Republican state lawmakers are calling on Governor Kathy Hochul to return billions of dollars in unspent energy funds to New York utility customers struggling with high bills.
In a letter sent February 5, Senate Republicans urged the governor to direct the New York State Energy and Research Development Authority to return surplus ratepayer funds as utility bill credits. The lawmakers point to more than $2 billion in unspent funds currently held by NYSERDA.
According to the letter, NYSERDA’s 2025 fiscal year budget and financial plan shows a surplus of $2.045 billion. The lawmakers argue those funds were collected from ratepayers through utility surcharges and should be returned to provide immediate financial relief.
At a recent Joint Budget hearing on Energy and Environmental Conservation, Senator Tom O’Mara pressed NYSERDA President Doreen Harris on why the surplus has not been returned. Harris said the funds are committed to multi-year programs and future needs. The letter notes that budget documents show large surpluses being carried forward through at least 2028.
The lawmakers argue that NYSERDA already has a continuing revenue stream through charges tied to the Climate Leadership and Community Protection Act, which continue through at least 2036. They say that makes holding billions in unused funds unnecessary, especially as ratepayers face increasing costs.
Senate Republicans also cite rising financial strain on utility customers. The letter states that arrears now total $1.8 billion and references a July 2024 state comptroller report showing NYSERDA spending lagging behind collections by about $1 billion.
O’Mara said returning the surplus would offer immediate relief. “Wouldn’t it be more important to provide some relief to ratepayers rather than to have it sitting in NYSERDA’s bank account?” he said in a statement included with the release.
O’Mara is sponsoring legislation that would allow NYSERDA’s unspent funds to be returned directly to ratepayers. Senate Republican Leader Rob Ortt and Senators Mario Mattera and Mark Walczyk also signed onto the letter, arguing the move would provide short-term help during a period of high utility costs and extreme winter weather.
The lawmakers emphasized that returning the surplus would not prevent future energy investments, but would acknowledge what they describe as an affordability crisis facing families and small businesses across the state.
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