What's happening
This bill requires the Public Service Commission to consider the economic impact on consumers before approving major utility rate increases.
Why it matters
Requires the Public Service Commission to explicitly analyze the broader economic impact of major utility rate hikes. , not just whether the proposed rates are "just and reasonable" in a technical sense. This means regulators must consider factors like unemployment, median income, and social service usage in affected communities before approving increases.
Establishes a clear, quantifiable threshold for what constitutes a "major increase". either raising a utility's total revenues by more than $300,000 or by more than 2.5%—which means only significant price hikes trigger these new review requirements, focusing attention on the changes most likely to strain household budgets.
Mandates a more detailed, data-driven review process. , requiring regulators to examine average utility bills by customer class, estimate the impact of the proposed increase on those bills, and compare local cost-of-living and utility expense data to national and state averages. This could lead to more transparent, consumer-focused rate decisions.
May provide new grounds for consumer advocacy and public input. in utility rate cases, since economic hardship and local conditions must be considered, potentially giving affected communities greater leverage to contest or shape rate increases.
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
Consider Economic Impact for Utilities
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to corporations, authorities and commissions
- Referred to corporations, authorities and commissions
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.
Consider Utility Rate Impacts
In Senate Committee · Energy And Telecommunications · Sponsor Leroy Comrie
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
135
2019-2020 Regular Sessions
IN ASSEMBLY (Prefiled)
January 9, 2019
Introduced by M. of A. CAHILL -- Multi-Sponsored by -- M. of A. COLTON, DINOWITZ, FINCH, GALEF, GLICK, GOTTFRIED, LUPARDO -- read once and referred to the Committee on Corporations, Authorities and Commissions
AN ACT to amend the public service law, in relation to requiring evidence and consideration of the economic impact of utility rates and charges 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 1 of section 65 of the public service law, as amended by chapter 789 of the laws of 1930, is amended to read as follows:
1. Every gas corporation, every electric corporation and every municipality shall furnish and provide such service, instrumentalities and facilities as shall be safe and adequate and in all respects just and reasonable. All charges made or demanded by any such gas corporation, electric corporation or municipality for gas, electricity or any service rendered or to be rendered, shall be just and reasonable and not more than allowed by law or by order of the commission. In determining whether charges are just and reasonable, consideration shall be given to the economic impact of such charges upon consumers and the area served by each such gas corporation, electric corporation and municipality. Every unjust or unreasonable charge made or demanded for gas, electricity or any such service, or in connection therewith, or in excess of that allowed by law or by the order of the commission is prohibited.
§ 2. Subdivision 1 of section 79 of the public service law, as amended by chapter 134 of the laws of 1921, is amended to read as follows:
1. Every steam corporation shall furnish and provide such service, instrumentalities and facilities as shall be safe and adequate and in all respects just and reasonable. All charges made or demanded by any such corporation for such service rendered or to be rendered shall be
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01933-01-9
A. 135 2
just and reasonable and not more than allowed by order of the commission. In determining whether charges are just and reasonable, consideration shall be given to the economic impact of such charges upon consumers and the area served by each such steam corporation. Every unjust or unreasonable charge made or demanded for such service, or in connection therewith or in excess of that allowed by law or by the commission is prohibited.
§ 3. Subdivision 1 of section 89-b of the public service law, as added by chapter 715 of the laws of 1931, is amended to read as follows:
1. Every water-works corporation shall furnish and provide such service, instrumentalities and facilities as shall be safe and adequate and in all respects just and reasonable. All charges made or demanded by any such water-works corporation for water, or for equipment furnished or for any service rendered or to be rendered shall be just and reasonable and not more than allowed by law or by order of the commission. In determining whether charges are just and reasonable, consideration shall be given to the economic impact of such charges upon consumers and the area served by each such water-works corporation. Every unjust or unreasonable charge made or demanded for water or for equipment furnished or for any such service, or in connection therewith, or in excess of that allowed by law or by the order of the commission is prohibited.
§ 4. Subdivision 1 of section 91 of the public service law, as added by chapter 673 of the laws of 1910, is amended to read as follows:
1. Every telegraph corporation and every telephone corporation shall furnish and provide with respect to its business such instrumentalities and facilities as shall be adequate and in all respects just and reasonable. All charges made or demanded by any telegraph corporation or telephone corporation for any service rendered or to be rendered in connection therewith shall be just and reasonable and not more than allowed by law or by order of the commission. In determining whether charges are just and reasonable, consideration shall be given to the economic impact of such charges upon consumers and the area served by each such telegraph corporation and telephone corporation. Every unjust or unreasonable charge made or demanded for any such service or in connection therewith or in excess of that allowed by law or by order of the commission is prohibited and declared to be unlawful.
§ 5. The public service law is amended by adding a new section 119-d to read as follows:
§ 119-d. Economic impact. 1. Prior to approving any major increase in rates or charges proposed by a public utility company or municipality, the commission shall consider the economic impact of any such proposed increase in the rates or charges upon consumers in the area served by the company or municipality proposing such increase. For purposes of this subdivision, "major increase" shall mean an increase in the rates and charges which would increase the aggregate revenues of the applicant more than the greater of three hundred thousand dollars or two and onehalf percent.
2. The commission shall consider unemployment data, median income information and the number of persons receiving social services assistance with respect to the applicable service area. In addition, the commission shall consider in reaching its determination in any such rate case:
a. the average monthly utility bill for each class of customers who would be affected by an increased rate or charge and the estimated increased utility bill for each such class of customers; and
A. 135 3
b. the latest federal bureau of labor statistics consumer price index figures indicating the average cost of living and the average cost of fuel and utilities for the nation and, if possible for the state or the service area affected by such increased rate or charge.
§ 6. This act shall take effect immediately and shall apply to each request for increased rates or charges submitted on or after the effective date of this act.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.