PSEG plans empathy training for employees in light of debt collection revelations

PSEG Long Island has instituted new training, is reviewing attendance at outside conferences and has issued a memo to all its employees urging them to engage customers with "empathy and dignity" following an internal investigation in the wake of Newsday reports about its aggressive bill collection practices.

According to a company website created in response to the revelations, PSEG said it will roll out "expanded training on customer empathy with a focus on affordability" in the coming weeks. All employees will be required to take the training, with additional courses for those who are customer-facing, according to the website.

In addition, PSEG is reviewing employee attendance and presentations "at any conference or public events" to make sure they provide "appropriate representation and messaging" from the company.

Last week, Newsday reported PSEG also said it would suspend shutoffs to late-paying customers following revelations about its efforts to get tardy customers to pay up. A recording of an industry conference session in Florida obtained by Newsday revealed PSEG supervisors had ramped up tactics for collecting overdue bills, including threats of shutoffs and regular communications demanding payments. One PSEG supervisor discussing the impact of a shutoff on customers noted "people think much better in the dark."

Following the Newsday reports, Public Service Commission Commissioner Rory Christian last Thursday issued a letter to 11 big state utilities, demanding documents as part of an investigation ordered by Gov. Kathy Hochul, who called the problem "no laughing matter."

PSEG uses its own staff as well as outside agencies to collect late payments. It said its collection practices are "aligned with applicable requirements in its tariff, the [Public Service] Commission’s regulations, and with practices used by utilities across New York State."

LIPA, whose board voted last year to extend PSEG’s contract despite staff experts recommending a different service provider, in a statement Thursday said PSEG has informed the authority "and other stakeholders of the corrective actions it is taking, and we will continue to monitor the [state Department of Public Service] review, PSEG Long Island’s investigation and any corrective actions closely."

LIPA, wrote spokeswoman Michelle Livingston, "expects all customers in our service area, particularly those facing financial hardship, to be treated with patience, respect, and dignity."

PSEG spokeswoman Katy Tatzel said the company "has taken immediate and decisive action in response to the reported statements. We are fully cooperating with the Public Service Commission investigation."

PSEG customers indicate the state has much to investigate.

"As a resident of the Rockaways for almost 50 years, I can confirm that even for a small amount past due, I will get emails and text messages reminding me that ‘your account is past due and payment in full is required to avoid further collection action,' " wrote Elizabeth Ortiz on a PSC website seeking public comments.

Ortiz noted the email she received on April 10 was seeking $84.23. She said the bill was paid on April 17, yet 11 days later she received a new email "to inform me that I had a past due amount of $122.44. Minutes later after the last email received, a second email arrived to inform me that I had a new bill of $244.28."

On its website, PSEG emphasized it has "no direct economic interest in the collections process," noting, for instance that if "less money is collected from those who are delinquent, the overall customer base rate must be changed to accommodate. Our interests are in a fair process to keep costs down for our overall customer base and support those customers who have challenges."

But PSEG supervisors at a symposium at the 2026 Utility Collections & Credit Conference in Coral Gables, Florida, in March also spoke of incentives for outside collections firms to increase arrears payments and of emphasis on seniors, medically impaired and those on social services to pay up, according to the recording obtained by Newsday. 

In addition to asking for specifics about who may have attended the symposium, Christian also demanded that the utilities provide information on any programs they may offer to incentivize outside bill-collection companies, an apparent reference to one a PSEG supervisor spoke of that awarded the agencies more clients based on their success rate.

Christian, who is also chief executive of the state Department of Public Service, asked for information about utility termination policies for those on lifesaving equipment, for seniors and for medically impaired customers.

By Mark Harrington

mark.harrington@newsday.comMHarringtonNews

Mark Harrington, a Newsday reporter since 1999, covers energy, wineries, Indian affairs and fisheries.