A proposed tripling of New York Power Authority hydropower rates is being shelved.

NYPA had proposed an increase in electric rates for hydropower from $12.88 per megawatt-hours to $33.05 per megawatt hour over four years. There are 51 systems in the state that get a preference power allocation for hydropower, including the Jamestown Board of Public Utilities through its early investment in the Niagara Power Project. Hochul’s opposition came after she was publicly critical of a proposed rate increase by Con Ed, according to the Center Square, that included calling for an investigation into pay rates for Con Ed executives.

“Today, I’m calling for an end to the Power Authority’s unacceptable proposal to raise electric rates on its customers statewide,” Hochul said Wednesday. “Too many New Yorkers are already falling behind on their energy bills and I will do everything in my power to reign in these astronomical costs. While I recognize the Power Authority’s critical importance in providing invaluable, clean, baseload power from its large hydroelectric power plants Upstate, I expect NYPA to go back to the drawing board, shelve this existing proposal, and figure out a better way forward.”

The rate hike had been opposed by both state Sen. Andrew Molitor, R-Westfeld, and state Sen. George Borrello, R-Sunset Bay, as well as the Association of Public Power, Manufacturer’s Association of the Southern Tier and Buffalo Niagara Manufacturing Alliance.

“NYPA’s decision to pause its proposed hydropower rate hike is a win for New Yorkers, businesses, and communities that depend on affordable, clean energy,” Borrello said. “This near-tripling of rates was unacceptable, and I, along with Assemblyman Andrew Molitor and many of my Republican colleagues, fought hard to stop this devastating increase before it could take effect. The overwhelming pushback from legislators, businesses, municipal utility providers, and residents made it clear that this proposal was unacceptable. Once Governor Hochul saw the extent of opposition, she put the brakes on it–something she should have done from the start. Keeping energy affordable is essential to retaining jobs, supporting families, and maintaining a competitive economy. This fight isn’t over. We must remain vigilant to ensure NYPA doesn’t revive this misguided proposal down the road and that New Yorkers continue to have access to reliable, low-cost energy.”

The increase also would have changed the long-standing rate-setting methodology that has been in place for decades. Preference power customers, including municipal electric systems and rural electric cooperatives, have had access to cost-based electricity under federal and state law. In addition to the rate case, NYPA’s Plan also includes a change in the rate-setting methodology that has been in place for decades and is contained in NYPA’s power supply contracts. The increased costs would be passed on to the retail customers.

The New York Association of Public Power has already opposed the rate increase. Dave Leathers, Jamestown BPU general manager, is also the New York Association of Public Power board president. In December Leathers said association members were concerned that increasing the cost of hydropower would hurt many of the association’s business customers. There were also concerns how the rate increase could have affected businesses that have power agreements with NYPA as part of the ReCharge New York program. More than 60 companies in Western New York have agreements with NYPA through this program. ReCharge NY is an economic development initiative of New York State that enables companies to receive power through NYPA for keeping or growing employment, expanding operations and/or making significant local investments in their businesses.

In a joint statement released Wednesday, the Buffalo Niagara Manufacturers Alliance and the Manufacturers Association of the Southern Tier stated, “We thank and appreciate Governor Hochul recognizing the disastrous impact the NYPA rate proposal was going to have on manufacturers and ongoing economic development initiatives across New York State. We look forward to continued dialogue with NYPA. NYPA has historically provided cost competitive, reliable and clean power that has helped keep manufacturers in New York State. As manufacturers operating in a high cost, high tax, high regulatory state, affordable and reliable NYPA power has helped manufacturers compete domestically and globally while retaining and growing jobs. We also thank those leaders from the manufacturing sector, and our Western New York delegation of elected leaders that have conveyed their concerns directly to NYPA, to their peers and to the governor.”