More Upstate Utility Customers Paying A Steep Price For Ny’s Unsustainable Energy Plan

 There are lots of factors contributing to New York’s unaffordable cost of living, and out-of-control utility costs are near the top of the list. Earlier this year, I wrote about the New York Public Service Commission’s decision to approve phased-in rate hikes[1] for many upstate communities, a troubling development considering costs are already unsustainably high for struggling families.

It’s no secret why we are in this precarious situation: Gov. Kathy Hochul and her legislative allies refuse to accept the impossible energy standards passed in the Climate Leadership and Community Protection Act. Banning natural gas and legislating the full electrification of the state are nothing short of ridiculous considering the economic realities facing everyday New Yorkers.

Now, even more families are expected to see substantial hikes as National Grid customers face increases of 27% for gas and 20% for electricity[2] by the time new rates are fully implemented. Next month, the commission will be voting on the potential hike. Those new rates are anticipated to add $22 a month to customers initially before going up again next year and the year after that. Making matters worse, some of the revenue generated is needed simply to offset a poorly administered discount program—one that ends up helping some low-income New Yorkers by charging eligible families who haven’t signed up. Less than half of eligible New Yorkers are currently enrolled in the program.

Without state funding to support discount programs, rates for lower- and middle-income families are going to go up in order to offset savings. And what are the savings we can expect for those who participate in the state’s newest discount program? National Grid customers making 60% to 80% of the state’s median income[3], once enrolled, can anticipate $6 in savings. Those making less than 60% of the median income, which is the lowest bracket qualifying for the state’s “energy affordability programs,” would see $13 in savings.

A hard look at these figures shows a system in which seemingly everyone loses. Low-income earners unaware and unenrolled households will be lumped into a category of ratepayers who will see enormous hikes in their utility bills to offset rising costs for others. And those savings don’t even make up the difference for the lowest-income families qualifying for a discount.

The unfortunate reality is that our energy plan is inadequate. A recent announcement that the state is considering expanding our nuclear energy program is a good start, but much more needs to be done if we are going to meaningfully lower utility costs for customers. Most importantly, a fundamental shift in approach is needed at the state level. Strengthening our infrastructure, keeping utility costs to a minimum and diversifying our energy portfolio through attainable, reliable generation must be our priority. Until then, ratepayers across the state, will be crushed by unnecessary and unsustainable energy costs.

If you have any questions or comments on this or any other state issue, or if you would like to be added to my mailing list or receive my newsletter, please contact my office. My office can be reached by mail at 19 Canalview Mall, Fulton, NY 13069 and by email at [email protected][4]. You may also find me, Assembly Minority Leader Will Barclay, on Facebook or Twitter at @WillABarclay.