What's happening
This bill prohibits residential customers from using third-party natural gas or electricity delivery, limiting such services to non-residential customers only.
Why it matters
Residential customers would no longer be able to purchase natural gas or electricity from third-party suppliers. , meaning they must use the utility company assigned to their area for energy delivery—potentially reducing consumer choice and competition in the residential energy market.
Non-residential (commercial and industrial) customers would retain the ability to contract for third-party delivery of electricity and natural gas. , allowing businesses to continue negotiating for potentially lower rates or specialized energy services, while households would lose this flexibility.
The bill could impact energy pricing, transparency, and consumer protections for residential customers. , as limiting options might lead to less competitive pricing and fewer incentives for utilities to innovate or improve customer service; advocacy groups and customers concerned with energy affordability or renewable energy sourcing may be particularly affected.
The Public Service Commission would have a clearer mandate to restrict energy "retail wheeling" (the right to choose your energy supplier) strictly to non-residential customers. , simplifying regulatory oversight but possibly undermining broader efforts to promote market-driven energy reforms for all New Yorkers.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Limit Energy Sales to Businesses
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to energy and telecommunications
- Referred to energy and telecommunications
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Limit Energy Choice for Homes
In Assembly Committee · Energy · Sponsor Jeffrey Dinowitz
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5289
2017-2018 Regular Sessions
IN SENATE
March 20, 2017
Introduced by Sen. GRIFFO -- 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 limiting authority for retail wheeling or delivery of natural gas not purchased from the electric or gas corporation delivering it to non-residential customers
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (b) of subdivision 12-b of section 66 of the public service law, as added by chapter 626 of the laws of 1983, is amended to read as follows:
(b) The commission may also authorize utility corporations to contract with existing or prospective industrial and commercial customers to wheel or deliver electricity or gas purchased directly by such customers, provided that the commission finds that such arrangements are in the overall best interest of the rate payers of the corporation, and that the rates and fees for the services provided adequately compensate the corporation for the use of its facilities, and further provided that such wheeling or delivery of electricity or natural gas to residential customers shall not be allowed.
§ 2. Section 66-d of the public service law, as added by chapter 519 of the laws of 1984, subdivision 2 as amended by chapter 790 of the laws of 1985, is amended to read as follows:
§ 66-d. Contract carrier authorization. 1. For purposes of this section the term natural gas shall mean natural gas produced within the state or transported within the state no matter where produced for consumption in the state by non-residential customers.
2. The commission, upon its own initiative or upon application by a natural gas producer or a non-residential consumer of natural gas in any year and after notice and hearing shall, upon such terms and subject to
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03791-01-7
S. 5289 2
such conditions as the commission considers just and reasonable, have the authority to order any gas corporation to transport or contract with others to transport gas under contract for sale by such producer or owned by such non-residential consumer provided that, the commission finds that the gas corporation has available capacity, that no undue burden shall be placed upon the gas corporation or its ratepayers and that the ability of the gas corporation to render adequate service to its customers is not impaired.
§ 3. This act shall take effect immediately.
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 limiting authority for retail wheeling or delivery of natural gas not purchased from the electric or gas corporation delivering it to non-residential customers
Purpose
The bill limits the sale of electricity or natural gas by entities other than utility corporations, which deliver it to non-residential customers only.
Summary of provisions
Sections 1 and 2 of the bill amend the public service law §§ 66 - 12b (b) and 66 - d relating to authorization of retail wheeling of electricity and contract carriage of natural gas purchased from sources other than the delivering utility to clarify that such retail wheeling or contract carriage shall be allowed only with respect to non-residential customers.
Section 3 provides for an immediate effective date.
Justification
In the physical world, it is impossible to separate electricity or natural gas sales from the wires or mains of the utility that actually provides the service. For nearly twenty years, the New York public service commission has promoted, at great expense, the separate sale of electricity and natural gas to residential and non-residential customers by entities other than the utility corporations actually providing the services, through financial contracts with "energy services companies."
Despite state and in some areas local sales tax preferences, the commission's effort to unbundle and separate the retail sale of commodity gas or electricity did not succeed in lowering prices or improving services for residential customers. Rather, the introduction of new intermediaries selling utility services door to door or through high-pressure telephone sales techniques increased transaction costs that did not outweigh any gain in economic efficiency, and generally increased costs for end users. Consequently, despite illusory promises of savings, residential customers who switch to energy services companies for contracts to buy electricity or natural gas have paid more, not less for the service.
The advent of many poorly supervised new entities selling natural gas and electricity led to predatory, high-pressure telephone and door-to door sales tactics, "slamming", excessive charges, and other abuse of residential customers, many of whom are vulnerable, elderly, and low-income. Despite large numbers of complaints to utilities, elected officials and the public service commission, the commission is unable to assure the provision of service by the alternative providers on terms that are just and reasonable, and on better economic terms for residential customers than traditional full service from the distribution utility companies.
The commission's undue emphasis upon individual customer "shopping" from a myriad of retail providers diverts attention to real solutions to New York's high prices for utility services, and diverts customer attention and awareness from increased efficiency and conservation. Also, commission promotion of unbundled services and handling of thousands of complaints arising from sales tactics and excessive rates and charges or alternative retail sellers diverts limited commission
resources from improving its regulation of rates, charges, and services of the utilities.
Legislative history
2015-16 - S.7326 - Referred to Energy and Telecommunications/A.9652 - Referred to Energy
Fiscal implications
Increase in sales tax revenues to school districts and local governments that tax residential utility service when customers of energy services companies revert to full utility service, due to the effective end of a sales tax exemption of utility delivery service to residential customers who switched to an energy services company (ESCO) for commodity purchases.
See Division of Budget 2016-17 Report on Tax Expenditures, p. 106.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.