Governor Kathy Hochul announced today that 478,000 residential customers and 56,000 small businesses in New York State will receive assistance totaling $672 million to pay off unaffordable past due utility bills. Today’s announcement is the largest utility customer financial assistance program in state history and follows a series of policies announced last week to address energy affordability and emissions reductions as part of Governor Hochul’s State of the State address.

“Every New Yorker deserves affordable energy, yet too many New Yorkers are at risk of having their lights turned off due to financial problems caused by the pandemic,” Hochul said. “Earlier this month, I laid out extensive proposals to make energy more affordable in my State of the State address, and with this historic electric and gas utility relief we’re achieving another major milestone to help New Yorkers stay warm during the cold winter months.”

The debt-forgiveness program approved today by the New York State Public Service Commission (PSC) will provide financial relief to customers and will help avoid huge statewide termination of service, making utility bills more affordable for all households and small businesses. These one-time credits provide relief to all residential non-low-income customers and small-commercial customers for the period through May 1, 2022, similar to a program approved last summer for low-income customers.

Earlier this month, Governor Hochul announced ambitious and comprehensive policies to address energy affordability and reduce climate-altering emissions from every sector of the economy as part of the 2023 State of the State. Governor Hochul directed the Department of Environmental Conservation and New York State Energy Research and Development Authority to advance an economywide Cap-and-Invest Program that establishes a declining cap on greenhouse gas emissions, invests in programs that drive emissions reductions, and maintains competitiveness of New York industries. Critically, this Cap-and-Invest Program will drive significant benefits to New Yorkers in the form of a Climate Action Rebate.

Governor Hochul also announced $200 million in relief for high electric bills by providing a discount to more than 800,000 New Yorkers making under $75,000 who have not been eligible for the State’s current utility discount program, a new initiative that is separate from today’s $672 million announcement. In addition, Governor Hochul announced the creation of the Energy Affordability Guarantee, the first-in-the nation pilot program that ensures low-income New Yorkers participating in the EmPower Plus program never pay more than 6 percent of their incomes on electricity and incentivizes them to fully electrify their homes.

In today’s groundbreaking decision, the PSC approved recommendations made by the Energy Affordability Policy Working Group, a group of stakeholders that included the most prominent consumer advocacy groups in the state. The working group proposed a statewide program to resolve all arrears through May 1, 2022, of approximately 75 percent of residential non-low-income and small business customers, and partially resolve arrears for approximately 25 percent of remaining customers via a one-time credit. The financial cost to New Yorkers of adopting the arrears relief program is less than the estimated $1 billion to $1.3 billion cost of inaction, and it will also potentially avoid a significant amount of downgrading of customers’ credit. The automatic credit is limited by an ‘up to’ monetary cap for each utility. This second phase would also allow residential non-low-income customers who previously had their service terminated in 2022 for non-payment to participate, so that their eligible arrears might be resolved.

This is the second round of major funding to be provided to consumers to offset utility bill arrears that accumulated due to the COVID-19 pandemic since Governor Hochul announced $567 million in June 2022 to help low-income electric and gas utility customers pay off past utility bills. This included debt relief available to low-income customers from the State Office of Temporary and Disability Assistance’s Emergency Rental Assistance Program to reduce unpaid utility bills is coupled with $250 million from a New York State budget appropriation to eliminate pandemic-related unpaid utility bills for low-income households.

In the June round of bill relief, utility shareholders provided more than $36 million in contributions to benefit customers. In today’s round of bill relief, utility shareholders provided an $101 million to benefit customers — an amount that far exceeds any utility contributions for pandemic relief across the United States.