Governor Kathy Hochul introduced at this time that 478,000 residential prospects and 56,000 small companies in New York State will obtain help totaling $672 million to repay unaffordable overdue utility payments. As we speak’s announcement is the biggest utility buyer monetary help program in state historical past and follows a sequence of insurance policies introduced final week to deal with power affordability and emissions reductions as a part of Governor Hochul’s State of the State handle.
“Each New Yorker deserves reasonably priced power, but too many New Yorkers are prone to having their lights turned off as a result of monetary issues attributable to the pandemic,” Governor Hochul stated. “Earlier this month, I laid out in depth proposals to make power extra reasonably priced in my State of the State handle, and with this historic electrical and fuel utility aid we’re attaining one other main milestone to assist New Yorkers keep heat through the chilly winter months.”
The debt-forgiveness program accepted at this time by the New York State Public Service Fee (PSC) will present monetary aid to prospects and can assist keep away from enormous statewide termination of service, making utility payments extra reasonably priced for all households and small companies. These one-time credit present aid to all residential non-low-income prospects and small-commercial prospects for the interval by means of Could 1, 2022, much like a program accepted final summer season for low-income prospects.
Earlier this month, Governor Hochul introduced formidable and complete insurance policies to deal with power affordability and scale back climate-altering emissions from each sector of the financial system as a part of the 2023 State of the State. Governor Hochul directed the Division of Environmental Conservation and New York State Vitality Analysis and Growth Authority to advance an economywide Cap-and-Make investments Program that establishes a declining cap on greenhouse fuel emissions, invests in applications that drive emissions reductions, and maintains competitiveness of New York industries. Critically, this Cap-and-Make investments Program will drive important advantages to New Yorkers within the type of a Local weather Motion Rebate.
Governor Hochul additionally introduced $200 million in aid for prime electrical payments by offering a reduction to greater than 800,000 New Yorkers making underneath $75,000 who haven’t been eligible for the State’s present utility low cost program, a brand new initiative that’s separate from at this time’s $672 million announcement. As well as, Governor Hochul introduced the creation of the Vitality Affordability Assure, the first-in-the nation pilot program that ensures low-income New Yorkers taking part within the EmPower Plus program by no means pay greater than 6 p.c of their incomes on electrical energy and incentivizes them to totally electrify their properties.
In at this time’s groundbreaking resolution, the PSC accepted suggestions made by the Vitality Affordability Coverage Working Group, a gaggle of stakeholders that included probably the most distinguished shopper advocacy teams within the state. The working group proposed a statewide program to resolve all arrears by means of Could 1, 2022, of roughly 75 p.c of residential non-low-income and small enterprise prospects, and partially resolve arrears for roughly 25 p.c of remaining prospects by way of a one-time credit score. The monetary price to New Yorkers of adopting the arrears aid program is lower than the estimated $1 billion to $1.3 billion price of inaction, and it’ll additionally probably keep away from a major quantity of downgrading of shoppers’ credit score. The automated credit score is restricted by an ‘as much as’ financial cap for every utility. This second section would additionally enable residential non-low-income prospects who beforehand had their service terminated in 2022 for non-payment to take part, in order that their eligible arrears may be resolved.
That is the second spherical of main funding to be offered to customers to offset utility invoice arrears that accrued because of the COVID-19 pandemic since Governor Hochul introduced $567 million in June 2022 to assist low-income electrical and fuel utility prospects repay previous utility payments. This included debt aid obtainable to low-income prospects from the State Workplace of Short-term and Incapacity Help’s Emergency Rental Help Program to scale back unpaid utility payments is coupled with $250 million from a New York State finances appropriation to get rid of pandemic-related unpaid utility payments for low-income households.
Within the June spherical of invoice aid, utility shareholders offered greater than $36 million in contributions to profit prospects. In at this time’s spherical of invoice aid, utility shareholders offered an $101 million to profit prospects — an quantity that far exceeds any utility contributions for pandemic aid throughout the USA.
