Kingston, NY – “Last week, Governor Hochul allowed New York State to approve two previously rejected projects that will increase the cost for ratepayers and undermine the state’s climate goals: a Trump-backed gas pipeline and a cryptocurrency mining facility. Now, the Governor has delayed the implementation of the 2023 All-Electric Buildings Act that requires new construction of smaller residential and commercial buildings to be all-electric starting January 1, 2026.

In explaining her support for the pipeline, the Governor said ‘We need to govern in reality,‘ but the reality is that delivery rates for gas are going up by higher than electricity, and climate change is already driving up costs: fixing potholes is more expensive, farmers face new challenges, responding to extreme weather events is adding to utility bills, and crowded hospitals from climate-related health issues will mean higher healthcare costs. Another reality, one that anyone interested in affordability should consider, is that the more gas infrastructure ratepayers are stuck with, the more they’re on the hook to pay even once they become obsolete, stranded assets. In fact, an ever-expanding gas delivery infrastructure is one of the most effective ways to ensure profits for shareholders – that’s because shareholders earn profits on capital investments, and the higher the total worth of a utility’s capital infrastructure, the higher the profits. And not only is the expansion of gas infrastructure very capital-intensive and expensive, both to build and maintain, but as more people move towards electrification, those who don’t or can’t will be stuck with having to pay a bigger and bigger share of the total cost of maintaining the gas delivery system. This is effectively a scam: a way to coerce ratepayers into paying for a bad investment.

The Governor must not concede to corporate utilities like Central Hudson that are increasing rates statewide and blaming the state’s climate goals for those increases, when in reality, based on the numbers they themselves have provided, much of the increases are driven by an aging infrastructure. In its 2023 filing, for instance, Central Hudson identified having to replace aging infrastructure as 24% of the need to increase electricity rates. In the same filing 34% of the need to increase gas rates was to replace leak-prone pipes. The following year, in its 2024 filing, replacing aging infrastructure was 57% of the need to increase electricity delivery rates, and replacing leak-prone pipes was 53% of the need to increase gas delivery rates. The rates aren’t going up because of our climate goals – they’re going up because the investor-ownership model of utilities is unsuited for creating a 21st century grid.

If we are serious about affordability, the only way forward are policies that result in cheap and clean electricity. Research shows that in cold counties like Ulster County – Climate Zone 6 – the savings under the all-electric law would be most significant for homeowners in rural areas. The use of a heat pump compared to propane is estimated to save the homeowner $2,650 per year, and compared to gas, it’s estimated to save them $330 per year.

Additionally, the latest moves from the Governor, the corporate utilities, and the state’s system operator all signal that our energy system is being restructured to serve corporations driving the AI bubble and crypto-mining, not residential and small business customers that need energy to survive. For instance, there has been much buzz about the need for nuclear, but at a recent New York Power Authority board meeting, there was a reference made to the 1GW nuclear plant being built to support AI.

The window to deliver clean and affordable energy is short, and the responsibility to defend the science on climate is especially severe under the Trump Administration. The Governor must reverse course, defend the state’s climate laws, instruct NYPA to build at least 15GW of public renewables that fund bill discounts, and enact policies that move us forward, not backward.”