NYS Power: Who Pays for Regulatory Capture
New York electricity rates are 49.7% above the national average. Clean energy mandates account for just 4.7% of rate increases. We traced where the other 95.3% went — and who lobbied to get it.
Published March 17, 2026
Key Findings
- New York electricity rates are 49.7% above the national average (26.49¢ vs 16.83¢/kWh)
- Clean energy mandates account for only 4.7% of rate increases ($187M of $4.0B) — infrastructure, profits, and storm costs drive 63%
- Utilities spent $75.7M lobbying the PSC, 87.7% on rate-related proceedings
- $36.8B in shareholder dividends paid 2015–2024 — 5.3× the clean energy surcharge
- 4 of 7 PSC commissioners came from clean energy organizations
- Energy sector donated $8.32M to state campaigns across 46 entities
- CEO compensation grew 64% while rates grew 42% (2015–2024)
- Consumer complaints surged 84% (2019–2024); billing complaints +120%
New York residents pay 49.7% more for electricity than the national average — 26.49¢ per kilowatt-hour versus 16.83¢. The standard explanation is the state’s aggressive clean energy mandates. The public record shows a different pattern.
Clean energy surcharges account for 4.7% of rate increases since 2019 — $187 million of $4.0 billion. Infrastructure upgrades, shareholder returns, storm costs, and administrative overhead account for the rest.
The Numbers
Over the same period that rates climbed 42%, utilities paid out $36.8 billion in shareholder dividends — 5.3 times the total clean energy surcharge. CEO compensation grew 64%.
The utility sector spent $75.7 million lobbying the Public Service Commission between 2015 and 2024. Of that, $62.9 million — 87.7% — targeted rate-related proceedings directly.
Meanwhile, 46 energy sector entities donated $8.32 million to state campaigns across 8,465 individual contributions. Governor-level donations alone totaled $659,000.
The Regulatory Pipeline
The PSC — the body that approves rate increases — has a structural conflict problem. Its chair previously led KeySpan Energy, now National Grid. Four of seven current commissioners came directly from clean energy advocacy organizations: EDF ($247M budget), NRDC ($193M), IREC ($7.4M), and the state DEC.
The nonprofit clean energy ecosystem — 19 organizations — reported $628 million in combined revenue and $47.8 million in officer compensation. These same organizations advocate publicly for rate structures that align with utility sector interests.
Consumer complaints to the PSC surged 84% between 2019 and 2024. Billing-related complaints rose 120%.
What We Found
The gap between the public narrative (clean energy costs) and the financial record (infrastructure, profits, and regulatory fees) coincides with a lobbying operation that outspends clean energy advocacy 13-to-1 in rate proceedings and an appointment pipeline that has placed former utility and environmental organization executives in regulatory seats. This analysis documents these overlapping patterns; it does not establish that lobbying caused rate increases.
Explore NY Utility Rate Data
Rate increase history and cost decomposition for NY utility companies.