NY State Senate Bill 2013-S3442A

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 24, 2014	print number 3442a
Jan 24, 2014	amend and recommit to energy and telecommunications
Jan 08, 2014	referred to energy and telecommunications
Feb 01, 2013	referred to energy and telecommunications

Bill Amendments

Original

A (Active)

2013-S3442 - Details

See Assembly Version of this Bill:: A351
Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Service Law
Laws Affected:: Amd §65, Pub Serv L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A3245
2011-2012: S6455, A1027, A8433
2015-2016: S2557, A1903
2017-2018: S5023, A5235
2019-2020: S2376, A3245

2013-S3442 - Summary

Prohibits suppliers of natural gas or electric service from changing a customer's supplier of gas or electric service (commonly known as "slamming") unless such supplier complies with requirements established by the public service commission; authorizes the commission to establish requirements for customer consent; makes enforcement provisions to punish violators of slamming requirements.

2013-S3442 - Sponsor Memo

                                BILL NUMBER:S3442

TITLE  OF BILL:   An act to amend the public service law, in relation to
unauthorized changes in suppliers of natural gas and electric service

PURPOSE OR GENERAL IDEA OF BILL:   To prohibit unauthorized  changes  in
suppliers of natural gas or electric service and to establish additional
enforcement methods.

SUMMARY OF SPECIFIC PROVISIONS:  This bill would amend Section 65 of the
Public  Service Law to prohibit a supplier of natural gas or electricity
from making or directing an  unauthorized  change  in  gas  or  electric
service,  commonly  known as slamming. This bill would further authorize
the Public  Service  Commission  (PSC)  to  establish  requirements  for
obtaining  the  authorization  of  a  customer to effect a change in the
customer's supplier of gas or electric service and for the  verification
of such change.

This  bill  would also authorize the PSC to punish violators of slamming
requirements by seeking a judicial  penalty  under  Public  Service  Law
Section  25  or an administrative penalty not to exceed $1,000 for every
violation associated with each  meter  service  point,  and  by  seeking
injunctive  relief.  Section  25  of  the  Public  Service Law currently
authorizes penalties, subject to judicial discretion, in amounts not  to
exceed $100,000 per offense.

The PSC currently requires Energy Service Companies (ESCOs) to establish
procedures  to obtain authorization of customers for a change in gas and
electric service and for the verification of such change, as a condition
of eligibility to serve customers in New York  State.  Such  eligibility
may  be  revoked  by  the  PSC  if the ESCO fails to comply with service
requirements. Natural gas local distribution companies require a written
authorization or a verified oral declaration by a customer  prior  to  a
change  in  supplier and may deny transportation of gas on their systems
to a marketer that fails to obtain the necessary authorizations.

JUSTIFICATION:   Competition in the electric  and  gas  industries  will
provide  many new benefits for consumers, but experience gained from the
deregulation of the telephone industry also suggests that the  unauthor-
ized  change  in  gas  or  electric service, known as slamming, may be a
concern with the deregulation of the electric and gas industries.  Unau-
thorized  changes  in  electric  and  gas service are deceitful business
practices which anger consumers, who object to the loss of control  over
their  choice of supplier and the inconvenience involved in returning to
their original supplier.

FISCAL IMPLICATIONS:  Increased revenue to general fund  resulting  from
administrative and judicial penalties.

EFFECTIVE DATE:  This bill will take effect 120 days after it shall have
become law.

