Governor Hochul announces energy rebate checks of up to $200 for 8.2 million New York households starting next week

Albany, New York – Millions of New York households are set to receive financial relief from the state beginning next week as Governor Kathy Hochul announced that energy rebate checks worth up to $200 will start going into the mail on September 21.

The checks are part of a one-time $1 billion Protecting Our Wallets Energy Rebate, or POWER, program included in New York’s enacted budget. The state expects about 8.2 million households to receive the payments, with checks being mailed over several months and deliveries continuing through December.

For eligible residents, there is no application process involved. New Yorkers do not have to sign up, submit a separate form or take any additional action to receive the money. The state will use information from 2024 New York State income tax returns to determine who qualifies and how much each household should receive.

The payments are being sent as New York families continue to deal with higher household expenses, particularly the cost of keeping homes powered and heated and the price of fuel. State officials have described the rebate as part of a broader effort to reduce the financial pressure facing residents.

“As Washington Republicans continue to send the cost of everything from utility bills to gas and groceries soaring, I’ll never stop working to address the rising cost of living for New Yorkers,” Governor Hochul said. “Too many families are struggling with rising household energy bills and soaring gas prices at the pump — and that’s why we’re putting money directly back in New Yorkers’ pockets by sending energy rebate checks to millions of families as part of our affordability agenda.”

The amount residents receive will depend on their filing status and income.

Joint filers with 2024 incomes below $150,000 will receive $200. Joint filers whose income was between $150,000 and $300,000 will receive $150. Single filers with incomes below $150,000 will receive $100.

The state describes the payments as advanced credit checks. They will be mailed directly to qualifying households between September and December.

To qualify, residents must have filed a timely New York State resident income tax return for tax year 2024. They must also have been full-time New York residents, have income within the applicable limits and not have been claimed as a dependent on another taxpayer’s return.

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That means most people who qualify will not need to contact the state before the checks are issued. The eligibility review is based on information already available through state tax filings.

New York State Department of Taxation and Finance Commissioner Amanda Hiller said the program is intended to provide direct help during a difficult period for household budgets.

“Power checks are another meaningful way that Governor Hochul is trying to help people during challenging economic times. At the Governor’s direction, the Tax Department is working to get this much-needed relief to eligible families as quickly as possible.”

The rebate comes as state officials point to higher energy and transportation costs as a continuing concern for New Yorkers. Hochul’s administration says federal tariffs have added to the cost of goods, while fuel prices have also increased.

According to the governor’s office, New Yorkers are now paying an average of $4.35 per gallon for gasoline, described as a 45 percent increase since the war in Iran began. Diesel prices have also risen, reaching an average of $5.98 per gallon, a 49 percent increase since the end of February.

The POWER program is one part of the state’s larger energy affordability effort. Hochul’s administration says it has directed billions of dollars toward reducing utility costs and helping households make their homes more energy efficient since the governor took office in 2021.

One of the largest efforts came after the COVID-19 pandemic, when the state announced $1.17 billion in one-time funding to help nearly half a million residential customers and about 56,000 small businesses pay off utility bills that had become unaffordable.

The program was described as the largest utility customer financial assistance effort in New York State history.

Overall, the governor’s office says more than $7.6 billion has been provided since 2021 in direct utility bill relief for participating households. That total includes the new energy rebate checks. Another $1.4 billion has gone toward residential weatherization, energy efficiency and renewable energy projects intended to reduce energy use and lower bills for participating households.

State officials say the latest checks are also connected to a broader Energy Affordability Agenda put forward by Hochul this year.

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The agenda is aimed not only at providing immediate financial assistance but also at changing how utility companies are regulated in New York. The governor’s FY27 enacted budget includes several measures designed to increase scrutiny of utility costs and rate requests.

Under the new approach, utility companies will be expected to demonstrate that proposed capital projects are necessary when seeking rate increases. They will also have to consider zero-emission alternatives and present a budget-constrained option that keeps operating costs below the rate of inflation.

The state is also requiring a longer review process for utility rate requests. Regulators will have 14 months to examine requests, and the Public Service Commission will have the ability to establish multi-year rate cases when that approach is considered beneficial to consumers.

The new rules are also intended to make sure ratepayers are not charged for costs that are not legally required as part of the rate-setting process. Regulators will examine fees incurred by utilities during proceedings over proposed rates.

Another part of the plan calls for a new energy affordability index. The index is intended to show how utility costs affect ordinary New Yorkers and compare the state’s performance with other parts of the country.

Utilities will have to show how proposed rate increases would affect the index. If a rate case would push the average household’s energy burden above 6 percent, the state would have the ability to place an independent Affordability Monitor directly into the utility’s boardroom.

The enacted budget also creates the RATES Commission, which will examine the reasons behind rising utility bills. The commission will include consumer advocates and energy experts and will investigate utility profits, energy market designs and the way energy costs are ultimately passed on to customers.

Assemblymember Didi Barrett said the immediate rebates are important for residents who are already making difficult choices because of rising utility bills.

“New Yorkers struggling with rising utility costs are making tough budget decisions and need real relief. In this year’s State Budget, we fought for these POWER rebate checks, along with other long-term energy cost saving measures. I thank Governor Hochul for helping get these rebate checks out the door in a timely manner while we continue our work to rein in out-of-control utility bills and prioritize energy affordability for our constituents.”

Rochester Mayor Malik D. Evans also pointed to the growing cost of everyday expenses and welcomed the rebate program.

“The cost of living keeps increasing, and rising everyday expenses is a top challenge facing all Rochesterians. I want to thank Governor Kathy Hochul for working to help New York families and ease the burden of higher bills through the POWER rebate program.”

For the 8.2 million households receiving the payments, the first important date is September 21, when the state will begin mailing the checks. However, not every qualifying household should expect to receive its payment immediately.

The mailing process will continue through December, meaning checks will arrive at different times depending on when they are processed and sent. Residents who qualify do not need to apply or register for the program.

The state says the POWER rebates are intended to provide immediate assistance while its longer-term energy policies take shape. The administration is presenting the payments, along with utility assistance, efficiency programs and changes to rate regulation, as part of a wider attempt to address the financial strain created by higher energy costs.

For New Yorkers facing larger monthly bills, the checks will offer a direct payment rather than another tax credit that requires residents to wait until the next filing season.

The program also places the focus on households that already met the state’s tax and residency requirements for 2024. By relying on existing tax information, New York officials say the payments can be distributed without creating another application process for millions of residents.

As the checks begin arriving this fall, the state is continuing to pursue changes it says are designed to limit future increases in utility costs. The combination of the immediate POWER payments and the new affordability measures represents Hochul’s broader approach to energy costs — putting money into household budgets now while attempting to place greater pressure on utility companies to control costs in the future.