West NY News

Senator George Borrello and Assemblyman Andrew Molitor have called on the New York Power Authority (NYPA) Board of Trustees to halt a proposed hydropower rate increase. The proposal aims to nearly triple the cost for "preference power" customers over four years, which the legislators argue would negatively impact ratepayers and businesses across New York State.

The proposed increase would raise rates from $12.88 per megawatt hour to $33.05 per megawatt hour. The legislators contend this change would undermine NYPA's mission of providing affordable, clean energy as mandated by the Niagara Redevelopment Act.

Senator Borrello highlighted that communities like Jamestown, one of the poorest in New York, depend on low-cost hydropower to keep electricity affordable for residents and businesses. He stated, "This significant rate hike would deepen the affordability crisis already driving many New Yorkers to leave the state, while robbing vulnerable communities of one of the few tangible benefits they receive from state programs."

Assemblyman Andrew Molitor echoed these concerns, stating that he has serious reservations about NYPA’s proposed increase due to its potential adverse effects on businesses, municipalities, and consumers in his district. "New York is already one of the least affordable and least business-friendly states in our nation," said Molitor. He urged NYPA to reconsider its approach and return to a traditional rate evaluation formula.

Borrello also pointed out that the proposed rate hike conflicts with Governor Kathy Hochul’s affordability agenda for 2025, which includes measures such as an "inflation refund" and tax cuts intended to ease financial burdens on New Yorkers. “The Governor’s plan to make New York more affordable will mean little if customers are forced to divert their tax savings to pay higher energy bills,” he remarked.

Both legislators stressed that affordable hydropower has been crucial in retaining and attracting businesses within both rural and urban areas of New York. They argued that increasing rates could harm NYPA's reputation as a leader in providing cost-based clean energy. Senator Borrello concluded by urging NYPA: “New York must honor its commitment to keeping energy affordable for those who need it most."

A letter from Senator Borrello addressed to the NYPA Board of Trustees was attached with their appeal.