The state’s Public Service Commission commits only 30 percent of the funding that goes into energy saving programs to low- and moderate- income New Yorkers. The rest will be earmarked for residential and commercial properties that are linked to homeowners or renters in higher income brackets.

The funding would go to energy savings programs, including those that help New Yorkers afford their utility costs. (Photo by Jeanmarie Evelly)

On May 15, the state’s Public Service Commission (PSC) published a decision on how it will divvy up $5 billion in ratepayer dollars New York has at its disposal to fund energy saving programs for homeowners and renters over the next five years.

These energy efficiency and building electrification (EE/BE) programs help New York residents keep energy costs down by covering their utility bills, insulating homes, and giving out tax rebates for more efficient heating and cooling equipment.

The PSC’s decision, which has been two years in the making, commits only 30 percent of EE/BE funds to programs that serve low-and moderate-income (LMI) households. The other 70 percent will be earmarked for residential and commercial properties that are linked to homeowners or renters in higher income brackets.

“Not committing more money to low-income programs means that not enough households are getting the help that they need. We are already seeing that more and more people are unable to afford their energy bills,” said Jessica Azulay, executive director for the Alliance for a Green Economy (AGREE).

As the cost of energy keeps climbing in New York, those who make up the 40 percent of households on low to moderate incomes struggle to foot the bill. Over the last three years, every utility company in the state raised its electricity rates, according to a report from AGREE. And over 1.2 million New York families were two or more months behind on their energy bills last year, the report estimated.

Leading up to the PSC’s decision, over 150 businesses, consumer advocacy groups and environmental organizations signed a petition urging the commission to dedicate at least 50 percent of its EE/BE funds to the LMI bracket. 

But the commission went with 30 percent, which in practice allocates $1.57 billion for LMI households from 2026 through 2030, according to the PSC.

Each energy saving program has its own rules for who falls under the LMI criteria. As an example, EmPower+, which offers energy efficiency incentives for low and moderate income households, sets limits at 60 percent or less of the State Median Income (SMI). A household of four, for instance, could qualify for the lower incentive with an annual income of $76,680 or less.

The PSC’s order that outlines the decision includes several recommendations on how to “optimize the budgets” dedicated to LMI programs, Chris Coll, director of the PSC’s Affordability and Equity Program said at a public hearing. 

The responsible state entity, the New York State Energy Research and Development Authority (NYSERDA), is required to “improve the geographic distribution of projects to ensure that LMI households across the state are able to benefit from these programs,” Coll noted.

Both NYSERDA and utility companies, Coll added, will also have to do a better job of identifying and referring low-income customers with the highest energy consumption rates to state programs that could help them reduce their costs.

These “adjustments” Coll argues will result “in an additional $97 million being made available” to programs that serve low- and moderate-income residents.

The PSC’s order also sets an expectation for New York authorities to “develop strategies and programs” that benefit disadvantaged communities, which the state defines as being disproportionately burdened by economic and environmental challenges.

“Staff will be tracking and reporting on disadvantaged community investments on an annual basis, going forward,” Coll added. 

The PSC’s order also included some wins for environmental groups who fought for the commission to align the EE/BE programs with the state’s landmark climate law, the Climate Leadership & Community Protection Act (CLCPA). The order ended most funding for gas equipment that helps drive climate change, setting money aside instead for insulating or weatherizing homes, and switching them to clean electric energy. 

Homes in southeast Queens. (Photo by Adi Talwar)

Changes were also made to the eligibility criteria for EE/BE programs so more households can access them, especially in the New York City region where enrollment falls short (although some experts argue that more funding would have been a better way to improve access). The PSC also increased funds that help homeowners do the necessary repairs that will enable them to participate in weatherization programs. 

But environmental advocates say the wins fall short, as the bulk of the money will not be going to the lower-income households that need it most—at a time when federal funding is also drying up. 

“Significantly increased investments in energy efficiency and building electrification programs that directly benefit low and moderate income households are needed now more than ever, from Buffalo to Brooklyn,” said Clarke Gocker, senior director of movement building at the non-profit PUSH Buffalo, in an emailed statement.

The Big Beautiful Bill Act, a legislative package backed by President Donald Trump that passed the U.S. House of Representatives last week, included provisions that would rollback billions in clean energy investments for climate programs and energy tax credits.