2013-S3442 - Bill Text download pdf

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

                                  3442

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 1, 2013
                               ___________

Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
  printed to be committed to the Committee on  Energy  and  Telecommuni-
  cations

AN  ACT  to  amend  the  public service law, in relation to unauthorized
  changes in suppliers of natural gas and electric service

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

  Section 1. Section 65 of the public service law is amended by adding a
new subdivision 14 to read as follows:
  14.  UNAUTHORIZED CHANGES IN NATURAL GAS OR ELECTRIC SERVICE PROHIBIT-
ED. (A) NO SUPPLIER OF GAS OR ELECTRIC SERVICE OR ANY  PERSON,  FIRM  OR
CORPORATION  ACTING  AS SUCH SUPPLIER'S AGENT OR REPRESENTATIVE SHALL ON
BEHALF OF A CUSTOMER MAKE OR DIRECT ANY CHANGE IN A SUPPLIER OF  GAS  OR
ELECTRIC  SERVICE UNLESS SUCH SUPPLIER, AGENT OR REPRESENTATIVE COMPLIES
WITH REQUIREMENTS TO AUTHORIZE AND VERIFY  THE  CHANGE.  THE  COMMISSION
SHALL  HAVE  THE  AUTHORITY  TO ESTABLISH REQUIREMENTS FOR OBTAINING THE
AUTHORIZATION OF A CUSTOMER TO EFFECT A CHANGE IN THE CUSTOMER'S SUPPLI-
ER OF GAS OR ELECTRIC SERVICE AND FOR THE VERIFICATION OF  SUCH  CHANGE.
IN  CONSTRUING AND ENFORCING THE PROVISIONS OF THIS SUBDIVISION, THE ACT
OF ANY PERSON, FIRM OR CORPORATION ACTING AS AN AGENT OR  REPRESENTATIVE
OF  A  SUPPLIER OF GAS OR ELECTRIC SERVICE SHALL BE DEEMED TO BE THE ACT
OF SUCH SUPPLIER OF GAS OR ELECTRIC SERVICE. FOR THE  PURPOSES  OF  THIS
SUBDIVISION,  "SUPPLIER  OF  GAS  OR ELECTRIC SERVICE" SHALL INCLUDE ANY
PERSON, FIRM OR CORPORATION THAT OFFERS, SELLS OR DELIVERS ALL  OR  PART
OF NATURAL GAS OR ELECTRIC SERVICE, INCLUDING, BUT NOT LIMITED TO, A GAS
OR  ELECTRIC  DISTRIBUTION COMPANY, A GAS OR ELECTRIC CORPORATION, A GAS
OR ELECTRICITY PROVIDER, MARKETER, AGGREGATOR OR BROKER.
  (B) THE FAILURE TO COMPLY WITH  THE  PROVISIONS  IN  THIS  SUBDIVISION
SHALL  SUBJECT A SUPPLIER OF GAS OR ELECTRIC SERVICE TO EITHER THE JUDI-
CIAL PENALTY AUTHORIZED IN SECTION TWENTY-FIVE OF THIS CHAPTER  FOR  THE
FAILURE OR NEGLECT TO OBEY OR COMPLY WITH A PROVISION OF THIS CHAPTER OR

