The NRG energy settlement is a $71 million agreement approved by the New York State Public Service Commission on April 16, 2026, resolving allegations that nine energy service companies affiliated with NRG Energy failed to move hundreds of thousands of New York customers onto updated, cheaper contracts required by state regulators. About 278,000 current and former residential and small commercial customers are eligible for billing adjustments, guaranteed discount offers, or both.1Governor.ny.gov. Governor Kathy Hochul Announced Public Service Commission Directs $71 Million
How the $71 Million Is Split
The settlement has three parts.
The first is $50 million in direct billing adjustments distributed to roughly 278,000 current and former customers. That group includes more than 120,000 electric customers, 40,000 gas customers, and over 100,000 former customers who had already left the companies’ service before the settlement was reached.2The Center Square. New York Energy Settlement Directs $71 Million to Customers
The second is up to $21 million in guaranteed future savings. Affected customers must be offered a one-year plan through Direct Energy Services that guarantees a 15 percent discount compared to standard utility rates. Anyone who declines the offer, or who is not offered it, must be returned to their default utility.3Energy Choice Matters. NRG ESCOs Agree to $71 Million Settlement With New York PSC
The third is more than $900,000 set aside for specific billing adjustments for certain low-income customers who were improperly enrolled in ESCO service. Those customers also get returned to their default utility supply.1Governor.ny.gov. Governor Kathy Hochul Announced Public Service Commission Directs $71 Million
Which Companies Are Covered
Nine NRG-affiliated energy service companies, known as ESCOs, are parties to the settlement:
- Gateway Energy Services Corporation
- Energy Plus Holdings LLC
- Energy Plus Natural Gas LLC
- Direct Energy Services LLC
- Green Mountain Energy Company
- Reliant Energy Northeast LLC
- Stream Energy New York LLC
- XOOM Energy New York LLC
- NRG Business Marketing LLC
ESCOs are third-party energy suppliers that compete with traditional utilities for residential and small business customers. The settlement was filed under a series of PSC case numbers beginning with 25-M-0516.1Governor.ny.gov. Governor Kathy Hochul Announced Public Service Commission Directs $71 Million
What the PSC Said the Companies Did Wrong
The dispute traces back to the PSC’s 2016 “Reset Order,” which addressed what the commission called unfair business practices in the energy services industry. The order required ESCOs serving residential and small commercial customers to offer contracts that either guaranteed savings compared to utility rates or included significant renewable energy content.4NY DPS. Order Resetting Retail Energy Markets and Establishing Further Process An updated version in April 2021 required ESCOs to transition existing “legacy” customers on older contracts onto products meeting the new standards.
The PSC alleges the nine NRG-affiliated companies never made that transition. On September 23, 2025, the commission issued an order to show cause accusing the companies of violating the Uniform Business Practices, the Reset Order, and prohibitions on serving low-income customers. PSC staff also alleged that NRG improperly offered non-energy-related incentives through a rewards program called “XOOM Xtras.”3Energy Choice Matters. NRG ESCOs Agree to $71 Million Settlement With New York PSC
What NRG Said
NRG denied most of the allegations. Brian Curci, the company’s executive vice president and general counsel, said NRG believed it “was fully compliant with the Commission’s guidance under the Market Reset Order.” When the show cause order was issued in September 2025, the company said it “fundamentally disagree[d] with the Order’s premise.”3Energy Choice Matters. NRG ESCOs Agree to $71 Million Settlement With New York PSC
The company nonetheless agreed to settle. Curci said NRG “would rather use our resources to help our customers with their electric and natural gas bills during this time of rising energy costs than spend years litigating a disagreement over the Commission’s Order.”3Energy Choice Matters. NRG ESCOs Agree to $71 Million Settlement With New York PSC
PSC Chair Rory Christian said the settlement sent an “unmistakable” signal to ESCOs about compliance and that the commission “remains vigilant in holding all companies in its jurisdiction accountable.”3Energy Choice Matters. NRG ESCOs Agree to $71 Million Settlement With New York PSC
When You Get Paid
As of mid-June 2026, rebate checks were reported to be arriving by mail for eligible customers.5Audacy/WBEN. Energy Re-Sellers to Give Customers a Rebate Eligibility covers current and former residential and small commercial customers of the nine listed companies. Current customers may also receive an offer for the one-year Direct Energy Services plan with the 15 percent discount against standard utility rates; if you do not want that plan, or the offer never reaches you, the settlement requires that you be returned to your default utility.3Energy Choice Matters. NRG ESCOs Agree to $71 Million Settlement With New York PSC
The settlement is a regulatory action by the New York PSC, not a class action lawsuit, so there is no claim form or opt-in process. Payments and offers flow through the companies to identified customers of record.