Governor Hochul Unveils Ratepayer Protection Plan to Hold Energy Companies Accountable and Ensure a Reliable Grid

Governor Hochul today unveiled her plan to hold energy companies accountable to reduce energy bills and ensure a strong and reliable grid as part of her 2026 State of the State. Facing a hostile federal landscape, the Governor continues to champion her all-of-the-above approach to energy that prioritizes affordability, reliability, and sustainability. Governor Hochul will seek safeguards for ratepayers by pushing strict accountability measures on utility companies to protect consumers while advancing aggressive measures to increase clean energy supply.

"As we grapple with frequent attacks from the federal government on energy progress and prices, I remain laser-focused on energy affordability and reliability in New York State," Governor Hochul said. "We will continue to protect our most vulnerable by making investments in energy affordability programs like Empower+ while holding utility companies accountable to protect consumers from unfair practices. My commitment to an all-of-the-above approach will ensure we keep the lights on and prices down."

Protecting Against Utility Bill Increases

New Yorkers deserve reliable energy at a price they can afford. Governor Hochul is proposing a sweeping set of reforms, the NYS Affordable Utilities Omnibus Legislation, to modernize the Public Service Law, demanding strict fiscal discipline from utilities and empowering the State to fight more effectively for lower bills.

• Tying executive pay to affordability: The Governor is putting ratepayers first. Utilities will be required to publicly disclose how CEO salaries compare to the average worker's pay and executive compensation will be tied directly to customer affordability. CEOs shouldn't be reaping outsized benefits while ratepayers are struggling to make ends meet.
• Eliminating gold-plated rate cases: When requesting rate increases, utilities will be required to present a budget constrained option that keeps their operating and capital costs below the rate of inflation. This exercise will require utilities to prioritize efficiency and affordability and prove why any spending is truly necessary before asking customers to foot the bill.
• Removing hidden fees: Ratepayers should only pay for energy services. Period. The Governor is directing the Department of Public Service to review utility bills to ensure customers never foot the bill for inappropriate utility spending, including corporate advertising, fines, and certain legal fees.

Mitigating Energy Cost Burden

Governor Hochul will introduce legislation that will require utilities to create and report on an affordability index, accurately showing the energy burden on customers throughout their service territory. She will also require the Department of Public Service to report on utility affordability by utility, benchmark against data from other states, and make an annual affordability presentation to the Public Service Commission (PSC).

If the PSC finds that any utility in New York is failing to protect energy affordability, this new legislation will empower the Commission to install an independent "Affordability Monitor" inside the utility to address the issue. The Affordability Monitor will have full access to management meetings, books, and records to review utility operations and expenditures to ensure efficient spending and report opportunities for cost savings to PSC.

Modernizing Utility Regulation to Protect Consumers

Rising utility bills are placing real pressure on household budgets. The current process of utility rate setting is increasingly complex, compressed, and difficult for the public to understand or meaningfully engage with in an impactful way. Governor Hochul will advance reforms to modernize how these rate cases are reviewed and resolved, giving regulators more time and flexibility to evaluate utility proposals to ensure they protect consumers, encourage good-faith negotiations, and reduce the frequency of disruptive rate increases. By improving how rate cases are conducted, New York will protect consumers, promote fair outcomes, and put affordability at the center of utility oversight.

Excelsior Power: Advancing a More Flexible and Affordable Grid

As energy demand grows, New York's electric grid must become more flexible to control costs and maintain reliability, without overbuilding expensive infrastructure. New technologies such as smart thermostats allow utilities to strategically deploy or conserve energy when the grid needs it the most, effectively maintaining comfort and returning benefits such as lower energy bills. Governor Hochul will advance Excelsior Power, a new statewide initiative to make better use of such technologies to increase grid flexibility by shifting when and how electricity is used across the system. Excelsior Power will direct utilities to treat grid flexibility as a core system resource and expand consumer-facing incentive programs that encourage households and businesses to participate in energy flexibility programs.

By harnessing grid flexibility tools such as demand response and smart technologies, the State can avoid hundreds of millions of dollars in system costs each year while reducing the need for costly upgrades and backup power plants - averting costs that will otherwise be shouldered by rate payers. As these programs scale statewide, grid flexibility is expected to deliver billions of dollars in long-term savings, reducing utility bills and strengthening reliability for households and businesses across the State.

Revitalizing EmPower+ to Upgrade New York's Homes

New York is home to the nation's oldest building stock. As a result, the cost of upgrading a home to 21st-century energy efficiency and sustainability standards, which ultimately save consumers money, can be prohibitively expensive

Since its launch in 2023, Governor Hochul's EmPower+ program has helped nearly 42,000 low- and moderate-income households across the state finance energy improvements, saving families about $600 per year on their utility bills, slashing emissions, and making homes more comfortable for families. In 2026, Governor Hochul will invest an additional $50 million into the EmPower+ program, making sure an estimated 10,000 additional households are able to access the free assessments, low-cost direct installs, and targeted upgrades that keep homes comfortable and safe-all while generating jobs and opportunities for local contractors.

