NYS regulator demands documents on utilities' debt-collection practices

The state’s top utility regulator demanded an expansive list of documents about the debt-collection practices of 11 top utilities across New York in launching a probe that follows revelations in Newsday about PSEG Long Island’ s efforts to get tardy customers to pay up.

At the same time, PSEG, which launched a website Friday in response to the controversy, said it had suspended all residential shut-offs for non-payment to conduct an internal probe and "reaffirm our confidence in our collections processes and culture."  PSEG comments attributed to its supervisor in the articles "showed a callous disregard for the challenges that many of our customers face. It is unacceptable." 

The state letter issued Thursday night by Rory Christian, chairman of the state Public Service Commission, went to top officials at PSEG Long Island, National Grid, Con Edison and others, demanding they provide specific information about their attendance at a Florida conference at which the comments were made, including who attended and whether ratepayers footed the bill.

Newsday obtained a recording of comments by PSEG Long Island and other utility officials, presenting a rare look into the practices of bill collection. One PSEG supervisor discussing the impact of a shut-off on customers noted that "people think much better in the dark."

"Let me be clear," Christian wrote in his May 7 letter, specifically referencing Newsday’s story in launching an investigation. "There is nothing humorous about a household losing essential electricity service."

In addition to asking for specifics about who may have attended the 2026 Annual Utilities Credit & Collections Symposium at the Hyatt Regency in Coral Gables, 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 that 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 life-saving equipment, for seniors and for medically impaired customers, which also were mentioned as potential opportunities for arrears collection.

The full eight-point demand letter to top utility officials is available here.

LIPA in statement said none its employees attended the conference, nor did LIPA pay for "any travel to the conference."

PSEG, in a statement Friday, said, "We are acutely aware of customer affordability challenges across New York State, especially on Long Island and in the Rockaways. The statements made by the PSEG Long Island employee are not representative of the values or practices of PSEG Long Island."

PSEG on Friday also said it had "ensured" that ratepayer funds "were not used to fund the attendance of the two employees attending the conference."

Nor did PSEG fund the purchase of toy dumpsters given to other attendees during the conference -- a reference to the "dumpster fire" mentioned in the presentation of trying to operate the collections department with an inadequate budget. Ratepayer funds, said PSEG spokeswoman Katy Tatzel, "did not purchase the toys given out during the session at the conference."

Christian ends the letter by saying utilities "must recommit to a culture that prioritizes affordability, compassion and exemplary customer service, especially for the most vulnerable." And he threatened that failure to uphold such a culture and administer their programs lawfully "will result in further action by the department."

Christian’s letter follows by a day a statement by Gov. Kathy Hochul that called for the probe, saying the statewide DPS investigation should "determine whether these offensive comments reflect the views of one person or point to a more widespread problem." 

"PSEG-LI must take every action necessary to rebuild trust with its customers, many of whom are struggling with high energy bills that are no laughing matter," Hochul said. 

By Mark Harrington

mark.harrington@newsday.comMHarringtonNews

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