Settlement With NextEra Energy Transmission New York Follows Alleged Discrepancies in Operations and Maintenance Expenses

NextEra Will Refund $13 Million to New York Ratepayers in 2026

ALBANY — The New York State Public Service Commission (Commission) today announced a settlement has been reached with NextEra Energy Transmission New York, Inc. (NextEra NY) under which the transmission line developer will return more than $13 million, plus interest, to New York ratepayers’ pockets. The settlement is before the Federal Energy Regulatory Commission.

“The Public Service Commission is always concerned with protecting consumers across New York State from excess charges,” said Public Service Commission Chair Rory M. Christian. “It’s particularly important during the current economic challenges faced by New Yorkers to ensure that consumers are not being overcharged for electricity and that rates remain affordable.”

The settlement with NextEra NY was jointly negotiated by the Public Service Commission, New York State Electric and Gas Corporation, Rochester Gas & Electric Corporation, Central Hudson Gas & Electric Corporation, the Long Island Power Authority, the Municipal Electric Utilities Association of New York, and Niagara Mohawk Power Corporation, doing business as National Grid. Although Consolidated Edison Company of New York, Inc. and Orange and Rockland Utilities, Inc. did not participate in the negotiated settlement, the agreement includes their customers. All residential and commercial electric customers in New York State will share in the refund.  

The settlement comes after an investigation into transmission charges related to a 20-mile transmission project located in Erie and Niagara counties and owned by NextEra NY. NextEra NY’s costs for the project are charged to utilities through wholesale rates and passed through to retail electric customers in New York.

NextEra NY provides information on the transmission rates for the project on an annual basis. That process includes the opportunity for regulators, ratepayer advocates, and the utilities responsible for collecting those charges from consumers to review the charges.

Detailed review uncovered operating and maintenance expenses for the project in 2023 that appeared to be abnormally high when compared to other transmission providers. Further investigation revealed that NextEra NY was collecting from customers costs to prepare transmission project proposals that the company hoped would be selected for development by New York’s grid operator.

The settlement requires NextEra NY to implement forward-looking changes to its practices. Under the terms of the agreement, NextEra NY will not automatically include future project proposal costs in its rates. If the company is eligible to recoup its proposal costs, it must seek authorization from federal regulators to do so.

New York ratepayers can expect the results of the settlement to be reflected in the transmission charge line item of their bills in 2026.