A prominent Albany-based think tank is sharply criticizing New York’s latest budget agreement, arguing that lawmakers missed an opportunity to address rising energy costs and instead added new layers of regulation that could make electricity even more expensive.
The Empire Center for Public Policy, a free-market research organization, said several energy-related provisions in the budget reflect what it called a continued focus on climate policy goals at the expense of affordability and reliability for consumers.
Among the group’s biggest concerns is a proposal that would require additional scrutiny of utility rate increases and create state-appointed “Affordability Monitors” to review utility spending and rate requests. Empire Center Senior Fellow Zilvinas Silenas argued the new oversight positions could add bureaucracy without addressing the underlying causes of rising energy costs.
The organization also criticized provisions directing regulators to evaluate whether utility investments advance New York’s climate goals. Silenas contended the policy could encourage investments in renewable energy infrastructure while making it more difficult for utilities to recover costs associated with traditional energy projects, including natural gas generation.
Another point of contention is a proposed affordability index that would compare household energy costs to income levels. While acknowledging that affordability is a legitimate concern, the Empire Center warned the metric could eventually be used to justify discounted utility rates for some customers, shifting costs onto other ratepayers.
The think tank also objected to language preventing utilities from recovering certain public relations, advertising and outreach expenses through rates. According to the Empire Center, those costs represent a small share of utility spending and the provision appears aimed more at limiting utility messaging than reducing customer bills.
Silenas further questioned requirements that utilities disclose information about executive compensation, arguing that such reporting has little connection to energy affordability or service reliability.
While the Empire Center acknowledged several changes it viewed as positive, including revisions to how greenhouse gas emissions are calculated and a requirement for the state to develop a plan for meeting climate goals, the group said the broader package remains focused on regulating utilities rather than expanding affordable energy supply.
The criticism comes as New York continues implementing policies tied to the state’s climate goals while utilities across the state seek approval for major infrastructure investments and rate increases.
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