Creates the state office of the utility consumer advocate

Summary of provisions

Section 1 amends the public service law by adding a new article 1-A that would establish the state Office of the Utility Consumer Advocate. The UCA will be appointed by the governor to a six year term. The section also outlines the qualifications required for such an appointee and his or her responsibilities as the UCA, including the operation of the office.

The powers of the office, include initiating, intervening, and participating on behalf of residential utility consumers in any proceedings before the Public Service Commission, the Federal Regulatory Energy Commission, the Federal Communications Commission, state and local administrative and regulatory agencies, and state and federal courts in any matter or proceeding that may substantially affect the interests of residential utility customers. The section also allows for the UCA to exercise and have independence in any and all actions of the office.

The new article 1-A also requires an annual report from the office to the governor and legislature as, which would be made available to the public, and would that will include information on all proceedings that the office of the UCA participated in and the outcome of such proceedings. Additionally,the report shall include estimated savings to residential utility customers that resulted from intervention by the UCA, and lastly any policy recommendations and suggested statutory amendments that the UCA deems necessary.

Section 2 sets the effective date of the first of April next succeeding the date on which it shall have become law.

Justification

Currently more than 40 states and the District of Columbia have an independent state agency that represents the interests of residential utility customers. New York is one of few states, and by far the largest, without such an independent office. In the wake of Superstorm Sandy, Hurricane Irene, and Tropical Storm Lee, consumers in New York have been left without a voice and real representation when it comes to utility services.

This bill would create the State Office of the Utility Consumer Advocate as an independent advocate and appear on behalf of New York consumers in state and federal regulatory proceedings, as well as judicial review proceedings concerning rates and conditions of public service utilities. Currently consumers in New York are represented by the Public Service Commission as well as the Utility Intervention

Unit, a division solely of the Department of State. Neither of them is able to act solely on behalf of the interest of consumers.

The Public Service Commission mediates the competing interests of utili- ties and others in their proceedings to develop facts upon which their decisions are ultimately based. The utility providers as well as large commercial and industrial customers have an active and able presence in such proceedings; however there is a glaring lack of input from any parties representing consumers. The Utility Intervention Unit operates under the direction of the Secretary of the State, who has created a non-statutory subordinate at-will position for the Director of the Utility Intervention Unit. The Utility Consumer Advocate would be appointed by the Governor, subject to Senate confirmation, and would serve a term of six years similar to the Chairman of the Public Service Commission.Therefore, the Utility Consumer Advocate would not be an at-will employee subject to removal without cause by the Secretary of State or Governor. This would allow for actual independent action on behalf of residential consumers without the concern of removal for such action.

In other states where such an office exists residential consumers have seen drastic savings in comparison to the actual amount of funding that goes to these offices. California's Division of Ratepayer Advocates lobbied over 200 times on behalf of California consumers and saved them over $4 billion in rates saved and increases avoided; in fact, they estimate that for every $1 spent representing and advocating on behalf of California's public utility customers, the average customer saved $153 per year. The creation of an appointed advocate with the powers allotted in this bill would give New York utility customers a voice at the table, save them a considerable amount of money when it comes to the utilities they use every day.

Prior legislative history

This bill was first introduced in the 2013 Session.

Fiscal implications

To be determined

Effective date

This act shall take effect of the first of April next succeeding the date on which it shall have become law.