S T A T E   O F   N E W   Y O R K
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                                  7412

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                               May 4, 2011
                               ___________

Introduced  by M. of A. THIELE, TITONE, LATIMER -- Multi-Sponsored by --
  M. of A. GALEF, ROSENTHAL -- read once and referred to  the  Committee
  on Energy

AN  ACT to amend the public service law, in relation to energy conserva-
  tion and lost revenues

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 72 of the public service law, as amended by chapter
212 of the laws of 1934, is amended to read as follows:
  S 72.  Notice and hearing; order fixing price of gas or electricity or
requiring improvement.  Before proceeding under a complaint presented as
provided  in  section  seventy-one OF THIS ARTICLE, the commission shall
cause notice of such complaint, and the purpose thereof,  to  be  served
upon  the person or corporation affected thereby.  Such person or corpo-
ration shall have an opportunity to be heard in respect to  the  matters
complained  of  at  a time and place to be specified in such notice.  An
investigation may be instituted by the commission of its own  motion  as
to  any  matter  of  which complaint may be made, as provided in section
seventy-one of this [chapter] ARTICLE, or to enable it to ascertain  the
facts requisite to the exercise of any power conferred upon it.  After a
hearing  and  after such an investigation as shall have been made by the
commission or its officers, agents, examiners or inspectors, the commis-
sion may, by order, fix just and reasonable prices,  rates  and  charges
for  gas or electricity to be charged by such corporation or person, for
the service to be furnished notwithstanding that a higher or lower price
has been theretofore prescribed by general or special statute, contract,
grant, franchise condition, consent or other agreement,  and  may  order
such improvement in the manufacture, conveying, transportation, distrib-
ution  or  supply  of gas, in the manufacture, transmission or supply of
electricity, or in the methods employed by such person  or  corporation,
as  will  in  its  judgment  be adequate, just and reasonable.  Any such

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10678-01-1
              

A. 7412                             2

change in price shall be upon such terms, conditions  or  safeguards  as
the  commission  may  prescribe.    If it shall be made to appear to the
satisfaction of the commission  that  the  public  interest  requires  a
change  in the price of gas or electricity charged by any such person or
corporation, or that such change is necessary for the purpose of provid-
ing adequate and efficient service, or for the preservation of the prop-
erty, the commission, upon such terms, conditions or  safeguards  as  it
deems proper, may authorize an immediate, reasonable, temporary increase
or  decrease in such price pending a final determination of the price to
be thereafter charged by such person or corporation.  The terms,  condi-
tions  or  safeguards prescribed may include provisions for the purposes
for which  the  additional  revenue  derived  from  any  such  temporary
increase  may  be expended and for the impounding thereof until the same
shall be applied to the purposes so specified.  The price fixed  by  the
commission  under  this  section  or  under  subdivision five of section
sixty-six OF THIS ARTICLE shall be the maximum price to  be  charged  by
such  person, corporation or municipality for gas or electricity for the
service to be furnished within the territory and  for  a  period  to  be
fixed  by  the commission in the order, not exceeding three years except
in the case of a sliding scale,  and  thereafter  until  the  commission
shall,  upon  its  own  motion or upon the complaint of any corporation,
person or municipality interested, fix a higher or lower  maximum  price
of  gas  or  electricity  to be thereafter charged.   In determining the
price to be charged for gas or electricity the commission  may  consider
all  facts which in its judgment have any bearing upon a proper determi-
nation of the question although not set forth in the complaint  and  not
within  the  allegations  contained therein, with due regard among other
things to a reasonable average return upon capital actually expended and
to the necessity of making reservations out of income  for  surplus  and
contingencies.   At any hearing involving a rate, the burden of proof to
show that the change in rate or price if proposed by the person,  corpo-
ration or municipality operating such utility, or that the existing rate
or  price,  if  on motion of the commission or in a complaint filed with
the commission it is proposed to reduce the rate or price, is  just  and
reasonable shall be upon the person, corporation or municipality operat-
ing  such  utility; and the commission may give to the hearing and deci-
sion of such questions  preference  over  all  other  questions  pending
before  it and decide the same as speedily as possible.  Nothing in this
chapter contained shall be deemed to prohibit the commission from fixing
a sliding scale upward rate for natural gas, beginning at a fixed  price
per  unit for a small consumption and then increasing the price per unit
as the consumption is increased. HOWEVER, AT NO TIME WILL THE COMMISSION
AUTHORIZE A RATE INCREASE TO OFFSET REVENUE LOSS DUE TO ENERGY CONSERVA-
TION EFFORTS BY CONSUMERS.
  S 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law.