Should a Foreign Company Control One of New York’s Largest Utility Providers?

New York State Electric & Gas (NYSEG) has powered homes and businesses for decades. But in recent years, it’s been making headlines for all the wrong reasons—massive rate hikes, customer service complaints, and errors that never seem to get fixed. But there’s something even bigger at play: NYSEG isn’t even fully controlled in the U.S. That’s right. NYSEG is owned by Avangrid, a company that’s mostly controlled by Iberdrola, a massive energy corporation based in Spain. So, what does that mean for you? And should New Yorkers be concerned that a foreign company is calling the shots on their utility bills?

Back in 2008, Iberdrola bought Energy East, the parent company of NYSEG, pulling the utility into its worldwide portfolio. Fast forward to today, and Iberdrola owns more than 81% of Avangrid, the company that runs NYSEG. And with a recent merger deal in 2024, Avangrid is on track to become 100% owned by Iberdrola, putting NYSEG’s entire operation under foreign control. 

Why does this matter?

Well, critics say Iberdrola’s number one priority isn’t New York customers—it’s their global shareholders. And that might explain why rate hikes and service issues keep piling up.

If you feel like your electric and gas bills have jumped, you’re not imagining it. In 2022, NYSEG proposed a 34.9% increase for electricity and 14.9% increase for gas—something Governor Kathy Hochul called “outrageous and unacceptable.” But by 2023, the state’s Public Service Commission (PSC) still approved a 62% increase in electricity delivery rates and a 17.8% hike for gas. That’s a massive jump. The company claims it’s needed for clean energy projects and infrastructure improvements. But here’s where things get interesting: customer complaints have surged at the same time. In 2022 alone, NYSEG racked up over 4,700 complaints, a 60% increase from previous years. Customers report incorrect bills, long wait times, and overall poor service—all while paying more than ever. So, is this really about improving the grid, or is Iberdrola looking to boost its profits at New Yorkers’ expense?

Another big question: Who’s making sure these rate hikes are fair? And are politics playing a role? During the 2022 election, Governor Hochul’s campaign raked in over $480,000 from utility executives and fossil fuel lobbyists. While there’s no official proof that these donations influenced NYSEG’s rate approvals, it certainly raises eyebrows. Beyond that, Iberdrola and Avangrid have spent millions lobbying federal and state regulators, pushing for policies that favor them. If these contributions are lining up with rate increases, tax breaks, or looser regulations, then it’s fair to ask: Are our leaders protecting consumers or big corporations?

NYSEG isn’t the only foreign-owned utility in the U.S., and it’s not the only one drawing complaints. Across the country, foreign-controlled energy companies have been criticized for: raising rates to boost profits, cutting local jobs outsourcing work, and reducing service quality while sending profits overseas. For New Yorkers, the big question is should a foreign company control one of our biggest utilities? And if so, how do we make sure customers don’t keep getting the short end of the stick?

It’s clear that NYSEG’s rate hikes, poor service, and foreign ownership deserve more scrutiny. If we want to protect consumers, state regulators and lawmakers need to demand more transparency from Iberdrola and Avangrid about where profits are going. They also need to conduct independent audits of NYSEG’s spending and service quality and strengthen campaign finance rules to prevent utility companies from influencing regulators. Without action, New Yorkers could continue paying higher bills for worse service, all while their utility provider stays under foreign control.

It’s time for stronger oversight.

Because if Iberdrola’s priority is its shareholders in Spain, who’s looking out for us?