A New York utility company has formally responded to state regulators investigating collection practices, acknowledging that comments made by one of its employees at a collections conference were “unacceptable” while defending the utility’s broader collections framework as compliant with state law and industry standards.
In an eight-page letter sent to New York Public Service Commission Chairman Rory Christian, PSEG Long Island President and COO Scott Jennings outlined a series of corrective actions the utility says it has already implemented following media reports about comments made during the event, held last month in Florida.
The controversy erupted after recordings surfaced of utility collections personnel discussing shutoff strategies and vulnerable customer accounts during conference sessions. One PSEG supervisor was quoted saying, “People think much better in the dark,” while discussing the effectiveness of service terminations in driving payment activity.
PSEG’s response attempts to walk a careful line between distancing itself from the remarks while also emphasizing that aggressive collections pressure is operating within a heavily regulated framework.
“The statements made by a PSEG Long Island employee suggested a disregard for the challenges that many of our customers face and, simply put, these statements were unacceptable and do not reflect the values or practices of PSEG Long Island,” Jennings wrote.
The company confirmed it has paused all residential shutoffs for non-payment while it conducts an internal review of its collections culture, procedures, and training practices. PSEG also said it conducted a company-wide “stand-down” meeting focused on affordability, empathy, and customer dignity, and plans to roll out expanded empathy training across the organization.
For professionals in collections and servicing operations, one of the more notable sections of the filing is the detailed breakdown of PSEG’s collections timeline. According to the filing, residential customers generally become “field eligible” for termination 76 days after bill generation, following multiple reminders, emails, calls, and notices. The company also confirmed that field teams only select accounts for termination that include balances with 90-day arrears.
The filing also provides insight into how utilities structure third-party collection relationships. PSEG confirmed that outside agencies collecting on charged-off accounts may receive additional account placements based on performance, though the company stated there are “no additional bonus or incentive structures” tied to vendor collections activity.
Another significant issue addressed in the filing involves protections for vulnerable customers, including those using life-saving medical equipment, seniors, and medically impaired consumers. PSEG described multiple intake channels for hardship designations and outlined processes for enrolling customers into medical protection and elderly/disabled programs.
Importantly, the company pushed back on any suggestion that its collections operation is operating outside regulatory boundaries. PSEG pointed to a 2024 management audit that found its collections and termination procedures were “effective” and compliant with applicable requirements.
Still, the filing makes clear the broader issue is no longer just about one employee’s remarks. Regulators are now examining utility collections culture, vendor oversight, incentive structures, customer protections, and whether utilities are balancing operational performance goals with affordability concerns in an era of rising energy costs.
