# New York PSC Implements Energy Affordability Index

The New York Public Service Commission (PSC) has launched a proceeding to implement an Energy Affordability Index as part of Governor Kathy Hochul's FY27 budget initiatives. This index aims to ensure that electric and gas utility costs remain below six percent of household income. Utilities will be required to submit annual affordability filings starting February 1, 2027. The initiative also mandates the appointment of independent Affordability Monitors and links executive compensation to affordability performance metrics. This regulatory action signals increased oversight and accountability for utilities, creating procurement opportunities for contractors specializing in utility monitoring, energy efficiency, and regulatory compliance support.

- Utilities operating in New York must prepare for new affordability reporting requirements effective February 2027, impacting contract scopes and compliance obligations.
- Procurement professionals should anticipate demand for services related to affordability monitoring, data analysis, and energy efficiency program implementation.
- Contractors with expertise in regulatory compliance and utility performance measurement may find new opportunities as the PSC enforces affordability standards.
- This initiative reflects a broader trend toward linking executive incentives to performance metrics, which may influence future contract terms and vendor evaluations.

**Jurisdictions:** sled
**Industries:** Energy & Utilities
**Topics:** Regulatory Compliance
**Published:** September 18, 2026

### Government Entities
- New York Public Service Commission (PSC)
- State of New York

### Key Quotes
> I have made it a top priority to ensure we keep the lights on and costs down for all New Yorkers and the PSC’s action today builds on those efforts.
> — Kathy Hochul, Governor

### Sources
- [Governor Hochul Announces PSC Takes Action on Her Plan to Measure Affordability of New York’s Electric and Gas Utilities in Effort to Rein in Costs | Governor Kathy Hochul | New York State](https://www.governor.ny.gov/news/governor-hochul-announces-psc-takes-action-her-plan-measure-affordability-new-yorks-electric) - NY