The Trump administration has already terminated the entire federal staff that runs the Low Income Home Energy Assistance Program (LIHEAP), which helps households pay for utility bills in the winter and gives out free air conditioners in the summer. The president has suggested getting rid of the program all together in his budget proposal. 

“As the Trump administration makes moves to dismantle social safety net programs like LIHEAP and sets fire to critical climate and clean energy goals, Governor Hochul and the PSC should pull every policy lever within reach to address the energy affordability crisis right now,” Gocker urged. 

To reach the reporter behind this story, contact Mariana@citylimits.org. The reach the editor, contact Jeanmarie@citylimits.org

Want to republish this story? Find City Limits’ reprint policy here.

The post Low-Income Households Shortchanged on State Funds for Energy Savings Programs appeared first on City Limits.

By ALEX VEIGA, AP Business Writer

The average rate on a 30-year mortgage in the U.S. rose this week to its highest level since early February, further pushing up borrowing costs for homebuyers.

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The rate increased to 6.89% from 6.86% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 7.03%.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also rose. The average rate ticked up to 6.03% from 6.01% last week. It’s still down from 6.36% a year ago, Freddie Mac said.

Mortgage rates are influenced by several factors, from the Federal Reserve’s interest rate policy decisions to bond market investors’ expectations for the economy and inflation. The key barometer is the 10-year Treasury yield, which lenders use as a guide to pricing home loans.

Bond yields have been trending higher, reflecting bond market investors’ uncertainty over the Trump administration’s ever-changing tariffs policy and worry over exploding federal government debt.

The 10-year Treasury yield was at 4.43% in midday trading Thursday.

A Ramsey County District Court judge on Friday will hear an unusual request from the Minnesota Attorney General’s office, which hopes to remove a recently-appointed trustee from the helm of one of the state’s oldest philanthropies, or at least slash her salary, impose training requirements and institute safeguards against future family appointments.

When Charlotte Johnson retired last August after 34 years as one of the three leaders at the helm of the Otto Bremer Trust, she appointed her daughter as her successor. Until then, Caroline S. Johnson had served as a Bremer Bank branch manager in New Richmond, Wis., a rural community of some 10,000 residents.

Based in St. Paul, the $1.5 billion philanthropy has been a major owner of the bank since its inception in 1943, and the charity’s three trustees have chosen their own successors for the past 80 years.

Those concerns reverberated with Ellison’s office, which regulates charities. With her move from community banker team lead to trustee, Caroline Johnson became one of three co-chief executive officers of the multi-billion dollar philanthropy overseeing Bremer Bank. The bank is one of the state’s largest farm lenders and recently merged with Indiana-based Old National Bank.

Efforts to get comment from Caroline Johnson and the trust’s attorneys for this story were unsuccessful as of Thursday morning.

Ellison raises issues of ‘nepotism’

Her annual salary, according to the attorney general’s office, increased nearly tenfold from $73,000 to $685,000. Her resume, according to the attorney general’s office, did not reveal deep credentials administering sizable charities beyond her family roots.

In 2023, the Otto Bremer Trust issued $105 million in grants and low-interest loans to charitable causes across Minnesota, Wisconsin, North Dakota and Montana.

The attorney general’s office, “as representative of the charitable interests of the public, does not have sufficient assurances that the selection is in the best interest of the beneficiaries,” reads an April 16 legal filing from Ellison’s office. “Rather, trustees’ continuing pattern of nepotism substantially undermines the trust of the public whom trustees are supposed to serve.”

Ellison’s office noted that while trustees have a tradition of choosing their own successors, state law requires that they “must comply with their fiduciary duties of care and loyalty when exercising that discretion,” and that breaching those duties “cannot have been the (founder’s) intent.”

A hearing before Judge Mark Ireland is scheduled for 9 a.m. Friday at the Ramsey County Courthouse in St. Paul.

Trustees defend Johnson

In their legal response to the attorney general’s office, attorneys with Ciresi Conlin wrote that Ellison’s office “has never provided any evidence that her removal is necessary to best serve the interests of all beneficiaries.” Instead, it would in fact be inconsistent with both 80 years of practice and Otto Bremer’s express preferences, spelled out in the trust’s founding documents, that trustees select their own replacements.

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The attorney general’s office “relies primarily on arguments it made and lost three years ago” when the office attempted to block a bank sale in court, the attorneys wrote. “This court has already rejected the (attorney general office’s) campaign against what the (office) terms ‘nepotism.’ … Charlotte did all she was required to do, and Trustee Caroline has faithfully administered the Trust since then.”

