New York Legislators Propose Public Utility Buyout Plan

A proposed bill aims to shift investor-owned utilities to public ownership through state-issued bonds.

Updated on Oct. 27, 2026 in Utilities

Isometric editorial illustration of a heavy-duty industrial electrical transmission pylon and substation transformer, symbolizing New York state utility infrastructure. — New York Assemblywoman Sarahana Shrestha has introduced legislation to transition investor-owned utility companies to public state ownership via state-issued bonds. AI Illustration. Upload story photo >

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Should your local utility company be owned by the government instead of private shareholders?

Assemblywoman Sarahana Shrestha has introduced legislation to allow New York state to purchase investor-owned utility companies. Proponents hope the initiative will transition companies like Central Hudson Gas and Electric Corp. into public utilities to lower costs.

Why it matters

Advocates argue that investor-owned utilities prioritize shareholder profits at the expense of customer interests. Public ownership is pitched as a way to improve accountability and reduce energy costs for residents.

The plan involves issuing bonds to fund purchases, a process that requires feasibility studies and public referendums to proceed. Previously, the Monroe County Legislature rejected a $1 million feasibility study for a public utility in a 16-13 vote.

The players

Sarahana Shrestha

She is a New York State Assemblywoman serving the 103rd District who is sponsoring the bill to acquire private utility companies.

Central Hudson Gas and Electric Corp.

This is an investor-owned utility company providing electricity and gas service to customers in the Hudson Valley.

Monroe County Legislature

This is the governing body for Monroe County that oversees local policy and recently voted against studying public utility feasibility.

Department of Public Service

This New York state agency is responsible for regulating utilities and overseeing rate adjustments for providers like RG&E.

The details

The legislative push comes after a state commission granted RG&E temporary rate hikes of 2.9% for residential electric bills and 1.2% for residential gas bills in May 2026. Proponents cite 2020 data showing 29% of Rochester households are energy-burdened as a primary driver for the reform.

2020: A study determined that 29% of Rochester households were energy-burdened.
2024: The Monroe County Legislature voted 16-13 against a $1 million feasibility study.
May 2026: The state Department of Public Service commission approved temporary rate hikes for RG&E.
October 2026: Officials met in Rochester to discuss the transition to public power.

Market Landscape

The proposed bill challenges the long-standing model of New York's investor-owned utility regulatory framework by seeking to transition control to the state. This move signals a significant shift in the competitive environment for energy infrastructure across the state.

Residents could see long-term changes to their utility billing structure if the state succeeds in transitioning to public ownership. In the interim, customers continue to manage rising costs following recent rate hikes authorized by the state commission.

The takeaway

Advocates suggest that public power models provide greater oversight for consumers compared to private shareholders. Interested residents should monitor upcoming local debates to see how these proposals might impact municipal utility management.