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S10548Senate2025-2026 SessionSame asA10389

Create Utility Consumer Board

Official title

“Enacts the citizens utility board act; appropriation”

Sponsor Cordell CleareSD-30Affects Finance
Status
In Senate Committee
Finance
Impact
8/10
Significant
Passage
30%

Bill progress

Step 2 of 7

In committee · Finance

What's happening

This bill creates a Citizens Utility Board to represent and educate New York utility consumers.

Why it matters

  1. The bill would create a statewide, independent, nonprofit Citizens Utility Board (CUB) with broad powers to advocate for and educate all New York residential utility customers. (electric, gas, water, and phone) on issues like rates, service, and energy conservation, giving ordinary New Yorkers a formal voice in regulatory and legal proceedings that affect their utility bills.

  2. The structure and governance of the CUB are designed to be highly democratic and transparent. , with a board of directors elected directly by utility consumers from each judicial district and at-large, strict conflict-of-interest rules barring ties to utilities or government, open meetings, regular financial disclosures, and public access to records and reports—potentially increasing trust and accountability in utility advocacy.

  3. Initial funding of $1 million and ongoing support mechanisms (including dues and clean energy fund contributions) will give the CUB resources to operate independently of utilities and government. , but the law also requires the CUB to prove significant public backing (at least 10,000 member contributions in three years), ensuring it reflects genuine consumer interest and can be dissolved if there is insufficient public support.

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Who cares

  • Residential Utility Consumers

    Everyday New Yorkers who pay for electricity, gas, water, or telephone service, as the bill creates a Citizens Utility Board specifically to represent and advocate for their interests in rate cases, regulatory proceedings, and consumer education.

  • Public Utilities (Electric, Gas, Water, Telephone Providers)

    These companies will need to comply with new requirements, such as distributing materials about the Board to their customers and possibly facing increased regulatory and public scrutiny through Board interventions.

  • State Government & Regulatory Agencies

    Entities like the Public Service Commission, the Secretary of State, and courts will interact with the new Board in regulatory proceedings and administrative processes, shaping the oversight environment for utility providers.

  • Advocacy Groups & Nonprofits

    Organizations focused on consumer rights, energy affordability, environmental protection, and low-income assistance will be interested in how the Board might amplify or complement their efforts in representing utility consumers.

Headline styles

Create Utility Consumer Board

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Cordell Cleare

Senator · Senate District 30

Chair, Aging

No co-sponsors yet.

History

  1. Referred to finance

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.

A10389Assembly

Create Utility Consumer Board

In Assembly Committee · Corporations, Authorities And Commissions · Sponsor Erik Dilan

Impact 8 · Significant20% to pass

Full text

12 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

10548

IN SENATE

May 20, 2026

Introduced by Sen. CLEARE -- read twice and ordered printed, and when printed to be committed to the Committee on Finance

AN ACT to amend the public service law, in relation to enacting the citizens utility board act; and making an appropriation therefor

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Short title. This act shall be known and may be cited as the "citizens utility board act".

§ 2. The public service law is amended by adding a new article 12 to read as follows:

ARTICLE 12

CITIZENS UTILITY BOARD Section 250. Purpose.

251. Definitions.

252. Citizens utility board: formation and membership.

253. Powers and duties.

254. Contributions.

255. Board of directors.

256. Duties of directors.

257. Director statement of financial interest.

258. Executive director: qualifications; appointment.

259. Annual membership meeting.

260. Mailing procedures.

261. Prohibited acts.

262. Appointment of interim board of directors.

263. Membership of the board of directors.

264. Public records.

265. Officers of the board of directors.

266. Corrupt practices and conflicts of interest.

267. Board to be nonpartisan.

268. Expenses.

269. Dissolution.

270. Construction.

271. Liability of public utility.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD14874-02-6

§ 250. Purpose. The purpose of this article is to promote the health, welfare and prosperity of all the citizens of this state by ensuring effective and democratic representation of utility consumers before the public service commission, the federal energy regulatory commission, the federal communications commission, the courts, and other public bodies and by providing for consumer education on utility service prices and on benefits and methods of energy conservation. Such purpose shall be deemed a statewide interest and not a private or special concern.

