S T A T E O F N E W Y O R K
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1119
2013-2014 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 9, 2013
___________
Introduced by M. of A. KELLNER -- read once and referred to the Commit-
tee on Energy
AN ACT to amend the public service law, in relation to requiring notifi-
cation to utility customers of their right to direct access to public
service commission complaint procedures without arbitration or court
proceedings, to restricting the conversion of residential rental
buildings from being mass-metered to submetered and to prohibiting the
collection of charges for residential utility service deemed to be
rent; to amend the multiple dwelling law and the multiple residence
law, in relation to prohibiting the collection of charges for heat-re-
lated residential utility service; and to require the public service
commission to audit previously approved utility submetering orders,
compare usage before submetering to usage after submetering orders
were implemented, and prepare a report concerning its findings
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Legislative findings and intent. The legislature finds that
some providers of residential utility service have created barriers to
prompt resolution of customer complaints through the complaint adjudi-
cation functions of the public service commission. Some providers of
electric service refer customers to private arbitration or judicial
adjudication of utility customer complaints, contrary to the primary
jurisdiction of the public service commission, creating barriers to the
efficient and uniform enforcement and administration of the Home Energy
Fair Practices Act. The legislature further finds that it is in the
public interest to require the public service commission to notify all
residential utility customers of their right to file complaints directly
with the public service commission for administrative determination
without pursuing third party arbitration or judicial relief.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03711-01-3
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The legislature further finds that deeming by owners of charges to
residential tenants for electric service to be rent and the assessment
and collection by multiple dwelling owners of separate charges for elec-
tricity, electric service, natural gas, and natural gas service or other
fuel used to heat living quarters is not in the public interest and
should be prohibited.
S 2. Subdivision 1 of section 43 of the public service law, as added
by chapter 713 of the laws of 1981, is amended to read as follows:
1. The commission shall maintain regulations for the handling of resi-
dential customer complaints, which at a minimum shall require that each
utility or municipality: (a) maintain procedures for prompt investi-
gation of any complaint on a bill for gas or electric service rendered
or a deposit required and for prompt reporting to the complainant of the
result of such investigation. If such report is made orally, the utili-
ty corporation or municipality shall offer the complainant upon a writ-
ten request the opportunity to receive the report in writing; (b) inform
any complainant whose complaint is resolved in favor of the utility
corporation or municipality, in whole or in part, of the availability of
the commission's complaint handling procedures; (c) refrain from termi-
nating service for nonpayment so long as a complaint is pending before a
utility, municipality or the commission and for fifteen days thereafter,
or for such period as the commission for good cause shall establish;
provided however, that as a condition of continued service during the
pendency of any such dispute, a customer shall pay the undisputed
portions of any bill for service including bills for current usage, or
such amounts as the commission determines reasonably reflect the cost of
usage to such customer; [and] (d) refrain from treating the disputed
portion of any bill as late during the pendency of any complaint before
the utility or municipality; AND (E) NOTIFY ALL RESIDENTIAL CUSTOMERS
ANNUALLY, INCLUDING SUBMETERED CUSTOMERS, THAT THE COMPLAINT HANDLING
PROCEDURES OF THE PUBLIC SERVICE COMMISSION CAN BE INVOKED TO OBTAIN AN
ADMINISTRATIVE DETERMINATION OF COMPLAINTS REGARDING UTILITY SERVICE BY
TELEPHONE CALL, LETTER, ONLINE COMPLAINT FORM, OR VISIT TO AN OFFICE OF
THE PUBLIC SERVICE COMMISSION.
