Governor Hochul Announces $151 Million in Savings for New York Energy Customers

Governor Kathy Hochul today announced a major affordability win for millions of New Yorkers: $151 million in energy bill savings in 2026 as a result of the State's Zero-Emissions Credits (ZEC) program, with the potential for additional savings in future years depending on market conditions. These cost savings will flow directly to New Yorkers, reducing the costs associated with keeping vital existing nuclear power plants online.

"My top priorities are energy affordability for New York consumers and making sure the lights stay on," Governor Hochul said. "The Zero Emission Tax Credit program is a prime example of how the state was able to take a federal tax credit and turn it into needed energy savings for ratepayers while at the same time supporting clean and reliable electricity generation in the state."

The ZEC program was created by the New York State Public Service Commission in 2016 to compensate the four Upstate nuclear plants for their zero-emissions power. Under the program, any benefits received from the federal nuclear production tax credit (PTC) enacted in 2022 are required to be passed along to ratepayers.

Constellation Energy owns or controls the four operating nuclear power reactors, located across three facilities, including Ginna, Fitzpatrick, and Nine Mile. All three facilities are located along the southern shore of Lake Ontario. The federal nuclear PTC now being claimed by Constellation Energy will result in a $151 million benefit to electricity consumers in New York State.

New York State Public Service Commission Chair Rory M. Christian said, "When the Commission initiated the ZEC program, it recognized that the program could be adjusted in the future if the federal government later provided financial support for nuclear power facilities. Today, we are seeing this in action through the nuclear production tax credit. This important federal support helps ensure New York's plants can continue to provide clean electricity while offering significant cost-savings to New Yorkers statewide."

New York State Energy Research and Development Authority President and CEO Doreen M. Harris said, "New York utilizes a diverse set of resources, including its existing nuclear fleet, to support the State's continued energy security and ensure a clean, reliable and abundant energy system that is also affordable. The federal tax credits and broader support for nuclear energy are critical as we continue to explore potential applications of advanced nuclear technologies through our Master Plan process."

This announcement builds on a series of affordability actions Governor Hochul's Administration has taken to help New Yorkers manage energy costs:

Adopting an Enhanced Energy Affordability Policy (EEAP) that expands energy bill discounts to an additional 1.6 million New York households below state median income that do not currently qualify for low-income assistance. The EEAP is a landmark step forward in supporting energy affordability and ensuring that more New Yorkers - including both electric and gas utility customers - can afford to keep the lights on, their homes heated and cooled, and their families safe.

Redirecting funding to protect consumers, with $360 million in surplus funding from New York's distributed solar program, NY-Sun, used to offset costs in the New York State Energy Research and Development Authority's energy efficiency and building electrification portfolios by 24 percent in 2026 through 2030. The Commission further reduced program costs borne by ratepayers by an additional $340 million in 2025 and 2026, while expanding access to low-income participants.

Expanding funding and access for low-income participants, through the Commission's May 2025 Energy Efficiency and Building Electrification (EE/BE) Orders for low and moderate income (LMI) and non-LMI consumers. The Commission increased funding levels from 20 percent of the historical EE/BE budgets under the Clean Energy Fund to 30 percent for LMI consumers. This is an annual increase of $132 million to LMI EE/BE programs, including a nearly $50 million annual increase for the EmPower+, program compared to previous spending levels.

Reinforcing consumer protections through stronger performance standards and enforcement authority. Since 2021, Governor Hochul's administration has secured roughly $214.4 million from utility shareholders for the benefit of ratepayers.

Conducting management and operations audits to identify areas where improvements are needed to maximize ratepayer value. Governor Hochul directed the Commission to initiate the Comprehensive Management Incentive audit, which is examining incentive management compensation practices across the State's electric, gas and water utilities. For the first time, this review will evaluate multiple utilities' management compensation programs concurrently, rather than in isolation, and expand oversight to companies that have not previously been subject to this level of review. The audit aims to ensure that compensation is directly tied to performance metrics that improve service, reliability and affordability for New Yorkers. This audit will provide critical insights into best practices and identify areas where improvements are needed to maximize ratepayer value.

Taking decisive action to protect ratepayers by recalibrating the timeline for offshore wind transmission development because of changes in federal policy. The construction of offshore wind, which involves the federal government at multiple steps throughout the process, is uniquely reliant on the success of the federal and state partnership. Our action protected the public while preserving the flexibility to act swiftly when conditions improve. New York continues to refine procurement strategies, strengthen planning and work to supercharge the pace of permitting new transmission projects.