New York Unveils Utility Accountability Plan to Protect Ratepayers and Ensure a Reliable Grid

New York Governor Kathy Hochul on Jan. 13 unveiled a broad energy affordability and reliability agenda as part of her 2026 State of the State, advancing a utility accountability package designed to limit bill increases while ensuring the electric grid remains strong as demand grows. The plan combines consumer protection reforms, expanded customer assistance, and new initiatives to strengthen system reliability while continuing the transition to cleaner supply.

A centerpiece is the NYS Affordable Utilities Omnibus Legislation, which would modernize New York’s Public Service Law and tighten oversight of utility spending. The proposal requires utilities to demonstrate stronger fiscal discipline in rate cases and provides regulators additional tools to protect households facing high energy costs.

Key provisions include tying executive compensation to customer affordability outcomes and requiring utilities to disclose how chief executive pay compares with the average worker’s wages. The legislation also targets high-cost rate filings by requiring utilities seeking increases to submit a budget-constrained option that holds operating and capital costs below inflation, pushing companies to justify spending and prioritize efficiency before shifting costs to ratepayers.

To address billing practices, Governor Hochul directed the New York State Department of Public Service to review utility bills and prevent customers from paying for inappropriate utility spending, including corporate advertising, fines, and certain legal fees. The proposal also advances changes to modernize the rate case process, aiming to improve transparency, expand meaningful public participation, encourage negotiated outcomes, and reduce disruptive cycles of rate increases.

The administration will advance legislation requiring utilities to develop and report an affordability index reflecting customer energy burden across service territories. The Department of Public Service would publish annual affordability reporting by utility, benchmark results against other states, and present findings to the Public Service Commission. If affordability protections are found to be insufficient, the commission would be authorized to place an independent affordability monitor inside the utility.

The agenda also advances Excelsior Power, a statewide grid flexibility initiative to expand demand response and smart technology programs that shift electricity use during peak periods, limiting the need for costly upgrades. Additional actions include a $50 million expansion of EmPower+ to support about 10,000 more households, streamlined outreach for energy assistance programs, and a Nuclear Reliability Backbone pathway toward 4 gigawatts of advanced nuclear generation alongside the New York Power Authority’s planned 1-gigawatt project.