Gov. Kathy Hochul Thursday said state regulators will expand energy affordability guidelines that seek to limit costs to 6% of household incomes.
As energy prices soar, the Public Service Commission, which regulates electric and natural gas suppliers in the state, will start monitoring utilities’ compliance with a new energy affordability index, which aims to keep customers’ combined bills below 6% of income — 3% for electricity and 3% for gas.
Previously, the energy discount only applied to low-income households, but now will also apply to up to 2.5 million middle-income families.
“I have made it a top priority to ensure we keep the lights on and costs down for all New Yorkers and the PSC’s action today builds on those efforts,” Hochul said.
Utilities that exceed the target would be subject to additional state oversight and could get dinged when they seek rate hikes from the PSC, Hochul said.
Hochul’s push to keep a lid on fast-rising utility costs is a big issue as she seeks reelection to a second full term in November. She holds a healthy lead in polls over Republican Bruce Blakeman, the Nassau County executive.
Gov. Kathy Hochul launches a new statewide enrollment drive to help New Yorkers get a monthly discount on their utility bills through the State’s Energy Affordability Program on Tuesday, Sept. 15, 2026, in New York City. (Susan Watts / Office of Governor Kathy Hochul)
An initial affordability score for each utility, calculated with median area incomes, will be created by February and final reports by next summer.
Results of the score will be linked to scores used in executive and senior management compensation, potentially giving top brass an incentive to keep price hikes in check.
Hochul this week also announced energy rebate checks up to $200 will be sent to 8.2 million households across New York State starting on Monday.
The payments are designed to cushion ratepayers against price increases attributed to the rising price of energy since the start of the Iran War.