Current PSC rate-making process deepens financial hardship and affordability crisis for older New Yorkers

1,839 New York State households were terminated from service each day in August 

EN ESPAÑOL | ALBANY, N.Y. – AARP New York Director of Government Relations and Advocacy Director Kristen McManus released the following statement today after testifying before the New York State Senate hearing that examined New York State Public Service Commission (PSC) rate-making process:

“New York State is in an energy affordability crisis. The flawed PSC process, coupled with a lack of transparency, is exacerbating this problem. The current system has created an uneven playing field in rate development, where large corporations and energy companies dominate the process.”

“AARP believes this dysfunctional process at the PSC is largely responsible for unaffordable energy rates in New York State. Inadequate resources from the state budget have also contributed to this burgeoning affordability crisis.”

“More leadership from Governor Kathy Hochul is needed to lead New York out of this energy affordability crisis if we want an affordable New York.”

“The August 2025 consumer collections numbers reported to the PSC from energy companies clearly demonstrate a need for change in how we develop rates at the PSC: Over 1.2 million households in New York are 60 days behind on their utility bills, owing close to $2 billion; Nearly 13,000 final termination notices were sent to New York households every day in August for non-payment, and 1,839 households were terminated from service each day; and the average amount owed by households that were 60 days late or more in August was $1,512.”

AARP recommends the following actions to address energy affordability and transparency in energy rate proceedings.

1. Establish an Independent Utility Consumer Advocate to represent residential ratepayers in PSC proceedings. The bill has passed both houses and awaits the Governor’s signature.  
   
2. Require transparent, itemized reporting from the PSC and utilities, including plain-language breakdowns of rate requests and clear comparisons between proposed and approved rates. 
   
3. Review PSC settlement guidelines and prohibit practices that reduce transparency in rate-setting and policy decisions. 
   
4. Invest $200 million in the Energy Affordability Program to expand enrollment and remove barriers for over 1 million eligible but unenrolled households, helping prevent arrears and service shutoffs. 
   
5. Allocate $1 million for an Intervenor Funding Account to support community organizations’ participation in PSC rate cases and strengthen consumer advocacy. 

SOURCE: Department of Public Service. NYS PC Case Number: 91-M-0744 https://documents.dps.ny.gov/public/MatterManagement/CaseMaster.aspx?MatterCaseNo=91-M-0744&CaseSearch=Search


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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.
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