New York Leaders Must Act on the Energy Affordability Crisis

ALBANY, N.Y. —  In a joint letter to Governor Hochul, Senate Majority Leaders Andrea Stewart-Cousins, and Assembly Speaker Carl E. Heastie, AARP New York and the Public Utility Law Project (PULP) have issued a Must-Do List of affordability measures and Public Service Commission (PSC) reforms to mitigate the energy affordability crisis in the final state budget.

The organizations offered several policy priorities to provide short-term utility bill relief, as well as long-term reforms to ensure the PSC ratemaking process better serves residential ratepayers.

• Establish and fund an independent utility consumer advocate office ($2.1 million) and an intervenor funding program ($1 million) to level the playing field for residential ratepayers in rate cases.
• Invest in programs that reduce energy bills ($200 million) and in EmPower+ ($200 million) to expand access and drive down costs for low- and moderate-income households.
• Require utilities to return excess earnings to ratepayers through bill credits when they exceed their authorized return on equity.
• Strengthen utility termination protections for vulnerable households, including tenants of multiple dwellings and individuals with medical needs.
• Install a strong, independent affordability monitor at utilities to identify avoidable cost drivers and require corrective action when energy burdens exceed 6%.
• Create an Energy Rebate Program that would provide immediate relief to those currently struggling to pay their utility bills.
• Establish and fund a Blue Ribbon Commission to study the causes of rising utility rates and recommend solutions to reduce energy costs long-term.
  

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These actions would come at a pivotal moment where over 1.1 million New Yorkers are over 60-days behind on their energy bills and collectively owe nearly $1.8 billion. Last year, on average, 34,000 New York households had their utility services terminated each month due to nonpayment. Con Edison alone reported nearly 13,000 disconnections in January 2026, during a month when the average temperature in New York City was 30° F.

A 2026 AARP survey of New Yorkers age 50 and older highlights the real consequences of these costs. Many households reported they are sacrificing basic needs to keep the lights or heat on, including:

• 56% kept their home temperature at uncomfortable levels
• 49% cut back on basic expenses such as groceries, personal care, and transportation expenses
• 27% paid other bills late
• 22% borrowed money or took on debt
• 17% cut back on medical expenses, including prescription medications
  

AARP New York State Director Beth Finkel stated: “Energy has become flat‑out unaffordable for too many New Yorkers, and the state must step up with real, overdue reforms. By adopting these essential policies, New York can deliver meaningful relief to struggling households and overhaul a rate‑making system that has failed consumers. This is about monthly bills; but it’s also about ensuring New York remains a place where people can age with dignity, stability, and the chance to truly thrive. If we are to become an affordable state, we need to address the affordability crisis in a final state budget.”