How much power does a governor have over utility rates?

As rising utility costs become a major issue this election cycle, New York officials are promising relief and pointing fingers over who is responsible for high energy bills.

But as we continue to follow the politics surrounding your energy bills, behind the campaign rhetoric is a more complicated question: How much power do elected officials actually have to bring utility costs down?

U.S. Sen. Kirsten Gillibrand on Thursday called on the Trump administration to release federal funding for the Low-Income Home Energy Assistance Program, or LIHEAP, which helps low-income households pay their energy bills.

“It is a vital lifeline for New Yorkers across the state,” Gillibrand said.

Gillibrand warned that a delay in releasing the federal funding could interfere with New York’s ability to begin distributing assistance as colder weather approaches. New York is expected to receive roughly $360 million through the program.

“This could delay New York’s ability to open applications and begin distributing funds. As temperatures drop and utility prices rise this administration’s inaction could quite literally leave New Yorkers out in the cold,” Gillibrand said.

She blamed the Trump administration and the war in Iran for contributing to higher energy costs.

At the state level, utility rates have also emerged as a major issue in the race for governor, with Republican candidate and Nassau County Executive Bruce Blakeman blaming state officials and New York’s energy policies for high costs.

“I will cut your utility bills in half, we will get rid of the green energy scam and we will open up our own natural gas resource that we have in abundance in New York State,” Blakeman said.

Gov. Kathy Hochul, meanwhile, has pointed to steps taken by the state to provide short-term relief while making longer-term changes to energy policy and utility regulation.

The state budget approved this year included new restrictions and requirements surrounding the rate-setting process at the Public Service Commission. Among other provisions, utilities will be required to submit a budget-constrained proposal when seeking rate increases, with added scrutiny around executive compensation, rates of return and how some costs are passed on to customers.

The budget also loosened some requirements under the state’s landmark 2019 climate law and Hochul championed an expansion of nuclear power.

Hochul has also clashed with President Donald Trump over his opposition to some of New York’s wind power projects.

“We’re about solving problems. Doing what we can with the circumstances. Part of it is making sure we have an all of the above approach to energy. The more supply we have, the more prices will go down,” Hochul said.

The state has also expanded access to its Energy Affordability Program, which provides discounts on utility bills. Like the one-time energy rebate checks approved in this year’s budget and federal heating assistance, however, those programs primarily help households manage existing costs rather than directly changing the underlying rates they pay.

That leaves a central question as candidates campaign on energy affordability: How much power does a governor actually have over utility rates?

Charles Hua, founder and executive director of the nonprofit PowerLines, told Spectrum News 1 that governors have more influence than many consumers may realize.

“They shape legislative agendas, they shape state budgets, they shape the people who serve on the commissions who make these decisions about how much you pay for energy and the platform they have is really important to speak out on this issue,” Hua said.

PowerLines recently published a playbook outlining steps governors can take to address utility affordability, including changes to the regulatory process that determines how much utilities can charge customers and what investments they are allowed to recover through rates.

When it comes to some of the most consequential changes states can make, Hua said New York’s recent changes to the Public Service Commission process are moving in that direction. He argued that atiquated rate setting tactics are prime territory for reforms that can deliver actual results.

“We’ve seen more and more states use the budget process and the legislative process to say, look, utility companies have had a way of doing things for a long time but in this moment of energy affordability concerns, that process may no longer be fit for purpose.”

Republicans and Democrats have both pushed for changes involving the Public Service Commission and the way utilities seek rate increases. Much of the political disagreement, however, continues to center on the state’s broader energy mix — including the roles of renewable energy, nuclear power and natural gas — and how those policies affect costs over the long term.