Avangrid, Inc., a leading energy company and part of the Iberdrola Group, has announced a significant investment of $41 million in Ithaca, New York, aimed at enhancing the capacity and reliability of the region’s electrical grid. The investment involves five key infrastructure projects that will directly benefit more than 42,000 New York State Electric & Gas (NYSEG) customers in the Ithaca area. These improvements are expected to reduce both the frequency and duration of power outages by strengthening the overall resilience of the grid.
This initiative is part of Avangrid’s broader commitment to modernizing energy infrastructure throughout New York State. Since the launch of the Reliable Energy Rate Plan in 2023, Avangrid has invested $582 million in 265 electric and gas infrastructure projects across the state through its utility companies, NYSEG and RG&E. These efforts aim to ensure the safe and reliable delivery of energy to 2.9 million customers. In March 2025, Avangrid expanded its vision by announcing a $20 billion investment plan to upgrade the U.S. electrical grid through 2030, reinforcing the company’s focus on the United States as a top investment priority.
The projects planned for Ithaca are part of the first phase of this local investment and are scheduled for completion by the end of 2027. They include a $300,000 upgrade to transformers at the Coddington substation and a $28.4 million investment for the purchase and installation of two new transformers at the Fourth Street substation. Additionally, three capacity banks will be installed at key substations: $4.2 million will go toward the Trumansburg substation, $3.3 million for Cayuga Heights, and $4.9 million for the West Hill substation. These capacity banks will help maintain stable voltage levels and improve overall grid efficiency.
“Avangrid’s $41 million investment in Ithaca is a crucial step in our ongoing commitment to modernize and strengthen New York’s aging energy infrastructure,” said CEO Pedro Azagra. “Through our larger $20 billion investment through 2030, Avangrid will help ensure communities across New York and the United States have the reliable and resilient energy needed to grow and prosper.”
Patricia Nilsen, president and CEO of NYSEG and Rochester Gas and Electric, stated, “Continued investment into the modernization of New York’s grid is not only a top priority at NYSEG & RGE but it is also part of our core mission to provide reliable energy to our customers. The $41 million investment in Ithaca will enhance the reliability of electricity in the region and will also increase the capacity of the grid in the area, allowing for future growth of communities and businesses.”
The new and upgraded transformers will play a crucial role in enhancing grid performance. By stepping down voltage for transmission, sub-transmission, and distribution, these transformers ensure a safer and more efficient supply of electricity. They also increase the system’s capacity to meet future demand, supporting growth in residential and commercial energy use in the Ithaca region.
The installation of capacitor banks will further improve reliability by stabilizing voltage levels, leading to a more consistent energy flow and better grid performance. Beyond infrastructure improvements, these projects are expected to have a positive economic impact, generating more than 150 new jobs. Overall, Avangrid’s investment in Ithaca reflects its long-term commitment to building a stronger, more reliable energy system that can support both current needs and future growth.
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