NYSEG and RG&E Temporary Rates: Four Rate Cases and Sub-3% Bill Caps

What the PSC decided on temporary rates

The New York Public Service Commission set temporary rates for NYSEG and RG&E that limit typical bill impacts to under 3% while extending review of four simultaneous electric rate cases [ny-psc-nyseg-rge-temp]. Both utilities are Avangrid subsidiaries serving upstate and western New York, including Rochester, Binghamton, Ithaca, and surrounding counties where cannabis cultivation licenses have expanded.

Temporary rates let the PSC continue evaluating the utilities' full revenue requests without passing the entire proposed increase to customers immediately [ny-psc-nyseg-rge-temp]. For a cultivator watching monthly costs, this means a short reprieve on delivery increases while the final order is pending.

Four cases, one territory

NYSEG and RG&E filed multiple electric rate proceedings covering delivery infrastructure, storm hardening, and grid modernization [ny-dps-nyseg-case]. Reviewing them together lets the PSC weigh cumulative customer impact rather than approving each increase in isolation [ny-psc-nyseg-rge-temp].

Utility	Service area examples	Cannabis activity
NYSEG	Rochester, Binghamton, Elmira	Processing, cultivation
RG&E	Rochester metro, Genesee Valley	Cultivation, dispensary

Upstate operators often pay lower all-in rates than Zone J NYC accounts, but delivery still represents 40 to 60 percent of a demand-heavy cultivation bill. EIA reported New York's statewide average commercial price at 19.82 cents per kWh in mid-2026 [eia-epm-5-6-a].

Delivery vs supply for upstate grows

As with Con Edison downstate, NYSEG and RG&E delivery charges are not shoppable. Supply is.

Bill line	Set by	Shoppable?
Delivery demand	NYSEG/RG&E tariff	No
Delivery energy (kWh)	Utility tariff	No
Supply energy	ESCO or utility default	Yes
NYISO capacity	Supply market	Via contract

Temporary rates affect the delivery side. If you are on a fixed ESCO contract, your supply price is unchanged during the interim period. If you are on utility default service, both supply and delivery appear on one bill but come from different proceedings.

Worked example: Finger Lakes cultivation facility

Assume a 25,000 sq ft indoor grow in the Finger Lakes on NYSEG at 450 kW peak and 540,000 kWh monthly use. Illustration only.

Line item	Assumption	Monthly cost
Demand charge	450 kW x ~$18/kW	$8,100
Delivery energy	540,000 kWh x ~$0.04/kWh	$21,600
Supply	540,000 kWh x ~$0.07/kWh	$37,800
Total		~$67,500

A 3% temporary increase on delivery lines adds roughly $890 per month in this illustration. Final approved rates could differ once the PSC completes all four cases [ny-psc-nyseg-rge-temp].

Why cultivators should act during the interim window

Temporary rates create a planning window. Three moves make sense before final orders:

1. Lock supply if fixed ESCO prices are favorable relative to default service and your contract expires soon.
2. Audit demand to minimize the kW that final delivery rates will multiply.
3. Track dockets for the final revenue allocation across rate classes [ny-dps-nyseg-case].

Large indoor facilities on demand-metered schedules feel final rate increases more than small retail accounts. A 5% final delivery increase on $30,000 in monthly delivery charges costs $1,500 per month. Supply savings of 1.5 cents per kWh on 540,000 kWh saves $8,100 per month, which is why supply shopping and delivery management work together.

RG&E vs NYSEG: same parent, separate tariffs

Avangrid owns both utilities, but rate schedules and approved revenue differ [ny-dps-nyseg-case]. A multi-site operator with grows in both territories needs separate bill analysis for each EDC. Temporary rate structures may also differ slightly between the two operating companies [ny-psc-nyseg-rge-temp].

Confirm your rate schedule on each bill. NYSEG SC-3 and RG&E S-2 are common large commercial classes, but service size and load factor determine the actual schedule assignment.

New York cannabis energy compliance

New York requires licensed cultivators to meet energy use plan standards and file PowerScore reports [ny-dps-nyseg-case]. Rate case outcomes do not change those compliance obligations, but higher delivery costs make efficiency investments more valuable.

LED retrofits, HVAC optimization, and load shifting reduce both kWh and kW. Lower peak demand reduces the delivery demand charge that rate cases affect most directly.

What to watch next

Monitor the NYSEG and RG&E dockets on the DPS website for:

• Final revenue requirements and effective dates
• Allocation between residential, commercial, and industrial classes
• Any settlement agreements that modify the original utility ask

See how to switch electricity suppliers in New York and NYSEG territory rates. Cultivation load profiles for upstate facilities are covered in New York cultivation facility energy.

