NY State Senate Bill 2019-S5341

Senate Bill S5341

2019-2020 Legislative Session

Requires the public service commission to consider the economic impact of utility rates and charges

download bill text pdf

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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to energy and telecommunications
Apr 26, 2019	referred to energy and telecommunications

2019-S5341 (ACTIVE) - Details

See Assembly Version of this Bill:: A135
Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Service Law
Laws Affected:: Amd §§65, 79, 89-b & 91, add §119-d, Pub Serv L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A712
2011-2012: A24
2013-2014: A1468
2015-2016: A2048
2017-2018: A126
2021-2022: S5583, A1227
2023-2024: S2432, A3998

2019-S5341 (ACTIVE) - Summary

Requires consideration of evidence relating to the economic impact of major increases of rates or charges upon consumers and the areas affected by such increases of rates or charges prior to approval of any such rates or charges; establishes minimum data to be considered by the public service commission relating to such economic impact.

2019-S5341 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S5341

SPONSOR: COMRIE
 
TITLE OF BILL:  An act to amend the public service law, in relation to
requiring evidence and consideration of the economic impact of utility
rates and charges by the public service commission

 
PURPOSE OR GENERAL IDEA OF BILL:

To  require  consideration  of the economic impact of increased rates or
charges on consumers and the areas affected by the increases.

 
SUMMARY OF SPECIFIC PROVISIONS:

1) amends sections 65, 79, 89-b and 91 of  the  public  service  law  to
require  the  commission  to  consider  the economic impact of any major
increase in the rates or charges of gas, electric,  steam,  water-works,
telephone, or telegraph corporation.

2)  adds  a  new  section 119-a to the public service law, requiring the
commission to consider the economic impact  of  any  proposed  increase,

prior to approval of such increase. This evidence shall include:

a)  the  latest  unemployment  data,  median income information, and the
number of people receiving public assistance in area affected.

b) the average  monthly  utility  bills  for  each  class  of  customers
affected  by  the proposed increases and the estimated increased utility
bills for these customers.

c) the latest consumer price index figures indicating the  average  cost
of living and the average cost of fuel and utilities for the nation and,
if possible, for the state or service area affected.

 
JUSTIFICATION:

The  spiraling  cost  of  utility  services places an increasingly heavy
burden on consumers. By requiring  the  PSC  to  consider  the  economic
impact  of further rate increases, the utility's needs for the requested
raise would be weighed against the ability of its  customers  to  obtain
affordable  service. This legislation is not intended to impair a utili-
ty's right to a fair rate of return, but rather to require  the  PSC  to
consider  the  impact  of  increased rates on customers whose ability to
bear such costs provides the foundation for a utility's financial integ-
rity.

 
PRIOR LEGISLATIVE HISTORY:

2017-2018: A. 126 - Referred to Corporations,  Authorities  and  Commis-
sions
2015-2016:  A.  2048 - Referred to Corporations, Authorities and Commis-
sions
2013-2014: A. 1568 - Referred to Corporations, Authorities  and  Commis-
sions
2011-2012: A. 24 - Referred to Corporations, Authorities and Commissions
2009-2010:  A.  712  - Referred to Corporations, Authorities and Commis-
sions
2007-2008: A. 7714 - Referred to Corporations, Authorities  and  Commis-
sions
2005-2006: A. 1849 - Passed Assembly
2004: A.522 Passed Assembly
2003: A.2003 - Passed Assembly
2001-2002: A. 230 - Passed Assembly
1999-2000: A. 1221 - Passed Assembly
1997-1998: A. 2605 - Passed Assembly
1995-1996: A. 761 - Passed Assembly
1994: A.2525 - Passed Assembly
1991: A.3580 - Referred to Rules
1990: A.5040 - Referred to Rules
1989: A.5040 - Referred to Corporations, Authorities and Commissions
1987-1988: A. 7549 - Passed Assembly
1986: A.2097 - Passed Assembly
1983: A.4132 - Referred to Ways & Means
1981-1982: A. 2457 - Referred to Ways & Means
1980: A.3911 - Passed Assembly

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S5341 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5341
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              April 26, 2019
                                ___________
 
 Introduced  by  Sen.  COMRIE -- 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 requiring
   evidence and consideration of the economic impact of utility rates and
   charges by the public service commission

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision 1 of section 65 of the public service law, as
 amended by chapter 789 of the laws  of  1930,  is  amended  to  read  as
 follows:
   1. Every gas corporation, every electric corporation and every munici-
 pality  shall  furnish  and  provide such service, instrumentalities and
 facilities as shall be safe and adequate and in all  respects  just  and
 reasonable.  All  charges  made or demanded by any such gas corporation,
 electric corporation or municipality for gas, electricity or any service
 rendered or to be rendered, shall be just and reasonable  and  not  more
 than allowed by law or by order of the commission. IN DETERMINING WHETH-
 ER  CHARGES ARE JUST AND REASONABLE, CONSIDERATION SHALL BE GIVEN TO THE
 ECONOMIC IMPACT OF SUCH CHARGES UPON CONSUMERS AND THE  AREA  SERVED  BY
 EACH  SUCH GAS CORPORATION, ELECTRIC CORPORATION AND MUNICIPALITY. Every
 unjust or unreasonable charge made or demanded for gas,  electricity  or
 any  such  service,  or  in  connection  therewith, or in excess of that
 allowed by law or by the order of the commission is prohibited.
   § 2. Subdivision 1 of section 79 of the public service law, as amended
 by chapter 134 of the laws of 1921, is amended to read as follows:
   1. Every steam corporation shall furnish  and  provide  such  service,
 instrumentalities  and  facilities  as shall be safe and adequate and in
 all respects just and reasonable. All charges made or  demanded  by  any
 such  corporation  for  such service rendered or to be rendered shall be
 just and reasonable and not more than allowed by order  of  the  commis-

