Governor halts New York Power Authority's proposed electric rate increase amid public concerns

The Jamestown City Council held a work session on April 7, 2025, focusing primarily on updates regarding electric rates and related charges. The meeting began with a detailed discussion about the New York Power Authority's (NYPA) proposed increase in high-end power rates, which had been a contentious issue since mid-2024. The council noted that a public notice was issued on Christmas Eve, indicating NYPA's intention to pursue a significant rate hike. However, following a request from the governor, this process was halted in mid-February 2025.

Despite the pause, officials expressed concerns that NYPA may attempt to reintroduce the rate increase later in the year. They anticipate that discussions with municipal and cooperative systems will occur before any public announcements are made, likely through a notice of proposed rulemaking process that includes a 60-day commentary period.

The council also addressed the fuel adjustment charge, a variable component of electric bills that has been steadily increasing over the past year and a half. Historically, this charge ranged from 2.5 to 3 cents per kilowatt-hour, but it has now risen to between 3 and 3.5 cents or more. Factors contributing to this increase include NYPA's hydropower rates, National Grid transmission service charges, and state charges related to renewable energy credits.

Interestingly, the fuel adjustment charge was notably low in January and February 2025 due to the operation of the local power plant, which helped stabilize rates during a period of high demand and expensive grid electricity. However, officials warned that the outlook for the fuel adjustment charge remains upward, influenced by rising costs from National Grid and state energy standards.

Lastly, the council discussed the basic service charge and fixed rate for electric services, noting that the fixed rate has not been increased since March 2016. The council plans to approach the public service commission later this year to seek a modest increase in this fixed charge.

In summary, the meeting highlighted ongoing challenges and potential changes in electric rates, with officials committed to protecting customer interests while navigating external pressures. The council will continue to monitor developments and prepare for possible adjustments in the coming months.