Community Members Demand State Reject Outrageous National Fuel Proposal to Increase Costs + Call for NY Heat

BUFFALO, NY (01/24/2024) (readMedia)-- Today, community members and advocates across Western New York rallied outside the Buffalo and Erie County Public Library to protest a proposal by National Fuel Gas to increase gas delivery rates for customers by a staggering 29.3%. Ahead of a public hearing organized by the New York State Public Service Commission (PSC) to consider the rate hike, local residents and advocates shared stories about the impact of high energy bills and urged lawmakers to pass the NY HEAT Act, which would limit the amount families have to pay for energy relative to their income, saving low- and middle-income families up to $75 each month.

Watch a recording of the rally here.

Community residents and advocates then attended the PSC's public hearing, where individuals testified to the devastating impact that National Fuel's proposed rate hike would have and urged the PSC to reject National Fuel's proposal.

"In the middle of a climate crisis, exacerbated by fossil fuel companies that consistently harm the planet for the sake of profit, now comes National Fuel Gas calling for a rate hike on our communities already damaged. This is not only unfair, it is unjust as it flies in the face of our powerful Climate Law NY voters brought forth in 2019," said Rev. Dr. Majadi Baruti, Climate Justice Organizer at PUSH Buffalo.

"National Fuel's decision to implement a rate hike arrives at a time in which too many Western New Yorkers are dealing with rising prices not just on gas but food, childcare, medication, and everything in between, resulting in strained budgets and stressed families. I strongly oppose rate hikes which would negatively impact the hardworking families I represent," said Assemblymember Jonathan D. Rivera.

The NY HEAT Act, which passed the NYS Senate during last year's session and has 74 sponsors in the Assembly, will limit energy bills to 6% of household income and end more than $200 million in annual subsidies paid by existing gas customers for new gas hookups, accelerating fossil fuel-generated climate change. Governor Hochul embraced parts of the bill in her executive budget proposal earlier this month, but lawmakers now have an opportunity to include the bill in their one-house budgets and stop corporate polluters like National Fuel from saddling the residents struggling to heat their homes with the massive costs of unnecessary new gas pipes.

"Let's be clear: New York needs to transition away from the gas system to meet its climate goals and protect New Yorkers from the health risks of fossil fuels as soon as possible! National Fuel's rate hike request couldn't come at a worse time for families that the company claims to serve, and the PSC should reject the company's attempt to saddle the costs of expanding the system on New Yorkers already struggling with the high cost of pretty much everything. We cannot continue business as usual, investing ratepayer dollars in hugely expensive infrastructure and driving double-digit rate increases that leave residents increasingly unable to afford heat. Whether here in Buffalo, out on Long Island, or in New York City, utilities are dramatically raising prices for delivering the same fossil fuels that are leading to more deadly extreme weather each year. Lawmakers must address this problem now and include the NY HEAT Act in their budget so that struggling families no longer have to worry about choosing between heat and other essential costs, and so that New York can kick start its transition to a more sustainable environment moving forward," said Eric Walker, Energy Justice Senior Policy Manager at WE ACT for Environmental Justice.

Background

As the deadly effects of the climate crisis threaten the lives and livelihoods of communities across Buffalo and Western NY with increasing frequency and intensity, National Fuel has repeatedly acted to mislead the public and avoid regulations holding them accountable.

Last winter, the company launched a massive robocall campaign targeting local communities and elected officials with misinformation about the costs and benefits of climate solutions that we need and deserve to adapt and respond to the crisis. The company is currently under investigation by the Public Service Commission (PSC), the state's utility regulator, for using customer funds – New Yorkers' money – to bankroll their dirty tactics. Meanwhile, National Fuel is paying record amounts to executives and shareholders.

For much of 2023, National Fuel negotiated in bad faith as it sought to win approval from the PSC for a long-term gas transition plan that failed to comply with the climate and equity goals at the heart of New York's Climate Leadership and Community Protection Act (CLCPA) - one of the strongest and most progressive climate law in the country. National Fuel's proposed plan would waste over $1 billion of our money over the next decade alone on costly maintenance of the existing gas system rather than redirect investments to clean and safe renewable energy alternatives, like electric heat pumps and induction stoves. National Fuel's plan violates powerful protections in the law that are meant to safeguard disadvantaged communities that struggle with high household energy costs, lack of access to weatherization improvements, and poor indoor air quality. In December, the PSC had an opportunity to reject National Fuel's atrocious plan but instead kicked the can down the road and gave National Fuel three more years to develop a viable transition plan.

Now, National Fuel is petitioning the PSC to hike gas delivery rates an unconscionable 29.3%, which would dramatically increase gas bills and worsen the energy and housing affordability crisis in our communities.

According to a 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, worsened by double-digit rate hikes from ConEd, National Grid, RG&E, NYSEG, National Fuel Gas, and Central Hudson, have only exacerbated the cost of living problem.

The NY HEAT Act, which has 74 sponsors in the NYS Assembly and passed the NYS Senate last year, will limit energy bills to 6% of household income, saving low and middle-income New Yorkers not part of utility Energy Affordability Programs up to $75/month on their energy bills.

The bill will get rid of the unfair 100-foot rule, which forces New York families 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. NY HEAT will also reduce future rate increases by prioritizing clean energy investments, instead of spending billions of dollars on new fracked gas pipes.