What's happening
This bill requires energy service companies to annually notify customers if they are not receiving services from a traditional utility or municipality.
Why it matters
Improves consumer awareness. By requiring annual notifications, customers are more likely to realize if they’re purchasing energy from an independent supplier rather than a traditional utility or municipality, which can affect rates, contract terms, and customer protections.
Reduces risk of confusion or deceptive practices. Some customers may be unaware they’ve switched providers (sometimes due to aggressive marketing or unclear enrollment), so this bill helps prevent misunderstandings and potential disputes about service or billing.
Empowers informed decision-making. Customers who know their provider is an energy service company can better research pricing, track changes, and decide whether to continue, renegotiate, or switch back to utility service, potentially saving money or avoiding unfavorable terms.
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Who cares
Energy service companies
The bill would require them to notify customers in writing each year that they are receiving services from an energy service company.
Customers of energy service companies
They would receive an annual reminder identifying the type of company supplying their energy services.
Consumer advocates
The bill would add a recurring disclosure requirement for energy suppliers that are not electric or natural gas utility corporations or municipalities.
Headline styles
Notify Customers on Utility Bills
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to energy and telecommunications
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.168
- Referred to energy and telecommunications
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1356
2019-2020 Regular Sessions
IN SENATE
January 14, 2019
Introduced by Sen. SERINO -- 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 informational notices on utility bills
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 44 of the public service law is amended by adding a new subdivision 6 to read as follows:
6. Where a customer is receiving energy services through a company that is not an electric or natural gas utility corporation or a municipality, the energy service company providing such services shall provide written notification to the customer on an annual basis that such customer is receiving services from an energy service company.
§ 2. This act shall take effect on the thirtieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06823-01-9
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 informational notices on utility bills
Purpose
To increase transparency on customers energy bills.
Summary of provisions
Section 1: Requires that customers receive annual written notification when they are receiving energy services through a company that is not an electric or natural gas utility corporation or municipality.
Section 2: Provides the effective date.
Justification
The utility slam is a practice whereby an energy service company (ESCO) tricks customers into switching utility suppliers under false pretenses. In some cases, telemarketers or door-to-door salespersons will make dubious claims of savings for switching providers, and in other cases they elicit a customers' account numbers while purporting to be an employee of their gas or electric service provider so they can switch their service without the customers' permission or knowledge.
The New York State Department of Public Service's Consumer Advocate has issued refunds from energy providers for deceptive practices; however, consumers cannot always count on their exploitation being detected by the state. This legislation would increase transparency in utility bills by requiring a written notification be provided on an annual basis indi- cating when someone is receiving their energy services through a company that is not an electric or natural gas utility corporation or munici- pality. Such transparency will help customers to be able to better track where there money is going so that they can take proactive steps to self-advocate for themselves.
Legislative history
2018: S.8685 Reported and Committed to Rules
Fiscal implications
None.
Effective date
This act shall take effect on the thirtieth day after it shall have become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.