New York Utilities Seek Higher Temperature Limits for Disconnections to Boost Revenue

New York Utilities Seek Higher Temperature Limits for Disconnections to Boost Revenue

2026-03-17 companies

Albany, Tuesday, 17 March 2026.
NYSEG and RG&E want to raise the summer shut-off threshold from 29.4°C to 32.2°C to recoup $12 million, admitting they haven’t analyzed the health risks to consumers.

Balancing Revenue Recovery with Consumer Protections

Avangrid (NYSE: AGR), the parent company of New York State Electric & Gas (NYSEG) and Rochester Gas and Electric (RG&E), is actively petitioning the New York Public Service Commission to alter its customer disconnection rules [1]. Under the current regulatory agreement, these utilities are prohibited from shutting off power to delinquent accounts when temperatures exceed 29.4 degrees Celsius or fall below 0 degrees Celsius [1][2][3]. However, during an evidentiary hearing on February 11 [alert! ‘Assuming February 11 refers to the current year, 2026, based on the article publication date’], company management argued that this upper limit severely restricts their ability to recover unpaid debts [1].

Aligning with Industry Standards

Avangrid contends that its current 29.4-degree Celsius limit places its subsidiaries at a competitive disadvantage compared to other utility providers in New York State [1]. The company’s management panel asserted that their threshold is the lowest in the state, arguing that an increase to 32.2 degrees Celsius would align NYSEG and RG&E with broader industry practices and ensure statewide fairness [1]. If approved, the higher limit would have granted NYSEG an additional 18 collection days and RG&E an extra 19 days in 2024, resulting in a combined total of 37 extra days for revenue recovery across both subsidiaries [1].

Pending Regulatory Action

The debate over balancing utility revenue recovery with consumer protection is expected to reach a critical juncture in mid-March 2026 [1]. The Public Service Commission is slated to issue a comprehensive order this week that will establish standardized disconnection thresholds for all utility companies operating within New York State [1]. A spokesperson for Avangrid declined to provide an immediate statement to the press, suggesting that public comments would be withheld until the Commission officially releases its ruling [1].

Sources


Utility regulations Revenue recovery