The New York Power Authority backed down from a significant rate increase proposed for hydropower after facing bipartisan backlash, but it was an order from Gov. Kathy Hochul herself that ultimately doomed the plan.
The increase, which was in the midst of a lengthy implementation process, would have sent hydropower rates from $12.88/MWh to $33.05 over the next four years before settling back to a rate of $24.26 by 2029.
New York's hydropower is an important source of low cost power for manufacturers and low income households, and much of the pushback came from Republican lawmakers in Western New York like state Sen. George Borrello and Senate Minority Leader Rob Ortt who oversee districts where hydropower is a key player.
Borrello told Spectrum News 1 he is thankful that NYPA called the rate hike off.
“As a business owner in New York state, this is one of he few things that is actually a positive when doing business in New York, the ability to get low cost power,” Borrello said.
The rate hike has been in the works for months and outrage began bubbling in the past few weeks, with Hochul finally stepping in Wednesday.
“At Governor Hochul’s request, NYPA will move to withdraw the 2025 proposed rate increase. We understand that New Yorkers are struggling right now, and we intend to make every effort to collaborate with our customers and stakeholders to find a way forward,” NYPA told Spectrum News 1 in a statement
NYPA had said the increases were necessary to keep pace with maintenance and operational costs.
Hochul ordered NYPA back to the drawing board to come up with a new plan that will presumably involve a more modest increase, although NYPA did not provide Spectrum News 1 with an indication of what that plan could look like.
“Today, I'm calling for an end to the Power Authority's unacceptable proposal to raise electric rates on its customers statewide,” Hochul said in a statement. “Too many New Yorkers are already falling behind on their energy bills and I will do everything in my power to reign in these astronomical costs.”
Hochul earlier in the week insisted that Con Edison scrap a similarly high rate increase in New York City.
“They can take the time to go back and get out their pencils and figure out something else that doesn’t hit rate payers so hard,” she told reporters.
Borrello and others have blamed both instances on the state’s drive toward clean energy to meet its climate goals.
“It’s all directly related to the [Climate Leadership and Community Protection Act] then you add to it the reliability, the fact that we’ve shut down reliable forms of energy like Indian Point which supplies 20% of New York City’s power,” Borrello said.
Hochul pushed back on that link in discussing the Con Ed hike Tuesday.
“It is a factor, but to increase rates to this percentage is not supported by that,” she said.