Soaring Utility Costs Burden NYSEG Customers Across New York

Customers face severe financial hardship as utility bills skyrocket, raising concerns over foreign ownership and lack of oversight.

Apr. 6, 2026 at 9:40pm

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An abstract illustration using bold geometric shapes and primary colors to conceptually represent the financial strain of rising utility costs on consumers.Skyrocketing utility bills force New Yorkers to make tough financial choices.NYC Today

Customers of New York State Electric & Gas (NYSEG) are facing unprecedented financial challenges due to a sharp rise in utility costs, with some forced to choose between paying their mortgage/rent, feeding their families, or relocating. NYSEG, owned by Spanish company Iberdrola, has authorized a $450 million dividend payment to its parent while simultaneously planning a $500 million rate hike for customers. Elected officials from both parties are working to provide relief, but concerns remain over NYSEG's foreign ownership, lack of oversight, and potential mismanagement of profits.

Why it matters

The NYSEG utility crisis highlights the broader issue of rising energy costs and the impact on households, especially low-income and retired families, as well as questions around foreign ownership of critical infrastructure and the lack of regulatory oversight of utility companies.

The details

NYSEG, owned by Avangrid which is in turn owned by Spanish company Iberdrola, has authorized a $450 million dividend payment to its parent while simultaneously planning a $500 million rate hike for customers. Elected officials from both political parties have criticized NYSEG, accusing the utility of 'ripping hundreds of millions out of our communities to line the pockets of its foreign parent company in Spain.' The New York State Public Service Commission is nearing a decision on rate increases of 35%.

  • In February 2026, NYSEG executives confirmed under oath that they had authorized a $450 million dividend payment to Iberdrola.
  • In 2024, Iberdrola reported an approximate net profit of $5.85 million, a 17% increase over 2023.
  • As of 2024, NYSEG payments in arrears totaled $103 million.

The players

Iberdrola

The Spanish company that owns NYSEG's parent company, Avangrid. One of Iberdrola's largest investors is the Qatar Investment Authority, representing an oil- and gas-rich Arab emirate.

Ignacio Sanchez Galan

The chairman of Iberdrola, who recently told shareholders that Iberdrola's American-based utility subsidiaries serve as an 'unprecedented investment opportunity' that drives growth and improves profitability for its investors.

Shelby Cohen

The director of NYSEG, who explained that this heating season has seen unprecedented 'Supply' charges from unregulated energy generators at a time when customers are using more energy due to cold temperatures.

New York State Assemblyman

Has introduced the 'LOWER' bill to gain control of NYSEG's unbridled energy charges to consumers.

U.S. Congressman

Has introduced a bill ('Keep the Lights Local') to ban foreign corporations and foreign governments from owning American utility companies.

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What they’re saying

“NYSEG has ripped hundreds of millions out of our communities to line the pockets of its foreign parent company in Spain.”

— New York State Elected Officials

“Having the PSC making expensive mandates and responsible for approving rate increases is a bad combination.”

— New York State Assemblyman

“This heating season has seen unprecedented 'Supply' charges from unregulated energy generators at a time when customers are using more energy due to cold temperatures.”

— Shelby Cohen, NYSEG Director

What’s next

The New York State Public Service Commission is nearing a decision on rate increases of 35% for NYSEG customers.

The takeaway

This crisis highlights the need for greater oversight and regulation of utility companies, particularly those with foreign ownership, to protect consumers from excessive rate hikes and ensure essential services remain affordable and accessible for all.