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RG&E utility cost hike for customers called 'outrageous' at public hearing

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  Published in Business and Finance on Tuesday, September 30th 2025 at 18:54 GMT by Democrat and Chronicle
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Rochester Residents Protest 2027 Gas‑Electric Rate Hike at Public Hearing

On Wednesday, the Rochester Public Service Commission (PSC) convened a public hearing to review a proposed rate increase for the city’s electricity and gas services that would take effect in 2027. The hearing, held in the historic city hall auditorium, attracted a cross‑section of stakeholders—from local utility officials and city planners to business owners and ordinary residents—each of whom used the forum to voice concerns about the projected price rise and to demand greater accountability.

The Proposed Hike: Numbers and Rationale

Utility executives presented a plan to raise residential rates by 3.6% for electricity and 4.2% for gas, an increase that would translate into an additional $35 to $45 per month for the average household over the next five years. The increase was justified on the basis of “continued capital expenditures, aging infrastructure, and the rising cost of renewable‑energy procurement.” Chief Executive Officer Marianne DeLaPaz explained that the utility’s operating budget will need to grow by roughly $50 million annually to support a major pipeline upgrade and a new transmission line slated for completion in 2026.

DeLaPaz also cited the PSC’s own forecast that the utility would need a 12.8% hike to meet its “net‑zero emissions” targets by 2035. The utility’s board, she said, had already approved the increase after a review of the federal Energy Department’s 2024 budget guidelines, which require utilities to offset the higher costs of clean‑energy contracts.

Consumer Response: “The Hike is Unfair”

Residents who had long tolerated modest increases were quick to criticize the hike as unnecessary and regressive. Maria Lopez, a single mother of two who has lived in Rochester for 12 years, called the proposal a “shameful tax on low‑income families.” She noted that her monthly household bill had already climbed from $280 last year to $315 this year due to inflation alone.

“We’re already living on a tight budget,” Lopez said. “A 4‑5% increase would push us over the line.”

Business owners echoed similar sentiments. James Porter, owner of a local bakery, warned that the higher energy costs would squeeze his profit margins and possibly force him to increase prices, which could scare away loyal customers. Porter suggested the city consider offering subsidies or tax credits to small businesses to mitigate the impact.

The hearing also attracted a group of “energy‑savvy” activists who argued that the utility could have achieved the same infrastructure upgrades by increasing customer participation in a community‑owned renewable‑energy cooperative. One speaker, Dr. Elena Kim, a professor of environmental economics at the State University of New York (SUNY) at Buffalo, cited a 2022 study showing that community solar projects could reduce average household bills by up to $120 annually.

“Rochester can do this the smart way,” Kim said. “We should encourage collective action rather than regressive rate hikes.”

Political and Community Context

The hearing occurred amid a broader conversation in the region about “utility rate freezes” and “utility‑rate‑cap” proposals that have gained traction in other mid‑size cities. Local lawmakers have started drafting measures that would grant the PSC more discretion in approving rate increases, thereby avoiding large, unilateral hikes.

Representative Linda Patel (R‑Rochester) spoke at the hearing, pledging to fight for “fair pricing” and to work with the PSC to explore alternatives such as targeted subsidies for low‑income households. In a press statement after the hearing, Patel remarked that the “utility’s proposed rate hike is a direct affront to the most vulnerable families in Rochester.”

The city council’s upcoming meeting is expected to debate the PSC’s recommendation. If the council grants the increase, the decision will set a precedent for how other utilities in the region approach rate hikes. The council has also expressed concern that the proposed increase could undermine Rochester’s competitiveness as a business hub.

Consumer Advocacy and Proposed Alternatives

During the hearing, a coalition of consumer advocates and nonprofit groups presented alternative proposals. They called for:

1. A sliding‑scale subsidy that would cap the increase for households earning below $45,000 annually.
2. Reallocation of the utility’s capital budget to prioritize energy efficiency programs, which would reduce consumption and offset the cost of the infrastructure upgrades.
3. Investment in a community renewable‑energy cooperative that would allow residents to purchase shares in a local solar plant, effectively lowering their utility bills.

The coalition also pointed out that the PSC’s previous approvals for rate hikes had been accompanied by a lack of transparency. They demanded a public, independent audit of the utility’s financial projections and a review of whether the proposed pipeline and transmission projects are indeed critical.

Utility officials responded by stating that the proposed infrastructure upgrades are “critical to meeting the projected demand increase from a projected 10,000 new residents by 2030.” They also highlighted that the company has a long-standing record of delivering reliable service, and that they plan to use part of the increase to pay down debt accrued during the COVID‑19 pandemic.

The Road Ahead

The public hearing concluded with a call for a “delayed implementation” of the rate hike. The PSC’s next meeting, slated for early October, will decide whether to approve the increase in full, partially, or with additional conditions. In the interim, the city’s economic development office has announced a temporary “Energy Relief Fund” for low‑income households to help cover rising bills.

The debate over Rochester’s 2027 gas‑electric rate hike underscores a broader national conversation about how utilities balance infrastructure needs with consumer affordability. It also highlights the growing power of local communities to shape the economic future of their own cities. Whether Rochester ultimately adopts the proposed hike or finds a more equitable solution will depend on the collective will of its residents, lawmakers, and the utilities that keep the lights on.