AARP New York Report Proposes Bold Policy Reforms To Address the Energy Affordability Crisis

Albany, N.Y. – A new AARP report “The $31 Million Ratepayer Disadvantage - The Energy Rate Game Needs A Change” highlights one of several major flaws in how New York develops energy rates that has created a great disadvantage to residential ratepayers.

In their latest round of rate cases, New York’s investor-owned utility companies were allowed to recover millions of dollars in expenses for participating in New York State Public Service Commission (PSC) rate case proceedings, much of which goes to persuade regulators to approve rate hikes. Adding insult to injury, these funds were collected from ratepayers. Essentially, consumers pay for utility companies to argue to increase their own utility rates at a time when utility service terminations for lack of payment are soaring in New York.

The report provides several policy proposals for the 2026 legislative session starting next month that seek reforms in the energy ratemaking process. They include: a full review of utility rate case expenses, more consumer representation when energy rates are developed, bill credits with utility earnings above the PSC-established amount, enhanced consumer protections with utility service terminations, and expanded energy affordability programs.

“Making our state a place where people can live and age with independence and dignity is a top priority for AARP. Energy affordability is a major component of this priority, but for countless New Yorkers it is out of reach,” said Beth Finkel, state director of AARP NY. “The Governor and the Legislature can reform the rate making process with more customer protections and ensure greater energy affordability in 2026. It is time for New York to take bold action. AARP strongly urges the Governor and the Legislature to take it.”

In addition, the report includes the latest data from the PSC that shows 1.3 million households are 60 days behind on utility bills, owing nearly $1.9 billion, as well as over 33,102 households terminated from service every month since January 2025 through November - 397,235 in total.

View the full report here.

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About AARP

AARP is the nation's largest nonprofit, nonpartisan organization dedicated to empowering Americans 50 and older to choose how they live as they age. With a nationwide presence, AARP strengthens communities and advocates for what matters most to the more than 100 million Americans 50-plus and their families: health security, financial stability and personal fulfillment. AARP also works for individuals in the marketplace by sparking new solutions and allowing carefully chosen, high-quality products and services to carry the AARP name. As a trusted source for news and information, AARP produces the nation's largest circulation publications, AARP The Magazine and AARP Bulletin. To learn more, visit www.aarp.org/about-aarp/, www.aarp.org/español or follow @AARP, @AARPenEspañol and @AARPadvocates on social media.