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01552-01-3

S. 3442                             2

THE  ADMINISTRATIVE  PENALTY ESTABLISHED IN THIS SUBDIVISION. IN SEEKING
SUCH JUDICIAL PENALTY OR  ASSESSING  SUCH  ADMINISTRATIVE  PENALTY,  THE
COMMISSION  SHALL  TAKE  INTO ACCOUNT THE NATURE, CIRCUMSTANCES, EXTENT,
GRAVITY  AND NUMBER OF THE VIOLATIONS, AND WITH RESPECT TO THE VIOLATOR,
THE DEGREE OF CULPABILITY, ANY HISTORY OF PRIOR  OFFENSES  AND  REPEATED
VIOLATIONS,  AND  SUCH OTHER MATTERS AS MAY BE APPROPRIATE AND RELEVANT.
THE REMEDIES PROVIDED BY THIS SUBDIVISION SHALL BE IN  ADDITION  TO  ANY
OTHER REMEDIES PROVIDED BY LAW.
  (C)  THE  COMMISSION,  AFTER OPPORTUNITY FOR A HEARING, SHALL HAVE THE
AUTHORITY TO ASSESS  DIRECTLY  AN  ADMINISTRATIVE  PENALTY  AGAINST  ANY
SUPPLIER  OF GAS OR ELECTRIC SERVICE FOR EACH VIOLATION OF THIS SUBDIVI-
SION OR ORDER OF THE COMMISSION IMPLEMENTING OR ENFORCING THE PROVISIONS
OF THIS SUBDIVISION. SUCH PENALTY SHALL NOT EXCEED ONE THOUSAND  DOLLARS
FOR  EACH VIOLATION ASSOCIATED WITH EACH METER SERVICE POINT. ALL MONEYS
RECOVERED FROM ANY ADMINISTRATIVE PENALTY SHALL BE PAID INTO  THE  STATE
TREASURY TO THE CREDIT OF THE GENERAL FUND.
  (D)  WHENEVER  THE  COMMISSION  DETERMINES THAT ANY SUPPLIER OF GAS OR
ELECTRIC SERVICE IS VIOLATING OR ABOUT TO VIOLATE ANY PROVISION OF  THIS
SUBDIVISION OR ANY REGULATION OR ORDER OF THE COMMISSION IMPLEMENTING OR
ENFORCING  THE  PROVISIONS OF THIS SUBDIVISION, OR HAS FAILED TO PAY ANY
PENALTY ASSESSED PURSUANT TO THE PROVISIONS  OF  THIS  SUBDIVISION,  THE
COMMISSIONER SHALL HAVE POWER TO BRING AN ACTION OR ENFORCEMENT PROCEED-
ING AS PROVIDED BY SECTION TWENTY-SIX OF THIS CHAPTER.
  S  2.    This  act  shall take effect on the one hundred twentieth day
after it shall have become a  law;  provided,  however,  that  effective
immediately,  the addition, amendment and/or repeal of any rule or regu-
lation necessary for the implementation of this  act  on  its  effective
date  is  authorized  and directed to be made and completed on or before
such effective date.

2013-S3442A (ACTIVE) - Details

See Assembly Version of this Bill:: A351
Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Service Law
Laws Affected:: Amd §65, Pub Serv L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A3245
2011-2012: S6455, A1027, A8433
2015-2016: S2557, A1903
2017-2018: S5023, A5235
2019-2020: S2376, A3245

2013-S3442A (ACTIVE) - Summary

2013-S3442A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S3442A

TITLE OF BILL:  An act to amend the public service law, in relation to
unauthorized changes in suppliers of natural gas and electric service

PURPOSE OR GENERAL IDEA OF BILL:

To prohibit unauthorized changes in suppliers of natural gas or
electric service and to establish additional enforcement methods.

SUMMARY OF SPECIFIC PROVISIONS:

This bill would amend Section 65 of the Public Service Law to prohibit
a supplier of natural gas or electricity from making or directing an
unauthorized change in gas or electric service, commonly known as
slamming. This bill would further authorize the Public Service
Commission (PSC) to establish requirements for obtaining the
authorization of a customer to effect a change in the customer's
supplier of gas or electric service and for the verification of such
change.

This bill would also authorize the PSC to punish violators of slamming
requirements by seeking a judicial penalty under Public Service Law
Section 25 or an administrative penalty not to exceed $1,000 for every
violation associated with each meter service point, and by seeking
injunctive relief. Section 25 of the Public Service Law currently

authorizes penalties, subject to judicial discretion, in amounts not
to exceed $100,000 per offense.

The PSC currently requires Energy Service Companies (ESCOs) to
establish procedures to obtain authorization of customers for a change
in gas and electric service and for the verification of such change,
as a condition of eligibility to serve customers in New York State.
Such eligibility may be revoked by the PSC if the ESCO fails to comply
with service reauirements. Natural gas local distribution companies
require a written authorization or a verified oral declaration by a
customer prior to a change in supplier and may deny transportation of
gas on their systems to a marketer that fails to obtain the necessary
authorizations.

