NY State Senate Bill 2019-S1621

Senate Bill S1621

2019-2020 Legislative Session

Relates to the establishment of reduced residential rates for electric and natural gas service to low-income customers

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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 08, 2020	referred to energy and telecommunications
Jan 15, 2019	referred to energy and telecommunications

co-Sponsors

2019-S1621 (ACTIVE) - Details

See Assembly Version of this Bill:: A2613
Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Service Law
Laws Affected:: Amd §65, add §66-p, Pub Serv L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S5819, A9298
2017-2018: S2878, A2694
2021-2022: S3298
2023-2024: S2711
2025-2026: S1552

2019-S1621 (ACTIVE) - Summary

Relates to the establishment of reduced residential rates for electric and natural gas service to low-income customers.

2019-S1621 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S1621

SPONSOR: PARKER
 
TITLE OF BILL:

An act to amend the public service law, in relation to the establishment
of reduced  residential rates for electric and natural gas service to
low-income customers

 
PURPOSE OF BILL:

The bill is designed to protect seniors, the disabled and other persons
who receive certain benefits and supports for needy families from the
inordinately high electric and gas rates in New York State and to
prevent vulnerable persons from having their utilities shut off, causing
health and economic hardship to such consumers.

 
SUMMARY OF PROVISIONS OF BILL:

Section one amends the Public Service Law by adding a new subdivision 16
to section 65.

Paragraph (a) provides for the state's electric and gas corporations to
establish and continue reduced rate schedules for low-income customers
of between 25T to 35% of applicable charges.

Paragraph (b) sets forth. the eligibility criteria for such reduced
rates, to be ostablished for any customer woo receives benefits from
Supplemental Social Security for the Aged or Disabled, Temporary Assist-
ance to Need: Families, Safety Net Assistance, Supplemental Nutrition
Assistance (SNAP, medical assistance, Home Energy Assistance (HEAP),
telephone Lifeline Assistance and any additional programs or higher
income standards approved by the Public Service Commission (PSC).

Paragraph (c) requires providers of electric and gas service to cooper-
ate with the PSC and local social service districts and other agencies
in the certification and recertification of eligible customere.

Paragraph (d) sets forth criteria for application forms and the
provision of inregarding the availability of reduced rates.

Paragraph (e) directs the 17F,C to mitigate the impact of such.  reduced
residential rates to elible customers through various mechanisms at the
disposal O.I. the PSC within its regulatory and rate setting authority.

Section 2 amends Article 4 of the Public Service Law by adding a new
section 66-0, under the General powers of commission in respect to oas
and electricity, t(7) make conforming changes to the law. It also
requires that ouch reduced rates shall be effective no later than Janu-
ary 1, 2016 and that the PSC shall file periodic reports, at least annu-
ally, regarding the number of eligible customers receiving reduced rates
and utility efforts to provide such rates to eligible customers.

Section 3 of the bill is the effective date.

 
JUSTIFICATION:

Utility service is an absolute necessity of life, regardless of a house-
hold's income level. Lives, are threatened when people don't have safe,
reliable access to electricity, heating, and water supply.  Society pays
dearly when terminations occur. These added costs are reflected in high-
er emergency public assistance and medical care, increased homelessness,
the illness or death of vulnerable people, and the cost of putting out
fires due to the use of other means of light and heat ouch as the use of
candles.

New York electric utility rates for residential customers are 50's high-
er than the national average. That is simply not affordable for many
customers.

Furthermore, in 2014, New ',fork State's electric and gas utilities
issued 7.2 million shutoff notices and shut off service to 268,000
customers as a bill collection measure. The state's largest energy util-
ity, Con Edison, issued 2.8 million shutoff notices and shut off service
to 02,000 customers in 2014.

Shutoff notices place many customers with unaffordable bills in leopardy
of losing essential utility services. In addition, threats of utility
shutoffs add extreme stress and compound many families and seniors'
already precarious financial circumstances. Utility shutoff threats and
actual shutoffs often can spiral into crisis situations, create danger-
ous conditions in homes and apartment building, which could result in
the loss of life or other serious harm to customers and their neighbors.

Typically, shutoff notices and shutoff surge in the months of April,
May, and June, otherwise known as "Shutoff Season." Consequently, it
becomes even more important that low-income customers, eligible seniors
and disabled parsons and others who are Eligible for assistance receive
some relief from 17,a,: York's utility rates, which are the highest in
the nation.

In the light of these facts, in 2014 the draft State Energy Plan recom-
mended that New York institute a more robust low-income rate program,
similar to California's CAPES program, which reduires a 35% rate
reduction for low-incoma customers.

