ICYMI: Report Shows Rising Utility Bills Will Wipe Out Gov's Inflation Refund Checks, With More Hikes Expected

NEW YORK, NY (02/12/2025) (readMedia)-- This week, Governor Kathy Hochul urged the Department of Public Service (DPS) to reject an attempt by Con Edison to charge families even more for the same heat - despite not doing anything to systematically address already unaffordable energy bills. The Governor's stunt follows a recent analysis from the Alliance for a Green Economy (AGREE) that shows how every major gas utility is charging customers dramatically more year after year for gas heating - with even more price increases expected. Until the Governor acts, this crisis will only continue to get worse. The NY HEAT Act is the answer: It will limit the amount households are forced to pay for energy and curb the exact rate hikes Governor Hochul is railing against, saving the families who need help most an average of $136 each month on their bills.

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"Utilities across the state keep raising rates on working families, in great part due to outdated laws that mandate funding expensive gas pipelines. Without real action from lawmakers, families will be forced to spend their inflation reduction checks from the governor just to cover one month of rising heating bills. It's time for the Assembly to get serious and pass the NY HEAT Act, which will curb future rate hikes and save the families who need it most up to $136 on their bills every single month," said Jessica Azulay, Executive Director of Alliance for a Green Economy.

"Governor Hochul is right that New Yorkers are paying too much for their energy bills, but she can't play whack-a-mole every few months when a new utility tries to gouge prices on working families. The NY HEAT Act will actually curb these rate hikes for the long term and save the families who need it most an average of $136 every single month. If Governor Hochul really wants to help New Yorkers with energy bills, she'll stop using one-time band-aids and instead work with the Legislature to pass the NY HEAT Act this year," said John Raskin, President of Spring Street Climate Fund.

Since 2022, every major gas utility in New York State has raised the cost of energy for their customers, according to publicly available data from the Public Service Commission (PSC) website:

• For Con Edison customers, the average monthly cost of gas heating has increased by nearly $50 since 2022 - from $205 to $253. If Con Edison's request to again raise rates for gas heating is approved, customers will have to pay nearly $300 every month by 2026.
• For National Grid customers in NYC, the average monthly cost of gas heating has increased by more than $60 between 2023 and 2026 - from $110 to $172. For National Grid customers in Long Island, the average monthly cost of gas heating will increase by nearly the same amount - from $105 to $165.
• For Central Hudson customers, the average monthly cost of gas heating has increased more than $20 since 2022- from $138 to $157.
• For National Fuel Gas customers, the average monthly cost of gas heating has increased by nearly $15 - from $81 to $94 - since just 2023.

In December, Governor Hochul announced a plan to send $300 checks for every New York family earning under $150,000/year. It's a start, but without the NY HEAT Act, the majority of families will end up using that money just to keep up with their heating bill increases. If the Assembly wants to really address the energy affordability crisis, they must take real action and protect New Yorkers from continuous rate hikes.

As of September 2024, approximately 1 in 7 households in New York was two months or more behind on their energy bills. This crisis is impacting more than 1.2 million families, who are collectively in debt more than $1.3 billion dollars to utilities.

Background

The Home Energy Affordable Transition Act, also known as the NY HEAT Act, will reduce the expansion of New York's outdated and dangerous fracked gas system and save the 1 in 4 New Yorkers who struggle to pay their energy bills an average of $136 every month. The bill modernizes archaic state laws that force New Yorkers to pay hundreds of millions 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.

The NY HEAT Act will also free New Yorkers from the gas mandate (also known as "the utility obligation to serve gas"), an antiquated state law that locks utilities, and consequently the vast majority of New Yorkers, into the dirty, expensive, aging gas system for heat. Because of the gas mandate, one home that wants to stay on the gas system can be the deciding factor for an entire neighborhood that would otherwise have the opportunity to receive cheaper, cleaner heating alternatives from their utility. The NY HEAT Act would require utilities to provide easy access to the most affordable and healthier heating options for their families.

According to a Siena Poll, New Yorkers agree by an overwhelming 58% to 26% that the legislature should pass the NY HEAT Act. Support for the NY HEAT Act is popular across party lines, with 67% of Democrats, 47% of Republicans, and 55% of independents agreeing it should pass. The bill is 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 support the legislation. An even larger share, 51 - 17%, said that lawmakers did not do enough to improve the quality of life during last year's legislative session.

State action against climate change is crucial as Trump takes office and vows to go all-in on fossil fuels. 2024 was the hottest year on record, and New Yorkers experienced wildfires, flooding, and tornadoes. The NY HEAT Act will help New York fight climate change and it will protect New Yorkers from an unpredictable Trump administration by helping to stabilize heat and energy prices.