Governor Kathy Hochul today announced new steps to protect consumers from sky-high utility costs that are making New York less affordable. In a letter to Public Service Commission Chair and Department of Public Service CEO Rory Christian, Governor Hochul calls for the rejection of Con Edison’s proposed rate hike. Governor Hochul also directed the Department of Public Service to conduct a statewide audit of utility company salaries and compensation, to ensure New York ratepayers are getting a fair deal.
“The cost of living is too damn high and New Yorkers need more money in their pockets,” Governor Hochul said. “Of course we need safe, reliable energy sources to power our homes and businesses. But utility companies shouldn’t be jacking up costs unnecessarily – especially if they’re paying their own staff too much.”
To address the immediate threat of Con Ed’s proposed rate hikes, which would cost New Yorkers hundreds of dollars each year, Governor Hochul today sent a letter to Public Service Commission (PSC) Chair and Department of Public Service (DPS) CEO Rory Christian urging action on behalf of New York consumers. The Governor called on DPS to act in the best interest of New Yorkers by closely scrutinizing this rate case and rejecting Con Ed’s unconscionable request to increase electricity rates by 11.4 percent and natural gas rates by 13.3 percent.
Governor Hochul also directed DPS to conduct a first-of-its-kind audit of utility management compensation. The audit will focus on compensation for non-union utility management employees statewide and the results will inform future rate cases to protect New Yorkers from unfair rate hikes. Numerous recent management and operations audits of large, investor-owned electric and gas utilities have highlighted meaningful concerns with how utilities administer their programs. For example, in a recent audit of Central Hudson, the auditor concluded their bonus structure rewarded financial performance, but only set reliability and service quality metrics at the bare minimum.
Over the last four years, Governor Hochul has prioritized energy affordability by:
- Affordability policy enhancements to expand eligibility in the Energy Affordability Program and creating the Energy Affordability Guarantee, the first-in-the nation pilot program that ensures low-income New Yorkers participating in the EmPower Plus program never pay more than 6 percent of their incomes on electricity and incentivizes them to fully electrify their homes.
- Budget appropriations to reduce ratepayer costs of EAP that provides critical utility bill relief to low-income New Yorkers.
- Providing arrears forgiveness of more than $1 billion.
- State procurements of renewable generation to offset ratepayer costs of developing new clean generation resources
- $300 million to create power-ready sites for attracting new businesses through the Promote Opportunity with Electric Readiness for Underdeveloped Properties (POWER UP) Fund.
Governor Hochul has prioritized affordability and helping New Yorkers with the high cost of living. To address rising costs related to home heating, Governor Hochul recently added $35 million to fund the Home Energy Assistance Program (HEAP) which supports low-income New Yorkers who need help paying utility bills; the Governor also signed legislation in 2024 to help senior citizens access this vital program. New York State Homes and Community Renewal (HCR) administers the Weatherization Assistance Program which helps HEAP-eligible households reduce energy costs, conserve energy, and improve safety and health standards.
In her 2025 State of the State, Governor Hochul prioritized passing an affordability agenda that puts money back in the pockets of middle-class New Yorkers. Governor Hochul proposed New York’s first-ever Inflation Refund, which would give eligible New Yorkers checks of up to $500. The Governor is also calling for a tax cut that would reduce rates for middle-class families to the lowest levels in nearly 60 years and proposing a massive expansion of the Child Tax Credit.
AARP New York State Director Beth Finkel said, “By opposing Con Edison’s latest rate hike proposal, Governor Hochul is again standing up for New Yorkers who are struggling simply to pay for their basic living expenses such as rent, food and prescription drugs. That includes the many older New Yorkers living on fixed incomes who can’t afford to have their utility bills go up even higher. New York’s population is aging rapidly, and far too many older adults are already living in poverty. The Governor is prioritizing making New York a more affordable place to live for people of all ages, and we support her in these efforts.”
Community Service Society of New York Senior Director Carrie Tracy said, “We thank Governor Hochul for her strong defense of working families in New York and for opposing the proposed rate hikes, which would be disastrous for low- and moderate-income New Yorkers. The Community Service Society of New York has been dedicated to promoting economic opportunity for over 180 years, and we appreciate the Governor’s commitment to building a more equitable city and state.”
Assemblymember Didi Barrett said, “In the last two years alone, we have seen eight double digit utility rate increase requests across New York State, including this most recent one from Con Ed. These rate increases are simply unsustainable for already cash-strapped New Yorkers. I thank Governor Hochul for focusing on utility affordability and I support her call for a compensation audit, increasing transparency and holding utilities accountable to our constituents.”