The New York State Public Service Commission (NYSPSC) has approved new electric and gas delivery rates for Orange and Rockland Utilities, Inc. (O&R). This follows a Joint Proposal submitted by O&R, the New York State Department of Public Service (NYSDPS), and the Utility Intervention Unit (UIU) from the New York State Department of State’s Division of Consumer Protection.
The newly approved three-year rate plan will be in effect from January 1, 2025, through December 31, 2027. It outlines delivery rate adjustments to support infrastructure improvements, clean energy development, and customer affordability programs across Rockland, Orange, and Sullivan counties.
Under the electric rate plan, there will be no delivery rate increase in 2025, followed by approximately $17.7 million increases in both 2026 and 2027. For gas service, the plan introduces consistent annual increases of approximately $10.4 million in 2025, 2026, and 2027.
Due to the expiration of temporary credits from the previous rate plan and a delay in the new rates taking effect (now starting April 1, 2025), customers will see changes in their monthly bills. Residential electric customers using 600 kilowatt hours per month can expect an average increase of 4.6% in 2025, 3.3% in 2026, and 3.5% in 2027. Residential gas customers using 100 cubic feet (ccf) per month will see an average increase of 10.9% in 2025, 3.5% in 2026, and 3.8% in 2027.
The rate plan supports major investments in infrastructure and customer-focused programs. In 2025, approximately $14 million in electric bill discounts and $7 million in gas bill discounts will be available for low-income customers as part of O&R’s Energy Affordability Programs.
Among the major projects funded through the new rates are the West Point/Highland Falls Project, which upgrades the current transmission system for improved reliability and growth; the Transmission Line 705 project, which adds 5.5 miles of underground transmission cable in Clarkstown; and the construction of new substations in Orange and Rockland counties.
On the natural gas side, O&R will continue replacing leak-prone pipelines to enhance safety and reduce emissions. Over the next three years, the company also plans to install 30,000 remote methane detectors using state-of-the-art leak detection technology.
It is important to note that these new rates apply only to the delivery portion of electric and gas bills. Commodity costs for electricity and gas, which are influenced by market conditions, along with taxes and fees, are separate from the delivery charges.
This rate plan follows a detailed public review process involving energy experts, regulators, environmental groups, consumer advocates, and local government representatives. It reflects a significant step toward modernizing infrastructure, improving reliability, and advancing sustainability goals throughout O&R’s service territory.