Heating Up Savings
Supporters of a measure to cap utility bills at 6 percent of income for New York residents facing high energy costs have calculated that enacting the policy would save 25 percent of households an average of $136 per month. The analysis, released by NY Renews and Win Climate and shared first with POLITICO, crunches census bureau numbers to estimate energy burdens across the state and potential savings if bills were capped at 6 percent of income. That’s a key plank of the NY Home Energy Affordable Transition bill, which environmental groups are pushing this session.
Gov. Kathy Hochul’s administration and the Public Service Commission have set a goal of keeping energy bills for low- and moderate-income New Yorkers below 6 percent. Above that, households are considered “energy burdened” and at risk of facing tough choices between basic necessities. While Hochul has endorsed components of the HEAT Act around transitioning off the natural gas system, she declined to include the 6 percent cap.
The analysis highlights the potential savings for households in each region and county of the state, type of utility services and income. Ninety-two percent of those who would benefit are characterized as low- or moderate-income — defined as at or below 80 percent of area median income. They would see bills reduced by 53 percent on average, compared to under 30 percent for medium and high income earners.
The total estimated annual savings, based on the report’s figures and calculated by POLITICO, would be $2.45 billion annually.