What's happening
This bill prevents utility companies from including membership dues for organizations that lobby as part of their operational costs when setting customer rates.
Why it matters
Closes a loophole that allowed utilities to indirectly pass lobbying costs onto consumers. by paying dues to trade groups or associations that lobby, then including those dues in customer rates.
Shifts financial responsibility for political advocacy away from ratepayers. , ensuring that customers only pay for utility operations and not for the company's efforts to influence legislation.
Promotes transparency and accountability in utility rate-setting. by making it clear which costs are eligible to be included, potentially lowering customer bills and reducing hidden charges.
May reduce the political influence of utilities in Albany. by limiting their ability to pool resources with other companies for lobbying through industry associations, creating a more level playing field for legislative decision-making.
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Who cares
Headline styles
Ban Utility Dues for Lobbying
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to energy and telecommunications
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7858
IN SENATE
February 26, 2020
Introduced by Sen. PARKER -- 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 utility membership dues used for lobbying activities
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 114-a of the public service law, as added by chapter 334 of the laws of 1979, is amended to read as follows:
§ 114-a. Rates not to include cost of legislative lobbying. In determining rates to be charged customers, the commission shall not include the cost of legislative lobbying on behalf of any public utility as part of any such utility's operational costs and the commission shall not include the cost of membership dues for any organization, association, institution, corporation or any other entity that engages in legislative lobbying as part of any such utility's operational costs. As used in this section, legislative lobbying shall mean and include any attempt by any person on behalf of a public utility to influence the passage or defeat of any legislation by either house of the legislature or the congress, or the approval or disapproval of any legislation by the governor; provided however, legislative lobbying shall not include any appearance by any person on behalf of a public utility before a committee of either house of the legislature or the congress where any such appearance is at the request of any such committee.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14648-02-0
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 utility member- ship dues used for lobbying activities
Purpose
The proposed legislation will prevent public utility companies from circumventing pre-existing law that already precludes these companies from charging their customers the cost of legislative lobbying.
Summary of provisions
Section 1 amends section 114-a of the Public Service law to add addi- tional language that will prevent utility companies from charging the cost of membership dues to customers, when such membership dues are for membership in a lobbying organization, association, institution or corporation.
Section 2 provides that the act shall take effect immediately.
Justification
Under current law, electric and gas utility companies cannot charge the cost of legislative lobbying to customers. However, these utility compa- nies charge customers for the cost of belonging to trade associations. Often, these trade associations are lobbying at both the state and federal level for policy that goes against the interest of New York ratepayers. The trade association provides an invoice to the utility company that identifies the percentage of lobbying activities as part of the bill - often less than twenty percent - which is removed from the amount included in rates. The utility company passes along the remaining cost to customers without any requirement or burden of proof in how the funds are used by the trade association or other entity. This bill would prevent utility companies from charging customers the cost of membership dues for belonging to any trade association, organization, institution, corporation, or other entity that engages in legislative lobbying. This will ensure that New York ratepayers do not subsidize the political activities of groups that may seek to influence policy against their interest. If a utility company believes it is in the interest of the corporation to belong to such a group, it may charge the cost of member- ship dues to the shareholders. Legislative History: New Bill
Fiscal implications
To be determined.
Effective date
The 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.