S 3. Section 53 of the public service law is renumbered section 54 and
a new section 53 is added to read as follows:
S 53. RESIDENTIAL RENTAL BUILDING SUBMETERING. 1. A MASTER-METERED
RESIDENTIAL RENTAL BUILDING MAY BE CONVERTED TO BE SUBMETERED IF THE
OWNER OF THE BUILDING FILES AN APPLICATION TO CONVERT THE BUILDING TO
SUBMETERING WITH THE COMMISSION, PROVIDED THAT:
(A) THE APPLICANT APPLYING TO PROVIDE SUBMETERED ELECTRIC SERVICE
INCLUDES WITH THE APPLICATION A PROCEDURE FOR NOTIFYING IN WRITING,
WITHIN THIRTY DAYS OF FILING THE APPLICATION WITH THE COMMISSION, ALL
TENANTS OF RECORD OF THE PROPOSAL TO SUBMETER. THE NOTIFICATION SHALL:
(I) INCLUDE A SUMMARY OF THE INFORMATION PROVIDED TO THE COMMISSION;
(II) INFORM TENANTS THAT A PUBLIC COMMENT PERIOD HAS COMMENCED;
(III) STATE THE DATE AFTER WHICH COMMENTS DIRECTED TO THE COMMISSION
WILL NO LONGER BE ACCEPTED;
(IV) PROMINENTLY DISPLAY THE ADDRESS AND TELEPHONE NUMBER OF THE NEAR-
EST PUBLIC SERVICE COMMISSION OFFICE;
(V) STATE THE DATE, TIME, AND LOCATION OF THE PUBLIC HEARING SET BY
THE COMMISSION TO HEAR TESTIMONY FROM THE PUBLIC;
(VI) DIRECT THE TENANT WHERE ON THE PUBLIC SERVICE COMMISSION'S
WEBSITE THE ENTIRE APPLICATION CAN BE VIEWED, AS WELL AS TO PROVIDE A
TOLL-FREE TELEPHONE NUMBER AND ADDRESS FROM WHICH A TENANT OF RECORD MAY
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REQUEST A COPY OF THE COMPLETE APPLICATION TO BE MAILED TO SUCH TENANT
AT NO COST TO THE TENANT;
(VII) INCLUDE A STATEMENT SUBSTANTIATING ANY ECONOMIC ADVANTAGES OF
SUBMETERING OVER DIRECT UTILITY METERING AT THE PREMISES PROPOSED TO BE
SUBMETERED;
(VIII) INCLUDE A DESCRIPTION OF THE TYPE OF SUBMETERING SYSTEM TO BE
INSTALLED AND A VALIDATION OF ITS RELIABILITY AND ACCURACY;
(IX) STATE THE METHOD AND BASIS FOR CALCULATING RATES TO TENANTS,
WHICH SHALL INCLUDE A MAXIMUM RATE PROVISION PREVENTING CHARGES TO
TENANTS FROM EXCEEDING THE TARIFFED RATES AND CHARGES FOR SERVICE FROM
THE LOCAL DISTRIBUTION UTILITY;
(X) STATE COMPLAINT PROCEDURES AND TENANT PROTECTIONS CONSISTENT WITH
THE HOME ENERGY FAIR PRACTICES ACT; AND
(XI) DEMONSTRATE THAT SATISFACTORY ARRANGEMENTS HAVE BEEN MADE WITH
THE LOCAL DEPARTMENT OF SOCIAL SERVICES TO PROVIDE CONTINUED ELECTRIC
SERVICE UPON ACCEPTANCE OF VENDOR PAYMENT OF UTILITY ASSISTANCE GRANTS
IN ACCORDANCE WITH THE STATE PLAN FOR REGULAR AND EMERGENCY HOME ENERGY
ASSISTANCE UNDER SECTION NINETY-SEVEN OF THE SOCIAL SERVICES LAW, THE
EMERGENCY UTILITY ASSISTANCE PROGRAM UNDER SECTION ONE HUNDRED
THIRTY-ONE-S OF THE SOCIAL SERVICES LAW, AND IN ACCORDANCE WITH OTHER
PROVISIONS OF THE SOCIAL SERVICES LAW OR REGULATIONS OF THE OFFICE OF
TEMPORARY AND DISABILITY ASSISTANCE RELATING TO UTILITY ASSISTANCE
PAYMENTS.
(B) THE COMMISSION HOLDS A PUBLIC HEARING AT A LOCATION NEAR THE RESI-
DENTIAL RENTAL BUILDING AT LEAST THIRTY DAYS PRIOR TO THE CONDITIONAL
AND FINAL APPROVAL OR DENIAL OF THE SUBMETERING APPLICATION.
