The Partial Observer by Patricia Nilsen

The Truth About Your NYSEG Bill

It has been a challenging time to make ends meet. There’s been an increase in the cost of your groceries, insurance, and, yes, even your utility bill. NYSEG cares about the people we serve, and we want to make sure that you can afford to keep the lights on at home.

That’s why I want to make this perfectly clear: NYSEG has not raised your delivery rate this winter.

I know you have questions, so let me explain.

NYSEG is highly regulated by the New York State Public Service Commission and tasked with safely and reliably delivering energy to your home through our wires, substations, and pipelines. However, we are also required to issue bills which include a major line item that we have no control over: supply.

While delivery costs have not changed since May 2024, as part of our 2023 agreement with the state, supply costs, which originate from third-party energy suppliers, have dramatically increased this winter. The daily supply rate has increased by more than 50 percent in many cases and in parts of the state, some customers have seen increases of 67 percent or higher.

Again, NYSEG only controls the delivery line item on customer bills, not supply costs. The New York Independent System Operator is responsible for the wholesale energy market and the cost to supply energy is set by the market and not by the Public Service Commission. While NYSEG purchases the supply on customers’ behalf, we do not mark up or profit from the supply line on your bill. As a consumer, you have the freedom to choose where you get your supply. Some suppliers offer a fixed or variable price for their supply. However, if you choose a different supplier, you could end up paying less or more—there is no guarantee of savings compared to what NYSEG purchases on customers’ behalf.

There’s another reason why your bill is higher than normal: You’re using more energy, even if your habits haven’t changed. Every year, the cold temperatures will require your home to use more energy. That’s simply a fact. When temperatures are in the teens and single digits, your furnace, boilers, and baseboard heating use more energy to keep your home at your ideal temperature. Even your water heater works harder when it’s cold outside, as the water that comes into your home is colder.

This winter has been significantly colder than the past few years. The average temperature was 28 degrees in December, 20 degrees in January, and 24 degrees in February. All three of those temperatures were colder than normal conditions. In fact, some areas this winter are about 10-15 percent colder than last year, which correlates with the spike in your energy usage. NYSEG last had similar cold winter conditions during the winters of 2013-2014 and 2017-2018.

The increase in energy use will happen again. In just a few months, we’ll be in the dog days of summer. During this time, when you escape the high heat and humidity to enjoy the comfort of air conditioning, it’s reasonable to expect your energy usage to increase. In short, when extreme temperatures hit, more energy will be used. When those periods combine with higher supply costs, it’s normal to see bills double or even triple.

Meanwhile, we are here to help you manage your energy use and costs. Your family can receive help with your bill through initiatives including our Energy Assistance Program, Home Energy Assistance Program (HEAP), budget billing, payment arrangements, and other opportunities that help qualifying families. NYSEG also regularly provides tips on how to reduce your energy use, such as adjusting your thermostat when you leave the house, proper insulating, and other helpful tips around your home.

There’s one other thing: We’re not naïve. There’s a reality of the social media world we live in. Misinformation will travel around the world several times before the truth gets around once. There are legitimate billing concerns from individuals that we have, and always will, faithfully resolve. However, others choose to vilify our company and our workers either because they are pushing an agenda, unwilling to accept personal responsibility for their usage and/or lack of payment, or trolling smart meters because that’s our newest technology. Those same people are interacting with others online who could be helped by contacting us directly, who end up becoming more upset due to the misinformation they read on these community forums. The last I checked, the Internet is undefeated in arguments on the Internet.

Having unpaid bills is stressful, and we want to make sure that customers are aware of the true driver of these high bills, while we also offer financial help and energy efficiency solutions to those who qualify. We still have lots of work ahead of us in our efforts to educate consumers. Our team has diligently worked to create informative materials that are widely available on our website and regularly included with paper bills. Additionally, we’re investing $1 billion to focus on serving our customers, with increased bill assistance and expanded protections during extreme temperature events.

NYSEG will continue to make sure you can easily connect with a person to answer any questions you have. NYSEG is committed to providing continuous education and communication to all stakeholders including elected officials, government regulators, and you, our valued customer.

Patricia Nilsen is the president and chief executive officer of NYSEG and RG&E.