JUSTIFICATION:

Competition in the electric and gas industries will provide many new
benefits for consumers, but experience gained from the deregulation of
the telephone industry also suggests that the unauthorized change in
gas or electric service, known as slamming, may be a concern with the
deregulation of the electric and gas industries. Unauthorized changes
in electric and gas service are deceitful business practices which
anger consumers, who object to the loss of control over their choice
of supplier and the inconvenience involved in returning to their
original supplier.

FISCAL IMPLICATIONS:

Increased revenue to general fund resulting from administrative and
judicial penalties.


EFFECTIVE DATE:

This bill will take effect 120 days after it shall have become law.

2013-S3442A (ACTIVE) - Bill Text download pdf

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

                                 3442--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 1, 2013
                               ___________

Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
  printed to be committed to the Committee on  Energy  and  Telecommuni-
  cations  --  recommitted  to  the Committee on Energy and Telecommuni-
  cations in  accordance  with  Senate  Rule  6,  sec.  8  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT  to  amend  the  public service law, in relation to unauthorized
  changes in suppliers of natural gas and electric service

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

  Section 1. Section 65 of the public service law is amended by adding a
new subdivision 16 to read as follows:
  16.  UNAUTHORIZED CHANGES IN NATURAL GAS OR ELECTRIC SERVICE PROHIBIT-
ED. (A) NO SUPPLIER OF GAS OR ELECTRIC SERVICE OR ANY  PERSON,  FIRM  OR
CORPORATION  ACTING  AS SUCH SUPPLIER'S AGENT OR REPRESENTATIVE SHALL ON
BEHALF OF A CUSTOMER MAKE OR DIRECT ANY CHANGE IN A SUPPLIER OF  GAS  OR
ELECTRIC  SERVICE UNLESS SUCH SUPPLIER, AGENT OR REPRESENTATIVE COMPLIES
WITH REQUIREMENTS TO AUTHORIZE AND VERIFY  THE  CHANGE.  THE  COMMISSION
SHALL  HAVE  THE  AUTHORITY  TO ESTABLISH REQUIREMENTS FOR OBTAINING THE
AUTHORIZATION OF A CUSTOMER TO EFFECT A CHANGE IN THE CUSTOMER'S SUPPLI-
ER OF GAS OR ELECTRIC SERVICE AND FOR THE VERIFICATION OF  SUCH  CHANGE.
IN  CONSTRUING AND ENFORCING THE PROVISIONS OF THIS SUBDIVISION, THE ACT
OF ANY PERSON, FIRM OR CORPORATION ACTING AS AN AGENT OR  REPRESENTATIVE
OF  A  SUPPLIER OF GAS OR ELECTRIC SERVICE SHALL BE DEEMED TO BE THE ACT
OF SUCH SUPPLIER OF GAS OR ELECTRIC SERVICE. FOR THE  PURPOSES  OF  THIS
SUBDIVISION,  "SUPPLIER  OF  GAS  OR ELECTRIC SERVICE" SHALL INCLUDE ANY
PERSON, FIRM OR CORPORATION THAT OFFERS, SELLS OR DELIVERS ALL  OR  PART
OF NATURAL GAS OR ELECTRIC SERVICE, INCLUDING, BUT NOT LIMITED TO, A GAS
OR  ELECTRIC  DISTRIBUTION COMPANY, A GAS OR ELECTRIC CORPORATION, A GAS
OR ELECTRICITY PROVIDER, MARKETER, AGGREGATOR OR BROKER.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01552-03-3

