Rate hikes for NYSEG and RG&E customers will be coming, however, they will not as much as originally proposed.

The New York State Public Service Commission cut the companies' proposal in half as part of a new three-year rate plan established by the commission. The joint proposal includes negative rate adjustments totaling $18.5 million to be used to lower rates going forward.

Under its initial proposal, the companies sought a total of $447 million in the first year, while the rates approved provided $217.3 million in the first year, roughly 50% less.

State officials say the rate hikes are necessary to offset higher company costs such as increases in the property tax burden.

"The forward-looking plan we have adopted benefits customers and includes provisions that further important State and Commission objectives," said Commission Chair Rory M. Christian. "With today’s decision, NYSEG and RG&E are required to pursue important energy-efficiency initiatives among other progressive policies, to advance the goals of New York State’s nation-leading climate change targets, while mitigating bill impacts for most low-income customers, as part of New York’s energy affordability policy."

In a statement, Gov. Kathy Hochul applauded the commission's decision, but acknowledged the additional burden it will have on customers. She said the state is expanding eligibility for programs to help people afford utility payments to include all median-income households.

"When NYSEG and RG&E proposed outrageous electric rate increases last year, I directed the Department of Public Service to scrutinize every number and word of the companies’ proposal. I'm pleased to see the PSC was able to cut the companies' initial proposal by 50 percent, but I recognize the final electric rates are still likely to strain household budgets across New York. That's why this year, we secured $400 million in our Budget to provide relief to New Yorkers experiencing high electric bills, and we are now expanding eligibility for utility affordability programs to include all median-income households. Energy affordability is a top priority, and I will always act to protect New Yorkers."