NEW YORK (WBNG) — Gov. Kathy Hochul announced that the Public Service Commission (PSC) initiated a proceeding to implement multiple affordability incentives, including plans she pushed. <\/p>\n
The proceeding discusses the state\u2019s goals to make sure household energy costs do not exceed 6% of a family\u2019s income, with 3% for electricity and 3% for natural gas.<\/p>\n
\u201cI have made it a top priority to ensure we keep the lights on and costs down for all New Yorkers, and the PSC\u2019s action today builds on those efforts,\u201d Gov. Hochul said. \u201cJust this week alone we announced that $1 billion in energy rebate checks will start going out to 8.2 million New Yorkers beginning Sept. 21 and we began an aggressive education and enrollment effort so the 2.5 million households eligible, but not enrolled, for utility bill credits of up to several hundred dollars a year can take advantage of the savings.\u201d<\/p>\n
The PSC would create an Energy Affordability Index that will measure how much typical residents spend on basic utilities compared to median income levels across the state. <\/p>\n
Power companies will be required to calculate this index for upcoming rate cases and submit their first annual reports by Feb. 2027.<\/p>\n
If an energy company pushes household costs beyond the 6% cap, the PSC can place an independent affordability monitor inside the company to investigate operations and recommend ways to bring expenses down.<\/p>\n
\u201cThis new Affordability Index will improve stakeholder understanding of energy affordability across the state\u2019s major utilities with a consistent metric, incentivize executives to address affordability concerns, and inform the Commission\u2019s rate case decisions going forward,\u201d said PSC Chair Rory M. Christian.<\/p>\n
When power companies ask to raise their rates in the future, they will face a much more demanding approval process.<\/p>\n
Regulators will take up to 14 months to review rate requests, closely inspect legal and consulting expenses and require companies to prove that large projects are necessary to ensure customers are not paying for unwanted costs.<\/p>\n