Governor Kathy Hochul on Wednesday said the New York Power Authority should not approve any electric rate hikes in an attempt to keep utility costs from sky rocketing any further.
“Today, I'm calling for an end to the Power Authority's unacceptable proposal to raise electric rates on its customers statewide,” Hochul said through a statement. “Too many New Yorkers are already falling behind on their energy bills and I will do everything in my power to reign in these astronomical costs. While I recognize the Power Authority’s critical importance in providing invaluable, clean, baseload power from its large hydroelectric power plants upstate, I expect NYPA to go back to the drawing board, shelve this existing proposal, and figure out a better way forward.”
The governor on Tuesday instructed the Department of Public Service to reject Con Edison’s proposed rate hike and to conduct a statewide audit of utility company salaries and compensation.
The governor's directive was in response to Con Ed's proposed rate hike, announced on Jan. 31, which would increase the average electric bill by 11.4% and the average natural gas bill by 13.3%. The utility said the rate hike was necessary because it needs $21 billion over three years to build new infrastructure, like transmission, substation and distribution facilities, and to help ensure compliance with New York State’s Climate Leadership and Community Protection Act, the company said through a press release.
"Our proposed investment plan will support critical work and investments in reliability, resiliency and clean energy infrastructure to meet the high expectations of our customers, who depend on us to deliver the most reliable electric service in the nation," said Matthew Ketschke, president of Con Edison.
In a letter to Public Service Commission Chair and Department of Public Service Chief Executive Officer Rory Christian, Hochul said the state needs to act in the best interest of New Yorkers by closely scrutinizing the proposed rate hike.
“The cost of living is too damn high and New Yorkers need more money in their pockets,” Hochul said. “Of course we need safe, reliable energy sources to power our homes and businesses. But utility companies shouldn’t be jacking up costs unnecessarily – especially if they’re paying their own staff too much.”
The governor said she also wants an audit of utility management compensation, focusing on compensation for non-union utility management employees statewide. The audit will inform future rate cases to protect New Yorkers from unfair rate hikes, she said.
