New York (WRGB) — New York utility customers who bought electricity or natural gas through certain energy service companies could see money returned to their bills under a newly approved settlement that state officials say is aimed at addressing overbilling, according to state officials.

Gov. Hochul announced that the New York State Public Service Commission adopted a settlement agreement with nine energy service companies affiliated with NRG that directs a total of $71 million in relief to ESCO customers. The agreement requires the companies to collectively provide $50 million in billing adjustments to 278,000 current and former residential and small commercial customers, and to provide up to $21 million in guaranteed future savings through a discounted product offer.

The companies must also offer eligible customers a one-year energy plan guaranteed to save 15% compared to standard utility rates, which could total up to $21 million in additional savings.

Gov. Hochul said,

Too many New Yorkers are struggling with high utility bills, being squeezed every month just to power their homes. 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 settlement stems from allegations that the companies violated state regulations, including failing to properly transition customers to updated contracts and, in some cases, providing service to low-income customers despite restrictions.

The companies involved include Gateway Energy Services Corporation, Direct Energy Services, Green Mountain Energy Company, XOOM Energy New York and several others operating in the state.

According to the Public Service Commission, more than 278,000 current and former customers will benefit from the settlement, even though the companies currently serve about 160,000 electric and gas customers statewide.

State officials said the agreement also includes more than $900,000 in billing adjustments for certain low-income customers who were improperly enrolled in ESCO services.

Public Service Commission Chair Rory Christian said the action is part of ongoing efforts to hold energy providers accountable and protect consumers.

Christian said,

Governor Hochul is laser-focused on putting money back in the consumers’ pockets and protecting consumers. The agreement announced today with these energy service companies, or ESCOs, will ensure customers remain protected and promote greater energy affordability. The Public Service Commission remains vigilant in holding all companies in its jurisdiction accountable.

The settlement resolves allegations outlined in a 2025 order in which regulators accused the companies of violating multiple state rules. The companies denied most of the allegations but agreed to the settlement.

Officials say affected customers will receive billing adjustments directly, and eligible customers will be notified about the guaranteed savings program.