New York State Electric & Gas (NYSEG) lights up upstate New York. Organized in 1852, the company, a subsidiary of Iberdrola USA (formerly known as Energy East) provides regulated energy services to more than 40% of upstate New York. The utility serves 872,000 electricity customers and about 256,000 natural gas customers in a 18,000 square mile area of central, eastern, and western New York. NYSEG operates more than 37,000 miles of power transmission and distribution lines and more than 440 substations; its transmission assets are overseen by the New York ISO. It owns 7,800 miles of gas distribution pipeline. The company also owns several hydroelectric power generation facilities.
NYSEG gets the bulk of its revenue from electricity sales. An estimated 99% of the company's service area falls outside of incorporated city limits. NYSEG serves electricity and natural gas customers in Binghamton, Elmira, Auburn, Geneva, Ithaca, Lockport, and other towns and cities. The utility partners with private business and government agencies in promoting economic development in upstate New York.
In order to meet the needs of the fast-growing Steuben, Chemung, and Schuyler counties, in NYSEG is building a 9.4-mile, overhead, 115-kV transmission line and two new substations.
In 2009 the company reported a slump in revenues as the result of the global recession, which weakened power and gas demand especially from the industrial sector.
To raise money to pay down debt, in 2011 Iberdrola USA sold two NYSEG gas pipelines and a natural gas storage plant to Inergy Midstream LLC for about $65 million.