NYSEG Mitigates Impact of Natural Gas Supply Costs for Customers
NYSEG reaches settlement on gas transmission company’s federal rate case
Columbia Gas Transmission initially sought 139% increase; Rate increase lowered substantially
NYSEG does not profit from supply costs
BINGHAMTON, N.Y. — December 2, 2025 — New York State Electric & Gas (NYSEG) has successfully reached a settlement to significantly reduce a proposed 139 percent cost increase from Columbia Gas Transmission (TCO), a natural gas pipeline and storage provider within NYSEG’s portfolio.
TCO originally sought to more than double its service costs through a rate case filing with the Federal Energy Regulatory Commission (FERC), proposing a one-year cost increase for approximately $14.1 million to $33.7 million - an increase of 139 percent. Following extensive negotiations with TCO, and in collaboration with other customer groups, NYSEG reached a settlement that significantly reduces the proposed rate increase.
Under the settlement agreement, TCO’s costs will increase by an average of 14.5 percent annually, over a three-year period, with projected total costs of $19.6 million in year one, $20 million in year two, and $20.3 million in year three.
“This settlement is a major win for our customers” said Patrick Fox, senior director of energy services at NYSEG. “The settlement rates represent a substantial improvement over the initial proposal, and we’re grateful for the behind-the-scenes dedication of our gas supply, rates, and legal teams, whose efforts made this outcome possible.”
Pipeline-related service costs are direct pass-through charges – collected by NYSEG without markup or profit. These charges are entirely separate from NYSEG’s gas delivery rates, which remain unchanged and are regulated by the New York State Public Service Commission.
The Columbia Gas Pipeline network serves residents and businesses across multiple communities, including Beaver Dams, Chambers, Dundee, Olean, Post Creek, Watkins Glen, Wayne, Keuka, Binghamton, Deposit, Hancock, and Owego.
Media Contact:
Michael Baggerman