The legislation is necessary to assist New York families, seniors, the
disabled and other low-income persons and cushion them from New York's
inordinately high Electric and gas rates, which will in turn protect
them and the State's finances from the hardships and costs that ensue
when people's utility se.7vic:- is not affordable.

 
LEGISLATIVE HISTORY:

2017/18: S.2878 - Energy and Telecommunications

2015-16: S.5819A - Amend and Recommit to Energy and Telecommunications

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None. Significant savings to consumers on a low- or fixed-income throudh
the creation of reduced rates for these eligible consumers.  In addi-
tion, the bill would reduce expenditures to the state and localities for
emergency utility assistance provided under Social Services L131-s, by
reducino the need for, and the amount of such assistance. That program
requires payment of up to four months bills for applicants whose service
is, or is about to be, shut off for nonpayment. The low-income rates
proposed in the bill should enable many customers to avoid seeking
assistance, and for those who do, the amount of aid needed will be
significantly less.

 
EFFECTIVE DATE:
This act shall take effect on the sixtieth day after enactment.

2019-S1621 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1621
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 15, 2019
                                ___________
 
 Introduced  by  Sen.  PARKER -- 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 the establishment
   of  reduced  residential rates for electric and natural gas service to
   low-income customers

   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.  REDUCED RESIDENTIAL RATES FOR ELECTRIC AND NATURAL GAS SERVICE TO
 LOW-INCOME CUSTOMERS. (A) ELECTRIC AND GAS CORPORATIONS SHALL  ESTABLISH
 AND  CONTINUE REDUCED RATE SCHEDULES FOR LOW-INCOME ELECTRIC AND NATURAL
 GAS CUSTOMERS. THE AVERAGE EFFECTIVE RATE REDUCTION SHALL  NOT  BE  LESS
 THAN  TWENTY-FIVE PERCENT OR MORE THAN THIRTY-FIVE PERCENT OF THE REVEN-
 UES THAT WOULD HAVE BEEN PRODUCED FOR THE SAME  BILLED  USAGE  BY  OTHER
 RESIDENTIAL  CUSTOMERS  RECEIVING  FULL SERVICE FROM THE UTILITY WHO ARE
 NOT ELIGIBLE FOR THE REDUCED RATE.
   (B) REDUCED RESIDENTIAL RATES FOR ELECTRIC  AND  NATURAL  GAS  SERVICE
 SHALL  BE  ESTABLISHED  FOR  ANY CUSTOMER WHO RECEIVES BENEFITS FROM THE
 SUPPLEMENTAL SECURITY INCOME PROGRAM FOR THE AGED OR DISABLED  OR  OTHER
 PERSONS,  THE TEMPORARY ASSISTANCE TO NEEDY FAMILIES PROGRAM, SAFETY NET
 ASSISTANCE,  THE  SUPPLEMENTAL  NUTRITION  ASSISTANCE  PROGRAM,  MEDICAL
 ASSISTANCE,  THE  HOME ENERGY ASSISTANCE PROGRAM, THE TELEPHONE LIFELINE
 ASSISTANCE PROGRAM, AND  ANY  OTHER  ADDITIONAL  ASSISTANCE  PROGRAM  OR
 INCOME STANDARD APPROVED BY THE COMMISSION.
   (C) PROVIDERS OF ELECTRIC AND NATURAL GAS SERVICE SHALL COOPERATE WITH
 THE  COMMISSION  AND  SOCIAL  SERVICES  DISTRICTS  AND OTHER AGENCIES TO
 CERTIFY AND RECERTIFY CUSTOMER  ELIGIBILITY  THROUGH  PRIVACY  PROTECTED
 DATA  EXCHANGES  APPROVED BY THE COMMISSION TO ACHIEVE EFFICIENT ENROLL-
 MENT OF ELIGIBLE CUSTOMERS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD00765-01-9

