The region’s two state legislative representatives are opposing a proposed New York Power Authority hydropower rate hike that would nearly triple the cost of hydropower for “preference power” customers over four years.

State Sen. George Borrello, R-Sunset Bay, recently sent a letter to the New York Power Authority opposing the rate hike while Assemblyman Andrew Molitor, R-Westfield, is joining with Borrello’s opposition.

“Communities like Jamestown in our district, one of the poorest in the state, rely on low-cost hydropower to keep electricity affordable for residents and businesses,” Borrello said. “This significant rate hike would deepen the affordability crisis already driving many New Yorkers to leave the state, while robbing vulnerable communities of one of the few tangible benefits they receive from state programs.”

The prospect of a NYPA rate hike was raised by David Leathers, Jamestown Board of Public Utilities general manager, in December. The state Association of Public Power, of which Leathers is also the board president, has opposed the proposed rate hike as have the Manufacturers Association of the Southern Tier (MAST) and the Buffalo Niagara Manufacturing Alliance (BNMA).

In December Leathers said association members were concerned that increasing the cost of hydropower would hurt many of the association’s business customers.

Various municipal utility systems in NYPA are calculating that this could be hundreds of dollars a month for some businesses and even some residents, Leathers said. NYPA will hold a final public hearing on the proposed hydropower rate hike Tuesday in Albany.

“I have serious concerns about NYPA’s proposed hydropower rate increase because of its adverse effect on rate-paying businesses, municipalities, and consumers in our district; New York is already one the least affordable and least business friendly states in our nation. Our Governor has recently proposed making New York more affordable. However, the massive, proposed increase in clean, renewable energy rates will make it even more expensive to do business and live in our state. I strongly encourage the NYPA board to return to the traditional rate evaluation formula and reconsider its proposed rate increase,” Molitor said. .

Borrello also noted the rate increase conflicts with Gov. Kathy Hochul’s stated affordability agenda for 2025, which includes measures like an “inflation refund” and tax cuts to put money back in the pockets of New Yorkers.

“The governor’s plan to make New York more affordable will mean little if customers are forced to divert their tax savings to pay higher energy bills,” Borrello said.

The legislators emphasized the critical role that affordable hydropower has played in retaining and attracting businesses in New York’s rural and urban communities, arguing that the proposed increase would erode NYPA’s reputation as a leader in providing cost-based clean energy. Preference power customers have long supplied their local communities from NYPA. Under the Niagara Redevelopment Act, these customers, which include the BPU, are entitled to the “lowest rates reasonably possible.” The proposed rate increase and change in methodology deviate from that legal requirement, the manufacturing groups said in their statement.

There are also concerns what the increase will mean for companies 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.

“New York must honor its commitment to keeping energy affordable for those who need it most. The NYPA Board must reconsider this proposal, which threatens to jeopardize economic stability for countless families and businesses,” Borrello said.