NYSEG outlines $677M Ithaca-area plan, warns of proposed bill increases as county considers advocacy

NYSEG officials told the Tompkins County Planning, Energy and Environmental Quality Committee on Aug. 11 that the utility has filed a one-year rate plan under state law and is proposing a multi‑year settlement to finance major electric and gas investments, including projects targeted to the Ithaca division.

NYSEG filed required materials on June 30, which initiated an administrative proceeding before the New York Public Service Commission and trial staff. Tim Ellis, vice president of state government relations for NYSEG, said the filing proposes a revenue requirement in the several-hundred-million-dollar range for the first year and included a proposed multi-year investment plan to smooth costs and aid long-term planning.

"What our hope is . . . is to work with the Department of Public Service and all the parties involved to reach an agreement that weighs the balance of the investments that need to be made in the grid and limits the impact to our customers," Tim Ellis said.

NYSEG officials described major drivers in the filing: implementation of the Climate Leadership and Community Protection Act (CLCPA) projects, costs tied to broadband "make-ready" work on utility poles, customer-service changes tied to recent state legislation on in‑state call centers, recovery of storm restoration costs and an expanded vegetation-management program. On the electric side, NYSEG proposed approximately $10.9 billion in distribution and transmission investments across its service territory over the planning horizon; in the Ithaca division those projects total roughly $677 million.

NYSEG proposed a one-year bill impact illustration that the company said would amount to an average residential monthly increase of roughly 23.6% (about $33.12 per month) on the electric side and a similar per‑month increase quoted for gas — figures the company said would be spread over multiple years under a multi‑year settlement.

Other details NYSEG presented included a request to raise return on equity from about 9.2% to 10% and a proposed program to use company financing for localized upgrades paid by customers in municipalities that opt in. Tim Ellis also identified storm-recovery cost volatility and vegetation management as major reliability drivers: NYSEG reported about 5,900 miles of distribution right-of-way remaining to be cleared systemwide and said the company had completed roughly 260 miles in the current year in its Ithaca division. NYSEG also noted that roughly 40% of meters are indoor and discussed advanced metering infrastructure and billing-system upgrades to reduce billing disputes.

County staff and committee members asked for clarifications about the filing timeline, the difference between a one-year and multi-year settlement, the public hearing process and the prospect of local advocacy. Terry, staff in Planning and Sustainability, said county staff are parties to the case and will return next month, asking committee members to identify priorities for the county to advocate in the proceeding, such as vegetation-management cycles, funding for local grid upgrades, or protections for customers facing high winter bills.

Why it matters: a rate-case settlement will determine how much customers pay for electricity and gas for the coming years and how the utility prioritizes grid upgrades, vegetation management and gas‑system safety. The committee’s stated next steps are to consider what county priorities, if any, the county should press as a party to the case.

What’s next: NYSEG will continue the administrative proceeding; county staff will convene the committee in September to collect direction on positions to file in the rate case and may request an executive session to discuss negotiation strategy.