New York Utilities See Soaring Profits as Over a Million Struggle to Pay Bills, Hochul Failing to Act

While more than a million New Yorkers remain behind on their gas and electric bills, the state’s five major private utilities have reaped billions in profit according to a new analysis released by Renewable Heat Now, a coalition that includes The Sierra Club and Alliance for a Green Economy.

The report shows profits for the five companies – Consolidated Edison, Central Hudson, Avangrid (parent company of NYSEG and RG&E), National Grid, and National Fuel Gas – rose 63% over the past decade bringing in a combined $3.17 billion in 2023 alone.

Consolidated Edison, which serves 4.7 million gas and electric customers in New York City and Westchester, saw profits climb from $1.13 billion in 2015 to $1.89 billion in 2023. Central Hudson, serving more than 400,000 Hudson Valley customers, nearly doubled profits in that same period, rising from $45.6 million to $90.5 million. Avangrid reported the most dramatic increase with profits surging 185% since 2015 to more than $387 million last year.

These figures come as ratepayers across the state grapple with bills that have doubled or even tripled compared to prior years. To make matters worse, utility companies such as NYSEG are preparing for a rate increase that will make bills even higher.

Governor Kathy Hochul has joined state lawmakers in criticizing the companies’ profit margins, particularly as 1.1 million New Yorkers are two months or more behind on payments. A measure introduced by State Senator James Skoufis (D-Orange County) would cap utility profits at 4%. However, she has not gone further than critical soundbites.

Utilities argue that extreme weather – hotter summers and colder winters – has contributed to spikes in usage and costs. They also point to charges embedded in monthly bills tied to clean-energy mandates and climate-related upgrades, such as reinforced poles to handle increasingly severe storms.

Renewable Heat Now says utilities spend roughly $200 million annually repairing leaking gas pipelines and blames this system for fueling higher customer costs. Members are urging Hochul to sign legislation eliminating the “100-foot rule,” which currently requires utilities to provide up to 100 feet of gas service lines to new customers, with costs passed onto existing ratepayers.

“Every day that the governor doesn’t sign it is another day that we put new gas pipe in the ground that we’re all paying for and the utilities are laughing all the way to the bank,” said Lisa Marshall, a Renewable Heat Now member and organizer for New Yorkers for Clean Power.

Advocates with Renewable Heat Now continue pressing Hochul to take immediate action.

“Governor Hochul has no business talking about affordability until she signs this bill into law to protect New Yorkers from rising energy costs and accelerates the adoption of more affordable, efficient, and cleaner heating and cooling systems,” said Kim Fraczek, director of Sane Energy Project.

New York Utilities See Soaring Profits as Over a Million Struggle to Pay Bills, Hochul Failing to Act