NYPA to increase Power Preference Rates after public comment period yields no opposition
MASSENA — Power preference rates are set to increase after trustees with the New York Power Authority approved a proposal that was presented late last year.
The proposal now moves to Governor Hochul to sign off, which she is expected to do.
It marks the first rate hike in 11 years and will impact 47 municipal electric systems, including Massena Electric District users.
The rates that are slated to increase apply to hydroelectric sales of power generated at NYPA’s St. Lawrence and Niagara facilities, officials said.
In total, 47 municipal systems, four rural electric cooperatives, three upstate investor-owned utilities, seven neighboring states, two transportation authors, host communities listed by the relicensing agreement for Niagara Power Project, as well as the Tuscarora Nation will be impacted.
Despite being posted for public review for 30 days, the contract drew no comments.
NYPA officials say the increase amounts to less than 3% annually and will amount to roughly $2-3 per month for the average user based on an estimated usage of 1,200 kWh per month.
The increase is being phased in over a six-year period and will impact roughly 370,000 end users, including commercial and industrial users along with residential users.
Officials said 1,457 megawatts of hydropower are provided to NYPA customers at power preference rates.
Rates will increase from $12.88 per megawatt hour to $14.57 per megawatt hour on April 1.
From then on, adjustments will be made annually, rising to $16.25/MWh in 2027, $17.94/MWh in 2028, $19.63/MWh in 2029, $21.32/MWh in 2030 and $23/MWh in 2031.
Officials say the average residential home in New York uses roughly 600 kilowatts per month.
The move to increase rates comes after NYPA first proposed a rate increase in 2024, which was initially withdrawn in March 2025 after significant push back from state lawmakers and Hochul alike.
“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 officials told multiple media outlets at the time.
St. Lawrence County legislators also passed a resolution denouncing the move, saying it would be “devastating to low and fixed-income families throughout the North Country.
Despite going under the radar for several weeks, public outcry began to bubble to the surface as more counties and state officials criticized NYPA leadership for proposing what was described by many as “devastating and unacceptable.”
But just a year later the rate increase was approved by the Public Service Commission at a time when local, county and state lawmakers have chided the governor for her planned “affordability plan” she outlined in her State of the State address last month.
State Senators Mark Walczyk, Dan Stec, along with Assemblymen Scott Gray and Ken Blankenbush have called for transparency in public service billing, along with pauses on state legislated electric mandates they say will further harm North Country families as they struggle to make ends meet.
State lawmakers have also called for legislation to be passed in recent weeks that would curb rate hikes, allow for extensive oversight of rate increase proposals, along with an effort to curb executives’ incentives by tying the payouts to utility rates and affordability initiatives.