New York Gov. Kathy Hochul is urging state regulators to reject double-digit rate increases by one of the state’s largest utilities and calling for an investigation of top executives’ pay.

Last week, Con Ed announced it was asking state regulators to hike its electric bills by an average of 11.4% and gas bills by 13.3% starting on Jan. 1, 2026, citing the need to raise revenue to make upgrades to infrastructure to support the regional power grid. The combined rate hikes could generate up to $2 billion for the company, increasing consumers’ monthly bills by an average of $60, regulators say.

But Hochul blasted the proposed rate hikes, saying she has requested that the New York State Public Service Commission reject the proposal and will launch an investigation into the utility’s compensation packages.

“This is a real hit on families,” Hochul, a Democrat, said in remarks on Tuesday. “The cost of living is too damn high and New Yorkers need more money in their pockets. They weren’t expecting this.”

The rising cost of energy bills is a key affordability issue for many New Yorkers, recent polls have shown. As she gears up to run for reelection next year, Hochul has touted efforts to lower the cost of living in the state, including her proposal for “inflation rebates” that would distribute $3 billion in direct payments to 8.6 million taxpayers.

In a statement, a Con Ed spokesperson acknowledged that the higher utility bills will have an impact on consumers’ wallets but touted investments in programs to help people use less energy and save money.

“Affordability in our state and country touches every aspect of New Yorkers’ daily life-from energy to housing to groceries,” the company said. “Con Edison is acutely aware of this, which is why we work with customers to make utility bills more affordable.”

However, the spokesperson said the company has “a responsibility to continue to safely and efficiently deliver the nation’s most reliable power while complying with state laws and regulations.”

“That means fortifying the grid in the face of increasingly severe extreme weather, bringing renewable energy sources online to help meet the state’s clean power goals, and supporting the workforce we need to conduct ongoing maintenance and swiftly respond to customer service calls,” the company said.

The rate increase comes as more New Yorkers are falling behind on their utility bills. Data from the state Department of Public Services shows more than 1.3 million households in New York are 60 days or more behind on their energy bills, with past due bills totaling $1.8 billion statewide. Over 462,000 households received final termination notices in December, according to the agency.

“Of course we need safe, reliable energy sources to power our homes and businesses,” Hochul said. “But utility companies shouldn’t be jacking up costs unnecessarily – especially if they’re paying their own staff too much.”