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The New York PSC issued an order granting rehearing, in part, and providing clarification related to the two orders issued by the NYPSC on May 15, 2025 approving Statewide portfolios of energy efficiency (EE) and building electrification (BE) measures and policies for the 2026-2030 period.  In the May 2025 EE/BE Orders, the Commission targeted both low-to-moderate income (LMI) and non-LMI customers, and approved EE/BE portfolio budgets totaling approximately $5.4 billion over the period 2026-2030, to be administered by both the New York State Energy Research and Development Authority (NYSERDA) and the State’s major investor-owned electric and gas utilities. 

In the multiple petitions (MI) filed for rehearing, the petition argued among other things that:

“The Commission committed errors of law and/or fact in approving such incremental funding without considering or discussing what specific programs would be implemented, whether they pass benefit/cost tests, the resulting customer rate and bill impacts, and the reasonableness of the rate impacts in light of other ratepayer-funded initiatives and programs.” 

“Petitioner also maintains that the Commission erred in law and/or fact in ruling that the various unidentified and undiscussed methodologies currently used to allocate the costs of utility-administered EE/BE programs among service classes remain to be used for future EE/BE programs. Specifically, MI highlights the absence of an analyses as to the programs themselves or the service classes to which such programs are targeted and the Commission’s simultaneous adoption of new policies mandating that substantial portions of the authorized budgets be devoted solely towards small residential weatherization projects.” 

“Petitioner further claims that the Commission erred in law and/or fact in directing that EE/BE program costs be recovered from customers via surcharges that raise concerns regarding intraclass rate and bill impacts. Petitioner asserts that, absent modification of these rulings on rehearing, the May 2025 EE/BE Orders would have greater rate impacts on large, high-load-factor commercial and industrial (C&I) customers than any other customer type, while the vast majority of expenditures are directed at measures targeted to LMI and non-LMI residential and small C&I customers.”

In response to the motion for rehearing the Commission directs the electric and gas utilities to:

• “file tariff revisions to enable cost recovery for the respective Utility-Administered Energy Efficiency and Building Electrification portfolios, via a component of the System Benefit Charge or a similar demand-based surcharge, to go into effect on a temporary basis on or before March 1, 2026, on not less than 15 days’ notice, as discussed in the body of this Order.”
• “file tariff statements, annually, regarding the surcharge rates for cost recovery for the Utility Administered Energy Efficiency and Building Electrification portfolios, via a component of the System Benefit Charge or a similar demand-based surcharge, as appropriate, to go into effect on January 1st of each subsequent year, on not less than 15 days’ notice, as discussed in the body of this Order”.

Next Steps:

• NYSERDA must file an operating plan to provide details on the Innovation and Research Portfolio by 12/16/25.
• NYSERDA 2026-2030 energy efficiency and building electrification workforce development strategy assessment due by 1/31/26.
• NYSERDA report on uncommitted funds as of February 31, 2025, due by June 30 annually related to the 2026-2030 non-LMI energy efficiency and building electrification portfolio.
• Utilities must file joint customer platform utility integration plan and hold a stakeholder roundtable within 6 months.
• Utilities must file temporary tariffs with energy efficiency and building electrification cost recovery effective January 1, 2026.
• Staff report electric panel and service upgrade study results due by June 30, 2026.

As reported previously, the NYPSC initiated this proceeding to consider the development of a Clean Energy Fund (CEF) designed with four program portfolios that are administered by NYSERDA. The programs include Market Development; Innovation & Research; New York-Sun (NY-Sun); and the NY Green Bank (NYGB).

Order Granting Rehearing, in Part, and Providing Clarification (11/14/2025)
Order Authorizing Non-Low- to Moderate-Income Energy Efficiency and Building Electrification Portfolios for 2026-2030  (05/15/2025)
Order Authorizing Low- to Moderate-Income Energy Efficiency and Building Electrification Portfolio for 2026-2030  (05/15/2025)
14-M-0094
(Proceeding to Consider Clean Energy Fund)