(C) THE APPLICANT INCLUDES WITH THE APPLICATION:
(I) FINDINGS OF A STUDY COMMISSIONED BY THE APPLICANT OF THE THERMAL
CHARACTERISTICS OF THE BUILDING;
(II) RECORDS OF THE LAST TWENTY-FOUR MONTHS OF ELECTRICAL USAGE AND
CHARGES;
(III) THE PROJECTED SUBMETERED RATES AT THE CURRENT USAGE RATE FOR THE
VARIOUS DWELLING UNIT TYPES THAT EXIST IN THE BUILDING;
(IV) A PLAN TO REPLACE ALL NON-ENERGY STAR RATED APPLIANCES PROVIDED
BY THE APPLICANT TO THE TENANTS WITH ENERGY STAR RATED APPLIANCES.
(D) THE APPLICANT PAYS ALL COSTS OF AN INDEPENDENT ENERGY ANALYSIS OF
THE BUILDING BY ONE OF THE CONSULTANTS CHOSEN BY THE TENANTS IF A GROUP
OF AT LEAST FIFTY PERCENT OF THE TENANTS OF RECORD REQUEST SUCH ANALYSIS
AND THE GROUP OF TENANTS PROVIDES TO THE APPLICANT AT LEAST THREE BIDS
FROM CONSULTANTS WHO CAN PERFORM SUCH ANALYSIS.
2. (A) ALL APPLICATIONS FILED PURSUANT TO THE PROVISIONS OF THIS
SECTION SHALL BE SUBJECT TO A TWO-TIERED APPROVAL PROCESS BY THE COMMIS-
SION. INITIAL APPROVAL OF AN APPLICATION, IF GRANTED BY THE COMMISSION,
SHALL BE GRANTED FOR A PERIOD OF ONE YEAR, AT WHICH TIME, THE APPROVAL
SHALL AUTOMATICALLY EXPIRE; PROVIDED THAT, WITHIN THREE MONTHS PRIOR OR
SUBSEQUENT TO THE EXPIRATION OF THE GRANT OF CONDITIONAL APPROVAL, THE
APPLICANT MAY FILE FOR REVIEW OF THE APPLICATION FOR THE PURPOSE OF
OBTAINING FINAL APPROVAL OF THE APPLICATION. ANY APPLICANT FILING FOR
REVIEW FOR FINAL APPROVAL OF AN APPLICATION SHALL SUBMIT TO THE COMMIS-
SION A LISTING OF THE ACTUAL METERED USAGE RATES AND CHARGES TO THE
TENANTS DURING THE PERIOD OF THE CONDITIONAL APPROVAL OF THE APPLICA-
TION.
(B) ANY APPLICANT WHOSE APPLICATION FOR CONDITIONAL APPROVAL IS DENIED
BY THE COMMISSION MAY RE-FILE AN APPLICATION NO EARLIER THAN SIX MONTHS
FOLLOWING THE DENIAL OF THE APPLICATION BY THE COMMISSION.
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(C) THE COMMISSION SHALL PROVIDE WRITTEN NOTICE TO AN APPLICANT OF ITS
DECISION REGARDING APPLICATIONS WITHIN THIRTY DAYS OF THE PUBLIC HEARING
REQUIRED BY SUBDIVISION ONE OF THIS SECTION. ALL DENIALS OF APPLICATIONS
SHALL STATE THE REASONS FOR THE DENIAL, SHALL SPECIFY THE MEASURES THE
APPLICANT MUST TAKE TO QUALIFY FOR APPROVAL OF THE APPLICATION AND SHALL
ADVISE THE APPLICANT OF HIS OR HER RIGHT TO INVESTIGATION AND REVIEW OF
THE DENIAL OF THE APPLICATION IF THE APPLICANT CONSIDERS SUCH DENIAL TO
BE WITHOUT JUSTIFICATION.
S 4. Section 75 of the public service law is amended to read as
follows:
S 75. Defense in case of excessive charges for gas or electricity OR
CHARGES FOR RESIDENTIAL UTILITY SERVICE DEEMED TO BE RENT. If it be
alleged and established in an action OR PROCEEDING brought in any court
for the collection of any charge for gas or electricity OR FOR
POSSESSION OF REAL PROPERTY BY REASON OF UNPAID CHARGES CLAIMED BY THE
OWNER OR HIS AGENT FOR UTILITY SERVICE, that a price has been demanded
in excess of that fixed by the commission or by statute in the munici-
pality wherein the action arose, OR THAT CHARGES FOR UTILITY SERVICE TO
ANY RESIDENTIAL TENANT ARE DEEMED TO BE RENT UNDER THE TERMS OF ANY
ARRANGEMENT OR AGREEMENT RELATING TO RENTAL OF RESIDENTIAL PROPERTY, no
recovery shall be had therein, but the fact that such excessive charges
have been made OR THAT CHARGES FOR UTILITY SERVICE FOR RESIDENTIAL USE
ARE DEEMED TO BE RENT shall be a complete defense to such action.