The COVID-19 pandemic triggered important monetary hardship to prospects and resulted within the shuttering of companies and widespread lack of jobs statewide. Unpaid shopper and small enterprise utility money owed have risen significantly since March 2020 and are past the flexibility of most impacted New Yorkers to pay.
Along with Fee employees and the key utilities — Con Edison, Central Hudson Fuel & Electrical, Nationwide Grid, New York State Electrical & Fuel, Orange & Rockland, and Rochester Fuel & Electrical —stakeholders within the working group embody the Metropolis of New York, the Alliance for a Inexperienced Financial system, the Public Utility Regulation Mission of New York, Inc., Residents for Native Energy, the Lengthy Island Progressive Coalition, the Utility Intervention Unit of the Division of State, AARP New York, the Binghamton Regional Sustainability Coalition, and the State Workplace of Short-term and Incapacity Help.
Public Service Fee Chair Rory M. Christian stated, “All through these difficult occasions, Governor Hochul has been steadfast in her drive to assist customers. To deal with this main downside, the PSC has accepted measures to strengthen and enhance utility power affordability applications to scale back shopper power burden and handle low-income buyer wants.”
Workplace of Short-term and Incapacity Help Commissioner Daniel W. Tietz stated, “This modern and collaborative strategy is essential to serving to a whole bunch of hundreds of extra New Yorkers who fell behind on their utility payments through the pandemic to scale back or get rid of these arrears. Governor Hochul and the Division of Public Service acknowledged the evident want and the potential prices of inaction by specializing in an strategy that gives substantial assist to many affected households throughout the state.”
New York State Division of State Secretary of State Robert Rodriguez for UIU stated, “New Yorkers work laborious and deserve a serving to hand when unexpected circumstances just like the COVID-19 pandemic crushes their budgets. I commend Governor Hochul for her unwavering dedication to assist a whole bunch of hundreds of residents and companies in want. As we speak’s announcement, the biggest utility buyer monetary help program within the state’s historical past builds on beforehand offered funding to offset the monetary hardship attributable to the Covid-19 pandemic. This help is an integral assist in New York State’s continued restoration and serves to offer hope and reenergize affected households, companies, and communities.”
AARP New York State Director Beth Finkel stated, “We commend the management of Governor Hochul and the work of the Public Service Fee on this order offering aid to so many utility prospects, together with older New Yorkers, who’ve been struggling to pay their mounting utility debt because the begin of the pandemic. AARP will proceed to work with the Governor, the PSC and the legislature to make sure New York ratepayers have reasonably priced power companies.”
Public Utility Regulation Mission Government Director and Counsel Laurie Wheelock stated, “The primary section of utility debt aid was an incredible success for New York State’s EAP recognized low-income residential prospects, however a whole bunch of hundreds of fixed- and moderate-income ratepayers additionally wanted assist with their electrical and fuel payments. Inaction was merely not an choice, and at this time’s historic Fee order takes monumental steps ahead to offering a lot wanted monetary aid, whereas additionally defending almost 500,000 residential households from utility shutoffs through the coldest months of winter. PULP thanks Governor Hochul, the Public Service Fee, and the entire stakeholders within the Vitality Affordability Working Group for his or her dedication to addressing power debt from the pandemic.”
The just-approved aid will lead to a rise of solely 0.5 p.c on the common buyer’s complete invoice, a rise that may finish in a single to 4 years for many of the state, relying on the utility and the quantity of current arrears. Importantly, the aid program will efficiently avert potential service terminations for greater than 478,000 residential and 56,000 small industrial prospects and assist probably assist keep away from bankruptcies for a lot of small companies.
In the meantime, the Lengthy Island Energy Authority (LIPA) and its service supplier, PSEG Lengthy Island, participated actively within the Vitality Affordability Coverage Working Group and beforehand offered arrears aid to low-income households as advisable by the Working Group within the first section of the arrears aid program. LIPA and PSEG Lengthy Island are additionally planning to implement the second section, introduced at this time, offering one-time arrears aid credit to different residential and small industrial prospects as per the Working Group’s suggestions. LIPA plans to debate this system at its February Board of Trustees assembly.