A statewide investigation into utility collection practices is now underway in New York after comments made by employees from a utility provider at an industry collections conference sparked backlash from regulators, elected officials, and consumer advocates.
The controversy centers on remarks where utility collections personnel discussed strategies for recovering overdue utility bills and reducing delinquency rates. According to recordings obtained by Newsday, one attendee joked that “people think much better in the dark” while discussing the effectiveness of shutoff notices and service terminations in driving payment behavior.
The comments immediately drew condemnation from New York Gov. Kathy Hochul, who called the remarks “completely unacceptable” and directed the state Department of Public Service to launch a formal investigation into whether the comments reflected isolated behavior or a broader cultural issue within utility collections operations.
“Utilities should always put their customers first,” Hochul said. “Shutoffs over debt collection should be viewed as a last resort, not something to joke, threaten, or brag about.”
The investigation is being led by Public Service Commission Chairman Rory Christian, who sent letters to 11 major utilities across New York demanding extensive information about their collections operations, employee attendance at the conference, vendor oversight practices, and policies involving medically vulnerable customers and seniors.
Christian’s letter specifically referenced the conference comments and stated: “There is nothing humorous about a household losing essential electricity service.”
The recordings described a collections environment heavily focused on performance metrics, segmentation strategies, automated shutoff workflows, and increasing recovery rates on long-outstanding accounts. Among the practices discussed were:
- Enhanced use of smart meters to streamline service terminations
- Specialized teams focused on elderly, medically protected, and public assistance accounts
- Reviewing protected accounts to determine whether customers still qualified for shutoff protections
- Pursuing collections tied to deceased customers’ estates
- Incentive structures for third-party collection agencies tied to performance rankings
PSEG Long Island responded Friday by announcing a suspension of all residential shutoffs for non-payment while it conducts an internal review. The company also launched a public-facing webpage outlining corrective actions and emphasizing that the conference remarks “are not representative of the values or practices of PSEG Long Island.”
The utility stated that New York’s protections for seniors, medically vulnerable customers, and public assistance recipients “exist for good reason” and said its collections practices comply with state requirements and tariff obligations.
PSEG also said ratepayer funds were not used to pay for employee attendance at the Florida conference and announced expanded employee training focused on customer empathy and affordability concerns.
The broader issue arrives at a time when utilities across the country continue facing elevated arrears balances and increasing pressure to improve collections performance while balancing affordability concerns and consumer protections.
