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Governor Hochul Announces $567 Million Utility Bill Credit for Low-Income Families

Strategic Insights

— 2 min read

Governor Kathy Hochul recently announced the rollout of a historic financial assistance program to help low-income electric and gas utility customers pay off past utility bills. The program, which is the largest of its kind in the state's history, is designed to provide relief to the most vulnerable residential customers who have been affected by the COVID-19 pandemic. Under the program, the vast majority of $567 million in funding will be reflected on customers' August bills, allowing them to pay off accumulated utility debt.

Key Takeaways:

  • The program will benefit over 327,000 low-income New York households, providing them with significant financial relief.
  • The program includes an estimated $557 million statewide COVID-19 bill credit program for low-income customers adopted by the New York State Public Service Commission.
  • The program requires no action by existing low-income customers enrolled in the Energy Affordability Program (EAP) to receive the benefit.
  • Utility shareholders have provided over $36 million in contributions to benefit ratepayers.
  • The program is estimated to cost the major utility ratepayers $181 million after the allocation of the budget appropriation, customer credits, and shareholder contributions.
  • PSEG Long Island and municipal utilities have been allocated $10.4 million of the $250 million budget appropriation for the bill credit program.
  • The program aims to address the substantial increase in unpaid electric and gas utility bills for remaining residential and non-residential customers resulting from the COVID-19 pandemic.
  • Governor Hochul has launched a new initiative between the Office of Temporary and Disability Assistance (OTDA) and the major utilities to identify more low-income households to enroll in the EAP program.

Statistics:

  • Over 327,000 low-income New York households will benefit from the program.
  • The program includes an estimated $557 million statewide COVID-19 bill credit program for low-income customers.
  • The program is estimated to cost the major utility ratepayers $181 million after the allocation of the budget appropriation, customer credits, and shareholder contributions.
  • Utility shareholders have provided over $36 million in contributions to benefit ratepayers.
  • The COVID-19 pandemic has caused significant financial hardship for low-income consumers, with the number of customers more than 60 days behind in their electric and gas utility payments growing to unprecedented levels.

Sources:

  • "For Immediate Release: 7/28/2022 GOVERNOR KATHY HOCHUL GOVERNOR HOCHUL ANNOUNCES ROLLOUT OF ELECTRIC AND GAS UTILITY BILL CREDITS FOR LOW-INCOME FAMILIES" Albany: New York State Department of Public Service
  • Remarks by Governor Kathy Hochul
  • Remarks by Rory M. Christian, Public Service Commission Chair
  • Remarks by Daniel W. Tietz, Office of Temporary and Disability Assistance Commissioner
  • Remarks by State Senator Roxanne Persaud
  • Remarks by Assemblymember Linda Rosenthal

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