PSC chair outlines rising utility costs, affordability programs and grid investments to Senate committee

Rory Christian, chair of the Public Service Commission and chief executive of the Department of Public Service, briefed the Senate Energy and Telecommunications Committee on current utility challenges and the commission’s response, citing aging infrastructure, higher interest rates and inflation as drivers of recent and projected cost increases.

Christian told senators that the Department and Commission are balancing statutory obligations — including service continuity and the Climate Leadership and Community Protection Act (CLCPA) goals — while seeking to protect affordability for consumers. He summarized ongoing and planned actions to support ratepayers and to plan grid investments.

Key points from the briefing

- Role and responsibilities: "My name is Rory Christian. I am the chair of the Public Service Commission and the CEO of the Department of Public Service," Christian said, outlining the agency’s regulatory oversight of gas, electric, water and other utilities to ensure safety, reliability and affordability.

- Drivers of higher costs: Christian cited aging utility infrastructure built over decades, higher interest rates, high inflation and supply-chain disruptions as creating a "perfect storm" that increases the cost of necessary infrastructure investments.

- Affordability programs and relief already under way: Christian described several programs the commission and state have implemented or are rolling out: - A $200,000,000 energy bill credit (adopted in 2024 and funded through state appropriations) administered by major utilities to offset costs for eligible customers. - Expansion of the Energy Affordability Program (EAP) and work to automatically enroll income-eligible New Yorkers in the program alongside the Office of Temporary and Disability Assistance. - An Energy Affordability Guarantee pilot intended to cap low-income customers’ electric costs at no more than 6% of household income; Christian said the pilot would launch in the first quarter of the year. - The governor’s restoration of Home Energy Assistance Program (HEAP) funding to address a federal shortfall.

- Consumer protections and enforcement: Christian said the department returned $13,000,000 to customers in complaints over the past year and secured $110,000,000 from utility shareholders through enforcement proceedings in 2024.

- Grid planning and investments: Christian noted that the commission has authorized approximately $8,000,000,000 in transmission upgrades through coordinated grid planning and highlighted efforts to streamline permitting for major transmission projects and to integrate the Office of Renewable Energy Siting into the department.

- New initiatives: Christian described the Power Up New York proposal in the governor’s executive budget — a $300,000,000 effort to accelerate electric readiness for undeveloped properties and reduce connection costs for large economic development projects.

Questions from senators and follow-ups

Senator Terry and other senators questioned Christian about alternative clean-energy technologies and battery storage safety after several high-profile battery fires. Christian said the commission is technology-agnostic in evaluations and pointed to an active proceeding (the "0 by 40" proceeding) to evaluate technologies that could meet emissions and reliability goals. On battery storage safety, Christian said the commission and partner agencies have formed a fire prevention working group and are reviewing permitting, siting and regulatory approaches.

Senator Hinchey raised a news development referenced in the hearing: the governor had directed the Department of Public Service to reject a Con Edison rate increase and to conduct an audit on utility management compensation. Christian said he had not yet reviewed the governor’s statement in the meeting and described management and operations audits as part of the commission’s existing oversight tools; he said such audits and enforcement proceedings (citing a prior Central Hudson case) can result in recovered funds for ratepayers.

On natural gas infrastructure, Christian reiterated that state law frames natural gas service as a public service in many contexts and explained the existing "first 100 feet" rule — that costs for initial service extensions are subsidized by customers, while customers may pay for service beyond certain distances — when explaining who bears connection costs.

Peaker plants, demand and non-pipeline alternatives: Christian said the commission has studied peaker plants and is exploring options, including battery storage and other non-pipeline alternatives, to reduce the need for new natural gas infrastructure in densely populated areas.

What Christian did not decide in the meeting: He did not announce any immediate rate-case decisions; he said the commission would scrutinize forthcoming rate filings, including any Con Edison filing referenced by the governor, through the usual rate-case process.

Why it matters: Christian’s briefing identified the multiple pressures pushing utility costs higher, described credit and enrollment efforts intended to limit impacts on vulnerable customers, and signaled the commission’s ongoing work on enforcement, audits, grid upgrades and planning for future demand.

Next steps: The commission will proceed with rate-case reviews, audits and pilot programs described by Christian; several senators asked for follow-up information and for staff to return with more detailed analyses and options.