Flickering democracy: Political ties keep energy costs high

Subtitle "Political ties keep energy costs high"

While Rochester residents struggle as the nation’s third-most energy-burdened city, local politicians protect the monopoly that profits from their hardship. Metro Justice, a Rochester-based social justice group founded in the 1960s, is currently running a campaign called Rochester for Energy Democracy (RED). The campaign aims to replace Rochester Gas & Electric (RG&E), an investor-owned, profit-driven subsidiary of Avangrid and Iberdrola, with a municipally-owned utility. Local political leaders have repeatedly stalled this effort. 

Despite the offered arguments about economic harm or infeasibility, it is clear the stall is actually about raw political power. RG&E has a long history of unreasonable rate hike requests, safety issues, and ongoing billing errors. Structural corruption is evident, even as many residents continue to be squeezed by the increase in energy costs across the region. 

Avangrid, which is the American subsidiary of Iberdrola, is one of the world’s largest energy companies. Avangrid operates in 23 states with approximately 48 billion dollars in assets. RG&E alone generated about 122 million dollars in profits in 2024 from the Rochester area, as reported by Metro Justice. Metro Justice argues these profits could be reinvested in the community if the company were to be replaced with a municipal utility. 

Additionally, with its massive financial influence, RG&E and Avangrid also employ several political ties. Robert “Bob” Duffy, former Rochester Mayor and Lieutenant Governor of New York, wields strong unelected power as the President and Chief Executive Officer of the Greater Rochester Chamber of Commerce and Co-Chair of the Finger Lakes Regional Economic Development Council (FLREDC). He plays a direct role in shaping economic development not just in Rochester, but right here in Livingston County. 

Duffy has yet another job: he sits on the Avangrid board, from which News10NBC reports he made 210,000 dollars in 2023. This double-hatting creates the possibility that Duffy could unfairly influence both the Chamber and Regional Economic Council to develop biased, antagonistic views toward energy democracy and municipalization.

Another reason behind the perception of heavy-handed political influence is through U.S. Congressman Joseph “Joe” Morelle’s connection to Avangrid and RG&E. One of his sons, Nicholas Morelle, is a Senior Vice President at Ostroff Associates. Clients of Ostroff Associates include Avangrid, Iberdrola, New York State Electric & Gas (part of Avangrid), RG&E (which serves all of Rochester, and parts of Wayne, Monroe, and Livingston counties), and the Rochester-Genesee Regional Transportation Authority. The levels of perceived political corruption, moreover, run deeper, into both Monroe County and the City of Rochester leadership. 

Despite widespread public discontent and efforts of RED, repetitive political inertia has stalled much-needed progress in studying whether municipalization would be feasible. County Executive Adam Bello has spearheaded opposition to the study, repeatedly relying on legal fictions that crumble under simple statutory review. One of  Bello’s assertions is that “RG&E spans [nine] counties from here to the Pennsylvania border, requiring buy-in from all municipal governments in the current RG&E service area in order to make any changes.” While RG&E spans several counties, it is not true that all the municipal governments within RG&E’s territory would need to buy into a public utility. Under subsection six of section 360 of New York’s General Municipal Law, “Such municipal corporation may for such purpose acquire the public utility service of any public utility company operating pursuant to Article Four of the Public Service Law or any other public utility service within or without its territorial limits.”

With County Executive Bello remaining opposed, he is effectively freezing 1.5 million dollars in funding for an objective feasibility study, denying the public the chance to get all the facts. Even though the law is clear, in November 2023 and April 2024, seemingly under Bello’s direction, the Monroe County Legislature rejected the funding twice to study the benefits of municipalization. The most recent vote was 13-16, seven short of the necessary veto-proof majority. 

The City of Rochester has allocated up to 500,000 dollars in flexible money that could be earmarked for the cause. This money, however, is contingent on the county taking the lead on the study. These setbacks have frustrated several residents and RED coalition members; however, RED remains resilient. 

Residents deserve relief from the burdens of a private, predatory, profit-leeching, natural monopoly utility company. The energy rebate checks Governor Hochul sent out act as a plunger in a flooded street; they may help temporarily, but will not stop the streets from continuing to flood. Municipalization has proven to be a more cost-effective, reliable, and sustainable option. 

The RED campaign and subsequent coalition are growing daily. Rochester and Monroe County leaders who oppose municipalization are prioritizing their own self-interest and campaign funds over the people they were elected to represent. The good thing about representative democracies is that when politicians deny the will of the people, the people can deny them their seats. As stated in the Charter of Monroe County, every county legislative seat and the County Executive are up for election in November 2027. RG&E is also the energy provider in Geneseo; when local and county leaders appear on your ballot, vote wisely. 

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