Residential Fixed Charges in New York

Fixed charges are the flat monthly fees that every customer pays, regardless of the amount of electricity they consume. Over the past several years, utilities have pushed for higher fixed charges because they guarantee a revenue stream. However, high fixed charges violate well-established regulatory principles, reduce incentives for energy efficiency and clean local generation, and result in higher bills for low-usage customers, who are disproportionately low income. New York has relatively high residential fixed charges compared to the rest of the U.S., and its charges are higher than those in neighboring states. High fixed charges are ultimately incompatible with the energy future envisioned by New York’s Reforming the Energy Vision (“REV”) initiative and should be reduced significantly.