Avangrid Commits $41M to Strengthen Grid Reliability for 42,000 NYSEG Customers in Ithaca

Avangrid, Inc., a leading U.S. energy company and member of the Iberdrola Group, will invest $41 million in five major infrastructure projects in Ithaca, New York. The upgrades aim to increase grid capacity and reliability for more than 42,000 New York State Electric & Gas (NYSEG) customers in the region.

The investment is part of Avangrid’s broader effort to modernize New York’s energy infrastructure. Since the 2023 Reliable Energy Rate Plan, the company has invested more than $500 million across 265 projects in the state. Looking ahead, Avangrid plans to invest $20 billion by 2030 to rebuild and strengthen energy infrastructure across its Northeast service areas.

Phase I Projects Target Reliability, Capacity Gains

Scheduled for completion by the end of 2027, the first phase of the Ithaca investment will address existing reliability challenges while preparing the grid for future demand. The projects include:

• $300,000 to upgrade transformers at the Coddington Substation
• $28.4 million for the installation of two new transformers at the Fourth Street Substation
• $4.2 million for a capacitor bank at the Trumansburg Substation
• $3.3 million for a capacitor bank at the Cayuga Heights Substation
• $4.9 million for a capacitor bank at the West Hill Substation

The upgrades will also support local economic development, creating more than 150 jobs during the construction and installation phases.

Supporting a Growing Region

Company officials said the enhancements are designed to meet rising electricity demand from homes and businesses, while improving resilience against outages.

Transformers will help regulate voltage as electricity moves from high-voltage transmission lines to the local distribution network. Upgraded transformers improve system reliability and allow for increased capacity. Capacitor banks will stabilize voltage levels, improving energy efficiency and reducing power disruptions.

Avangrid’s expansion in Ithaca reflects its long-term strategy to modernize energy infrastructure and support the state’s transition to a cleaner, more resilient electric grid.