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PSC Hits Five Utilities With $50 Million in Penalties for Failing to Meet 2025 Customer Service Standards
In a press release on July 17, 2026, the New York State Public Service Commission (Commission) today announced a combined $50.1 million in penalties against five utilities that failed to meet their 2025 customer service standards. The action came as the Commission received an update from Department of Public Service staff on multiple New York electric, gas, and water utilities’ annual customer service performances for 2025.
The Commission issued a 2025 Utility Customer Service Performance Report that details the deficiencies.
While five utilities were found to have missed their performance standards, six others met theirs and provided adequate customer service to New Yorkers.
“Utilities provide services which are vital to public health, welfare, and New York’s economy,” said Commission Chair Rory M. Christian. “By approving incentives and enforcing consequences for utilities to meet customer service performance targets, the Commission ensures utilities uphold customer experience as a priority by design.”
NYSEG, RG&E, Central Hudson, National Grid, and Liberty Utilities failed to meet their minimum performance standards. These deficiencies result in negative revenue adjustments (NRAs), which are designed to incentivize better customer service performance by reducing a utility’s shareholder earnings.
Each of the following utilities failed to meet at least one of their customer service performance metrics in 2025:
- New York State Electric & Gas Corporation (NYSEG) failed to meet its Customer Satisfaction Survey metric, resulting in an NRA of 19 basis points or approximately $6.65 million. Given that NYSEG had failed its Customer Satisfaction Survey metric in 2024, in accordance with the adopted rate agreement, the 2025 Customer Satisfaction Survey metric NRA will be doubled from 19 basis points to 38 basis points, or approximately $13.3 million.
- Rochester Gas & Electric Corporation (RG&E) failed to meet its Customer Satisfaction Survey metric target, incurring NRAs totaling 19 basis points or approximately $4.03 million dollars. Similar to NYSEG, RG&E failed to meet its 2024 performance target for the Customer Satisfaction Survey metric; therefore, the NRA incurred by RG&E for this metric will be doubled to 38 basis points, or approximately $8.06 million.
- Central Hudson Gas & Electric Corporation failed its Customer Satisfaction Index, PSC Complaint Rate, and Call Answer Rate metrics, incurring NRAs totaling 34 basis points, or approximately $4.7 million.
- Niagara Mohawk Power Corporation d/b/a National Grid did not meet its Residential Customer Satisfaction Survey, Small/Medium Commercial and Industrial Customer Satisfaction Survey, or Call Answer Rate targets, thus incurring NRAs of 36 basis points, or approximately $16.97 million.
- Liberty Utilities (St. Lawrence Gas) Corporation (Liberty SLG) failed to meet its Customer Satisfaction Survey target, incurring an NRA of 5 basis points, or approximately $38,744.
- KeySpan Gas East Corporation d/b/a National Grid (KEDLI) failed to meet its Call Answer Rate target, incurring an NRA of 5 basis points, or approximately $1.72 million.
- The Brooklyn Union Gas Company d/b/a National Grid NY (KEDNY) failed to meet its Call Answer Rate target, incurring an NRA of 10 basis points, or approximately $5.31 million.
