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O&R Invests $293 Million to Strengthen Grid Reliability for Summer

  • Orange & Rockland Media Relations

  • Pearl River – May 21, 2025 -- 01:00 PM

 

Company Promotes Energy Efficiency Programs to Keep Bills Lower

 

Orange and Rockland Utilities, Inc. (O&R) is investing $293 million this year to continue improving the reliability and resilience of its electric system, all while focusing on promoting energy efficiency and helping customers keep bills affordable.

This work includes the development and implementation of energy efficiency and clean energy projects as the company prepares for this summer’s peak electricity demands and weather events. To provide its customers with safe and reliable energy, O&R is expanding upon approximately $156 million invested into its infrastructure in 2024. This marks over $1 billion on electric system maintenance and reliability projects over the last decade.

Last summer, O&R mobilized its emergency response workforce 10 times due to extreme weather events and multiple heat waves. Despite an uptick in mobilizations from previous years, O&R’s investments in system reliability paid dividends, with the average number of customers affected during storm interruptions decreasing by nearly 30 percent in 2024 compared to 2023.

“Orange & Rockland customers expect and deserve reliable service, especially during the summer months as New York continues to face record heat and increased severe weather events,” said Michele O’Connell, O&R president and CEO. “We are proud to continue investing in new and existing infrastructure throughout our entire service territory, delivering dependable electric service, all while providing our customers with a variety of options to become more energy efficient and maintain affordable bills.”

Investing in Electric Infrastructure

O&R continues its storm hardening initiative to make its energy systems more resilient. Crews are automating select circuits and building additional circuits, undergrounding strategic locations, enhancing overhead systems, and expanding tree-trimming clearances at critical service locations.

The new Lovett Substation, a 345 kV (kilovolt) addition to the existing 138 kV Lovett Substation in Tomkins Cove, serves approximately 50,000 customers throughout Rockland County after its energization towards the end of 2024. The $58 million investment will now provide more reliable and resilient electric service during its first summer in operation.

The Silver Lake Substation, a two-transformer substation serving approximately 7,800 customers in Middletown, was recently upgraded with a new distribution transformer that will reduce exposure on the system during peak loading conditions. The new transformer, a $6.6 million investment that will be energized at the end of May, provides enhanced reliability within the Route 211 corridor, consisting of several large shopping centers, grocery stores, nursing homes, and large industrial customers.

The company is also installing a temporary mobile substation at Larkin Drive in Monroe to provide targeted relief during peak times to support new growth until the new Forest Avenue Substation is constructed in 2026. This mobile installation, a $1 million investment expected to be energized in early June, will serve two distribution circuits into Kiryas Joel to meet load growth. Once the Forest Avenue Substation is complete, it will provide additional capacity to the Monroe and Harriman Substations and improve reliability in the Woodbury area north of Route 17 and the Town of Palm Tree.

O&R is also expanding its tree-pruning efforts and Hazard Tree Removal program after exceeding last year’s goal of 1,800 by over 800 trees. In 2025, the company is targeting 2,000 hazard trees to be removed. Greater clearances contribute to better system reliability and improved storm hardening of the system.

Substation

Lovett Substation

Improving Overhead Electric Resiliency

O&R’s largest reliability and resilience projects to upgrade the electric system and/or install heavier-duty overhead cable that is higher capacity and tree-resistant include:

  • Nanuet – A $1 million dollar upgrade on South Pascack Road between Lillian Drive and Williams Road to replace approximately 3,800 feet of overhead wire with higher capacity aerial cable.
  • Wurtsboro – A $2.6 million dollar project on Mt. Vernon Road to enhance the local distribution system and address aging infrastructure.
  • Port Jervis – A $1.3 million project to reconductor aging transmission lines and convert the area from 4.16 kV to 13.2 kV. Fusing was installed to reduce exposure, and new conductors were installed to improve reliability and remove aging infrastructure.

Click here to see how tree-resistant cable can reduce overhead electric outages.

Improving Underground Electric Resiliency

O&R has also completed a series of underground projects over the past year to harden the electric system at strategic locations and promote electric service reliability and resilience during high-demand summer months and beyond. Here are some examples:

  • Haverstraw – A $3.7 million project along Mt. Ivy Road in Thiells that replaced approximately 10,000 feet of overhead distribution with underground cable.
  • Middletown – A $625,000 project that replaced a 625-foot overhead highway crossing at Wawayanda Avenue over I-84 with underground cable, improving system reliability during storms.

Expanding Smart Grid Technology

O&R continues to improve reliability by automating its electric system through smart grid technological improvements. The smart grid integrates state-of-the-art equipment and technology with advances in computer analysis, communications, monitoring and control to significantly enhance system reliability, efficiency and overall quality of service.

