BILL NUMBER: S5553

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the public service law, in relation to enacting the
"rate hike notice act"

 
PURPOSE:

To require text, email, and notice on monthly bills of proposed rate
increases by gas and electric utilities.

 
SUMMARY OF PROVISIONS:

  Section 1 sets the title as the "Rate Hike Notice Act."

  Section  2  amends  subdivision 12 of section 66 of the public service
law to require gas and electric utilities to:

*Within one business day of publication of notice  of  a  proposed  rate
change  on  the Department of Public Service (DPS) website, provide text
              

notification of proposed rate changes to  customers  who  receive  texts
from  the  utility  describing the average expected percentage change in
rates from the prior year.

*Within one business day of publication of notice  of  a  proposed  rate
change  on  the DPS website, provide email notification to customers who
receive email from the utility containing the same  information  of  the
proposed rate change published on the DPS website.

*Within  one  billing  cycle  of the publication of notice of a proposed
rate change on the DPS website, include a separate page on  the  custom-
er's  next  monthly  utility  bill  that contains the information on the
proposed rate change published on the DPS website.

  Section 3 sets the effective date  to  sixty  days  after  the  bill's
passage into law.

 
JUSTIFICATION:

Energy  utility  bills  are soaring across the state. The Public Service
Commission (PSC) regulates utilities across the state and approves util-
ity rate increases, called "rate cases." Details of rate cases are tech-
nically available to the public, but rate case reports are dense,  tech-
nical,  hard-tofind,  and  difficult  to  interpret  for the majority of
ratepayers. In recent years, rate cases have resulted in  energy  prices
rising  significantly  for ratepayers across the state.  For example, in
New York City, the average Con Edison residential customer can expect to
pay about $65 more per month in early 2025 as  compared  with  2023.  By
2026,  National  Grid  customers  in  Brooklyn,  portions of Queens, and
Staten Island can expect to pay over $60 more a month compared to  early
2024.  Meanwhile, upstate New York State Electric and Gas customers will
see  a  $30  increase  to  their monthly electric bills between 2023 and
2025.

Currently, it is difficult for the public to learn that  a  utility  has
requested  to  raise  rates.  Prior  to 2024, utilities were required to
inform residents in affected service areas about proposed rate increases
by publishing a notice in a generally circulated newspaper.   Responding
to  this  grossly  insufficient  notice,  the  legislature  and governor
amended state law in 2024 to require the PSC to publish  information  on
its  website within ten days of commencement of a proceeding for a major
rate change (Chapter 333 of the Laws of 2024).   The information  posted
online  must  include the expected return on investment for the utility,
what the revenue will be used for, how to get involved in the rate case,
and more. While  this  requirement  improved  transparency  around  rate
hikes,  the majority of ratepayers are unlikely to check the PSC website
for proposed rate changes, limiting  the  impact  of  this  transparency
measure.

This  legislation builds on the 2024 update to the public service law by
requiring utilities to share information about rate cases directly  with
customers  through  text,  email,  and  notification on the next monthly
bill. Once a utility files with the PSC to  increase  rates,  this  bill
will  require  utilities to directly alert customers. As a result, rate-
payers can more readily learn about utilities' use of ratepayers' money,
including utility profit margins. Additionally,  ratepayers  will  learn
how  to  participate  in  the  ratemaking  process  and  can plan for an
increase in household expenses.

 
FISCAL IMPLICATIONS:

Minimal.

 
EFFECTIVE DATE:
The act shall take effect sixty days after it becomes a law.