§ 251. Definitions. As used in this article, the following terms shall have the following meanings:

1. "Board" means the citizens utility board established pursuant to section two hundred fifty-two of this article.

2. "Board of directors" means the board of directors of the citizens utility board.

3. "Campaign contribution" means a gift, subscription, loan, advance or deposit of money or anything of value, made for the purpose of electing a candidate to the board of directors; or a contract, a promise or agreement, express or implied, whether or not legally enforceable, to make any campaign contribution; but does not include the value of services provided without compensation by individuals who volunteer a portion or all of their time on behalf of a candidate or political committee, or the use of real or personal property and the cost of invitations, food and beverages, voluntarily provided by an individual to a candidate in rendering voluntary personal services on the individual's residential premises for candidate-related activities.

4. "Campaign expenditures" means a purchase, payment distribution, loan, advance, deposit or gift of money or anything of value, made for the purpose of electing a candidate to the board of directors; or a contract, promise, or agreement, express or implied, whether or not legally enforceable, to make any campaign expenditure; but does not include the use of real or personal property and the cost of invitations, food and beverages, voluntarily provided by an individual to a candidate in rendering voluntary personal services on the individual's residential premises for candidate-related activities.

5. "Class A utility" means any gas, electric or water-works corporation with annual total gross operating revenues of two million five hundred thousand dollars or more or any telephone corporation with annual total gross operating revenues of one million six hundred thousand dollars or more on the effective date of this article.

6. "Director" means any member of the board of directors.

7. "District" means a board district, the boundaries of which are congruent with the boundaries of the judicial districts in the state.

8. "Immediate family" of a person means the person's spouse and legal dependents.

9. "Member" means any person who satisfies the requirements for membership pursuant to section two hundred fifty-two of this article.

10. "Periodic customer billing" means a demand for payment for utility services by a public utility to a residential utility consumer on a monthly or other regular basis.

11. "Political committee" means any committee, club, association or other group of persons which make campaign expenditures or receive campaign contributions during the year before an election of the board of directors.

12. "Public utility" shall have the same meaning as "public utility company" defined in subdivision twenty-three of section two of this chapter, provided, however "public utility" shall additionally include entities subject to the provisions of article eleven of this chapter.

13. "Utility consumer" means any individual who is located in this state and which is furnished with a utility service by a public utility.

14. "Utility service" means electricity, natural gas, water and telephone service supplied by a public utility.

§ 252. Citizens utility board: formation and membership. 1. There is created a nonprofit public body corporate and politic to be known as the "citizens utility board". Any utility consumer who has submitted a membership form and has contributed membership dues to the board in the preceding twelve months shall be a member of the board. A member may resign from membership at any time.

2. The board shall, upon certification of their nominations pursuant to subdivision two of section two hundred sixty-three of this article and request by the candidate, within five days provide to each candidate for election to the board of directors a current list of members residing in the candidate's district. Such list shall include the names and current addresses of members within such district, and may be used by the candidate only for election purposes.

3. Notwithstanding any other provision of this article or any other provisions of law, if the board does not receive contributions from at least ten thousand citizens of this state within three years of the effective date of this article, the board shall be dissolved.

§ 253. Powers and duties. 1. The board shall:

(a) Represent and protect the interests of the residential utility consumers of this state. All actions by the board under this article shall be directed toward such duty; provided that the board may also give due consideration to the interests of business in the state.

(b) Inform, in so far as possible, all utility consumers about the board, including the procedure for obtaining membership in the board.

