In the wake of the recent push for public power, I feel compelled to weigh in and support our longtime Greater Rochester Chamber of Commerce member, Rochester Gas and Electric (RG&E). Since 1892, RG&E has delivered outstanding service to the Rochester community. It is essential to recognize their consistent and reliable service, which people tend to overlook amidst the current discussions.

(Editor’s note: Duffy serves on the Board of Directors for Avangrid, RG&E’s parent company.)

While every utility company faces ups and downs, RG&E has been a reliable provider throughout my lifetime in Rochester. Apart from occasional ice storms or heavy winds, every time I have turned on a switch or opened my refrigerator, RG&E has never failed me.

Like most organizations, RG&E has faced challenges due to the COVID-19 pandemic. However, it is my opinion that they are not being given the same consideration as other organizations regarding the pandemic’s effects. They have encountered customer service and staffing challenges, much like many companies today. Despite the difficulties, RG&E has remained operational and committed to serving the community. They have also worked hard to address any billing inequities through their increased customer service staff and their commitment to take responsibility for any errors in their system.

It is also crucial to acknowledge the significant contributions RG&E makes to our community. In 2022 alone, RG&E paid a significant amount in property and school taxes in our region, totaling $124,256,547.35. This included payments of just under $23 million to Monroe County, nearly $12 million to the City of Rochester, and approximately $38 million to the Rochester City School District. In addition to their tax payments, RG&E employs 812 individuals. Their employees have paid $18.5 million in federal income taxes and $378,000 in state income taxes.

RG&E is a key funder of regional economic development efforts like ROC2025, as well as providing economic development assistance to support local projects. In 2021, $5.199 million of RG&E investment resulted in $287.3 million in capital expenditures, while in 2022, $9.077 million resulted in $516.8 million of additional investment in our region. The revenue generated by RG&E’s tax payments and their contributions to our local economy are vital. It would be financially devastating to lose this annual revenue and support if public ownership were realized.

Supporters of public power often overlook the financial implications of a utility takeover. It would cost the city and county over $4 billion to purchase RG&E’s assets and transform them into a public entity. I commend County Executive Bello and the Monroe County Legislature for demonstrating common sense while considering the funding request for a study on public power. While the City of Rochester passed the legislation unanimously, it was contingent upon the County’s support. It is worth noting that this decision put the County Executive in an uncomfortable position. Nevertheless, County Executive Bello had the courage to state the obvious truth — that a change of this magnitude is financially unsustainable for the city, county, or region — and no study will ever change those basic financial facts.

RG&E’s leadership, including the CEO of Avangrid USA and the CEO of RG&E and NYSEG, are actively addressing the concerns raised by customers. Their presence at meetings, events, and discussions centered around these challenges has increased, demonstrating their commitment to finding solutions. As time progresses, the problems have steadily decreased, thanks to the dedication of RG&E’s leadership and employees. I have found their leadership to be extremely responsive to every single issue that has been raised during these difficult post-COVID times.

There have been references on social media regarding the ownership of RG&E, and its parent company Avangrid. It’s important to note that they are owned by Iberdrola, a Spanish-based energy company. Iberdrola is globally recognized as the world’s third largest energy company, serving over 31 million customers across the globe. Both Avangrid and Iberdrola are renowned for their commitment to sustainability and ethics and are recognized across Europe, North America, and South America for their leadership in producing renewable/clean energy. RG&E and Avangrid are huge partners with the NYS Climate Plan and will be investing heavily to support the State in attaining their clean energy goals.

Leading Iberdrola is Chairman José Ignacio Sanchez Galan, who is highly regarded as one of the top CEOs in the world. Avangrid, the parent company of RG&E, is also annually acknowledged for its strong ethical standards, outstanding performance, and dedication to corporate ethics and sustainability. I take great pride in the affiliation of RG&E with such a reputable and forward-thinking company as Iberdrola, who have been terrific stewards of RG&E since taking ownership in 2009.

It has been stated that the utility infrastructure in New York State is in worse condition than that of many third world countries. In fact, the infrastructure in Brazil and other parts of South America is said to surpass what we have here in New York State. As an example of our infrastructure challenges, RG&E recently announced the implementation of “smart meters,” a technology widely adopted across the country and globally. This serves as a reminder of how far behind we are in updating our infrastructure, and to do this requires much more investment. A majority of power lines are above ground which are vulnerable to falling tree branches during windy and inclement weather. Another challenge to this situation is that many homeowners love the trees on their property and are often resistant to any trimming work that would preemptively avoid these types of power outages. Implementing underground power lines would require significant investments which no one wishes to undertake at this time.

When utility rate increases are requested, it provides the opportunity for utilities to allocate funds towards upgrading their operations. The cost of everything in our lives has increased post-COVID due to inflation, rising labor costs, and other supply chain challenges.  The cost of food, clothing, gas, and so many necessities have all steadily increased.

It appears that utilities are the entities that invite protests when costs are increased. Like any other organization, companies need to invest in enhancing their infrastructure, technology, and systems, while also retaining and recruiting their employees. RG&E is no exception. However, seeking approval for rate increases and support from the Public Service Commission (PSC) is essential to maintain their reliable service and to invest in infrastructure improvements. Many of RGE’s switching stations are over 60-70 years old, while a huge number of their utility poles are over 100 years old. Every single organization today is facing these same challenges to upgrade their infrastructure and technology. RG&E deserves that same understanding and support. The Public Service Commission has done an excellent job in assessing the many needs facing NYS utilities and has consistently worked towards striking a balance for both the utilities and their ratepayers.

It is important to remember that RG&E is not just a faceless company. It is comprised of our neighbors, friends, and relatives who work hard daily to provide exceptional service. Their frontline workers put themselves at risk during storms and emergencies, working tirelessly to restore power.

The leadership of the International Brotherhood of Electrical Workers (IBEW) should also be acknowledged for their outstanding support. Many members of IBEW contribute significantly to the success of RG&E, making it a great labor organization. They have also extended their support to neighboring states and regions when needed. Their commitment, professionalism, and support make them a great neighbor and friend.

In an era where businesses and utilities face criticism, it is crucial to support and help repair rather than tear down these institutions. RG&E has been a steadfast provider of reliable and affordable power for well over two hundred years. Their commitment to sustainability, ethical practices, and exceptional service aligns with the values we cherish. Let us extend the same loyalty, support, and understanding to RG&E as we do for other organizations affected by the challenges of our time.

Next time you turn on your lights, television, stove, or air conditioner, remember to thank the men and women of RG&E for their outstanding service and dependability. Let’s stand by RG&E and the over 800 employees whose livelihoods depend on this utility. Rather than seeking to tear down and replace institutions, let us work together to address concerns, help them right their ship, and continue to help them provide the outstanding service that they have provided throughout their long history in Rochester.

RG&E is a trusted neighbor and friend and they have earned and deserve our loyalty and support during these challenging times.

Robert J. Duffy is president and CEO of Greater Rochester Chamber of Commerce. Contact him at rduffy@GreaterRochesterChamber.com.