PowerScore reporting alongside rate cases

New York cultivators must file PowerScore energy and water reports on OCM deadlines separate from utility rate proceedings [ny-dps-nyseg-case]. Higher delivery costs from final rate orders increase the financial case for efficiency investments that also improve PowerScore metrics.

Settlement vs fully litigated outcomes

Temporary rates often precede settlement negotiations [ny-psc-nyseg-rge-temp]. Avangrid may reach agreement with DPS staff that modifies the initial revenue request before final orders. Budget for the filed amount but track settlement news for revised figures.

RG&E specific notes

Rochester-area operators on RG&E should monitor that utility's docket separately even though the PSC reviewed cases together [ny-psc-nyseg-rge-temp]. Temporary rate caps may apply differently to RG&E schedules than NYSEG schedules depending on the final allocation order [ny-dps-nyseg-case].

Planning for the final rate order

Temporary rates buy time but do not eliminate eventual increases. When the PSC issues final orders in the four pending cases, commercial schedules may shift by more than the interim cap allowed [ny-psc-nyseg-rge-temp]. Cultivators signing long-term supply contracts during the temporary period should include language that allows review if delivery surcharges jump on the final effective date.

Document your current delivery rate components now so you can isolate the change when the final tariff publishes.

Upstate grow load profiles and temporary rates

Indoor facilities in NYSEG and RG&E territory often peak when flower rooms and dehumidifiers run together on summer afternoons. Temporary rates cap the average bill impact, not your interval peak [ny-psc-nyseg-rge-temp]. Continue peak management during the interim period.

NYISO Zone C capacity on upstate supply bills

Upstate New York sits in NYISO Zone C, which clears lower capacity prices than Zone J in NYC [eia-epm-5-6-a]. NYSEG and RG&E default supply still embed NYISO capacity procurement costs. When you shop an ESCO, ask whether ICAP is fixed or passed through at each May and November reset [ny-dps-nyseg-case].

Temporary delivery rates under 3 percent do not cap supply volatility [ny-psc-nyseg-rge-temp]. A cultivator on utility default service in Rochester may see both modest delivery increases during interim rates and supply moves when the next default procurement cycle completes. Split the bill before comparing ESCO quotes.

Rochester and Finger Lakes cultivation clusters

Cannabis processing and cultivation licenses concentrated in Monroe, Ontario, and surrounding counties draw primarily on RG&E and NYSEG service [ny-dps-nyseg-case]. Greenhouse operators near the lakeshore may see different heating load than fully indoor facilities in industrial parks. Both pay the same temporary rate framework but different rate schedule codes.

Multi-site operators with a Rochester grow and a Syracuse processing lab need separate analysis. RG&E S-2 and NYSEG SC-3 demand rates differ even under the same PSC interim order [ny-psc-nyseg-rge-temp].

Locking supply during the interim window

Temporary rates create a procurement window before final orders land [ny-psc-nyseg-rge-temp]. If your ESCO contract expires while interim rates apply, you can lock supply now without waiting for the final delivery decision. Final approved delivery rates may exceed the 3 percent interim cap once the PSC completes all four cases [ny-psc-nyseg-rge-temp].

Request twelve-month fixed quotes in August or September if your contract ends in Q4. Compare the ESCO all-in supply rate to NYSEG or RG&E default supply on your most recent bill. Delivery will move again when final orders publish. Supply savings you capture today remain until contract renewal regardless of the final delivery outcome [ny-dps-nyseg-case].

Processing vs cultivation load in upstate territories

Upstate New York licenses include outdoor, greenhouse, and indoor cultivation plus processing facilities [ny-dps-nyseg-case]. Processing labs with extraction equipment may draw high peak demand from chillers and ovens but lower total kWh than a flower room of equal square footage [eia-epm-5-6-a]. Rate schedule assignment depends on peak kW, not canopy size.

A processor on RG&E at 280 kW peak pays demand charges similar to a 280 kW grow even if monthly kWh differs by thirty percent [ny-psc-nyseg-rge-temp]. Pull interval data before assuming your facility type qualifies for a lower-demand schedule.

What happens when interim rates expire

When the PSC issues final orders on all four cases, interim caps end [ny-psc-nyseg-rge-temp]. Final approved increases may exceed the three percent interim limit depending on how revenue is allocated across customer classes [ny-psc-nyseg-rge-temp]. Cultivators who locked supply during interim rates still face delivery changes on the utility portion of the bill when final tariffs publish [ny-dps-nyseg-case].