In light of the Public Service Commission’s (PSC) most recent approval of astronomical increases in electric and gas rates for the next three years for Orange & Rockland (O&R) ratepayers, including a 10.9% gas bill increase next year, Senator James Skoufis (D-Orange County) and Senator Shelley Mayer (D-Westchester) joined colleagues in calling for an immediate overhaul of the embattled commission. The push follows a March 20, 2025 announcement in which the PSC – once again – patted itself on the back from agreeing to O&R delivery rates that are “much less than initially requested.”
In recent years, the PSC has repeatedly come under fire for approving runaway rate increases for utility companies across the state. The Commission’s willful disregard for ratepayers and obvious inability to stop predatory increases calls its oversight writ large into question.
Further, a 2024 audit by the State Comptroller found inadequacies in PSC’s planning for implementation of the Climate Leadership and Community Protection Act, using “outdated data” and “incorrect calculations” that could put ratepayers at risk as they evaluate the environmental merits of various rate cases. O&R’s recent case cited the company’s need to address “increased resiliency efforts against climate change impacts” as justification for placing an exorbitant burden on ratepayers.
“Enough is enough: the time to overhaul the PSC is now,” said Skoufis, Chair of the Senate Investigations & Government Operations Committee. “The Commission continues to exercise little more than a wrist-slap for greedy utility companies: at the same time that O&R is crying poverty to the PSC, they’re reporting corporate returns of 7-10%. I’m sick and tired of watching my constituents be taken for a ride by these fat cats, and the legislature must act now to protect consumers.”
State Senator Shelley B. Mayer said, “I am proud to stand with Senator Skoufis and my colleagues in the fight against the unjust utility rate hikes that are affecting countless New Yorkers in our communities and causing severe financial burdens. The Public Service Commission is failing to meet its responsibility to set delivery rates for gas, electric, and other regulated utilities that are ‘fair, just, and reasonable.’ If the PSC cannot fulfill its primary responsibility, it must be held accountable and work towards a solution that prioritizes New Yorkers’ rights to stable utility rates that are as low as possible.”
The Commission consists of up to seven members who are appointed by the Governor and confirmed by the Senate for a term of six years. Only one commissioner is required to have experience in utility consumer advocacy at any given time, and commissioner education/training varies widely.
The legislators will pursue proposals to cap utility profits and executive pay; prohibit rate hikes for certain operating expenses; require a comprehensive, third-party audit of all utility expenses, and dismantle the PSC – to be replaced by a pro-consumer regulatory body. With electricity demand expected to rise by 50-90% over the next 20 years, according to a report by the New York Independent System Operator, New York’s ratepayers can’t wait.
Senators Skoufis and Mayer were joined by Senators Simcha Felder, Nathalia Fernandez, Andrew Gounardes, Brad Hoylman-Sigal, John Liu, Rachel May, Christopher Ryan, and Lea Webb.
Senator Pete Harckham added, “Skyrocketing utility bills are placing an unbearable strain on community members who can no longer afford these unreasonable rate hikes. It’s time to reexamine and modernize the rate-setting process. Our top priority must be providing affordable service to ratepayers. These bills are a step forward in improving the rate-setting process with greater transparency and keeping utility costs down for community members so they don’t have to choose between meeting basic needs and paying their utility bills.”
Information regarding the recently approved O&R rate hikes may be found on the PSC filing site under case numbers 24-E-0060 and 24-G-0061.
