Directs the public service commission to undertake a study of consumer protections adopted by electric corporations and utilities

BILL NUMBER:S5696A

Title of bill

An act to direct the public service commission to undertake a study of consumer protections adopted by electric corporations and utilities

Purpose or general idea of bill

To place a temporary moratorium on electric, gas or steam service terminations to residential customers, until the Public Service Commission (PSC) completes a review of existing consumer protection policies. The review will evaluate the current policies' effectiveness in addressing consumer issues and protecting consumer welfare.

Summary of provisions

The legislation directs the PSC to complete a report on the effectiveness of existing consumer protection policies by November 15, 2012. The report must include analyses on the following:

1) the effectiveness of current utility procedures for notifying customers in arrears on utility charges of how they may avoid termination of their services. This analysis must include an assessment on the availability of deferred payment agreements;

2) the adequacy of the PSC's assistance to customers, including an analysis of the commission's effectiveness in negotiating deferred payment agreements with utilities. The PSC will also be required to collect and include in its report certain statistics pertaining to the geographic locations and assistance statuses of customers seeking to connect service or avoid termination, and statistics pertaining to the PSC shut off hotline;

The PSC must seek comments from utilities, municipalities, consumer advocates and the public. The PSC may use these comments as bases for its evaluation on existing consumer protection policies.

The report must be submitted to the governor, temporary president of the senate, speaker of the assembly, chair of the senate committee on energy and telecommunications and chair of the assembly committee on energy by November 15th, 2012. The report must also be posted online. If the PSC fails to complete its review by the required date, utilities will be prohibited from terminating electric, gas or steam service between December 14, 2012 and March 31, 2013, or until the PSC completes its review. The bill would not preclude utilities from charging customers for electric, gas or steam services during the moratorium period.

Justification

Many utilities terminate many consumers' electric, gas or Steam service during winter months. Terminations during New York's cold winter months cause significant discomfort to those targeted by the terminations, and create significant health and safety risks. The utilities' copious winter terminations suggest that existing consumer protection policies are inadequate. Until the PSC identifies and suggests remedies for these inadequacies, New York's consumers remain

vulnerable to potentially unjustified or unreasonable winter service terminations.

Prior legislative history

New Bill.

Fiscal implications for state and local governments

None.

Effective date

This act shall take effect immediately.