2. The board shall have all the powers necessary or convenient for the effective representation and protection of the interest of utility consumers and to implement this article, including the following powers in addition to all other powers granted by this article:

(a) To make, amend and repeal bylaws and rules for the regulation of its affairs and the conduct of its business; to adopt an official seal and alter it at pleasure; to maintain an office; to sue and be sued in its own name, plead and be impleaded; and to make and execute contracts and other instruments necessary or convenient to the exercise of the powers of the board.

(b) To employ such agents, employees and special advisors as it finds necessary and to fix their compensation.

(c) To solicit and accept gifts, loans, or other aid in order to support activities concerning the interests of utility consumers. Except as provided in section two hundred fifty-four of this article, the board may not accept gifts, loans or other aid from any public utility or from any director, employee or agent or member of the immediate family of a director, employee or agent of any public utility. As used in this paragraph, "aid" does not mean payment of membership dues.

(d) To intervene as a party or otherwise participate on behalf of utility consumers in any proceeding which affects the interest of utility consumers.

(e) To represent the interests of utility consumers before the commission, the federal energy regulatory commission, the federal communications commission, the courts, and other public bodies, except that no director, employee or agent of the board may engage in lobbying without first complying with any applicable statute, administrative rule or other regulation relating to lobbying.

(f) To establish annual dues which shall be set at a level that provides sufficient funding for the board to effectively perform its powers and duties, and is reasonable and affordable for as many utility consumers as is possible.

(g) To implement solicitation for board funding and membership.

(h) To seek tax exempt status under state and federal law, including 501(c)(3) status under the United States internal revenue code.

(i) To provide information and advice to utility consumers on any matter with respect to utility service, including but not limited to information and advice on benefits and methods of energy conservation.

3. The powers, duties, rights and privileges conferred or imposed upon the board by this article shall not be transferred.

4. The board shall refrain from interfering with collective bargaining rights of any employees of a public utility.

§ 254. Contributions. Notwithstanding paragraph (c) of subdivision two of section two hundred fifty-three of this article, the board shall have the authority to solicit and accept contributions from the clean energy fund.

§ 255. Board of directors. The board shall be managed by, and its powers, functions and duties shall be exercised through a board of directors to be composed as follows:

1. Election and terms of directors. The citizens utility board districts shall be divided into two groups for the purpose of establishing terms for which the directors shall be elected in each group. One group shall be comprised of the even numbered judicial districts within the state and one at-large member. The odd numbered judicial districts within the state and one at-large member shall comprise the other group.

(a) The interim board of directors, within sixty days after their appointment, shall meet and publicly by lot determine which group shall be the first group and which group shall be the second. The board of directors members or their successors from the first group shall be elected for successive terms of two years, two years and four years; and members or their successors from the second group shall be elected for successive terms of four years, two years and two years.

(b) The first election of the board of directors is to be held no later than the thirtieth of April next succeeding the effective date of this article. Subsequent elections of the board of directors shall be held on March thirty-first of each election year. If March thirty-first falls on a weekend or holiday, the election shall occur on the next business day following March thirty-first.

(c) Interim and elected board members shall serve until their successors are elected and have qualified.

2. Qualifications. A director shall be a resident of the district they represent, provided however, that an at-large director only needs to be a resident of the state, and all directors shall be members of the board. No person who is an employee in any managerial or supervisory capacity, director, officer or agent or who is a member of the immediate family of any such employee, director, officer or agent of any public utility is eligible to be a director. No director may hold any elective position, be a candidate for any elective position, be a state public official, be employed by the commission, or be employed in a governmental position.

3. Director, family member employment. No director, nor member of their immediate family shall, either directly or indirectly, be employed for compensation as a staff member or consultant of the board.

4. Meetings. The board of directors shall hold regular meetings at least once every three months on such dates and at such places as it may determine. Special meetings may be called by the president or by a majority of the directors upon at least seven days' advance written notice. Unless otherwise provided in the bylaws, a majority of the board of directors shall constitute a quorum; provided, that in no event shall a quorum consist of less than one-third of the board of directors. The act of the majority of the directors, present at a meeting at which a quorum is present, shall be the act of the board of directors unless the act of a greater number is required by this article or bylaws. A summary of the minutes of every board meeting shall be made available to each public library in the state upon request and to individuals upon request.

