Skyrocketing electric rates have created so much financial pressure for B&D Bagels & Locks that owner Franklin Rezarch says he’s considering moving the business out of the city.
Rezarch told nearly 30 people gathered at a Stand Up Lockport forum at the Kenan Center’s Taylor Theater on Tuesday that he is enthusiastic about downtown, but not about New York State Electric & Gas, the utility that covers the central portion of Niagara and Erie counties. Rezarch said his electric bill last February was $2,800 for the bagel shop, up from $1,100 in February 2025.
“We’re all trying to build back Main Street right now,” he said. “A lot of empty storefronts now have businesses. Something like utility bills can strike fear in business owners. … I shouldn’t have to move my business to Williamsville just because it’s a different utility company.”
After multiple calls to the customer service department, Rezarch said he discovered a range of errors and dysfunction. At one point, he said he was billed $300 for natural gas when his commercial building doesn’t have gas service.
“No matter what question you ask them, they give you the same answer that sends you back to the beginning.”
When moderator Michelle Roman asked attendees to stand if they had been billed more than $1,000 a month for electricity, six people stood up, including Luke Udell, a local data engineer. Everyone was standing when asked who was paying $200 a month.
New York’s electricity rates have gone up by 7% over the past year and if NYSEG and Rochester Gas & Electric Corp. have their way, they will go much higher.
In June 2025, NYSEG proposed rate increases that would raise residential electric rates by nearly 35%. NYSEG officials have cited the need for increases to recover from storms, unpaid customer bills, and to upgrade their system.
The New York State Public Service Commission is responsible for regulating the state’s electric, gas, steam, telecommunications, and water utilities. According to Kristin Legere, DPS spokesperson, “Following a rate increase request by a utility, the staff of the Department of Public Service, and other parties such as consumer groups, business trade associations, environmental groups, elected officials and others, scrutinize the company’s request and file testimony regarding whether or not the utility’s proposed expenses are warranted. Following the submission of testimony, parties are given an opportunity to cross-examine one another under oath in an evidentiary hearing. Parties are also afforded the opportunity to negotiate and reach a settlement. Testimony and transcripts from evidentiary hearings have already been filed in this case, and parties are now engaged in settlement discussions. If a settlement is reached, the Public Service Commission will review the terms to ensure they are in the public interest. If a settlement is not reached, the Commission will set rates based on the evidentiary record.”
State residents can call 800-335-2120 to provide their opinion, or file a complaint online at www.dps.ny.gov/complaints.
Emphasizing the enormous burden of the proposed hikes, Roman said taxpayers would have to cover the increases for electricity for school districts and various levels of government.
Roman said the city pays nearly $200,000 in utilities already, with a potential price increase of $80,000 equal to a .5% tax increase.
“Imagine how much the school district spends!” she said.
Udell presented his own analysis of utility data pulled from federal report filings. Udell said an electric bill has two parts — supply, which companies do not make a profit from, and delivery, which covers their operating infrastructure.
“You can not shop for delivery,” Udell said. “It’s a regulated monopoly. Your address determines your delivery.”
Delivery costs include the poles, wires, service vehicles and other expenses that bring power to addresses.
“The state lets NYSEG earn a set return on everything it owns, so the way it grows is by owning more,” Udell said in his presentation.