AM Shrestha, Ulster County Exec Metzger Urge Hochul to Stop Utilities Making Energy Unaffordable, Pass NY HEAT

KINGSTON, NY (12/12/2024) (readMedia)-- Today, Assemblymember Sarahana Shrestha, Ulster County Executive Jen Metzger and Kingston Mayor Steve Noble joined Hudson Valley residents and advocates to rally against continued gas rate hikes and demand lawmakers pass the NY HEAT Act during this year's session. As winter begins, Central Hudson is yet again looking to raise the cost of heating - while gas utilities across the state are expected to charge everyday New Yorkers 18% more for heat! Now, Hudson Valley residents are demanding to know what the Governor and Assembly are doing about it.

Watch a recording of the event here.

"Our laws allow for-profit utilities like Central Hudson to pass every cent of their operating cost to ratepayers, and to earn a return on equity based on their capital investments. That means these corporate monopolies have a perverse incentive to keep expanding their gas infrastructure, with the blessing of the State, leaving ratepayers on the hook to pay millions of dollars for something that is guaranteed to become stranded assets. We are at a moment right now where we don't have the luxury of choosing between multiple crises. Here in Ulster County, we have the second highest energy burden in the Hudson Valley, with 32% of ratepayers paying more than 6% of their income on their bill, and we also have record numbers of wildfires, drought, and flooding. These new weather patterns not only disrupt our lives, they also cost us money. We pay millions to fix potholes, but a new pattern of unsteady temperatures means we have more potholes to fix. The number of storms have doubled, which means ratepayers pay more money to keep our energy system steady. On top of that, increased pollution and asthma rates means more time and money spent at the hospital. We don't have the luxury right now to sit back and say any given problem is too big for us to solve. We need to act on solutions that are staring at our face: Instead of paying $200M in subsidies every year to keep expanding the fracked gas system, we need to unlock a new era of affordable clean energy, and that's what the NY Heat Act helps us to do," said Assembly Member Sarahana Shrestha.

"The NY HEAT Act promotes common-sense clean energy and affordability goals, like capping utility bills, eliminating utility subsidies for fossil fuel expansion, and updating utility regulations," said Ulster County Executive Jen Metzger. "The bill will align Public Service Law with the goals of the Climate Leadership and Community Protection Act, which I was proud to help pass when I served in the State Senate. I want to thank Senator Hinchey, Assembly Member Shrestha, and Governor Hochul for advancing the NY HEAT Act in the 2025 Executive Budget, and I urge the State Legislature to include the bill in the adopted budget to hold utilities accountable and promote sustainable, affordable energy."

"As winter begins, we're seeing gas utilities across New York State raising rates on customers, and it's never been clearer that the status quo is not only unsustainable for our climate, but also unaffordable for New Yorkers. The NY HEAT Act is a climate solution, and it's an affordability solution that will pave the way for an equitable clean energy transition and the utility relief people deserve. I was proud to join my colleagues in the Senate to get this critical legislation passed this year, and we'll continue working to get it across the finish line in both houses in 2025." said Senator Michelle Hinchey.

"With extreme weather events on the rise and energy costs skyrocketing just as temperatures are plunging, we desperately need cost-saving solutions for our residents. I join New Yorkers for Clean Power in asking Governor Hochul to support the NY HEAT Act to help lower energy prices and also end subsidizing fracked gas pipes in our state. As we head into winter and brace for cold temps, the residents of Kingston need relief from costly energy bills," said Kingston Mayor Steve Noble.

As of September 2024, approximately 1 in 7 households in New York was two months or more behind on their energy bills. This affordability crisis is hurting more than 1.2 million families, who are collectively in debt more than $1.3 billion dollars to utility companies. Utilities have only continued to raise rates - even while the cost of gas decreases - in order to force New Yorkers to foot the bill for new pipes and pipelines!

The NY HEAT Act, which would help control future gas rate hikes, will provide critical relief for Hudson Valley residents and New Yorkers statewide. The bill would save 1 in 4 families who can't afford their bills statewide up to $136/month on average, and in the Hudson Valley, the NY HEAT Act could save the 24% of households with burdensome energy costs an average of $154 per month.

Despite lawmakers' failure to pass the bill last session, the NY HEAT Act has support across the legislature and is popular across party lines. Governor Hochul embraced key parts of the NY HEAT Act in her 2025 Executive Budget proposal, the Senate passed the bill twice, and the bill has support from a majority of Assemblymembers.

