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PSC chair urges long‑term planning, cites $1 billion annual efficiency push and New York Sun surplus

October 01, 2025 | 2025 Legislature NY, New York


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PSC chair urges long‑term planning, cites $1 billion annual efficiency push and New York Sun surplus
Rory Christian, chief executive officer of the New York State Department of Public Service and chair of the Public Service Commission, told a joint committee of the state Senate that modernization of the electric grid and tighter oversight of utility spending are central to the state’s energy and climate goals. "The welfare of all New Yorkers and the strength of our state's economy depends on safe, reliable, and affordable energy," Christian said during his opening remarks. He told senators the commission is responsible for setting just and reasonable rates under state law and for implementing the Climate Leadership and Community Protection Act (CLCPA). Christian described a series of recent Commission actions and programs aimed at affordability and the transition to clean energy. He said the commission authorized about $1 billion a year for energy efficiency and building electrification over the next five years and reallocated $360 million in surplus funds from the New York Sun solar program to offset part of that cost. Christian said the New York Sun program achieved its earlier goals ahead of schedule and under budget, leaving surplus funds that the commission redirected to energy‑efficiency and electrification programs to target low‑ and moderate‑income households. Christian described the rate‑case process as quasi‑judicial and defended the staff’s approach to controlling costs, saying in 2025 the commission decided four major utility rate cases and adopted rates “significantly lower than the utilities’ initial requests,” an outcome he said avoided roughly a half‑billion dollars in charges to ratepayers. He emphasized audits and enforcement: the commission launched a comprehensive audit of incentive management and executive compensation in February 2025 and, he said, has secured about $220 million from utility shareholders since 2020 for ratepayer benefit. On CLCPA compliance Christian pointed to the commission’s work to implement sections 7.2 and 7.3 of the law and said the agency released a progress report showing the costs incurred so far. He acknowledged that the transition raises cost pressures — including inflation, higher interest rates, supply‑chain constraints and rising property taxes — and stressed planning for uncertainty. During questioning, senators pressed Christian for details on how the New York Sun surplus would lower bills; Christian said the $360 million will reduce the projected $1 billion annual charge over the program life. He also told lawmakers the commission uses a variety of mechanisms in rate proceedings to limit excessive capital spending, including management and operations audits, incentives tied to performance, and staff testimony opposing unnecessary projects. Christian described the coordinated grid planning, proactive planning and grid‑of‑the‑future proceedings as ways the commission and utilities try to identify needed transmission and distribution investments in advance, and he said the New York Independent System Operator’s annual assessments inform those plans. On affordability he recalled the commission’s longstanding energy burden target for low‑income households (no more than 6% of income spent on energy) and said the enhanced Energy Affordability Program expands protections to moderate‑income ratepayers. Christian said the commission prioritizes weatherization and measures that reduce bills and that staff engages stakeholders through rate‑case testimony, public statement hearings and comment procedures. Christian acknowledged constraints on immediately returning shareholder penalties directly to customers, explaining that under current Public Service Law processes, penalties typically reduce the revenue a utility is permitted to recover and therefore lower rates over time rather than appear as one‑time direct credits. He said changing that treatment would require statutory or process changes. In response to senators’ questions about reliability and natural gas capacity, Christian said the commission and utilities are pursuing a mix of solutions — transmission investments, demand flexibility and, where needed, supply actions — to avoid capacity shortfalls. He said the Northeast Supply Enhancement (NESE) / NESI project showed a commission‑level recognition that some gas projects could provide downstream reliability benefits, but he emphasized the commission evaluates projects case‑by‑case. Christian also told the committee the commission is examining workforce development, equity and community benefits alongside technical planning. He defended public participation in rate cases while acknowledging accessibility and clarity issues raised by advocates and legislators. Christian said the department has added user‑friendly material on its website to explain rate cases and participation, and that an ongoing challenge is improving public engagement in technically complex proceedings. The chair concluded by saying his staff and the commission are working to balance affordability, reliability and the CLCPA mandates while managing significant cost and operational headwinds. He urged coordinated planning across state agencies, utilities and stakeholders to reduce surprises and share risk.

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