Requires the public service commission to review compensation paid to certain high level policy making employees of gas or electric corporations

2 Co-sponsors

• Liz Krueger
• Bill Perkins

BILL NUMBER:S1049

Title of bill

An act to amend the public service law and the public authorities law, in relation to requiring the public service commission to annually review the compensation and benefits paid to certain officers, directors and high-level employees of certain gas or electric corporations

Purpose or general idea of bill

The purpose of this bill is to provide a basis upon which reviews of compensation and benefits given to utility officers, directors, or high-level employees may be made to assure the ratepayer that his or her dollars are being spent in a fair and equitable manner. The review will be conducted at least every three years or upon any major rate increase. The bill requires the New York Power Authority trustees to review the salaries and benefits paid to officers, employees and the representatives in high-level managerial positions within the New York Power Authority every three years.

Summary of specific provisions

This bill would add a new section to the public service law, § 5-a. It would require the public service commission to review proposed salary and benefits of officers, directors and high-level managerial positions within the authority to determine that such salaries and benefits are just, reasonable and in the public's best interest.

Justification

Public utilities are granted the privilege of exercising a monopoly over their service territories. With this privilege comes the responsibility to provide safe, reliable, and affordable service to their customers. To continue financing "over compensated executives" with revenue generated from ratepayers places an undue burden on the public in the form of higher rates.

As employee salaries stagnate, it is neither fair nor equitable to raise utility rates further to provide top executives with unjustified levels of compensation. It is obviously in the public interest to establish controls over levels of compensation and benefits paid to high level policy making employees of public utilities.

Prior legislative history

2009-10: S.4034/A.7410 - Referred to Energy & Telecommunications 2007-08: A.250 - Rules 2005-06: A.7281 - Corporations, Authorities and Commissions 2003-04: A.10905 - Corporations, Authorities and Commissions 2001-02: A.5213A - Corporations, Authorities and Commissions 1997-98: A.1501 - Passed Assembly

Fiscal implications

None.

Effective date

This act shall take effect immediately.