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State sends letter to Con Ed over cost surge

Gov. Kathy Hochul urged Con Edison to review their billing practices and better communicate with New Yorkers after the recent surge in energy costs in New York state left many already struggling New Yorkers surprised, through a letter from the Public Service Commission, and also announced increased relief efforts to reach low-income New Yorkers about millions of dollars in aid available.

“The extreme utility bill increases we are seeing across the state come at a time when New Yorkers are already struggling financially following the COVID-19 pandemic,” Hochul said. «Even though the spike we are seeing in electricity, natural gas and fuel prices were predicted and are due to severe winter weather,
I am calling on Con Ed to review their billing practices because we must take unified action to provide relief for New Yorkers, especially our most vulnerable residents.”

This winter the cost of natural gas, which is used to heat homes and generate electricity, has risen sharply resulting in a significant increase—sometimes more than doubling—of the supply component of customer electric and/or natural gas bills as compared to prior months. These bill increases are being driven
by a global increase in natural gas commodity prices due to higher domestic usage because of colder-than-normal weather, increased economic activity, and increased international demand for natural gas.

Heating Utility Assistance
At its Oct. 7, 2021 session, the Public Service Commission discussed the projected supply price increases and steps the utilities were taking to inform customers. To address the increase in supply prices, Hochul launched a statewide effort to raise awareness of the various state programs available to help struggling New Yorkers pay heating and utility expenses to avoid potential service interruptions during the cold weather months ahead. These programs include:
More than $373 million in home heating aid is available through the Home Energy Assistance Program, HEAP, for low- and middle-income New Yorkers who need assistance keeping their homes warm during the winter season. So far, 1.4 million regular HEAP benefits have been received by eligible households, totaling $208 million.

Additional federal funding is available to help low-income households pay heating utility arrears. So far, 104,000 Regular Arrears Supplement benefits have
been issued, and $166 million in arrears have been paid off for eligible households.

$90 million in federal funding through Emergency HEAP was made available to help low- and middle-income New Yorkers avoid having their home heating disconnected or exhausting their heating source amid fuel price increases. So far this winter, nearly 20,000 emergency HEAP benefits have been received
by eligible households totaling $17.8 million.

An increase in the budget for the statewide Energy Affordability Policy program by the PSC in 2021 from $237.6 million to $366.7 million and expanded eligibility, resulting in about 95,000 more low-income customers that will be able to receive benefits. Since September 2021, approximately $153 million
in bill discounts were issued by utilities to eligible customers.