Avangrid – a leading energy company and member of the Iberdrola Group – announced five projects in Ithaca, NY, totalling $41 million in new investment, to improve the capacity and reliability of the area’s electrical grid.
This significant investment in Ithaca’s grid infrastructure builds on Avangrid’s efforts to modernize New York’s electrical and gas infrastructure, totaling over $500 million for 265 projects since the 2023 Reliable Energy Rate Plan. Avangrid will continue to invest its unprecedented $20 billion through 2030 to rebuild and strengthen critical infrastructure in all its service areas across the Northeast.
In total, these projects in Ithaca will benefit over 42,000 New York State Electric & Gas (NYSEG) customers in the Ithaca region by adding additional capacity and enhancing the grid’s reliability. Reliability improvements will strengthen the resilience of the system, leading to fewer and shorter-duration outages.
Phase I of Ithaca’s investment will focus on current reliability needs in the region and is on schedule to be completed by the end of 2027.
These projects include:
1.) $300,000 in upgrades to transformers at the Coddington substation
2.) $28.4 million for the purchase and installation of two new transformers at the Fourth Street substation
3.) $4.2 million for the purchase and installation of a capacity bank at the Trumansburg substation
4.) $3.3 million for the purchase and installation of a capacity bank at the Cayuga Heights substation
5.) $4.9 million for the purchase and installation of a capacity bank at the West Hill substation
An increased capacity will encourage growth in the region and provide more energy to power additional homes and new and growing businesses. In total, these projects create 150+ jobs.
The transformers included in these projects will play a significant role in the substation upgrades. Their function is to step down the voltage to transmission, sub-transmission, and distribution voltages, ensuring the safe and economic supply of electricity. Having new and upgraded transformers makes the stations more resilient to power outages. It also increases the energy capacity for future demand in the area.
Capacitors banks ensure consistent energy into the grid, helping improve the reliability for customers in the area. They do this by stabilizing and maintaining voltage levels, which enhances the overall efficiency and performance of the power grid.
Since 2023, Avangrid’s electric and gas utilities in New York – NYSEG and RGE – have invested $582 million in 265 projects across New York State. And these projects have rebuilt critical gas and electrical infrastructure across the company’s service territories that provide safe and reliable energy to 2.9 million customers in New York.
In March 2025, Avangrid announced plans to invest $20 billion in U.S. electrical grid infrastructure over the next decade. And the plan reflects the critical need to invest in energy infrastructure to meet growing demand, as well as the United States’ position as a top investment priority for Avangrid and Iberdrola.
KEY QUOTES:
“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. 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.”
CEO Pedro Azagra
“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.”
Patricia Nilsen, president and CEO of NYSEG and Rochester Gas and Electric
