The Federal Energy Regulatory Commission has approved a utility surcharge to power generators.
That surcharge will translate into a 12% rate increase for New York City homeowners.
Senator Schumer said on Sunday the increase fails to factor in tax breaks already provided to energy generators.
Senator Schumer's calling for an immediate hearing to reassess the hike.
"Despite massive tax breaks, these power producers want to reap even greater profits on the backs of hard working, New York middle class families. We are not going to let that happen," Senator Schumer said.
Mayor Bloomberg is also urging federal regulators to rescind the rate hike.
He says it will especially hurt small businesses which could see a 17% hike in power bills.