Increasing Uptake of Energy Assistance Programs

New York State invests more than $1 billion annually on programs to help families lower their energy bills, such as the Energy Affordability Program (EAP), EmPower+, and the Weatherization Assistance Program (WAP). These programs reduce costs through cash assistance, monthly discounts, and weatherization and efficiency upgrades that reduce energy usage and costs. Despite these benefits, these programs are not being fully utilized by qualifying ratepayers. As a result, it is estimated that only half of income-eligible households utilize the EAP. Further, the delivery of bill financial assistance and weatherization programs can be better aligned to help reduce energy usage and associated bills for those households with the greatest energy burden.

To make sure these critical programs are implemented in a complementary manner and to increase awareness and access for vulnerable New Yorkers, the Governor will streamline planning and administration of these programs to increase the impact of public funds targeting energy burden reductions and make these programs simpler to access. She will also improve utilization by launching a centralized outreach campaign to reach as many New Yorkers as possible.

Establishing a Nuclear Reliability Backbone for a Zero-Emission Grid

As New York transitions to a zero-emission electric grid, the State must ensure reliable and cost-effective baseload power to keep homes, businesses, and critical infrastructure running at all hours. Governor Hochul will ensure that New York State leads in the race to harness safe and reliable advanced nuclear energy to power homes and businesses with zero-emissions electricity for generations to come.

To catalyze progress towards those goals, the Governor will advance a new initiative, the Nuclear Reliability Backbone, directing State agencies to establish a clear pathway for additional advanced nuclear generation to support grid reliability. The Nuclear Reliability Backbone will be developed by a new Department of Public Service (DPS) process to consider, review, and facilitate a cost-effective pathway to 4 gigawatts of new nuclear energy that will combine with existing nuclear generation and the New York Power Authority's (NYPA) previously announced 1 gigawatt project, to create an 8.4 gigawatt "backbone" of reliable energy for New Yorkers.

This effort will provide firm, clean power that complements renewable energy resources and reduces reliance on fossil fuel generation. By creating a stable foundation of always-on energy, the Backbone will allow renewable resources to operate more efficiently and flexibly. Together, these actions will support a resilient, flexible, and zero-emission grid that meets New York's growing energy needs.

Ensuring New York's Nuclear Power Future is Built By and For New Yorkers

As New York expands advanced nuclear energy, the State must ensure that New Yorkers benefit from these jobs and investments; and, moreso, that New Yorkers are prepared to build, operate, and sustain this emerging industry. Governor Hochul will launch NextGen Nuclear New York to develop a skilled, in-state nuclear workforce through coordinated education and training pathways. The initiative will expand partnerships across K-12 schools, higher education institutions, labor organizations, and training programs to align curricula, credentials, and career pathways with industry needs. It will also support workforce transitions for existing energy workers and increase public awareness of nuclear career opportunities. By investing in people and skills, New York will ensure its nuclear future is powered by New Yorkers, for New Yorkers.

Requiring Data Centers To Pay Their Fair Share and Streamlining Interconnections for Job-Creating Businesses

As energy demand surges across the state, New York State will advance a new initiative with a dual mandate: providing greater certainty and predictability for businesses seeking to invest in New York while ensuring that data centers pay their fair share. Unlike other sectors, data centers consume massive amounts of finite resources and place an unprecedented strain on the electric grid without creating many jobs in the process. Governor Hochul is taking action to ensure every day New Yorkers do not subsidize this energy intensive industry. To stop planning uncertainty caused by "phantom loads" and prevent rising costs for everyday consumers, the State will enforce a simple standard: these industries must pay more; if they do not, they must supply their own energy.

To attract responsible new businesses, give them the certainty they need to invest in New York, and protect the ratepayer, Governor Hochul will tap the Department of Public Service to launch a new initiative, Energize NY Development, with the goal of modernizing how large energy users connect to the grid, making it faster and more predictable, but it comes with strict conditions to protect ratepayers. This effort will streamline interconnection rules and improve transparency around grid upgrades while explicitly requiring that projects driving exceptional demand without exceptional job creation or other benefits cover the costs they create, or supply their own energy. By accelerating responsible development and requiring data centers to shoulder their own burden, Energize NY Development will support job creation, industry growth and economic investment across the State while sparing ratepayers additional pressure on utility bills.

Protecting New York's Energy Grid from Cyber Threats

As New York modernizes its electric grid and brings more clean energy resources online, we must protect this vital asset from cyber threats that could put our power and safety at risk. Building on nation-leading actions already underway, Governor Hochul will strengthen protections for New York's electric grid. This effort will expand enforceable cybersecurity standards beyond traditional information technology to include the operational technology that controls power generation, transmission, and distribution, while also addressing the growing cybersecurity risks. These actions will reduce the risk of disruption, protect ratepayers from costly outages, and ensure New York's evolving energy system remains resilient, reliable, and secure.

