New Report: Rising Utility Bills Will Wipe Out Gov's Inflation Refund Checks - With Even More Hikes Expected

ALBANY, NY (01/30/2025) (readMedia)-- As the New York State Assembly promises to prioritize affordability, new analysis from the Alliance for a Green Economy (AGREE) shows how gas utilities National Fuel Gas, Central Hudson, Con Edison, and National Grid are charging customers dramatically more year after year for gas heating - and are scheduled to keep raising prices. 1 in 4 New Yorkers already can't afford their energy bills, and the average gas heating bill for many families is already reaching $250 per month! To address affordability and tackle rising energy bills, the Assembly must pass the NY HEAT Act, legislation that will curb the utility rate hikes slamming struggling families.

See how much more your utility company is charging here and attached.

"Utilities across the state keep raising rates on working families, in great part due to outdated laws that mandate funding expensive gas pipelines.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.

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.
• 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. But the NY HEAT Act would require utilities to provide easy access to the most affordable and healthier heating options for their families.

By curbing expansion of the fracked gas system, the NY HEAT Act will also curb the utility rate hikes slamming New Yorkers across the state. In addition to the rate hikes described above:

• By the end of 2026, NYSEG customers in the Southern Tier will be forced to pay up to $40 more every month for gas and electricity than they did in 2023, and RG&E customers will see an average total monthly bill increase of $30.16.
• If O&R's proposal is approved by the State, Rockland County gas and electric customers will see an increase of 10% on their bills.

Pro-climate legislation that saves New Yorkers money is popular: 67% of Democrats, 47% of Republicans, and 55% of independents agreed the NY HEAT Act should have passed last session. The bill 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.

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.