Relates to converting residential rental buildings from being mass-metered to submetered

-Provide that a master-metered residential rental building may be converted to submetering if a private or government entity providing electric services files an application with the Public Service Commission and meets the conditions of this act; -Requires the applicant to include in the application a procedure for written notification to tenants of the proposal to submeter within 30 days of the application, the notification shall include: a summary of the information provided to the commission, inform the tenants that a public comment period has commenced, and indicate the length of that comment period; the address and telephone number of the nearest Commission office; the date, time, and location of a public hearing set by the Commission to hear testimony from the public; where on the Commission website the entire application can be viewed and how a free copy can be requested by mail as well as providing a toll free number for making such requests; a statement stating any economic advantages of submetering at the premisis; a description of the submetering service that will be installed; the method of calculating utility rates for tenants, including information about the utility's tariffed residential rate for directly metered service; describe compliant procedures and tenant protections consistent with the Home Energy Fair Practice Act; demonstrate that arrangements have been made with the local social services department to continue to provide electric service upon acceptance of utility assistance grants. -Requires the Commission hold a public hearing near the residential building at least 30 days prior to the conditional and final approval or denial of the submetering application; -Requires the applicant to provide to include in their application to the Commission: findings of a study commissioned by the applicant of the thermal characteristics of the building; records of the last twenty-four months of electrical usage and charges; the projected submetered rates that the current usage rate for the various dwelling types that exist in the building; a plan to replace all non-energy star rated appliances provided by the applicant to energy-star rated appliances; -The applicant shall pay all the costs of an independent energy consultant chosen by the tenants if a group of at least 50% of the tenants request such analysis and at least 3 bids are received by the applicant; -Act taking effect immediately.

Justification

In 1951, the Public Service Commission prohibited all residential electric submetering, calling the practice "parasitic." That decision was held up in courts (Campo Corp. v. Feinberg, 279 App. Div. 302 (3d Dept. 1952) affirmed 303 N.Y. 995 (1952). As a consequence, utilities were directed by the PSC to adopt electric tariffs broadly prohibiting the resale of utility service. The previously permitted landlord submetering was converted to direct utility metering. Subsequently, the practice of submetering was again allowed by the PSC on a case by case basis, mainly for residential cooperative and condominium projects, where tenants have an ownership and governance interest. Public service commission regulations and numerous orders have allowed landlords waivers from the general prohibition against resale of utility service contained in commission regulations and utility tariffs. As a result, landlords are being allowed to be monopoly providers of electric service to their captive tenants. Also, in many instances the state division of housing and community renewal has allowed landlords who previously rented with utility service included in the rent to change the terms of leases so as to shift responsibility for payment of electric charges from landlords to tenants.

To safeguard the rights of tenants, it is important to ensure that the submetering application process is transparent and affords affected residents the opportunity to comment on the application as well as ensuring that the thermal characteristics of the building are known, deficiencies in energy efficiency are reasonably mitigated, and that there are checks in place to safeguard against tenants being unduly burdened from unjust and unreasonable submetered charges.

Prior legislative history

None.

Fiscal implications

To be determined.

Effective date

This act shall take effect immediately.