S. 3442--A                          2

  (B) THE FAILURE TO COMPLY WITH  THE  PROVISIONS  IN  THIS  SUBDIVISION
SHALL  SUBJECT A SUPPLIER OF GAS OR ELECTRIC SERVICE TO EITHER THE JUDI-
CIAL PENALTY AUTHORIZED IN SECTION TWENTY-FIVE OF THIS CHAPTER  FOR  THE
FAILURE OR NEGLECT TO OBEY OR COMPLY WITH A PROVISION OF THIS CHAPTER OR
THE  ADMINISTRATIVE  PENALTY ESTABLISHED IN THIS SUBDIVISION. IN SEEKING
SUCH JUDICIAL PENALTY OR  ASSESSING  SUCH  ADMINISTRATIVE  PENALTY,  THE
COMMISSION  SHALL  TAKE  INTO ACCOUNT THE NATURE, CIRCUMSTANCES, EXTENT,
GRAVITY AND NUMBER OF THE VIOLATIONS, AND WITH RESPECT TO THE  VIOLATOR,
THE  DEGREE  OF  CULPABILITY, ANY HISTORY OF PRIOR OFFENSES AND REPEATED
VIOLATIONS, AND SUCH OTHER MATTERS AS MAY BE APPROPRIATE  AND  RELEVANT.
THE  REMEDIES  PROVIDED  BY THIS SUBDIVISION SHALL BE IN ADDITION TO ANY
OTHER REMEDIES PROVIDED BY LAW.
  (C) THE COMMISSION, AFTER OPPORTUNITY FOR A HEARING,  SHALL  HAVE  THE
AUTHORITY  TO  ASSESS  DIRECTLY  AN  ADMINISTRATIVE  PENALTY AGAINST ANY
SUPPLIER OF GAS OR ELECTRIC SERVICE FOR EACH VIOLATION OF THIS  SUBDIVI-
SION OR ORDER OF THE COMMISSION IMPLEMENTING OR ENFORCING THE PROVISIONS
OF  THIS SUBDIVISION. SUCH PENALTY SHALL NOT EXCEED ONE THOUSAND DOLLARS
FOR EACH VIOLATION ASSOCIATED WITH EACH METER SERVICE POINT. ALL  MONEYS
RECOVERED  FROM  ANY ADMINISTRATIVE PENALTY SHALL BE PAID INTO THE STATE
TREASURY TO THE CREDIT OF THE GENERAL FUND.
  (D) WHENEVER THE COMMISSION DETERMINES THAT ANY  SUPPLIER  OF  GAS  OR
ELECTRIC  SERVICE IS VIOLATING OR ABOUT TO VIOLATE ANY PROVISION OF THIS
SUBDIVISION OR ANY REGULATION OR ORDER OF THE COMMISSION IMPLEMENTING OR
ENFORCING THE PROVISIONS OF THIS SUBDIVISION, OR HAS FAILED TO  PAY  ANY
PENALTY  ASSESSED  PURSUANT  TO  THE PROVISIONS OF THIS SUBDIVISION, THE
COMMISSIONER SHALL HAVE POWER TO BRING AN ACTION OR ENFORCEMENT PROCEED-
ING AS PROVIDED BY SECTION TWENTY-SIX OF THIS CHAPTER.
  S 2.  This act shall take effect on  the  one  hundred  twentieth  day
after  it  shall  have  become  a law; provided, however, that effective
immediately, the addition, amendment and/or repeal of any rule or  regu-
lation  necessary  for  the  implementation of this act on its effective
date is authorized and directed to be made and completed  on  or  before
such effective date.

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Senate Bill S3442A

Sponsored By

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

Bill Amendments

2013-S3442 - Details

2013-S3442 - Summary

2013-S3442 - Sponsor Memo

2013-S3442 - Bill Text download pdf

2013-S3442A (ACTIVE) - Details

2013-S3442A (ACTIVE) - Summary

2013-S3442A (ACTIVE) - Sponsor Memo

2013-S3442A (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S3442A

Share this bill

Sponsored By

Liz Krueger

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

Bill Amendments

2013-S3442 - Details

2013-S3442 - Summary

2013-S3442 - Sponsor Memo

2013-S3442 - Bill Text download pdf

2013-S3442A (ACTIVE) - Details

2013-S3442A (ACTIVE) - Summary

2013-S3442A (ACTIVE) - Sponsor Memo

2013-S3442A (ACTIVE) - Bill Text download pdf

Comments