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 enacting the citizens utility board act; and making an appropriation therefor

Purpose

This legislation aims to keep power bills affordable for New Yorkers by establishing a New York Citizens Utility Board.

Summary of provisions

Section 1 establishes that the act shall be known as the "citizens util- ity board act".

Read the full memo (752 words)

Section 2 adds a new article 12 to the public service law that:

* § 251. Defines the meanings of essential terms.

* § 252. Establishes the formation and membership of the Citizens Utili- ty Board.

* § 253. Establishes the powers and duties of the Citizens Utility Board.

* § 254. Allows the Citizens Utility Board to solicit and accept donations from the Clean Energy Fund.

* § 255. Establishes the composition of the Citizens Utility Board's board of directors.

* § 256. Establishes the duties of the board of directors.

* § 257. Requires members of the board of directors to file financial statements.

* § 258. Establishes the qualifications and appointment process for the executive director.

* § 259. Establishes that the Citizens Utility Board's annual meetings will be open to the public.

* § 260. Establishes the procedure for the Citizen Utility Board to include literature in mailings from public utilities.

* § 261. Prohibits retaliation against any person participating in the Citizens Utility Board.

* § 262. Establishes the process of appointing an interim board of directors.

* § 263. Establishes the eligibility requirements to be elected to the board of directors.

* § 264. Establishes that statements filed with the Citizens Utility Board shall be available for public inspection. * § 265. Establishes that the board of directors shall elect officers including a president, vice president, secretary, and treasurer.

* § 266. Prohibits certain corrupt practices for the board of directors and Citizens Utility Board employees.

* § 267. Prohibits the Citizens. Utility Board from engaging in partisan activity, or from advocating for or against legislation.

* § 268. Establishes that the Citizens Utility Board must pay its expenses through funds raised from membership dues and donations.

* § 269. Establishes that the Citizens Utility Board may dissolve under the non-for-profit corporation law.

* § 270 Establishes the legal construction of this act.

* § 271. Establishes that public utilities are not liable for actions taken that are required to comply with this act.

Section 3 appropriates one million dollars to the Citizens Utility Board to fund its initial operations.

Section 4 establishes the severability of this act.

Section 5 sets forth the effective date.

Justification

In January of 2026, the New York State Public Service Commission (PSC) approved a rate increase for Con Edison customers, hiking electric rates by 9.8% and gas rates by 15.7% over a three-year period. This excessive rate increase will put increased financial burdens on New Yorkers who are already struggling to make ends meet. According to an AARP study, 1.3 million New Yorkers were more than two months behind on their utili- ty bills in 2024, and had over $1.8 billion in unpaid electric and gas bills. Now, as new AI data centers increase demand for power, consumers need a watchdog in the rate setting process that will fight to keep power bills low.

The proposed legislation would establish a New York Citizens Utility Board (CUB), a nonprofit organization that would collectively represent utility customers before the PSC. Participating in a PSC rate case often requires filing legal requests, sponsoring expert witnesses, and taking part in settlement discussions. While a utility company can afford the lawyers and staff necessary to effectively participate in a rate case, an individual utility customer cannot. Establishing a CUB will level the playing field and ensure that the concerns of rate payers are properly represented before the PSC.

After an initial state expenditure of one million dollars, New York's CUB would be funded by voluntary dues from utility customers and donations. The CUB would be governed by a board of directors that would be directly elected by dues paying members.

In 1991, former Governor Mario Cuomo issued Executive Order 141, estab- lishing a Citizens Utility Board in New York. In 1995, former Governor

George Pataki issued Executive Order 19, revoking Executive Order 141, effectively disbanding New York's CUB.

Legislative history

New Legislation.

Fiscal implications

$1,000,000, non-recurring.

Effective date

This act shall take effect on the one hundred eightieth day after it shall have become a law.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.