What's happening
This bill requires independent audits of private water utilities before and after rate changes, with audit results published online.
Why it matters
Increases transparency and accountability. by requiring that private water utilities undergo independent audits before and after any changes to rates, contracts, or service regulations, ensuring that rate changes are justified and that public interests are protected.
Reduces potential conflicts of interest. by mandating that auditors must be completely independent of both the Public Service Commission and the utilities themselves, aiming to provide unbiased and trustworthy audit results.
Empowers consumers and stakeholders. by requiring audit findings to be published online, making it easier for the public to access information about the financial and operational integrity of their water providers and to hold utilities accountable for their actions.
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
Audit Private Water Rate Hikes
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to corporations, authorities and commissions
- Delivered to assembly
- Passed senateVote 62–0
- Advanced to third reading
- 2nd report cal.
- 1st report cal.334
- Print number 6862a
- Amend (t) and recommit to energy and telecommunications
- Referred to energy and telecommunications
- Referred to rules
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.
Audit Private Water Rates
In Assembly Committee · Corporations, Authorities And Commissions · Sponsor Michael Montesano
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6862--A
2017-2018 Regular Sessions
IN SENATE
September 6, 2017
Introduced by Sen. MARCELLINO -- read twice and ordered printed, and when printed to be committed to the Committee on Rules -- recommitted to the Committee on Energy and Telecommunications in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the public service law, in relation to requiring the public service commission retain an independent auditor to conduct audits of private water utility companies prior to and after rate changes are approved by the public service commission
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 10 of section 89-c of the public service law is amended by adding a new paragraph (b-1) to read as follows:
(b-1) Prior to the approval by the commission of a change by a private water utility company in any rate or charge, or in any form of contract or agreement or any rule or regulation relating to any rate, charge or service, or in any general privilege or facility, the commissioner shall retain a third-party auditor to conduct an audit of such private water utility company and provide his or her findings to the commission in writing. The third-party auditor shall not be affiliated with the commission or with any member of the public service commission. In the event of approval by the commission of any such change by a private water utility company in rate or charge, or in any form of contract or agreement or any rule or regulation relating to any rate, charge or service, or in any general privilege or facility, the independent auditor shall conduct a second audit of the private water utility company one year after the change takes effect. The commission shall publish the results of all such audits on its website.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13441-03-8
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 requiring the public service commission retain an independent auditor to conduct audits of private water utility companies prior to and after rate chang- es are approved by the public service commission
Purpose
This legislation would require the public service commission to retain an independent auditor to conduct audits of private water utility compa- nies prior to and after rate changes are approved by the public service commission.
Summary of provisions
Subdivision 10 of section 89-c of the public service law is amended to require the public service commission to retain an independent auditor to conduct audits of private water utility companies prior to and after rate changes are approved by the public service commission.
Justification
Nearly ninety-five percent of all New Yorkers receive water from public water supply systems in New York State. Private water utility companies service the remaining customers.
Consumers have no choice who provides their water. Public water utili- ties are exempt from property taxes. Private water utilities are not. Private water utilities can pass the expense of these taxes on to their customers and create bills, which in many cases, are dramatically higher than public water utilities.
When private companies seek and receive rate increases from the Public Service Commission, the corresponding water bill spikes can be dramatic. Consumers required to pay these large charges deserve to know that the company's finances are in order and that all laws regulating their costs, profits and expenditures are being followed.
This legislation would require the public service commission to retain an independent auditor to conduct audits of private water utility compa- nies prior to and after rate changes are approved by the public service commission.
Legislative history
New bill.
Fiscal implications
None.
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.