Rep. Riley: NYSEG Greenlit $450 Million Payout to Spanish Parent Company While Demanding Massive Rate Increases to Customers

New York Congressman Josh Riley (NY-19) says during a hearing of the Public Service Commission, he cross-examined executives from New York State Electric & Gas (NYSEG), who he says confirmed they authorized a $450 million dividend to their Spanish parent company, Iberdrola.

Riley said he demanded answers from NYSEG executives on why the utility monopoly is making “demands” that Upstate New Yorkers pay higher bills when millions in profit are sent to their foreign parent company in Spain. Riley says the dividend was done when NYSEG was preparing to request a rate increase of over $500 million. Something he accuses NYSEG of having residents foot the bill for the 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.”

According to Riley, on February 28, 2025, NYSEG paid a $450 million dividend to their foreign parent company, Iberdrole through their US company, Acangrid. Months later, NYSEG would file a rate increase, asking for an over $500 million increase for bills.

“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 is seeking a 30% rate increase from the Public Service Commission. This comes after parent company Iberdrola, and its subsidiary, Avangrid, reported a net profit of nearly $5.85 billion for 2024.