“Double wammy” warning from National Municipal Power Association, Governor Hochul calls for reforms
By Andrew Harris
It is safe to say that the majority of our New York State readers have received a massive electric bill and are in a state of fiscal panic. For many the monthly balance has doubled, and it already was notably higher due to the recent increase in rates across the board.
When December’s bill arrived this January, many were in shock, ratepayers began petitions and social media efforts. NY State elected leaders like Phil Palmesano and Tom O’Mara, who have long warned of such a crisis, have taken constituent outrage to Albany. Republican sponsored legislation to refund ratepayers from massive climate investment fund balances was rejected by the Democratic majority.
While focus has shifted to some version of a “emergency rate freeze,” that might be wishful thinking. Based on the reaction of Mayor Ed Fahs of Wellsville NY, ratepayers should brace for more when the next monthly billing arrives.
Village of Wellsville electricity comes from Niagara Falls, and traditionally enjoys rates that are 30-50% lower than RG&E or National Grid. That “cheap municipal electric” is not insulated from the “cost of purchasing and transmitting,” or that “delivery” charge on your bill. While the actual electricity is sold at a fixed rate per kilowatt, the overall charges include the delivery fees, which are dictated by market rates.
According to the NMPA, the increase in the wholesale electricity prices jumped in the last week of January roughly 300%. “In January 2025, which was a fairly cold month relative to average, the average price was $103/per megawatt hour,” and reported the average rate in late January 2026 was $600/per megawatt hour. Compare this spike it demand and price with the notorious winter of 2014 where prices were about $180/per megawatt hour adjusted for inflation.
Part of the reason that ratepayers are faced with this hyper-inflation are explained by the NMPA in a memo to member communities is explained in this excerpt:
Concerns are mounting at kitchen tables and with business owners and budget officers. Consumer debt to utility companies was already overwhelming many households in November of 2025, according to The Century Foundation:
“Families can’t keep up: rising energy bills are driving more households deeper into debt. Since 2022, the average overdue balance on utility bills climbed from $597 to $789—a 32 percent increase.”
Read that full reporting from the Century Foundation published in November 2025
Governor Kathy Hochul addressed the crisis in her January “State of the State” address and has proposed legislation in NYS. From the Governor’s Office:
New Yorkers deserve reliable energy at a price they can afford. Governor Hochul is proposing a sweeping set of reforms, the NYS Affordable Utilities Omnibus Legislation, to modernize the Public Service Law, demanding strict fiscal discipline from utilities and empowering the State to fight more effectively for lower bills.
- Tying executive pay to affordability: The Governor is putting ratepayers first. Utilities will be required to publicly disclose how CEO salaries compare to the average worker’s pay and executive compensation will be tied directly to customer affordability. CEOs shouldn’t be reaping outsized benefits while ratepayers are struggling to make ends meet.
- Eliminating gold-plated rate cases: When requesting rate increases, utilities will be required to present a budget constrained option that keeps their operating and capital costs below the rate of inflation. This exercise will require utilities to prioritize efficiency and affordability and prove why any spending is truly necessary before asking customers to foot the bill.
- Removing hidden fees: Ratepayers should only pay for energy services. Period. The Governor is directing the Department of Public Service to review utility bills to ensure customers never foot the bill for inappropriate utility spending, including corporate advertising, fines, and certain legal fees.
Pending any reforms in Albany, ratepayers across New York should brace for even higher monthly bills to come with months of cold weather ahead. For consumers who are behind in payments, or soon will be, it is strongly advised to contact your utility provider before recieving a shutoff notice to make arrangements. Here are the contacts for most consumers:
NYSEG: https://www.nyseg.com/support/billing-payment-help
National Grid: https://nationalgrid-newyork.custhelp.com/app/answers/details_iframe/a_id/812/~/what-if-i-need-help-and-cannot-pay-my-bill%3F
RG&E: https://www.rge.com/support/billing-payment-help
Wellsville Village Electric: https://www.wellsvillevillageny.gov/public-utilities.html
