New York freezes removal of low-income customers from energy affordability programs

Rory M. Christian Chair and CEO at New York State Public Service Commission
Rory M. Christian Chair and CEO at New York State Public Service Commission
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The New York State Public Service Commission has finalized an order to halt the removal of low-income customers from Utility Energy Affordability Programs (EAPs). This decision, which follows a temporary pause enacted in November 2025 at Governor Kathy Hochul’s request, is intended to protect vulnerable households following disruptions caused by a federal government shutdown.

Commission Chair Rory M. Christian explained the reasoning behind the move: “Receipt of federal benefits are used as criteria for eligibility and enrollment in the utilities’ EAPs, with some of the utilities specifying a 12-month lookback period to demonstrate receipt of a federal benefit for eligibility in EAP. Due to the delays in federal funding caused by the federal government’s shutdown of operations and its cessation of long-standing energy assistance programs during October and November, and the potential threats to public health, safety, and general welfare if income-eligible customers are disenrolled from utility EAPs, the initial order directed a number of emergency actions, and today’s order finalizes those emergency actions.”

Under this order, major electric and gas utilities—as well as building owners with sub-metered buildings—must continue their freeze on EAP disenrollments through November 30, 2026. Utilities have also been instructed to re-enroll any customers who lost access to EAP benefits after October 1, 2025. Additionally, they must revise tariffs so that customers can use an 18-month window to prove eligibility for these programs.

The Commission determined that further extending consideration of this temporary rule was unnecessary since no new issues had emerged. The body concluded that letting the emergency rule lapse would harm low-income households due to circumstances beyond their control. The pause on disenrollments is meant to provide flexibility for future enrollment periods.

State-funded EAPs offer direct discounts on utility bills—up to $500 annually—to ensure eligible households do not spend more than six percent of their income on energy costs. These bill credits are automatically applied when households receive support from federally funded programs such as HEAP.

Since state energy affordability program access depends largely on enrollment in federal initiatives like LIHEAP—which were disrupted by last year’s government shutdown—the Commission acted to prevent approximately one million New York households from losing critical assistance if similar disruptions occur again.

Without intervention last November announced by Governor Hochul, many low-income families risked losing both federal benefits and associated state bill discounts during winter months when heating needs are greatest. Recent cold weather across New York underscored this risk.

During the shutdown period, Commission staff required major utility companies to maintain discounts for enrolled customers even without corresponding HEAP funds. This action prevented thousands from losing their monthly discount because EAP participation often relies on concurrent HEAP enrollment.

Currently over 1.5 million New York households receive HEAP aid; about one million benefit from EAP discounts.

A recent change in state law expanded eligibility for utility bill discounts up to those earning at or below State Median Income levels. Governor Hochul has encouraged residents to check their eligibility via the State’s official website and enroll promptly. Tens of thousands joined following her appeal last fall; millions remain eligible statewide. The website provides step-by-step instructions based on utility service area along with advice for those struggling with heating costs or seeking information about consumer protections under state law.

New York maintains strong protections against disconnection during winter through the Home Energy Fair Practices Act (HEFPA), which requires special outreach before terminating heat-related services between November 1 and April 15 if it could endanger health or safety. HEFPA also covers consumers facing medical emergencies or other vulnerabilities during cold weather periods.

The Commission’s latest action aligns with Governor Hochul’s policy agenda aimed at streamlining administration of energy assistance programs while improving outreach efforts so more residents can access available support.

Full details about today’s decision can be found by searching Case Number14-M-0565 at www.dps.ny.gov or contacting the Commission directly for assistance.



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