 S. 1621                             2
 
   (D) PROVIDERS OF ELECTRIC AND NATURAL  GAS  SERVICE  SHALL  STRIVE  TO
 PROVIDE  REDUCED  RESIDENTIAL  RATES TO ALL CUSTOMERS ELIGIBLE FOR THEM,
 AND SHALL PROVIDE APPLICATION FORMS FOR REDUCED RATES TO  ELIGIBLE  LOW-
 INCOME  CUSTOMERS  ON  THEIR  WEBSITES,  AT  THEIR OFFICES, AND BY OTHER
 MEANS.  INFORMATION REGARDING THE AVAILABILITY AND ELIGIBILITY STANDARDS
 FOR REDUCED RATES SHALL BE PROVIDED TO RESIDENTIAL CUSTOMERS AT THE TIME
 OF  SERVICE  INITIATION, IN BILL INSERTS, IN COMMUNICATIONS TO CUSTOMERS
 IN ARREARS, AND BY OTHER MEANS REQUIRED OR APPROVED BY THE COMMISSION.
   (E) THE INCREMENTAL REVENUE EFFECTS OF ENHANCEMENT TO LOW-INCOME  RATE
 PROGRAMS UNDER THIS SECTION SHALL BE DEFERRED FOR SUBSEQUENT RATE MAKING
 TREATMENT  AND  APPROVAL  BY  THE COMMISSION. THE REVENUE IMPACT OF SUCH
 RATE REDUCTION SHALL BE MITIGATED BY (I) APPLYING ANY  EARNINGS  OF  THE
 UTILITY  ABOVE  THE ALLOWED RETURN ON EQUITY SET IN THE MOST RECENT RATE
 CASE, (II) DISALLOWING ANY PREMIUM ABOVE THE RATE OF RETURN ALLOWED  FOR
 NOT  FILING  A RATE CASE OR FOR SHARING OF OVEREARNINGS, (III) UTILIZING
 ANY UNCOMMITTED FUNDS AVAILABLE FROM CURRENT SURCHARGES ALLOWED  BY  THE
 COMMISSION  AND  NOT  EXPRESSLY  AUTHORIZED BY STATUTE, (IV) DISALLOWING
 RECOVERY FROM RATEPAYERS OF ANY COSTS OF EXECUTIVE COMPENSATION BONUSES.
 AFTER SUCH MITIGATION MEASURES, AND OTHER MITIGATION MEASURES WHICH  THE
 COMMISSION  MAY  APPROVE,  ANY  SHIFT OF REVENUE RESPONSIBILITY TO OTHER
 CUSTOMERS DUE TO THE REVENUE EFFECTS OF LOW-INCOME RATES  SHALL  NOT  BE
 BORNE SOLELY BY ANY SINGLE CLASS OF CUSTOMER.
   § 2. The public service law is amended by adding a new section 66-p to
 read as follows:
   § 66-P. REDUCED RESIDENTIAL RATES FOR ELECTRIC AND NATURAL GAS SERVICE
 TO  LOW-INCOME  CUSTOMERS.  1. THE COMMISSION SHALL REQUIRE ELECTRIC AND
 NATURAL GAS CORPORATIONS TO ESTABLISH  AND  CONTINUE  PROGRAMS  OF  RATE
 REDUCTION  AND  OTHER  ASSISTANCE TO LOW-INCOME RESIDENTIAL ELECTRIC AND
 NATURAL GAS CUSTOMERS, THE REVENUE IMPACT OF WHICH SHALL  NOT  BE  BORNE
 SOLELY  BY  ANY  SINGLE  CLASS  OF CUSTOMER. THE COMMISSION SHALL ENSURE
 APPROPRIATE LEVELS OF RATE REDUCTION FOR LOW-INCOME ELECTRIC AND NATURAL
 GAS CUSTOMERS TO MITIGATE HARDSHIP, WHICH SHALL NOT BE LESS  THAN  TWEN-
 TY-FIVE  PERCENT  OR  MORE THAN THIRTY-FIVE PERCENT OF THE REVENUES THAT
 WOULD HAVE BEEN PRODUCED FOR THE SAME BILLED USAGE BY OTHER  RESIDENTIAL
 CUSTOMERS  RECEIVING  FULL SERVICE FROM THE UTILITY WHO ARE NOT ELIGIBLE
 FOR  THE  REDUCED  RATE.  IN  ESTABLISHING  THE  APPROPRIATE  PERCENTAGE
 REDUCTION  THE  COMMISSION SHALL ENSURE TO THE EXTENT FEASIBLE THAT LOW-
 INCOME RATEPAYERS ARE NOT JEOPARDIZED OR OVERBURDENED BY RATES FOR ELEC-
 TRIC AND NATURAL GAS SERVICE.
   2. THE COMMISSION SHALL  ESTABLISH  CUSTOMER  INCOME  AND  CATEGORICAL
 ELIGIBILITY  STANDARDS  FOR  REDUCED RATES, WHICH SHALL INCLUDE, WITHOUT
 LIMITATION, ANY CUSTOMERS WHO RECEIVE  BENEFITS  FROM  THE  SUPPLEMENTAL
 SECURITY  INCOME  PROGRAM FOR THE AGED OR DISABLED OR OTHER PERSONS, THE
 TEMPORARY ASSISTANCE TO NEEDY FAMILIES PROGRAM, SAFETY  NET  ASSISTANCE,
 THE  SUPPLEMENTAL  NUTRITION ASSISTANCE PROGRAM, MEDICAL ASSISTANCE, THE
 HOME ENERGY ASSISTANCE PROGRAM, AND THE  TELEPHONE  LIFELINE  ASSISTANCE
 PROGRAM.
   3.  THE  COMMISSION SHALL PROMOTE FULL PENETRATION OF THE REDUCED RATE
 ASSISTANCE TO ALL ELIGIBLE  CUSTOMERS  THROUGH  PRIVACY  PROTECTED  DATA
 EXCHANGES  WITH  AGENCIES PROVIDING ASSISTANCE TO CATEGORICALLY ELIGIBLE
 CUSTOMERS TO ACHIEVE EFFICIENT ENROLLMENT, CERTIFICATION,  AND  PERIODIC
 RECERTIFICATION OF ELIGIBILITY.
   4.  THE COMMISSION SHALL REQUIRE PROVIDERS OF ELECTRIC AND NATURAL GAS
 SERVICE TO PROVIDE INFORMATION AND APPLICATION FORMS FOR  REDUCED  RATES
 TO  ELIGIBLE  LOW-INCOME  CUSTOMERS ON THEIR WEBSITES, AT THEIR OFFICES,
 AND BY OTHER MEANS, AND TO PROVIDE INFORMATION REGARDING THE AVAILABILI-

