A New York lawmaker has proposed buying an investor-owned utility to lower residents' bills, offering what Rochester advocates hope could become a model for their own community.
Here's what to know
While the bill is still in committee, it would authorize New York to buy Central Hudson Gas and Electric Corp., according to the Rochester Beacon. Its sponsor, state Assemblywoman Sarahana Shrestha, represents the Hudson Valley's 103rd District.
Shrestha maintains that lower bills and repayment of the buyout debt are compatible. Under the proposal, the utility's customers would repay bonds issued to finance the purchase.
The buyout prospect has raised concerns at Central Hudson. The utility serves Hudson Valley communities, and its parent company is based outside the United States.
For public power supporters in Rochester and other communities, the measure offers a possible model for gaining control of their utilities. However, its scope is limited to Central Hudson.
More background
Research published in 2020 by the American Council for an Energy-Efficient Economy found that 29% of the city's households were energy-burdened, meaning their energy bills consumed over 6% of household income.
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The study ranked Rochester as the country's fourth most energy-burdened city, even before the additional rate increases described in the report.
Higher rates and service charges have fueled criticism of both Rochester Gas and Electric and its parent company, Avangrid. The Beacon reported that the state's Department of Public Service Commission approved temporary increases in May of 2.9% on residential electricity bills and 1.2% on residential gas bills.
What's being done?
The campaign for public ownership argues that it accounts for nearly one-third of America's 3,200 utilities, with bills 13%-63% cheaper than those of investor-owned utilities. However, those figures reflect the campaign's comparison, not a guarantee of what Rochester residents would save.
Monroe County legislators rejected a $1 million allocation in a 16-13 vote in 2024 to examine a public utility for areas served by RG&E.
Where can I learn more?
Public ownership is one way communities are looking to lower utility bills. These stories cover a New York bill on transparency and affordability measures, and rising electricity costs.
• A New York senator wants utility bills to itemize state energy charges customers fund.
• New York is extending its 6% energy bill guideline to 2.5 million middle-income families.
• New York is working to get 2.5 million households utility discounts up to $500.
• A New York panel cites line and backup costs, plus net metering, as electricity-price drivers.
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