BY JEFF CHUDZINSKI
North Country This Week

MASSENA — Massena Electric Department officials say record use in January and high open market energy costs were at fault for massive jumps in electric bills that raised alarms for some customers.

“We used more power in the month of January than in virtually any other month ever since the beginnings of Massena Electric,” said Massena Electric Superintendent Andrew McMahon.

The extra use, coupled with the current economy has caused significant increases in many customers’ utility bills.

But customers don’t believe their bills should be so high. Some say their bills have increased over 250% in just one month’s time.

A cold January, coupled with high prices on the open market played a huge role in the extremely high bills, said MED treasurer Jeff Dobbins.

“We start with the firm hydro fixed block of power and once that is used up we have to buy on the open market. We’re allotted 23,640 kWh from the New York Power Authority and after that it’s all purchased through the New York Independent System Operator (NY ISO),” Dobbins said.

Rates on the NY ISO fluctuate, with power producers selling on the open market at rates that far exceed the cost of municipal power.

“In the month of January we purchased power at an average of $99 per megawatt hour. Compare that to the normal $28-30 rates we’ve seen in the past, it’s led to a huge jump in utility bills,” Dobbins said.

The NY ISO website showed a wholesale cost of $35.71 per MWh as of press time.

Dobbins said that rates have begun to drop on the open market, easing residents’ pain but it will take a few weeks to see the results.

“The way the bills roll out, it will take a billing cycle to reflect the price changes because everything is essentially a month behind,” he said.

The Northern Zone, known as Zone D, saw lower rates compared to much of the state during the month of January, according to the NY ISO. Downstate regions paid in excess of $110 per MWh in some cases, including Long Island and New York City.

“Another thing that is a little unique to Massena and the North Country in general is that our power load is higher during the winter than summer due to the number of homes that use electric heating in the winter,” Dobbins said.

Due to the cold stretch during January, MED was forced to purchase over 15,000 MWh at rates three to four times what was seen in previous years, according to Dobbins.

“We peaked at 49,327 kWh in January, our single highest hour of usage. So we had to use a lot of power, there’s no denying that fact,” he said.

Many residents are asking what can be done to lower their utility bills, but MED officials say the pricing is out of their hands.

One alternative is the Energy Makeover Program, which allows residents to consult with MED through an audit for $50. An audit will be conducted at the residence or business, after which time MED will provide a checklist of potential cost saving measures.

“If the owner can make the corrections or improvements and submits the report to us, our auditors will go out and do an inspection. If the checklist was completed, the owner will get the application fee back and up to a $5,000 credit from Massena Electric for the work they did,” Dobbins said.

Still, some residents have complained that the allocation per household should be higher or rates should be lower, citing the two hydroelectric dams in Massena. But Dobbins said it’s not quite that simple.

“MED is a purchaser of power, that’s why we don’t sell power on the market. So it’s not quite as simple as creating more power or something like that. That’s why customers see a purchase power charge on their statement, as opposed to a power creation charge. It’s a different situation for MED,” Dobbins said.

Further rumors have continued to make the rounds, with many saying crypto mining operations in the town are to blame for the rising bills as well.

“We have three operations within our service territory and the largest is not a customer of MED. They purchase power from a direct connection to the NY ISO. The two smaller operations don’t get the hydro allocation like residents, they have a direct price from the ISO. It’s not a blended rate like residents get with hydro allocated power and market power,” Dobbins continued.

Dobbins also confirmed the 15,000 MWh purchase did not include any crypto mining operations as well.

Residents who wish to discuss their utility bills may contact Massena Electric by calling (315) 764-0253.

For those who wish to file a complaint with the state over utility rates and bills that involve the NY ISO and open market power, the NYS Department of Public service can be reached by calling toll free at 1-800-342-3377.