 S. 1621                             3
 
 TY AND ELIGIBILITY STANDARDS FOR REDUCED RATES TO RESIDENTIAL  CUSTOMERS
 AT  THE  TIME  OF SERVICE INITIATION, IN BILL INSERTS, IN COMMUNICATIONS
 WITH CUSTOMERS IN ARREARS, AND BY OTHER MEANS REQUIRED  OR  APPROVED  BY
 THE COMMISSION.
   5.  THE COMMISSION SHALL REQUIRE ELECTRIC AND NATURAL GAS CORPORATIONS
 TO ESTABLISH REDUCED RATES PURSUANT TO THIS SECTION TO BE  EFFECTIVE  NO
 LATER  THAN  JANUARY  FIRST,  TWO  THOUSAND TWENTY, AND TO FILE PERIODIC
 REPORTS AT LEAST ANNUALLY REGARDING THE  NUMBER  OF  ELIGIBLE  CUSTOMERS
 RECEIVING  REDUCED RATES, UTILITY EFFORTS TO PROVIDE REDUCED RESIDENTIAL
 RATES TO ALL CUSTOMERS ELIGIBLE FOR THEM, AND OTHER  INFORMATION  DEEMED
 NECESSARY  OR  APPROPRIATE  BY THE COMMISSION FOR THE EFFICIENT ADMINIS-
 TRATION OF THE REDUCED RATES.
   6. THE COMMISSION SHALL REQUIRE THAT THE INCREMENTAL  REVENUE  EFFECTS
 OF  ENHANCEMENT  TO  LOW-INCOME  RATE  PROGRAMS  UNDER  THIS  SECTION BE
 DEFERRED FOR SUBSEQUENT RATE MAKING TREATMENT. THE  INCREMENTAL  REVENUE
 IMPACT OF SUCH RATE REDUCTIONS SHALL BE MITIGATED BY:
   (A)  APPLYING  ANY EARNINGS OF THE UTILITY ABOVE THE ALLOWED RETURN ON
 EQUITY SET IN THE MOST RECENT RATE CASE, PURSUANT TO SUBDIVISION  TWENTY
 OF SECTION SIXTY-SIX OF THIS ARTICLE;
   (B)  DISALLOWING ANY RATE OF RETURN PREMIUM FOR NOT FILING A RATE CASE
 OR FOR SHARING OF OVEREARNINGS AFTER RATES ARE SET;
   (C) UTILIZING ANY UNCOMMITTED REVENUES FROM SURCHARGES ALLOWED BY  THE
 COMMISSION BUT NOT EXPRESSLY AUTHORIZED BY STATUTE; AND
   (D) DISALLOWING EXECUTIVE COMPENSATION OR BONUSES NOT ESSENTIAL TO THE
 PROVISION OF SAFE AND ADEQUATE SERVICE.
   AFTER  APPLYING REVENUES FROM SUCH SOURCES, AND OTHER MITIGATION MEAS-
 URES WHICH THE COMMISSION MAY APPROVE, ANY SHIFT OF REVENUE RESPONSIBIL-
 ITY TO OTHER CUSTOMERS DUE TO THE REVENUE EFFECTS  OF  LOW-INCOME  RATES
 SHALL NOT BE BORNE SOLELY BY ANY SINGLE CLASS OF CUSTOMER.
   §  3.  This  act  shall take effect on the sixtieth day after it shall
 have become a law.

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Senate Bill S1621

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Sponsored By

Kevin S. Parker