BY JEFF CHUDZINSKINorth Country This Week

MASSENA -- The New York Power Authority is taking action to modify preference power rates, a move that will potentially increase electric bills for some North Country households. 

According to Power Authority officials, the organization has advanced a notice of proposed ruling making to adjust rates that will primarily impact 51 municipal electric and rural cooperative systems throughout the state. 

The electricity rates are tied to statutorily authorized NYPA hydropower sold at cost from the Niagara and St. Lawrence-FDR Power Projects, which is in Massena. 

Officials said the increases would have "virtually no impact" on New Yorkers served by investor-owned utilities or NYPA economic development recipients. 

“This adjustment to our preference power rates is essential to ensure that the Power Authority preserves its hydropower assets to maintain the state’s clean energy backbone while also still delivering some of the lowest electric rates in the country to our customers,” said NYPA President and CEO Justin E. Driscoll. “I’m grateful to our customers for their collaboration in advancing this proposal, which enables them to plan ahead with financial certainty.”

Such economic development recipients include the Woodstock School of Art, Briggs & Stratton and American Diagnostic Corporation, who were recipients through the ReCharge NY round of awards in July 2025, a move officials say is aimed at encouraging job retention and expansion. 

Locally, Arconic in Massena was a recipient of the award to aid job retention efforts. 

That would mean increased rates for those in the Massena Electric District would increase "about $1-2 a month- or less than 3% of their total electric bill," NYPA officials said. 

That estimate is based on electrical usages of less than 1,200 kWh per month, with a typical New York State residential home using approximately 600 kWh per month, according to officials. 

But in Massena, where many homes are outfitted with electric heating and cooling systems, that will likely mean a larger increase. 

Under the new proposal, Preference Power rate adjustments would begin April 1, 2026 then phased in over a six-year period to modulate the annual impact on customers. 

"While impacts will vary by location and customer usage, the new Preference Power rates would remain the lowest rates in New York State and among the lowest rates in the nation. The rate adjustment will continue the Preference Power customers ongoing support for New York’s commitment to clean renewable energy and will also ensure the continued efficient operation of the Power Authority’s large hydropower assets —which benefit its customers and all New Yorkers—while directly supporting large infrastructure improvements to those assets, such as the ongoing $1.1 billion NextGen Niagara project," NYPA officials said in a release. 

Preference Power rates are the Power Authority’s lowest possible rates and apply to 47 municipal electric systems, four rural electric cooperatives, three upstate investor-owned utilities, seven neighboring states, two transportation authorities, the Tuscarora Nation, and host communities identified by the relicensing agreement for the Niagara Power Project. 

As of the last population survey conducted by the Power Authority, the proposed rate change impacts roughly 370,000 New Yorkers who benefit from NYPA’s public power. In total, 1,457 megawatts of hydropower are provided to NYPA customers at Preference Power rates, NYPA officials said. 

The Power Authority first proposed a rate adjustment in December 2024 but withdrew it in February following public outcry, with many citing affordability concerns. 

Following the announcement and subsequent response, Governor Kathy Hochul and customer groups followed suit, calling on NYPA to quash plans to increase rates. 

But that was short lived, with the Power Authority going back to the drawing board shortly after withdrawing the proposal.

NYPA officials say customer groups have requested NYPA resume discussions on the rate adjustments. 

NYPA officials say they have worked closely with customers to "develop a plan that would both help to mitigate the annual impact of needed rate adjustments" on customer bills and create "rate certainty over an extended time frame." 

They say the proposal will lead to lower rate increases implemented over multiple years compared to the original proposal last year, significantly reducing the impact on customers. 

The power provided by NYPA to the municipalities through these rates only accounts for a portion of the end-users electric bill and the NYPA rates for that power are currently sold at $12.88/megawatt hour (MWh), increasing to $14.57 on April 1, 2026. Subsequent adjustments will be made annually in April, on the following schedule: $16.25/MWh in 2027, $17.94/MWh in 2028, $19.63/MWh in 2029, $21.32/MWh in 2030, ending at $23 in 2031.

The move to increase rates comes as rates have gone unchanged since 2014, while Hochul has pushed a green initiative to reduce emissions throughout the state. 

Benchmarks have been set for 2030 and 2035, however some advocacy groups and many state lawmakers say the goals are unattainable. 

Before NYPA can increase Preference Power rates, a 60-day public comment period will be held. The rate increase would also require approval by the NYPA Board of Trustees. 

The public comment period will begin Oct. 8 and will end Dec. 8. 

All written comments may be filed with NYPA's Corporate Secretary at secretaryoffice@nypa.gov. 

Help St. Lawrence County Stay Connected!

We’re glad you read this article reported by the staff of NorthCountryNow.com.

If you haven’t done so already, please consider subscribing to ensure you have full access to all the news and info about St. Lawrence County.

Your subscriptions make it possible for us to provide trustworthy local news, promote our many community events, and encourage community dialogue.

Please click here to subscribe today!