Riley Proposes Bill to Cap Utility Executive Bonuses

Rep. Josh Riley, a Democrat from upstate New York, has prioritized opposition to NYSEG’s proposed rate increase. Riley recently attended a public hearing in Oneonta, held by the New York State Public Service Commission, to voice his concerns.

Legislation to Cap Utility Executive Bonuses

In a collaborative effort with Republican Rep. Jeff Van Drew of New Jersey, Riley introduced the “No Bonuses for Utility Executives Act.” This legislation aims to impose strict limits on bonuses awarded to CEOs of utility companies.

Key Provisions of the Bill

• The bill prohibits bonuses for utility executives when rate increases exceed inflation.
• When utility rates remain stable, bonuses must not exceed 25% of median employee wages.
• Utility companies are mandated to report wage and rate cost data to the Federal Energy Regulatory Commission annually.

Riley remarked on the financial burden facing residents, stating, “People are struggling with their NYSEG bills.” He highlighted the emotional toll of rising utility costs on families, as many are forced to reduce essential expenses.

Bipartisan Support and Community Response

Rep. Van Drew echoed Riley’s sentiments, emphasizing that it is unjust for utility executives to receive substantial bonuses while families struggle. “This bill is about basic fairness,” he stated. The legislation has gained bipartisan support, reflecting widespread concern about rising utility expenses.

A notable point of contention involves the CEO of Avangrid, NYSEG’s parent company, who reportedly received a $10.6 million bonus last year despite proposed rate hikes.

Proposed Rate Hike Details

The New York State Department of Public Service revealed that NYSEG plans to increase monthly bills by approximately 23.7% for typical customers. This proposal has faced strong opposition from various elected officials, including Republican State Senator Peter Oberacker.

Riley has questioned the allocation of ratepayer funds for necessary upgrades. He criticized NYSEG’s reliability, noting, “Every time the wind blows, the lights go out.” He also advocated for exploring alternative electricity cooperative models.

Utility Company’s Defense

In response, NYSEG defended its position. Company spokesperson Shelby Cohen stated that rate increases occur through a regulated process. She argued that 65% of customer bills consist of passthrough costs that fund suppliers and statewide programs, rather than profits for the company.

According to Cohen, from 2015 to 2024, NYSEG received $990 million in capital support from its corporate parent, stating that this funding is crucial for maintaining operations. She rejected assertions regarding profit distribution and emphasized the need for infrastructure improvements.

Looking Ahead

Riley is optimistic that rising national concern about electricity prices will bolster support for the bill. However, he remains aware of the political challenges posed by entrenched utility interests. He expressed solidarity with constituents, stating that significant profits should not come at the expense of hardworking families.

Ultimately, Riley calls for a reevaluation of economic policies, suggesting that all options, including bonuses linked to employee pay, should be considered to address wealth inequality.