Buffalonians Urge Hochul to Stop National Fuel Making Energy Unaffordable, Put NY HEAT Act in Budget

BUFFALO, NY (12/11/2024) (readMedia)-- Today, Buffalo residents and advocates rallied against National Fuel's proposed rate hike and demanded lawmakers pass the NY HEAT Act this session. As winter heating season begins, National Fuel is looking to win approval from utility regulators appointed by the Governor for a rate hike that would force Western New York families to pay nearly 30% more for gas delivery services - all while the company continues to lobby against legislation that would save ratepayers money. Now, Buffalonians are demanding to know what the Governor and our Assemblymembers are doing about it.

Watch a recording of the event here.

"Our communities are suffering financially because the bills are too damn high. Family, friends, and neighbors across our region are forced to burn gas in their homes and breathe polluted air. Our planet is being ravaged by fossil fuel companies, like National Fuel Gas, and their relentless pursuit of profit. In the words of the great Fannie Lou Hamer, 'We're sick and tired of being sick and tired.' PUSH Buffalo stands here today on behalf of the people of WNY to call on Governor Hochul and legislative leaders, including Majority Leader Crystal Peoples-Stokes, to support our communities now by denying National Fuel's proposed rate hike, and to support our communities for the long haul by passing the NY HEAT Act. Our people deserve affordable energy bills and healthy homes for their families. And our planet deserves a permanent break from the digging, dumping, burning, and profiteering that defines the climate crisis," said Rev. Dr. Majadi Baruti, Climate Justice Organizer at PUSH Buffalo.

New Yorkers are already facing an affordability crisis, and high energy costs are only making things worse. As of September 2024, approximately 1 in 7 households in New York was two months or more behind on their energy bills and more than 1.2 million families collectively owed more than $1.3 billion dollars to utility companies. In WNY, as of August 2024, over 54,000 National Fuel customers were in arrears and facing the threat of service shut-offs.

And now, National Fuel is proposing a drastic 29.3% hike on gas delivery rates that would greenlight $615 million of new investment in gas infrastructure over the next three years alone and disproportionately impact poor and working class households stuck on the gas system. And statewide, utilities are trying to charge everyday New Yorkers 18% more - 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 Western NY 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 Buffalo and Erie County the NY HEAT Act could cut bills in half for the 24% of families who need relief most.

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.

"Fracked gas monopoly National Fuel has profited for decades by selling dangerous methane gas and snake oil to Buffalonians. This fossil-fuel corporation not only poisons the air in our homes and communities, but also poisons our political discourse by pouring cash earned from its customers into lobbying, political campaigns, and disinformation programs. We urge Governor Hochul and Western NY Assembly members to work together to put people over profits for polluters like National Fuel and pass the NY HEAT Act," said Anshul Gupta, Policy & Research Director at New Yorkers for Clean Power.

"National Fuel, a company that drills for fracked, methane gas in Pennsylvania, is the same company that is seeking approval for an almost 30% increase in how much they get to charge WNY'ers. The conflict is clear. National Fuel is the only major gas-only utility in upstate NY, so it's no wonder they are almost single-handedly keeping NY HEAT from passing. We need bold leadership from WNY Assemblymembers - some of the last holdouts for getting NY HEAT passed," said Gabriel Recchio, Campaign Organizer, Sierra Club.

"The Sierra Club Niagara represents over 2100 members and supporters. We have been lobbying state legislators for the past 2 years in an effort to pass NY HEAT. Thankfully, Jonathan Rivera supported us in 2024, but several other WNY Assemblymembers have been reluctant to vote in favor of NY HEAT passage. We need them to commit to passage of the NY HEAT Act in the budget for 2025. Assembly Members need to do everything they can to reduce the cost of living for households in WNY, otherwise more people will continue to leave NYS for less expensive communities in other states," said Janet Lenichek, Chair, Sierra Club Niagara Group.

"The NY HEAT bill would free utilities like National Fuel to invest the money we give them on our gas bills more wisely. National Fuel's own estimates show that could save us $1.3 Billion. But National Fuel opposes NY HEAT because they want to keep their gas monopoly, which provides million-dollar salaries for their executives and juicy profits for their shareholders," said Bill Nowak, Board Member of the NY Geothermal Energy Organization.

"Utility companies are saddling NYers with the cost of funding their dirty and short sighted ambitions. Not only are they continuing to lock us into the paradigm of burning fossil fuels, they expect you to pay for the privilege!" said Alex Bornemisza, WNY Regional Coordinator for NYPIRG.

The event was held outside National Fuel's corporate headquarters in Williamsville, NY, 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, Kingston and Long Beach are demanding Governor Hochul and the Assembly pass critical climate legislation including the NY HEAT Act - and fight for affordable, healthy, 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

National Fuel has spent big to protect its profits and block legislation that would help struggling New Yorkers and prevent catastrophic climate change. Despite initial opposition from utilities statewide, National Fuel Gas is the only remaining utility provider to actively lobby against the NY HEAT Act and was caught spending ratepayer money to advocate against the All-Electric Building Act and the NY HEAT Act - policies that are in ratepayers' best interests. According to a report this year from Spring Street Climate Fund, National Fuel Gas drastically expanded its campaign contributions, lobbying, and public affairs efforts following the introduction of the NY HEAT Act in 2021. Since 2021, the company's donations to Western NY candidates have skyrocketed: after donating to just four candidates in 2020 and five in 2021, National Fuel contributed to 37 different candidates and committees in 2022 and 31 candidates in 2023.

NFG has also helped set up a front group with other major fossil fuel companies called "New Yorkers for Affordable Energy" to spread misinformation about New York's climate policies. The President of National Fuel Gas recently served as the chairperson of the Business Council of New York State, which announced in October 2023 a $1 million ad campaign urging Governor Hochul to roll back New York's nation-leading climate law.

As more and more households transition off the gas system in favor of renewable heating and cooling alternatives in the coming years, National Fuel's investments will represent stranded assets that will be increasingly expensive to maintain. Fixed customer costs would increase from $15.54 to $22.50 over the next three years alone if the PSC approves this rate hike. The current proposal also calls for an excessive return on equity - 9.7% - that would boost the utility's profits and further enrich private investors.

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 National Fuel, but also from National Grid, ConEd, RG&E, NYSEG, Central Hudson, 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.