In a stunning admission, NYSEG executives confirmed that they greenlit a $450 million payout to their foreign parent company while planning another rate hike, forcing Upstate New Yorkers to foot the bill
ALBANY, NY — Congressman Josh Riley (NY-19) yesterday participated in a hearing of the Public Service Commission, where he cross-examined NYSEG executives and demanded answers about why the utility monopoly is demanding Upstate New Yorkers pay higher bills while sending millions in profits to its foreign parent company.
Under interrogation by Riley, NYSEG executives confirmed for the first time they authorized a $450 million dividend to Iberdrola (their parent corporation based in Spain), they were already preparing to request a rate increase of more than $500 million – effectively asking Upstate New Yorkers to foot the bill for their massive corporate payout.
“NYSEG ripped hundreds of millions out of our community to line the pockets of their foreign parent company in Spain, and they admitted under oath yesterday that they knew all along they were going to jack up rates and make Upstate New Yorkers pay for it,” said Riley. “It’s robbery, plain and simple.”
WATCH RILEY’S REACTION AFTER TESTIMONY HERE
Video asset attributable to the office of US Rep. Josh Riley
The facts:
- February 28, 2025: NYSEG pays a $450M dividend to foreign parent corporation Iberdrola through its US company Avangrid.
- April 2025: Josh Riley launches an investigation into Upstate utility monopolies.
- June 2025: NYSEG files its latest rate case, demanding over $500 million in higher bills for Upstate New Yorkers
- August 2025: Riley exposes NYSEG’s $450M dividend payment to its foreign parent corporation
- February 18, 2026: NYSEG executives admit they were planning to raise rates on Upstate New Yorkers while making a dividend payment
Riley has spent the last year documenting how money flows from rate payers to Upstate New York utility companies and to their foreign parent corporations as a part of his investigation into the utility monopolies operating in the Hudson Valley and Southern Tier. During that investigation, Riley’s office collected more than 5,000 survey responses from NYSEG customers, the vast majority of whom reported significant bill increases, billing frustrations, and a lack of accessible customer service.
NYSEG, which serves more than one million customers across approximately 40% of Upstate New York, is seeking a 30% rate increase. Meanwhile, Iberdrola — which, through its subsidiary Avangrid, holds full ownership of NYSEG — reported net profits of more than €5.6 billion (approximately $5.85 billion) in 2024, a 17% year-over-year increase. Iberdrola’s Chairman recently bragged to shareholders about its American-based utility subsidiaries, like NYSEG, as an “unprecedented investment opportunity” for shareholders and a “growth driver” that “improves our profitability.”
The NYSEG rate case continues before the New York Department of Public Service until at least late February. A final determination by the Public Service Commission is expected later this year.
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