEN. "The supply charges are outside of NYSEG control, and obviously the cold conditions have led to an increase in energy usage. So something just to clarify, we have not increased your rates."
With temperatures having been significantly colder this year compared to last year, energy usage has increased quite a bit, which is what folks at NYSEG have seen with customers bills.
"Bills have gone up, we acknowledge that, but one of the things that we really want to educate our customers about is that the control of the supply, it does not come from NYSEG whatsoever. In fact, the supply costs come from a group called the New York Independent System Operator, they manage the wholesale electrical marketplace. But NYSEG's responsibility is to collect on the supply charges when it comes to billings," Baggerman explained.
When it comes to the push for all-electric in New York in the coming years, Baggerman says NYSEG is doing all it can to stay on top of the parameters of the law and be fully ready for whenever the switch takes effect.
"NYSEG is continuing to invest in the infrastructure under the agreement made under the New York State Public Service Commission. We had an agreement with the PSC back in 2023, and we've been following that ever since it's been enacted," Baggerman said. "We are continuing to follow all the regulations that have been set forth by New York State."
How can customers of NYSEG find ways of regularly controlling their bills? One of the big billing items people are always seeing is a result of the increased use of their heating and cooling, especially around this time of year.
"There's simple ways you can lower your uses. For example, if you're leaving the house for the day, turn down your thermostat by just a few degrees, and you can save a significant portion on your bills whenever it comes around next month. Also, some things to consider is to make sure you have proper insulation in your home. There's a variety of ways that you can increase the efficiency of the way that your home is," Baggerman noted.
Baggerman adds if anyone has any questions or concerns about their energy and utility usage, don't hesitate to reach out to NYSEG.
"We want to just make sure that people know that NYSEG is here to help customers. Whenever there's talks about disconnection, that comes at a very last resort, and one of the things that we want to do is we want to communicate with our customers. We want people to contact our customer service line, and we'll go through things such as payment plan options, we'll talk about budget billing to control your bills that you pay every month," he said. "Things like that are going to help ensure that customers have a good experience, but we want people to know that we're here to help. And one of the great ways that you can learn how we can help you go to our website, NYSEG.com/HelpWithBill. That's going to play a key factor in helping you control your energy bills.