Hochul’s State of the State puts utility affordability and oversight at center of 2026 agenda

Gov. Kathy Hochul’s State of the State address, delivered on Jan. 13, focused on issues of affordability, public safety, housing and civil liberties. 

“I’ve said from the beginning: Your family is my fight. And in this moment, when the future feels full of promise, but under real threat: your future is my fight as well,” Gov. Hochul said in a press release. “I fight everyday to make life more affordable, keep people safe, and expand opportunity — not shrink it. My 2026 State of the State lays out a clear, actionable plan to meet the challenges families face today, while preparing New York for the road ahead.”

At her annual address, the governor proposed universal childcare, cracking down on insurance price fraud, utility pricing reform, new measures to enhance religious freedoms and access to health care, instituting a new policy agenda to build more housing and a series of proposals regarding online safety. 

As the governor prepares to negotiate a state budget with State Legislature leaders before the April 1 deadline, state lawmakers representing Tompkins County in Albany say that the governor’s address touched on critical issues affecting municipalities like Lansing. 

State Sen. Lea Webb — who represents Lansing in the 52nd State Senate District — highlighted utility costs as one of the local issues the governor is taking action on this year.

Webb has called for investigations into the utility costs in her district, in particular demanding an audit of New York Electric and Gas (NYSEG), the company that serves Tompkins County. 

Webb was also one of many New York State Legislators who last June moved to create new accountability measures for the state’s Public Service Commission (PSC), aiming to improve transparency for utility ratepayers.

In the legislative package is a bill from Webb that establishes an energy usage monitor program for ratepayers.

The bill, S. 8062, institutes an energy usage monitor program to notify customers when their energy usage exceeds a cost or usage threshold determined by them in a given billing period.

NYSEG has, for the past year, been the focus of conversation among some residents on social media, who have created groups to discuss the company’s business practices and their experiences with what they deem ludicrously high utility bills. A bulk of this commentary can be found on the “NYSEG needs to be held accountable!!” Facebook group, which has more than 19,000 members. 

An excerpt from the description of the group reads as follows:

“I received an almost $800 NYSEG bill for one month with the only explanation of ‘that’s how much electric you used,’” a group member wrote. “I called the [Public Service Commission] and still had no change on my bill. I let it go. Until I’ve seen ALL OVER social media that not just me but 1000s of people are having the very same issue!!”

Gov. Hochul’s proposal in the State of the State to address utility prices focuses on empowering the state to fight more effectively to lower electric bills, while also investing in energy-saving investments like weatherization improvements and smart thermostats.

“As we grapple with frequent attacks from the federal government on energy progress and prices, I remain laser-focused on energy affordability and reliability in New York State,” Gov. Hochul said in a press statement. 

Hochul is proposing a sweeping set of reforms, the state’s Affordable Utilities Omnibus Legislation, which would modernize Public Service Law. This amendment would demand strict fiscal discipline from utilities and empower the state to fight more effectively for lower bills, the governor’s office wrote in a statement. 

Hochul said that the changes would require utilities to disclose publicly how CEO salaries compare to the average worker’s pay. Executive compensation, she added, will be tied directly to customer affordability. 

NYSEG filed a request on June 30 to increase its annual electric and gas delivery revenues, between April 30 2026 and the same date in 2027. 

According to a report in The Ithaca Times, NYSEG is looking to increase delivery rates by 35% for electricity customers and 39.4% for natural gas customers. If approved by the PSC, monthly bills are estimated to increase by about $33 for typical residential customers using 600 kilowatt-hours or 83 therms.

This new rate hike request came not long after NYSEG’s last rate hike was filed in 2023 and completed in 2025. 

Hochul said that as companies continue to request rate hikes, they will be required to present a budget-constrained option that keeps their operating and capital costs below the rate of inflation. 

“This exercise will require utilities to prioritize efficiency and affordability and prove why any spending is truly necessary before asking customers to foot the bill,” the governor’s office wrote in a press release.

The governor is also directing the Department of Public Service to review utility bills to ensure that customers don’t foot the bill for inappropriate utility spending, including corporate advertising, fines and certain legal fees.

“Utility bills are already soaring and my constituents can’t afford to see a data center drive them up further,” Webb said in a press statement issued on Jan. 13. “As Governor Hochul made clear today, New York’s energy grid is under growing strain, and massive data centers are a big part of that picture. If companies are going to consume enormous amounts of power, they need to pay their fair share for the energy and infrastructure they rely on. This is about fairness, reliability, and protecting ratepayers while we continue to grow our economy responsibly.”