S 5. Subdivision 1 of section 79 of the multiple dwelling law, as
amended by chapter 225 of the laws of 1982, is amended to read as
follows:
1. Every multiple dwelling exceeding two stories in height and erected
after April eighteenth, nineteen hundred twenty-nine, and every garden-
type maisonette dwelling project erected after April eighteenth, nine-
teen hundred fifty-four, shall be provided with heat. On and after
November first, nineteen hundred fifty-nine, every multiple dwelling
shall be provided with heat or the equipment or facilities therefor.
During the months between October first and May thirty-first, such heat
and the equipment or facilities shall be sufficient to maintain the
minimum temperatures required by local law, ordinance, rule or regu-
lation, in all portions of the dwelling used or occupied for living
purposes provided, however, that such minimum temperatures shall be as
follows: (a) sixty-eight degrees Fahrenheit during the hours between
six o'clock in the morning and ten o'clock in the evening, whenever the
outdoor temperature falls below fifty-five degrees Fahrenheit, notwith-
standing the provisions of paragraph a of subdivision four of section
three of this chapter, and (b) at least fifty-five degrees Fahrenheit
during the hours between ten o'clock in the evening and six o'clock in
the morning, whenever the outdoor temperature falls below forty degrees
Fahrenheit. Nothing in this section shall be deemed to relieve any owner
of the duty of providing centrally supplied or other approved source of
heat prior to November first, nineteen hundred fifty-nine in any case
where such heat is required by this chapter or any other law, ordinance,
rule or regulation to be supplied in a dwelling prior to said date. The
heating system in dwellings used for single room occupancy shall be in
conformity with the requirements of section two hundred forty-eight OF
THIS CHAPTER. NO OWNER OR AGENT OF ANY OWNER SHALL SEPARATELY CHARGE
TENANTS OR OCCUPANTS FOR ANY ELECTRICITY, ELECTRIC SERVICE, NATURAL GAS
OR NATURAL GAS SERVICE OR OTHER FUEL UTILIZED TO HEAT LIVING QUARTERS.
S 6. Section 173 of the multiple residence law, as amended by chapter
225 of the laws of 1982, is amended to read as follows:
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S 173. Heating. Every new dwelling shall be provided with heat in all
living rooms sufficient to maintain the minimum temperatures required by
local law, ordinances, rules or regulation, or by the local public
health officer, provided, however, that such minimum temperature shall,
notwithstanding the provisions of subdivision one of section three
hundred twenty-nine of this chapter, be sixty-eight degrees Fahrenheit
during the hours between six o'clock in the morning and ten o'clock in
the evening during the months between October first and May thirty-
first, whenever the outdoor temperature falls below fifty-five degrees
Fahrenheit. NO OWNER OR AGENT OF ANY OWNER SHALL SEPARATELY CHARGE
TENANTS OR OCCUPANTS FOR ANY ELECTRICITY, ELECTRIC SERVICE, NATURAL GAS
OR NATURAL GAS SERVICE OR OTHER FUEL UTILIZED TO HEAT LIVING QUARTERS.
S 7. (a) The public service commission shall audit all utility subme-
tering orders approved by the public service commission during the peri-
od of January 1, 2004 through the effective date of this act, and shall
specifically determine whether all applicable utility price caps and
tenant protection provisions have been complied with and compare the
rate and cost of utility usage before submetering to usage after imple-
mentation of submetering orders. This audit shall be completed within
twelve months following the effective date of these provisions.
(b) Upon completion of the audit, the public service commission shall
make a report to the governor and the legislature of its findings,
conclusions and recommendations, and shall submit with such report such
legislative proposals as it deems necessary to implement its recommenda-
tions. This report shall be submitted no later than ninety days after
completion of the audit. No new submetering orders shall be approved
until the public service commission report is submitted to the governor
and the legislature.
S 8. The public service commission shall promulgate any rules and
regulations necessary for the implementation of this act on its effec-
tive date.
S 9. This act shall take effect immediately.