Advocates Say PSC Order Makes Important Improvements But Fails to Direct Sufficient Resources to Meet Energy Affordability Crisis
FOR IMMEDIATE RELEASE:
May 16, 2025
CONTACT: Sumer Shaikh, 774-545-0128, sumer.shaikh@sunstonestrategies.org
ALBANY, NY — Yesterday, the New York Public Service Commission (PSC) allocated $5 billion of ratepayer dollars from 2026-2030 for energy efficiency and building electrification (EE/BE) programs across the state. The decision comes after the Commission underwent a two-year long public engagement process with the goal of improving the programs and ensuring New Yorkers with the greatest need have access to the funding. Despite the advocacy of over 150 businesses along with environmental and consumer advocacy organizations, the PSC’s order commits only 30 percent of EE/BE funds to low- and moderate-income (LMI) households, falling short of the 50 percent amount that would have helped counter rising costs and the Trump Administration’s attacks on critical affordability programs.
“New Yorkers are facing a rapidly escalating affordability and climate crisis and deserve policies that match the scale of the economic, environmental, and climate justice challenges they are experiencing,” said Eric Walker, Energy Justice Senior Policy Manager at WE ACT for Environmental Justice. “While the PSC is clearly committed to energy efficiency as a pathway to reduce costs and pollution, we feel the Commission has missed the mark by not revising the LMI budgets that were set in 2023 to address today’s affordability crisis. Despite disappointment in the budget levels, there’s a lot to be excited about, especially around collaborative program design. WE ACT and our allies will continue to fight for families who have the most to gain from the EE/BE programs because there’s lots of work to be done.”
The PSC’s order does include some important changes that align the EE/BE program spending with New York’s signature Climate Leadership & Community Protection Act, including ending most funding for gas equipment, focusing instead on weatherizing and electrifying homes. In response to feedback from stakeholders, the Commission also made important changes that will increase the number of customers eligible to access programs, especially in downstate NY where program uptake has lagged. The Commission also increased the portion of program funding that can pay for critical pre-weatherization measures. This will enable more households who live in older housing to upgrade their homes.
Yet, the Commission committed only 30 percent of EE/BE funds to the 40 percent of New York households on low to moderate incomes, the same amount proposed in 2023 before the Trump Administration rolled back programs that help Americans pay for their utilities, weatherize their homes, and receive tax rebates for efficient heating and cooling equipment. Since 2022, every gas and electric utility in the state has raised its rates, leaving over 1.2 million New York families two or more months behind on their energy bills, with nearly $1.8 billion in arrears.
In reaction to the PSC’s decision, advocates released the following statements:
“Upgrading and climate-proofing homes is more urgent than ever as our communities face extreme weather, rising energy bills, and the stripping away of federal aid. New York’s home energy efficiency programs are underfunded and difficult to access. The ratepayer-funded programs governed by the EE/BE order may be the only opportunity we have in the coming years to make life-changing home energy upgrades for low- and moderate-income families and seniors. The order, while making some important and necessary improvements, fell short of meeting the moment. Our engagement and advocacy doesn’t stop here. We will continue to advocate with the PSC and DPS staff to prioritize energy equity.” – Lisa Marshall, Director of Organizing and Advocacy at New Yorkers for Clean Power
“With its non-unanimous decision this week, the Public Service Commission failed to deliver on its responsibility to protect all New Yorkers from runaway energy costs. Significantly increased investments in energy efficiency and building electrification programs that directly benefit low and moderate income households are needed now more than ever, from Buffalo to Brooklyn. As the Trump administration makes moves to dismantle social safety net programs like LIHEAP and sets fire to critical climate and clean energy goals, Governor Hochul and the PSC should pull every policy lever within reach to address the energy affordability crisis right now.” – Clarke Gocker, Senior Director of Movement Building at PUSH Buffalo
“We appreciate the program design and implementation improvements directed by the Commission, which will increase collaboration and ensure New Yorkers can access incentives for healthier, more energy efficient homes. However, at a time when millions of families are struggling to afford their energy bills and federal assistance programs are being dismantled, the Commission missed an opportunity to allocate more funding for the most vulnerable New Yorkers. We’ll continue to engage with the Commission and stakeholders to advance equitable energy efficiency upgrades for New Yorkers.” – Malak Nassereddine, Senior Utility & Regulatory Policy Manager, Building Decarbonization Coalition
“The Public Service Commission’s order to use Area Median Income to determine program eligibility is an important step toward rectifying decades of inequitable programming for New York City. However, the failure to ensure that half of future energy efficiency and electrification funds reach low- and moderate-income households is a huge missed opportunity to correct long-standing disparities. Through our research and in-the-field work, we’ve consistently seen how NYC’s Black, brown and working class households are systematically underserved by NYSERDA-run efficiency programs, burdened by high energy costs, and face steep barriers to clean energy access. While we commend the PSC for its decision to revise income eligibility rules, and look forward to better oversight of NYSERDA and utility programming—these changes alone are not enough, and we urge state leaders to act with urgency to ensure no one is left behind in the clean energy transition.” – Rebekah Morris, Director of Climate Initiatives at the Pratt Center
“This Public Service Commission decision demonstrates New York’s continued leadership in supporting programs that reduce energy bills and pollution at the same time. Now, with federal energy assistance programs in danger, the Commission must shoulder even more of the responsibility to ensure low and moderate income households can afford to heat and cool their homes. Energy efficiency programs reduce the cost of heating and cooling, and we are pleased to see the Commission’s continued commitment to funding and improving these programs. At the same time we are disappointed that the Commission did not go further and commit more of the budget to improving the homes and reducing energy bills for the customers most suffering under this crisis and most in need of cost-saving benefits that energy efficiency programs provide.” – Jessica Azulay, Executive Director of the Alliance for a Green Economy
“This latest Public Service Commission order is a positive step forward in increasing investment in energy efficiency and building electrification. However, given Federal budget cuts, it is disappointing that more was not allocated to address the energy affordability crisis and the hurdles LMI building owners face in making energy upgrades. AEA will continue to advocate in the PSC directed program design collaboration to ensure LMI residents have access to clean, safe, healthy homes and for affordable housing providers in NYC to meet Local Law 97 compliance.” – Peter Hoyle, Executive Director of the Association for Energy Affordability
“We are very pleased that the Commission took many significant steps to improve energy efficiency and electrification programs, and in particular, ordered NYSERDA, in consultation with stakeholders, to carry out a comprehensive assessment of New York’s clean energy education and workforce assets and needs. This will address a critical gap required to meet our ambitious climate goals. Additionally, we wish to underscore the importance of increasing funding for home repair and remediation, barriers which all too commonly prevent low income New Yorkers from getting clean energy improvements on their homes, which result in healthier, safer and more comfortable homes with lower utility bills. However, at a time when millions of utility customers are grappling with unaffordable rates, which fall hardest on low-income rate payers, and both Albany and Washington DC are failing to provide sufficient funding to address this, we are disappointed that the Commission chose not to significantly increase support for those who need it the most.“ – Adam Flint, Director of Clean Energy Programs at the Network for a Sustainable Tomorrow
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