Orange & Rockland Utilities higher electric and gas rates start April 1 for Rockland

When it comes to heating and electric bills, Tuesday, April 1 will not be "April Fools Day" for Rockland and other consumers of Orange and Rockland Utilities, Inc.

A three-year plan that spells out allowed rate increases for typical O&R residential electric and gas customers begins Tuesday. O&R, a subsidiary of Consolidated Edison, charges rates among the highest in the state.

How much more will O&R utility customers pay?

Residential electric customers will experience rate increases of 4.6%, 3.3%, and 3.5% over the three years. Additionally, typical residential gas heating customers will see increases of 10.9%, 3.5%, and 3.8%.

Utility costs are rising across the Hudson Valley. Three of the state’s utilities — ConEd, NYSEG and Central Hudson — had rate increases that kicked in over the past year, and more are likely coming this year.

New York State Public Service Commission officials approved the O&R rate plan, while arguing they cut down the utility's rate request. 

“As a result of this negotiated settlement, we have been able to drastically minimize any rate increase for customers,” Commission Chair Rory M. Christian said in a statement.

O&R serves about 233,000 residential and commercial electric customers in southeastern New York state and 140,000 natural gas customers in its New York territory.

The PSC justification didn't satisfy several elected officials, including several state senators and Assembly members. Rockland elected officials also opposed a rate increase — a proposal filed in January 2024.

Officials call for overhaul of PSC: NY commission OKs more electric, gas rate hikes in Hudson Valley amid calls for overhaul

Sen. James Skoufis, D-Cornwall, and Sen. Shelley Mayer, D-White Plains, said they are galvanizing government support to restructure the PSC to make the agency more consumer-friendly by prioritizing ratepayers. They are calling for the passage of legislation that modifies the process that has resulted in the approval of what they deem as outrageous utility rates.

Mayer's district in Westchester includes Consolidated Edison, which is seeking a rate increase of $50 increase in monthly gas bills. The average cost for customers increased from $205 in 2022 to over $250 in 2025. Customers would pay nearly $300 every month by 2026 in the PSC approves Con Edison's request.

“The Commission continues to exercise little more than a wrist-slap for greedy utility companies: at the same time that O&R is crying poverty to the PSC, they’re reporting corporate returns of 7-10%,” said Skoufis, who chairs the Senate Investigations & Government Operations Committee.

What did O&R say about the utility rate hikes?

O&R said in a statement that under the new rates, the average monthly total electric bills for a residential customer using 600 kilowatt hours per month would increase by 4.6% in 2025, 3.3% in 2026, and 3.5% in 2027.

The average monthly total gas bills for residential heating customers using 100 cubic feet per month would increase by 10.9% in 2025, 3.5% in 2026, and 3.8% in 2027.

O&R said the brokered deal allows the utility to continue focusing on development of O&R’s clean and resilient energy projects, additional storm hardening programs, and the company’s Energy Affordability Programs, which will provide approximately $14 million in electric bill discount credits and $7 million in gas bill discount credits to low-income customers in 2025.

"The three-year investment plan provides for substantial investment in the communities O&R serves in Rockland, Orange, and Sullivan counties for energy efficiency, carbon emissions reduction, and the development of environmentally beneficial electrical technologies, such as electric vehicle charging infrastructure," the utility said in a statement.