(The Center Square) — Hundreds of thousands of New Yorkers will be getting a break on their monthly utility bills under a $50 million settlement between state regulators and nine energy companies.
The New York State Public Service Commission on Thursday announced the agreement with the companies — which are affiliated with NRG, a major energy supplier — requiring them to collectively pay $50 million in billing adjustments to 278,000 current and former residential and small commercial customers.
The deal also directs the companies to reduce energy costs for the impacted customers by 15%, compared to the utility rate for a one-year term and provide billing adjustments to certain low-income customers.
“Too many New Yorkers are struggling with high utility bills, being squeezed every month just to power their homes,” Gov. Kathy Hochul said in a statement. “The settlement agreement adopted by the PSC today puts money back in the pockets of customers and offers them future savings, putting affordability first for everyday New Yorkers.”
The nine companies, including Gateway Energy Services Corporation, Energy Plus Holdings LLC, Energy Plus Natural Gas, LLC, and Direct Energy Services, LLC, collectively serve more than 120,000 electric customers and 40,000 gas customers in the state. But the settlement will include more than 100,000 former customers of the companies, according to state regulators.
Under the terms of the settlement, the companies must offer a product to consumers covered by the deal that will collectively reduce their cost by $21 million a year. The companies will also be required to provide more than $900,000 in “billing adjustments” for some low-income customers who inadvertently received ESCO service through one or more of the affiliated companies.
Hochul, who is running for reelection, is touting her administration’s efforts to reduce energy costs, but faces criticism from Republicans who say the state’s green policies and resistance to fossil fuels have driven up costs for energy consumers.
The governor is also calling for dialing back aggressive goals in New York’s 2019 climate change law, which requires the state to reduce its excess greenhouse gas emissions by 40% by 2030, compared to 1990 levels. She has also said the law’s emissions reduction mandates are “unrealistic” with the Trump administration’s scrapping federal support for clean energy projects.
A report by the New York State Energy Research and Development Authority said the law’s requirements for homeowners and businesses to reduce reliance on fossil fuels would impose heavy burdens on New York households, especially those unable to afford lower-emissions technologies. The report said the mandates could cost the average New Yorker up to $3,500 more per year on their energy bills.
Environmental groups have pushed back on those claims, arguing that the shift to clean energy will ultimately save New Yorkers’ money and offset the costs of rising temperatures, more intense air pollution, health impacts, and more frequent and severe extreme weather events such as storms, flooding, heat waves, and wildfires.
A coalition of groups led by Earthjustice sued New York last year, claiming the Hochul administration is in violation of the climate law by failing to implement all of its provisions.