Supporting Solar Deployment in Public Schools by Aligning State Building Aid with Climate Goals

New York's thousands of public schools consume substantial energy, and can and should play an important role in advancing clean energy priorities while also providing healthier learning environments for students. Looking towards a more sustainable future, many school districts are choosing to invest in solar and other renewable energy systems, which will support the state's transition long-term. However, current Building Aid rules can limit their ability to undertake these crucial projects. Governor Hochul will update how State Building Aid is applied so school districts have greater flexibility to install the most effective renewable energy systems, including ground-mounted solar where appropriate. This change will make it easier for schools to reduce energy costs, cut emissions, and invest in cleaner infrastructure without increasing overall Building Aid.

Establishing a Sales Tax Exemption for Electric Vehicle (EV) Charging Stations

As New York continues to work towards a greener, cleaner future, electric vehicles (EV) play an important role in weaning New Yorkers' reliance on polluting and dangerous fuels. Governor Hochul has led the way in facilitating this transition by significantly building out the State's EV charging infrastructure, deploying 15,000 chargers at more than 4,000 locations. This has resulted in nearly 187,000 EVs in New York. To further incentivize the installation of EV charging stations for public use, Governor Hochul will support legislation to establish a sales tax exemption on the retail sale of electricity-used to recharge an electric vehicle-by a commercial EV charging station. By encouraging additional charging options, Governor Hochul is removing historic barriers that prevent EV uptake and bringing New York one step closer to realizing its clean energy goals.

Supporting Farms Through the Sun and Soil Program

As New York expands clean energy generation, the State must ensure that renewable development and working farmland can coexist and complement one another. As farmers face rising operating costs, the transition to a clean energy economy presents opportunities to help farms diversify their revenues as they continue to operate and manage their valued farming activity.

Governor Hochul will introduce the Sun and Soil Program to increase options for farmers to benefit from the integration of solar energy development on their land while maintaining valuable land assets. The program builds on existing State-supported research and demonstration projects that show how solar panels can be co-located with active farming, such as grazing and crop production, allowing farms to generate clean energy while keeping land in agricultural use. Identifying avenues to capitalize on solar energy development while supporting continued use of productive farmland will help farmers financially and support the resiliency of their business. The program will be advised by - and inform efforts of - the state Agricultural Technical Working Group (ATWG) and will identify responsible solar development practices that support New York State's agricultural operations, lands, farmers, and communities. The ATWG, led by NYSERDA in collaboration with the Department of Agriculture and Markets, includes agricultural land and farmer organizations, solar developers and operators, local government officials, academic experts, and additional nongovernmental organizations and state agencies. By advancing research, demonstration projects, and partnerships between farmers and renewable energy developers, Sun and Soil strengthens rural economies by supporting opportunities for both clean energy growth and sustained use of productive farmland for agricultural production.

Today's announcement builds on the Governor's record of protecting ratepayers and enhancing reliability over the last year:

• Released the 2025 State Energy Plan, a realistic roadmap that prioritizes reliability above all else. Refusing to risk rolling blackouts or gas outages, this Plan embraces an "all-of-the-above" strategy that leverages hydropower, wind, solar, and firm zero-emission resources like nuclear to anchor the grid as demand grows.
• Kick-started a nuclear renaissance to ensure Upstate New York has the carbon-free baseload needed to support industrial growth. The Governor directed the New York Power Authority (NYPA) to develop 1 gigawatt of zero-emission advanced nuclear power, reaffirming that nuclear power is essential to a reliable, 24/7 clean grid.
• Rebuilt the grid's physical backbone by advancing massive transmission projects that unblock the flow of clean energy. This includes the Champlain Hudson Power Express (CHPE), which is on track for completion in mid-2026 and will deliver 1,250 MW of Canadian hydropower directly to New York City. At its peak, CHPE once operational will deliver up to 20% of New York City's energy, all of it clean.
• Streamlined permitting by creating a "one-stop-shop" for renewable energy and electric transmission siting that accelerates project approvals that cut red tape and has supercharged the pace of moving critical generation projects from a contract on paper to construction on the ground. Since 2021, 31 large-scale solar and wind projects have been permitted, representing more than 4.2 gigawatts of clean energy, enough to power roughly 1.5 million homes.
• Smashed the State's solar goals. New York achieved its 2025 goal of installing 6 gigawatts of distributed solar a full year ahead of schedule and was named a national leader in community solar two years running.
• Persevered to launch the American offshore wind industry. New York is now operating the nation's first utility-scale offshore wind farm, South Fork Wind, and has two more under construction.

Contact the Governor's Press Office