Charlotte and Caroline Johnson have joined the Otto Bremer Trust in objecting to the attorney general’s petition and defending her credentials, as have trustees Daniel Reardon and Francis Miley, who both submitted affidavits to the court.

Caroline Johnson’s previous public service has included sitting on the board of directors and finance committee of the St. Croix Valley Food Bank during its capital campaign, serving on the board of directors of the Encampment Forest Association/Minnesota Land Trust, and serving for five years on the board of directors of the St. Croix County United Way, specifically its grants committee.

Reardon noted that Otto Bremer selected his grandfather, his trusted tax consultant, as a trustee, who later selected his father, who later selected Reardon. He praised Caroline Johnson’s “high emotional intelligence” and said her intimate knowledge of both banking and relationship building were assets during the recent bank sale.

“I have known Caroline for over 30 years and have seen her evolve and grow both personally and professionally,” Reardon wrote, noting she had previously worked for Bremer Bank for seven years.

“This direct boots-on-the-ground experience in a Bremer branch bank was an excellent way to learn about the banking industry as well as Otto Bremer’s philanthropic vision for the Trust,” Reardon wrote. “Like me, Caroline grew up surrounded by the Trust. She learned about a life of service to Otto Bremer’s vision at the dinner table, by joining Charlotte on Trust retreats, and other events over the last 30 years.”

Ellison’s office asked that the court adjust her salary and consider reviewing “Caroline Johnson’s skills and abilities and imposing training requirements and/or independent advisors as needed.” In her affidavit, Caroline Johnson noted she recently received a certificate from University of Minnesota Continuing and Professional Studies for completing a course on “Leadership Essentials.” She also completed another course on “Introduction to Trust Administration” at the University of Sioux Falls.

Asking for ‘steps expected of a large nonprofit’

Ellison’s office has asked that even if the court does not remove Charlotte Johnson, that it require a more formal appointment process moving forward. Ellison’s office previously alerted the courts they will take a hard look at the selection process if a trustee appointed a family member as a successor, said Brian Evans, a spokesperson for the attorney general’s office.

Charlotte Johnson “did not use any kind of objective process, such as collecting a pool of qualified candidates, applying objective criteria to narrow those candidates, and then making a selection applying those criteria that best serves interests of the public whom the Trust serves,” said Evans, in an email.

“Despite the fact that Trustees justify their substantial compensation by comparing themselves to CEOs of large nonprofit foundations, Johnson did not take the steps expected of a large nonprofit when replacing a high-level executive,” he wrote.

Previous efforts at removing trustees

The attorney general’s office has sought to remove trustees before.

In August 2020, Ellison’s office accused three trustees of attempting to inflate their compensation through a bank sale, among other forms of self-dealing. Following a 20-day bench trial, Judge Robert Awsumb chose to remove Brian Lipschultz as a trustee but retain Reardon and Charlotte Johnson.

Lipschultz filed legal appeals, but they failed to sway the Minnesota Court of Appeals and Minnesota Supreme Court. He recently filed a legal request to have the Otto Bremer Trust pay his legal fees.

Bremer Bank completed its sale to Old National earlier this month, creating the third-largest bank to the Twin Cities — as measured by deposits — and one of the top 25 banking companies headquartered in the U.S. As a result of the merger, the Otto Bremer Trust will retain an 11% ownership stake in Old National, and Reardon will join the Old National board of directors.

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MIAMI (AP) — A weather system swirling off the coast of western Mexico has developed into the first tropical storm of the eastern North Pacific hurricane season, forecasters said Thursday.

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Tropical Storm Alvin was located about 670 miles (1,080 kilometers) south-southeast of the southern tip of the Baja California peninsula of Mexico, the Miami-based National Hurricane Center said.

Maximum sustained winds were clocked at 40 mph (65 kph). It was moving northwest at 10 mph (17 kph). There were no coastal watches or warnings in effect Thursday morning, the hurricane center said.

Alvin was expected to strengthen late Thursday, then weaken late Friday. The eastern North Pacific hurricane season runs May 15 to Nov. 30.

The Atlantic hurricane season begins Sunday and also stretches through the end of November, and forecasters are expecting yet another unusually busy Atlantic season. But they don’t think it will be as chaotic as 2024, the third-costliest season on record as it spawned killer storms Beryl, Helene and Milton.