Utility Monopolies are the Cause of Rising Electric Bills
We enthusiastically support Governor Kathy Hochul's focus on energy affordability, as outlined in her State of the State Address yesterday.
However, when it comes to your energy bills, the numbers don’t lie…. Last year, we commissioned a study with FTI Consulting that clearly backs the many benefits of private sector competition and how utility monopolies are the cause of rising electric bills.
Despite what NYSEG may tell you, they are a major factor in higher electricity costs. In fact, combining utility costs with State fees and taxes makes up roughly TWO-THIRDS of the overall average electric bill.
A recent example of a cost overrun from just last year – Avangrid, the corporate parent of NYSEG and RG&E, filed an update on its two phases of transmission upgrade projects. The filing showed that costs for phase 1 increased by 23% and phase 2 increased 10% of its initial estimates. We are talking HUNDREDS OF MILLIONS of dollars passed onto their customers after the initial estimates were approved two years earlier.
The PSC should take a good hard look at what drives up utility bills and continue to let the private sector invest in new resources as New York takes an all-of-the-above approach towards a cleaner, more affordable, and reliable energy future. Congratulations Governor Hochul on making energy affordability a priority!
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