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S2674Senate2017-2018 Session

Hold Utilities Liable for Negligence

Official title

“Prohibits any gas or electric corporation from absolving itself from liability for service interruption arising from employee negligence”

Sponsor Michael GianarisSD-12Affects Environment & Energy
Status
In Senate Committee
Energy And Telecommunications
Impact
5/10
Moderate
Passage
0%

Bill progress

Step 2 of 7

In committee · Energy And Telecommunications

What's happening

This bill prohibits gas and electric companies from using rules to absolve themselves of liability for service interruptions caused by employee negligence.

Why it matters

  1. Ensures accountability for utility companies. By making it illegal for gas and electric companies to use internal rules to shield themselves from liability due to employee negligence, the bill increases the companies' responsibility to provide reliable service.

  2. Strengthens consumer protections. Customers affected by service interruptions caused by ordinary employee mistakes would have stronger legal standing to seek compensation or remedies, rather than being blocked by company-written rules.

  3. Overrides conflicting utility policies. Any current or future company policies or rate schedules attempting to absolve companies of such liability would be declared void, closing a loophole that might otherwise undermine public protections.

  4. Signals a shift in public policy. Declaring these liability-shielding rules void as against public policy emphasizes the state’s commitment to holding utilities accountable for preventable service failures, potentially leading to higher service standards and improved employee training.

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Who cares

Headline styles

Hold Utilities Liable for Negligence

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Michael Gianaris

Senator · Senate District 12

No co-sponsors yet.

History

  1. Referred to energy and telecommunications
  2. Referred to energy and telecommunications

Full text

1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

2674

2017-2018 Regular Sessions

IN SENATE

January 17, 2017

Introduced by Sen. GIANARIS -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommunications

AN ACT to amend the public service law, in relation to the liability of gas and electric corporations arising from the negligence of their employees, servants or agents

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Subdivision 12 of section 66 of the public service law is amended by adding a new undesignated paragraph to read as follows:

Nothing contained in this subdivision shall be construed to, and no rule, regulation, order or practice of the commission shall authorize the filing by any gas corporation or electric corporation of any schedule setting forth rules or regulations relating to rates or service which, in words or effect, absolve or attempt to absolve such corporation from liability for the interruption of its supply of service arising from the ordinary negligence of its employees, servants or agents. Any part of any schedule filed by such corporation setting forth any such rules or regulations relating to absolution from liability shall be deemed void as against public policy.

§ 2. This act shall take effect immediately.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD06989-01-7

Reflowed for reading: line numbers and page breaks removed. Cite the official text.

Sponsor's memo

Title of bill

An act to amend the public service law, in relation to the liability of gas and electric corporations arising from the negligence of their employees, servants or agents

Summary of provisions

Section 1 amends subdivision 12 of § 66 of the Public Service Law to prohibit the filing by gas or electric corporations of any schedules absolving any such corporation from liability for the interruption of its supply of services arising from the ordinary negligence of its employees, servants, or agents. Any such schedule currently filed is deemed void as against public Policy.

Justification

In the Summer of 2011, the western part of Queens suffered a massive power outage that lasted 9 days. The Assembly Queens Power Outage Task Force studied the outage's causes and the inadequate responses by the company responsible for the transmission and distribution system, Consolidated Edison, and by the Public Service Commission. One underlying cause of this debacle was found to be the reliance by New York's utility regulators on antiquated laws, regulations and policies that let companies engaged in energy transmission and distribution operate without effective oversight.

Several of the findings and recommendations of the Task Force concerned the inadequacy of Consolidated Edison's policies regarding reimbursement for its failure to deliver a safe and adequate supply of electricity, as the Public Service Law requires. One fundamental barrier to the public's ability to be appropriately compensated is the current language in the tariffs filed by electric and gas utilities disclaiming any responsibility for disruptions of service, except in cases of gross negligence.

The Task Force recommended that the Legislature should amend the Public Service Law to remove the tariff bar against suits for damages from outages due to simple negligence. This bill would accomplish this goal, which would result in assigning the same degree of legal responsibility to operators of energy transmission and distribution systems as virtually every other business currently bears.

Prior legislative history

2016: Died in Energy and Telecommunications 2015: Died in Energy and Telecommunications 2014: Senate Bill 566 (Gianaris) Died in Senate Energy & Telecommuni- cations Committee 2012: Senate Bill 2533 (Gianaris) Died in Senate Energy & Telecommunications Committee

Fiscal implications for state and local governments

None.

Effective date

Immediately.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.