Utilities, New York State Public Service Commission Secure Refund for Customers of $13M Charged By Transmission Developer
NYSEG, RG&E, and other utilities reach settlement with NextEra Energy Transmission New York following alleged discrepancies in operations and maintenance expenses
NextEra will return $13 million to New York customers in 2026
BINGHAMTON, N.Y. — June 3, 2025 — New York State Electric & Gas (NYSEG), Rochester Gas and Electric (RG&E), and other utilities have reached a settlement with transmission developer NextEra Energy Transmission New York, Inc. (NextEra NY) under which the developer will return approximately $13 million to New York customers’ pockets that the company spent to develop prospective projects. The settlement will prevent NextEra NY from collecting these costs from customers in the future unless approved by federal regulators.
The settlement comes after an investigation into transmission charges related to a 20-mile transmission project located in Erie and Niagara Counties and owned by NextEra NY. NextEra NY’s costs for the project are charged to utilities like NYSEG and RG&E through wholesale rates, and passed through to retail electric customers in New York. NextEra NY provides information on the transmission rates for the project on an annual basis. That process includes the opportunity for regulators, ratepayer advocates, and the utilities responsible for collecting those charges from consumers to review the charges.
“Our review of NextEra NY’s transmission rate identified costs that we believe are not recoverable under the New York Independent System Operator’s rules, but had been charged to customers anyway,” said Alan Trotta, senior director of transmission and regional energy policy at NYSEG and RG&E’s parent company, Avangrid. “We will continue to advocate on behalf of our customers. It’s important to ensure that only costs properly charged to customers be included in rates, so that customers in New York can feel confident that they are paying no more than is necessary for their electricity.”
Detailed review uncovered operating and maintenance expenses for the project in 2023 that appeared to be abnormally high when compared to other transmission providers. Further investigation revealed that NextEra NY was collecting from customers costs to prepare transmission project proposals that the company hoped would be selected for development by New York’s grid operator.
The settlement with NextEra NY was jointly negotiated by the New York State Public Service Commission, NYSEG, RG&E, Central Hudson Gas & Electric Corporation, Long Island Power Authority, Municipal Electric Utilities Association of New York, and Niagara Mohawk Power Corporation.
“Central Hudson is committed to ensuring customer dollars are used wisely to provide safe and reliable delivery of energy to their homes and businesses,” said Joe Hally, Vice President of Regulatory Affairs at Central Hudson Gas & Electric. “We will continue to work with lawmakers, regulators and all other stakeholders to provide outstanding service to our customers at the most affordable price possible.”
The settlement also requires NextEra NY to implement changes to its practices going forward. Under the terms of the agreement, NextEra NY will not automatically include future project proposal costs in its rates. If the company is eligible to recoup its proposal costs, it must seek authorization from federal regulators to do so.
New York customers can expect the results of the settlement to be reflected in the transmission charge line item of their bills in 2026.
Media Contact:
Michael Baggerman