Relates to utility intervenor reimbursement

Summary and description of provisions

This bill would permit groups of individuals or not-for-profit organizations that represent residential or small business customers to apply for reimbursement of its costs for reasonable advocate's fees, reasonable expert witness fees, and other reasonable costs in a proceeding before the Public Service Commission (PSC). The PSC would he authorized to determine appropriate application procedures. This legislation would also provide for compensation to be awarded in advance if the participant makes a showing of significant financial hardship.

Section 1 of this legislation would establish definitions for "compen- sation," "participant," "commission," "other reasonable costs," "party," "Proceeding," "significant financial hardship," "small business," and "substantial contribution."

Subsection 2 of this legislation would establish requirements that participants would need to include in its application to be submitted to the PSC. This section would require a statement of planned partic- ipation; description of anticipated advocate's fees, expert fees and other costs; and, any other material required by the PSC. If partic- ipation would impose significant financial hardship on the applicant, evidence of such hardship must also be submitted.

Subsection 3 of this legislation would require the PSC, within seventy- five days after the application has been filed, to issue a decision that determines if the participant has made a substantial contribution to its final decision. If the participant included evidence of substantial financial hardship, the PSC would determine whether such showing was made and the amount of compensation to be paid by the public utility or utilities prior to the end of the proceeding. This section would author- ize the PSC to recover any advance payments made if the participant discontinues its Participation without the PSC's consent. This section would establish the criteria in which compensation is calculated and would require any unused compensation to be returned to the public util- ity or utilities. This section would authorize the PSC to audit the records and hooks of a participant that would claim significant finan- cial hardship. This section would also authorize the PSC to require participants to join their claims if they have substantially similar interests.

Subsection 4 of this legislation would require a public utility or util- ities subject to the proceeding to remit any compensation within thirty days of the proceeding. The PSC would then remit such compensation to the participant.

Subsection 5 of this legislation would authorize the Department to deny any compensation to any participant who attempts to delay or obstruct the proceeding.

Section 2 amends the state finance law establishes the utility interve- nor account in the custody of the state comptroller and the commissioner taxation and finance

Section 3 This act shall take effect on the 30th day after it shall have become law.

Justification

The intent of this legislation is to recognize and reme- dy the fact that individual action by residential consumers and small businesses for the purposes of participating in utility matters and communicating their views is rendered impracticable by reason of the disproportionate expense of taking such action.

PSC proceedings are offered in a way that minimizes public partic- ipation. It is incredibly difficult for typical New Yorkers to remain on top of the goings-on of the PSC. The Commission's usual meeting time is 10:30 a.m., a time when the average citizen or small business owner. is not likely to participate. In many instances, the only people who can attend on a regular basis are most likely those whose job depends on it, such as representatives of the utilities and other special interests.

The legislation recognizes that citizen participation should be encour- aged when government regulators set Policy. Individuals who seek to participate in Public Service Commission (PSC) utility proceedings are referred to as intervenors. Increased public participation through the through the intervenor process, if sought and not fought, will spur a more open and accountable government regulatory process that may yield creative socially responsible solutions to difficult issues. This legis- lation will provide a mechanism to allow residential and small business utility customers to access financial resources to become active partic- ipants in PSC proceedings. This includes the ability to receive compen- sation of advocate fees, expert witness fees, and other reasonable costs associated with their participation.

Legislative history

2011-12: S.1088 - Referred to Energy & Telecomm 2009-10: S.7687/A.8722 - Passed the Senate/Ways and Means

Fiscal implications

None to the State. Intervenor fees would be provided by utilities.

Effective date

This legislation would be effective thirty days after being signed into law.