Relates to shared meter conditions

Section 2 of this bill would further amend PSL §52 to add a new subdivision 13 to prohibit a utility, in cases where electric, gas or steam service is furnished to a two-family house containing units that are not separately metered, from accepting an application from a non-owner occupant to become customer of record for utility service provided through the single meter.

Section 3 of this bill would amend PSL §34(3)(a) to make a conforming amendment regarding provision of service to two-family dwellings.

Section 4 of this bill would provide for an immediate effective date.

Existing law

PSL §52 currently requires utilities, when a shared meter is found, to (1) bill the owner of the building and credit the shared meter customer (the tenant) for shared area charges (PSL §§ S2(1)(h); PSL §52(5)(b) and (c)); (2) subject to certain limitations, place the account for the shared meter in the owner's name for future service, unless the owner has corrected the shared meter condition within 120 days after notice was sent to the owner of the final determination that a shared meter condition exists (PSL §52(5)(b); and (3) subject to certain limitations, bill the owner and credit the tenant for "an estimated amount of charges for the past 12 months of all service measured by the shared meter" (the" 12 month assessment") (PSL §S2(5)(d)).

Section 52(5)d) permits an owner to petition the Commission or its designee to reduce the 12 month assessment and if the amount is unduly burdensome end unfair, the Commission may reduce the assessment to no less than 25% of the original charge. The amount of the reduction, if any, will be credited to the owner's account. These provisions would remain in full force and effect for owners of buildings with more than three residential apartments.

PSL §34(3)(a) requires the Commission to establish, by regulation, a requirement that any occupant of; two-family dwelling may prevent termination of service if such occupant applies for and is eligible for such service.

Prior legislative history

In 2008, S.7704 was referred to the Senate Energy & Telecommunications Committee.

Statement in support

Shared meters measures gas, electric or steam service to a tenant's dwelling as well as to common areas outside that dwelling (e.g., hallways, stairs, lobbies, basements, garages or outdoor area), meaning that the tenant pays for all service for all of such areas measured through that meter (PSL § 52(1)(b)).

The 12-month assessment is an additional charge that applies to shared meter conditions discovered by a person or entity other than the building owner or landlord, and is intended to motivate owners to correct shared meter conditions before tenants complain. The assessment requires the owner to repay 12 months' worth of the shared area charges, as well as 12 months' worth of the tenant's own usage within the tenant's dwelling. The assessment is above and beyond the compensatory shared area charges. Despite annual notification efforts by gas and electric utilities (PSL §52(9)), however, many small building owners remain unaware of the provisions regarding shared meters. Shared meter conditions are more prevalent in smaller buildings as owners often occupied an apartment in these buildings at some point, and paid for common area service or heating usage hilled to their meters, When owners moved out and rented their apartments or sold the buildings, the wiring or piping remained intact and shared meter conditions resulted as tenants, rather than the owner, were paying for the shared area charges.

Some who are subject to the assessment perceive the assessment as irrational and unfair. While the provision allowing an owner to request reduction of the 12-month assessment provides mitigation of the 12-month assessment, it does not eliminate this charge which, even at a mitigated amount, can he substantial. Eliminating the 12-month assessment for smaller buildings would not affect the statutory requirement that owners correct the shared meter condition or take over the shared meter account going forward, and pay compensatory charges to the tenant for the shared area service.

PSL §34(3)(a) - enacted before the shared meter requirements - requires the Commission to provide two options for a tenant in a two- family house to prevent discontinuance of gas or electric service that is not separately metered where, presumably, the owner has failed to pay utility charges, The first option allows an occupant to apply for service and become the customer of record and thus liable for future payments and responsible to the utility for any unpaid amounts after he or she takes over the account, The second allows an occupant to avoid termination of utility service to the entire building by paring only the current charges for such service, without becoming the customer of record. This option provides the occupant with the same benefits as the first - continued receipt of service and the right to off-set amounts paid to the utility against rent payments - without resulting in ongoing liability for utility charges. While both options prevent termination and permit the tenant, under Real Property Law §235-a, to offset amounts paid for such utility bills against their rent payments. the first results in a shared meter condition for the tenant.

This is counterproductive as the tenant is then embroiled in a shared meter investigation and, instead of the tenant making utility payments (and offsetting them against rent), the owner becomes the account holder, contrary to the intent of PSL §34. Amending PSL §34 would provide tenants with the option to prevent termination by paying the current charges without accepting the ongoing liability of becoming the customer of record.

Budget implications

None.

Effective date

This bill would become effective upon enactment.