More than 100 new remote-operated devices are being installed this summer in addition to the 1,800 existing switching devices that minimize the number of customers affected by outages.

Forecasting Summer Bills

O&R forecasts an average monthly summer electric bill for a typical residential customer for 2025 to be $155.61, an 8.6 percent increase over last summer. That increase includes the cost of 550 kWh of electricity and its delivery.

Delivery costs include the labor and materials required for upgrading and maintaining electrical infrastructure from overhead and underground cables to substations and preparing the grid for the transition to a clean energy future. Delivery rates are set by state regulatory agencies.

O&R does not set supply costs and doesn’t make a profit on the energy it buys in the wholesale supply market. The customer pays what O&R pays.

Managing Summer Bills

O&R is committed to educating customers about their bills and providing resources and tips to help manage their energy costs. Here are some energy-saving efficiency tips.

We also provide customers with information about saving money through Rebates, Incentives, and Tax Credits.

The company also offers Payment Plans and Assistance for customers who need bill payment assistance. Through that link, customers who need help getting their accounts back on track can find O&R’s internal credit tools (budget billing, payment agreements and credit extensions).

Keeping Energy Affordable

O&R will once again offer over $15 million in assistance to income-eligible customers who find themselves facing financial hardship and meet the eligibility criteria for the company’s Energy Affordability Program. If a customer faces a financial emergency, Emergency HEAP is open until August 30, 2025, or until funds are exhausted. Customers can receive a first or second HEAP benefit.

Improving Energy Efficiency

O&R offers significant energy efficiency programs that can help customers save energy and money this summer while maintaining those savings throughout the year. 

Residential and business customers in New York can take advantage of the My ORU Store for a wide variety of energy-saving products, programs, and home services. Customers can stack their savings by combining energy efficiency rebates with exclusive manufacturer discounts on a wide variety of products including smart thermostats, advanced power strips, weatherization, air quality appliances, connected home, and water/energy saving devices.

Those who purchase a qualified smart thermostat to control their central air conditioner can also automatically enroll in the Smart Savers program to receive an additional instant $85 rebate at checkout. The My ORU Store also offers many do it yourself (DIY) products that you can easily install to maximize your cooling and help make your home or business weather-ready by eliminating air leaks and energy waste.

O&R has partnerships with various third-party vendors to assist customers in finding certified contractors who perform energy-efficient upgrades, including heat pump installations, solar and battery storage, and insulation and weatherization services.

Both residential and commercial customers can also take steps to electrify their buildings and reduce greenhouse gas emissions by replacing fossil fuel heating systems with highly efficient electric heat pumps. The NYS Clean Heat program is designed to provide rebates to customers for making the switch to a cold-climate heat pump, heat pump water heater, or other heat pump solutions designed and used for space and water heating. Customers can receive those rebates as an instant discount or by rebate check, and now for a limited time, customers can receive increased incentives if they make the switch. Customers can explore our network of participating contractors.

Eligible O&R commercial and industrial customers can also receive instant rebates when they purchase qualifying ENERGY STAR® and DesignLights Consortium LEDs from a participating distributor. Products are discounted instantly, with no additional rebate forms or applications to fill out through O&R’s Instant Lighting Incentive Program. If there are fixtures that are not covered by the Instant Lighting Incentive Program, they may be covered by the Custom LED Lighting Program. Both retrofits and new construction facilities are eligible. Please be advised that 2025 is the last year for lighting rebates, so customers are encouraged to quickly upgrade their facility now and save for years to come. For more information, check out O&R’s Instant Lighting Incentive Program.

Electric Vehicle Charging Incentives

O&R helps make the transition to electric vehicles easier and more affordable. The company is here to guide customers through the process with its free Fleet Assessment Service. This service helps plan the electrification of their site, or their fleet with O&R’s Site & Fleet Electrification Calculator.

Under the company’s PowerReady incentive program, commercial facilities, multifamily buildings, or parking areas that install level 2 or direct-current fast chargers can offset up to 90 percent of the upfront infrastructure costs of preparing a site. 

Customers who already have made the shift to EVs can now be part of the community of drivers who are earning cash incentives for charging at off-peak times through O&R’s SmartCharge NY Program. Commercial EV charger owners/operators participating in O&R’s SmartCharge Commercial program can earn incentives by shifting EV charging load to off-peak periods.

About O&R

Orange and Rockland Utilities, Inc. (O&R) is a wholly owned subsidiary of Consolidated Edison, Inc., one of the nation’s largest investor-owned energy companies. O&R is a regulated utility that provides electric service to approximately 300,000 customers in southeastern New York State (where its franchise name is Orange and Rockland Utilities) and northern New Jersey (where it’s Rockland Electric Company), and natural gas service to approximately 140,000 customers in New York. 

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