What's happening
This bill requires the Public Service Commission to consider the economic impact on consumers before approving major increases in utility rates or charges.
Why it matters
Requires the Public Service Commission to formally assess local economic conditions—such as unemployment, median income, and social service dependency—before allowing utilities (gas, electric, water, steam, phone) to impose major rate hikes.
Mandates that “major increases” (over $300,000 or 2.5% in aggregate revenues) receive deeper scrutiny, potentially making it harder for utilities to raise rates without strong justification tied to community impact.
Forces utilities and regulators to factor in the real-world burden on different customer classes (e.g., residential, commercial) by comparing proposed new bills to current averages and examining cost-of-living data.
Could give ratepayers more leverage in rate cases by requiring economic impact evidence, possibly resulting in fewer or smaller rate increases where communities are already economically strained.
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Who cares
Headline styles
Consider Utility Rate Impacts
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 14
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.
Consider Economic Impact for Utilities
In Assembly Committee · Corporations, Authorities And Commissions · Sponsor Kevin Cahill
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5341
2019-2020 Regular Sessions
IN SENATE
April 26, 2019
Introduced by Sen. COMRIE -- 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 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 just and reasonable and not more than allowed by order of the commis-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01933-01-9
S. 5341 2
sion. 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
b. the latest federal bureau of labor statistics consumer price index figures indicating the average cost of living and the average cost of
S. 5341 3
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.
Sponsor's memo
Title of bill
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
Purpose or general idea of bill
To require consideration of the economic impact of increased rates or charges on consumers and the areas affected by the increases.
Summary of specific provisions
1) amends sections 65, 79, 89-b and 91 of the public service law to require the commission to consider the economic impact of any major increase in the rates or charges of gas, electric, steam, water-works, telephone, or telegraph corporation.
2) adds a new section 119-a to the public service law, requiring the commission to consider the economic impact of any proposed increase, prior to approval of such increase. This evidence shall include:
a) the latest unemployment data, median income information, and the number of people receiving public assistance in area affected.
b) the average monthly utility bills for each class of customers affected by the proposed increases and the estimated increased utility bills for these customers.
c) the latest 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 service area affected.
Justification
The spiraling cost of utility services places an increasingly heavy burden on consumers. By requiring the PSC to consider the economic impact of further rate increases, the utility's needs for the requested raise would be weighed against the ability of its customers to obtain affordable service. This legislation is not intended to impair a utili- ty's right to a fair rate of return, but rather to require the PSC to consider the impact of increased rates on customers whose ability to bear such costs provides the foundation for a utility's financial integ- rity.
Prior legislative history
2017-2018: A. 126 - Referred to Corporations, Authorities and Commis- sions 2015-2016: A. 2048 - Referred to Corporations, Authorities and Commis- sions 2013-2014: A. 1568 - Referred to Corporations, Authorities and Commis- sions 2011-2012: A. 24 - Referred to Corporations, Authorities and Commissions 2009-2010: A. 712 - Referred to Corporations, Authorities and Commis- sions 2007-2008: A. 7714 - Referred to Corporations, Authorities and Commis- sions 2005-2006: A. 1849 - Passed Assembly 2004: A.522 Passed Assembly 2003: A.2003 - Passed Assembly 2001-2002: A. 230 - Passed Assembly 1999-2000: A. 1221 - Passed Assembly 1997-1998: A. 2605 - Passed Assembly 1995-1996: A. 761 - Passed Assembly 1994: A.2525 - Passed Assembly 1991: A.3580 - Referred to Rules 1990: A.5040 - Referred to Rules 1989: A.5040 - Referred to Corporations, Authorities and Commissions 1987-1988: A. 7549 - Passed Assembly 1986: A.2097 - Passed Assembly 1983: A.4132 - Referred to Ways & Means 1981-1982: A. 2457 - Referred to Ways & Means 1980: A.3911 - Passed Assembly
Fiscal implications for state and local governments
None.
Effective date
This act shall take effect immediately.
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