"We are rallying across the state to urge Governor Hochul to again include key provisions of the NY HEAT Act in her budget that would stop subsidizing gas infrastructure and instead invest in energy efficiency and heat pumps. The time is now to change NY's Public Service Laws so that our state becomes the first in the nation to enable strategic neighborhood scale electrification and prevent ratepayers from paying for new gas pipes when we should be transitioning to clean technologies. The Governor and our legislators have the chance to make history by leading the nation in the transition off gas in our buildings, at the same time as making energy bills affordable for more New Yorkers," said Betta Broad, campaign director, New Yorkers for Clean Power, and director of advocacy and organizing at the Association for Energy Affordability.

"Since we know that so-called natural gas releases indoor air pollutants when used in combustion heat and cooking appliances, New York State should not subsidize piping it into the homes of children and families," said Dr. Kathleen Nolan, President of the New York Chapter of Physicians for Social Responsibility and an elected member of the Ulster County Legislature. "Physicians and health advocates have worked successfully over many decades to reduce indoor exposures to second-hand tobacco smoke, yet the indoor burning of fuel oils and so-called natural gas generates continuing exposures to very similar contaminants, such as benzene, formaldehyde, nitrous oxides, and carbon monoxide. Children breathing these contaminants end up in emergency rooms and on chronic medications. The NY HEAT Act phases in clean, odorless, safe forms of indoor energy and phases out the use of contaminating combustible oils and gases. Governor Hochul should lead all New Yorkers on a path to cleaner and healthier forms of indoor energy by including NY HEAT in her upcoming budget."

"As an environmental studies major, I want to live in a state that's a leader in climate action and justice. The NY HEAT Act will provide relief to those who need it most, bringing us closer to a future where our energy systems are not just affordable, but equitable and sustainable," said Brianna Rodriguez, NYPIRG Local Chapter President, SUNY New Paltz, Senior - Environmental Studies Major, Newburgh NY.

"It is unquestionable that we have an affordable housing crisis. Energy costs are a part of the issue. Access to affordable, clean energy is essential to ensuring safe and stable housing for all New Yorkers. The NY HEAT Act represents a critical step forward in addressing energy affordability while advancing the fight against climate change. At RUPCO, we see firsthand how high utility costs burden families, and we urge Governor Hochul and lawmakers to prioritize this legislation to bring much-needed relief to our communities and pave the way for a more sustainable future," said Kevin O'Connor, Executive Director of RUPCO.

The event was held in the community room of Energy Square, the first net-zero affordable housing development in New York, and was one of 12 local rallies, press conferences and educational events organized by climate and environmental justice groups as part of a "Statewide Day of Action." Advocates in cities including Syracuse, Brooklyn, Albany, Buffalo and Long Beach all demanded Governor Hochul and the Assembly pass critical climate legislation including the NY HEAT Act - and fight for affordable, clean, and climate-friendly buildings. Lawmakers cannot ignore the climate crisis any longer, and their continued refusal to act is a moral, climate, and environmental justice failure.

Background

According to a recent Siena Poll, 8 in 10 New Yorkers across party lines agree that the high cost of living in New York is a major problem. Higher energy costs, exacerbated by double-digit rate hikes not just from Central Hudson, but also from National Grid, ConEd, RG&E, NYSEG, National Fuel Gas, and O&R, only exacerbate the cost of living problem.

The Home Energy Affordable Transition Act, also known as the NY HEAT Act, will stop the expansion of New York's outdated and dangerous fracked gas system. The bill modernizes archaic state laws that force New Yorkers to pay billions of dollars each year to subsidize new fracked gas hookups and pipelines. It would limit households' energy burdens and would allow utilities to provide cheaper and clean heating alternatives at no additional cost to customers – a win-win for New Yorkers and the environment. And in addition to cost savings for everyday families, the bill gets rid of the unfair 100-foot rule, which forces New Yorkers to subsidize new gas hookups to the tune of $200 million every year while accelerating fossil fuel-generated climate change that supercharges storms, floods, and wildfires – turning the sky orange and the air toxic – and drives deadly extreme heat and cold.

The NY HEAT Act is popular across party lines, with 67% of democrats, 47% of republicans, and 55% of independents agreeing it should have passed. It was also popular with 60% of upstate voters, 55% of union households, and across income groups. 74% of Black voters and 70% of Latino voters also wanted it to pass.