New York Faces Utility Bill Crisis as Energy Transition Stalls

Residents struggle with rising costs as state's climate law faces challenges

Published on Feb. 8, 2026

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New York is facing a growing utility bill crisis, with over 234,000 residential customers in National Grid's service area alone being at least 60 days behind on their payments, totaling $309 million in unpaid bills. This crisis is exacerbated by the state's ambitious Climate Act, which has stymied the timely repowering of aging energy infrastructure, leading to continued reliance on fossil fuels and rising costs for consumers.

Why it matters

The utility bill crisis highlights the disconnect between New York's climate goals and the reality of the state's energy landscape. The Climate Act's timeline for transitioning to zero-emission generation is proving unrealistic, leading to increased costs for consumers as utilities seek rate hikes to upgrade infrastructure and prepare for changes that are not materializing as quickly as expected.

The details

New York's major utilities, including National Grid, Con Ed, and Rochester Gas and Electric, are all reporting record levels of residential customers in arrears on their utility bills. This is driven by a combination of factors, including the brutal winter weather increasing heating demand, ongoing supply chain issues and inflation impacting energy prices, and the state's Climate Act creating regulatory hurdles that are slowing necessary infrastructure upgrades.

  • In 2026, over 234,000 National Grid residential customers were at least 60 days behind on their utility payments, totaling $309 million in unpaid bills.
  • The state's Climate Act, passed in 2019, has stymied the timely repowering of aging energy infrastructure across New York.

The players

New York Independent System Operator

The nonprofit organization that manages New York's power grid.

National Grid

The major utility serving upstate New York.

Con Edison

A major utility serving New York City and surrounding areas.

Rochester Gas and Electric

A utility serving the Rochester, New York region.

Governor Kathy Hochul

The current governor of New York, who is facing pressure to address the utility bill crisis.

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What they’re saying

“New Yorkers will just have to pay more because the state Legislature doesn't have the stomach to rewrite what has become a bad law.”

— Fred LeBrun, Columnist (Times Union)

What’s next

Governor Hochul has indicated that she is exploring options to provide direct payments to ratepayers to help offset the rising utility costs, similar to programs implemented in other states. However, the long-term solution will likely require the state legislature to revisit and adjust the timeline of the Climate Act to better align with the realities of New York's current energy landscape.

The takeaway

New York's ambitious climate goals have collided with the practical realities of maintaining reliable and affordable energy for residents, leading to a growing utility bill crisis that highlights the need for the state to reevaluate its energy transition timeline and policies to better balance environmental and economic priorities.