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

                                                            LBD01933-01-9

 S. 5341                             2
 
 sion.  IN DETERMINING WHETHER CHARGES ARE JUST AND REASONABLE, CONSIDER-
 ATION SHALL BE GIVEN TO THE ECONOMIC IMPACT OF SUCH CHARGES UPON CONSUM-
 ERS  AND THE AREA SERVED BY EACH SUCH STEAM CORPORATION. Every unjust or
 unreasonable  charge made or demanded for such service, or in connection
 therewith or in excess of that allowed by law or by  the  commission  is
 prohibited.
   § 3. Subdivision 1 of section 89-b of the public service law, as added
 by chapter 715 of the laws of 1931, is amended to read as follows:
   1.  Every  water-works  corporation  shall  furnish  and  provide such
 service, instrumentalities and facilities as shall be safe and  adequate
 and in all respects just and reasonable. All charges made or demanded by
 any  such  water-works corporation for water, or for equipment furnished
 or for any service rendered or to be rendered shall be just and  reason-
 able and not more than allowed by law or by order of the commission.  IN
 DETERMINING WHETHER CHARGES ARE JUST AND REASONABLE, CONSIDERATION SHALL
 BE  GIVEN  TO THE ECONOMIC IMPACT OF SUCH CHARGES UPON CONSUMERS AND THE
 AREA SERVED BY EACH SUCH WATER-WORKS CORPORATION. Every unjust or unrea-
 sonable charge made or demanded for water or for equipment furnished  or
 for  any  such service, or in connection therewith, or in excess of that
 allowed by law or by the order of the commission is prohibited.
   § 4. Subdivision 1 of section 91 of the public service law,  as  added
 by chapter 673 of the laws of 1910, is amended to read as follows:
   1.  Every  telegraph corporation and every telephone corporation shall
 furnish and provide with respect to its business such  instrumentalities
 and facilities as shall be adequate and in all respects just and reason-
 able. All charges made or demanded by any telegraph corporation or tele-
 phone  corporation  for  any  service  rendered  or  to  be  rendered in
 connection therewith shall be just and  reasonable  and  not  more  than
 allowed  by  law  or  by order of the commission. IN DETERMINING WHETHER
 CHARGES ARE JUST AND REASONABLE, CONSIDERATION SHALL  BE  GIVEN  TO  THE
 ECONOMIC  IMPACT  OF  SUCH CHARGES UPON CONSUMERS AND THE AREA SERVED BY
 EACH SUCH TELEGRAPH CORPORATION AND TELEPHONE CORPORATION. Every  unjust
 or  unreasonable  charge  made  or  demanded  for any such service or in
 connection therewith or in excess of that allowed by law or by order  of
 the commission is prohibited and declared to be unlawful.
   §  5.  The public service law is amended by adding a new section 119-d
 to read as follows:
   § 119-D. ECONOMIC IMPACT. 1. PRIOR TO APPROVING ANY MAJOR INCREASE  IN
 RATES  OR  CHARGES PROPOSED BY A PUBLIC UTILITY COMPANY OR MUNICIPALITY,
 THE COMMISSION SHALL CONSIDER THE ECONOMIC IMPACT OF ANY  SUCH  PROPOSED
 INCREASE  IN  THE  RATES OR CHARGES UPON CONSUMERS IN THE AREA SERVED BY
 THE COMPANY OR MUNICIPALITY PROPOSING SUCH  INCREASE.  FOR  PURPOSES  OF
 THIS  SUBDIVISION,  "MAJOR INCREASE" SHALL MEAN AN INCREASE IN THE RATES
 AND CHARGES WHICH WOULD INCREASE THE AGGREGATE REVENUES OF THE APPLICANT
 MORE THAN THE GREATER OF THREE HUNDRED THOUSAND DOLLARS OR TWO AND  ONE-
 HALF PERCENT.
   2.  THE  COMMISSION  SHALL  CONSIDER  UNEMPLOYMENT DATA, MEDIAN INCOME
 INFORMATION AND THE NUMBER OF PERSONS RECEIVING SOCIAL SERVICES  ASSIST-
 ANCE  WITH  RESPECT  TO  THE  APPLICABLE  SERVICE AREA. IN ADDITION, THE
 COMMISSION SHALL CONSIDER IN REACHING ITS DETERMINATION IN ANY SUCH RATE
 CASE:
   A. THE AVERAGE MONTHLY UTILITY BILL FOR EACH CLASS  OF  CUSTOMERS  WHO
 WOULD  BE  AFFECTED  BY  AN  INCREASED  RATE OR CHARGE AND THE ESTIMATED
 INCREASED UTILITY BILL FOR EACH SUCH CLASS OF CUSTOMERS; AND
   B. THE LATEST FEDERAL BUREAU OF LABOR STATISTICS CONSUMER PRICE  INDEX
 FIGURES  INDICATING  THE  AVERAGE COST OF LIVING AND THE AVERAGE COST OF

 S. 5341                             3
 
 FUEL AND UTILITIES FOR THE NATION AND, IF POSSIBLE FOR THE STATE OR  THE
 SERVICE AREA AFFECTED BY SUCH INCREASED RATE OR CHARGE.
   §  6.  This  act shall take effect immediately and shall apply to each
 request for increased rates or charges submitted on or after the  effec-
 tive date of this act.

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