More than a million New York households are buried in unpaid utility bills, and the total keeps climbing. New data show residential energy arrears jumped by more than $1 billion since the start of the COVID-19 pandemic, reaching about $1.7 billion by December.
AARP New York and the Public Utility Law Project say the numbers show a full-blown crisis. This week, they renewed calls for Gov. Kathy Hochul to amend her 2022–2023 budget to deliver large-scale relief for struggling customers.
According to data analyzed by PULP from the New York State Public Service Commission, nearly 1.3 million households were behind on electric and gas bills in December. That figure reflects a steady rise since February, when about 1 million accounts carried roughly $775 million in arrears. By December, the total owed had more than doubled.
The PSC tracks only energy bills. Advocates say an unknown number of New Yorkers also owe money for water, phone, and high-speed internet service.
“More than one million New York households are in utility debt, and the COVID-19 pandemic has turned this problem into a crisis,” said AARP New York State Director Beth Finkel. “Many will spend years playing catchup as they choose between groceries and heat or medicine and lights. With New York State’s budget plan running surpluses, AARP is disappointed that Governor Hochul’s plan could leave millions in the cold.”
The arrears data show how sharply the burden grew during the pandemic. From February 2020 to December, the number of residential accounts in arrears rose by about 26 percent. The total amount owed jumped by more than 120 percent over the same period.
PULP Executive Director Richard Berkley said the surge reflects ongoing economic strain for low- and fixed-income households.
“Utility arrears in New York have increased by over $1 billion since COVID-19 struck our state, evidence that the economic devastation of low-, fixed-, and newly-low-income families is far from over,” Berkley said. “These 1.3 million households now owe utilities more than they have any ability to pay due to loss of employment, increased childcare and medical costs, or other unprecedented COVID-related challenges.”
AARP and PULP want the governor to dedicate $1.25 billion in federal American Rescue Plan funds to erase most energy utility arrears. They also propose legislation to authorize $200 million for a dollar-for-dollar state sales tax reallocation. That money would support non-energy utilities that forgive arrears for low- or fixed-income households.
The groups also urged the governor and Legislature to direct the PSC to create a workable arrears resolution program. They want the state to extend the utility shutoff moratorium for all customers through June 30 to protect households through the end of winter while budget talks continue.
Without action, Berkley warned, the fallout will linger.
“We will continue to urge Governor Hochul to put sufficient financial support in her Budget to erase the unparalleled arrears caused by the pandemic and resolve this crisis,” he said. “Otherwise, the finances of many of New York’s communities and millions of low-income/fixed-income residents will be unable to recover for years to come.”
Get the latest local headlines every morning at 6 a.m. Sign up for our Get Local newsletter .
Want to see more FingerLakes1.com stories in Google? Add FingerLakes1.com to your preferred news sources to help Google prioritize our reporting in your results.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to [email protected].