New York State Electric & Gas Corporation (NYSEG) is facing an $11.2 million financial penalty after failing to meet customer service standards in 2024, according to the New York State Public Service Commission (PSC).
The PSC received a report Thursday from Department of Public Service staff outlining customer service performance failures by five utilities across the state. The report found that several electric, gas, and water utilities did not meet their annual customer service targets for 2024.
Under state regulations, such failures result in automatic financial penalties—known as negative revenue adjustments (NRAs)—which reduce shareholder earnings. These penalties are either credited to customers directly or deferred until a future rate case, depending on the utility’s rate plan. No further PSC action is required, as the penalties are self-executing.
Altogether, customer service shortfalls led to about $28.9 million in penalties statewide.
NYSEG’s share of that total stems from its failure to meet the customer satisfaction survey metric. The utility had previously missed the same benchmark in 2023. Under its rate agreement, the penalty for repeated failure doubles, raising NYSEG’s 2024 penalty from $5.6 million to $11.2 million.
Rochester Gas & Electric was hit with a $9.8 million penalty, doubled due to the company’s repeated failure to meet the same performance standards in 2023.
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