The New York State Public Service Commission has approved amendments to the Uniform Business Practices rules and the Standard Renewal Notice for energy service companies (ESCOs), aligning them with new consumer protections in state law. These changes follow legislation signed by Governor Kathy Hochul, which aims to shield consumers from unexpected price increases on their energy bills.
“Governor Hochul continues to ensure the economic wellbeing of consumers remains first and foremost,” said Commission Chair Rory M. Christian. “These new amendments will ensure ESCO customers remain protected from sharp, unexpected price increases from the energy the consumer needs to run their homes and businesses. Further, as recognized by the utilities, the EAPs faced a confluence of unprecedented and unforeseeable events due to the federal government shutdown. To avoid the disenrollment of a potentially large number of customers who would otherwise be enrolled in each utility’s EAP, the Commission directed the utilities to pause any disenrollment.”
The amendments strengthen oversight of ESCOs by requiring that they comply with all applicable guidelines and orders or risk losing their eligibility to operate in New York. Each ESCO must submit annual compliance reports by January 31. The Commission has previously restricted ESCOs from enrolling customers into variable-rate supply contracts that exceed local utility rates unless those contracts guarantee savings. Fixed-rate products cannot be priced more than five percent above a utility’s average commodity cost over the previous year.
Recent legislation designates any change in an ESCO contract’s price or product type as a material change that requires customer consent. Energy providers are also required to disclose current prices, proposed changes, distribution prices, and information on how customers can view past bills at renewal time.
There are currently 151 ESCOs operating in New York, serving nearly one million customers out of more than seven million electric and five million gas customers statewide. Utility and ESCO pricing is subject to fluctuations based on global commodity markets; regulators require regular communication about price forecasts before winter heating and summer cooling seasons.
In addition to rule changes for ESCOs, the Commission directed major utilities to extend a pause on removing customers from Energy Affordability Programs (EAPs) through November 2026. The EAPs offer discounts intended to keep eligible households’ utility costs below six percent of income, with credits automatically applied when households receive benefits from federal programs like HEAP.
Because many EAP participants qualify through enrollment in federally funded programs such as LIHEAP—which was disrupted during a recent government shutdown—the Commission extended its moratorium on disenrollments to protect more than one million households from losing assistance if federal funding lapses again.
On Monday, Governor Hochul announced additional measures for residents facing higher heating costs due to reduced HEAP funding, which serves approximately 1.5 million low-income households across New York State.
If both federal assistance and state EAP discounts were interrupted simultaneously during winter months, affected residents could face significantly higher utility bills just as demand peaks—posing risks for public health and safety during periods when temperatures often drop below freezing across much of New York.
During the shutdown period this fall, at Governor Hochul’s direction, state regulators instructed major utilities not to remove anyone from EAP benefits through November even without federal support—a move preventing thousands of families from losing discounts tied directly to their HEAP participation.
The Governor has encouraged residents to check their eligibility for state energy affordability programs online through official resources that provide enrollment steps based on utility territory as well as guidance for managing payments during times of financial hardship.
New York State law provides further consumer protections under statutes like the Home Energy Fair Practices Act (HEFPA), mandating extra safeguards against disconnection between November 1 and April 15—especially for vulnerable groups including those with medical emergencies or disabilities.
More information about these decisions is available via the Commission’s website at www.dps.ny.gov using case numbers 98-M-1343 (UBP) or 14-M-0565 (EAP). Assistance is also offered by phone for non-English speakers.
