NY State Senate Bill 2025-S904

Current 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, 2025	referred to energy and telecommunications

co-Sponsors

2025-S904 (ACTIVE) - Details

See Assembly Version of this Bill:: A953
Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Service Law
Laws Affected:: Amd §2, add §§54, 77-a & 85-a, Pub Serv L
Versions Introduced in 2023-2024 Legislative Session:: S6803, A7537

2025-S904 (ACTIVE) - Summary

Prohibits utility corporations from imposing late fees, interest, or penalties during an investigation by the commission; allows retroactive late fees, interest, or penalties if a determination is made in favor of such utility corporation; prohibits utility services from being terminated during an investigation by the commission; requires utility corporations to notify customers of investigations

2025-S904 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S904

SPONSOR: GONZALEZ
 
TITLE OF BILL:

An act to amend the public service law, in relation to termination of
certain utility services

 
PURPOSE:

This legislation protects residential and commercial utility customers
from late fees and service terminations when the Public Service Commis-
sion (PSC) investigates a utility, and 120 days after determinations
have been made. The bill also requires notices that make customers aware
that a suspension of late fees and service terminations due to non-pay-
ment are in effect, and it prohibits the uncollected overdue charges
resulting from this act to be passed onto ratepayers.

 
SUMMARY OF PROVISIONS:

Section 1: Short title: This act shall be known and may be cited as the
"Consumer Utility Protections During Investigations Act" or the "CUPDI

Act".

Section 2: Defines investigation.

Section 3: Applies the protections and notice requirements to electric
and gas corporations.

Section 4: Applies the protections and notice requirements to waterworks
corporations.

Section 5: Applies the protections and notice requirements to munici-
palities.

Section 6: Applies the protections and notice requirements to telephone
corporations.

Section 7: Applies the protections and notice requirements to cable and
television corporations.

Section 8: Applies the protections and notice requirements to broadband
service providers. Section 9: Sets the effective date.

 
JUSTIFICATION:

Although utilities may voluntarily pause late fees and service termi-
nations for non-payment while they are under investigation by the PSC,
customers need guaranteed protections during such investigations, and
for these protections to be clearly communicated to them during the
period in which they are active. This bill institutes such protections.

If there is an investigation into a utility's improper practices, the
responsibility should not be on customers to pay what the utility claims
is owed and then try to recoup what they overpaid later. There have been
many instances in which an incorrect bill for thousands of dollars was
ultimately corrected to be significantly lower during an ongoing inves-
tigation. Utilities should bear the cost of these broadly disputed
charges while their practices are being investigated and for some time
afterwards that is adequate for customers to adjust to the change of
late fees and non-payment service terminations being reactivated.

On December 15, 2022, the PSC released an investigatory report for Case
22-M-0645 detailing numerous violations of the law and billing over
charges after Central Hudson introduced a new Consumer Information
System. This case has illustrated the need to prohibit late fees and
nonpayment service terminations until the PSC's investigation is fully
closed and customers have had sufficient time to adjust.

 
LEGISLATIVE HISTORY:

06/07/24S6803-B PASSED SENATE /A7537-B Third Reading

 
FISCAL IMPLICATIONS:

Municipalities will no longer be able to collect late fees during PSC
investigations. Ais is not a significant source of revenue for munici-
palities.

 
EFFECTIVE DATE:
This act shall take effect on the thirtieth day after it is signed into
law.

2025-S904 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    904
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by  Sens. GONZALEZ, BRISPORT, HINCHEY, SALAZAR -- read twice
   and ordered printed, and when printed to be committed to the Committee
   on Energy and Telecommunications
 
 AN ACT to amend the public service law, in relation  to  termination  of
   certain utility services

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1.  Short title. This act shall be known and may be  cited  as
 the  "consumer  utility  protections  during  investigations act" or the
 "CUPDI act".
   § 2. Section 2 of the public service law is amended by  adding  a  new
 subdivision 30 to read as follows:
   30.  "FINAL  DETERMINATION"  OR  "FINALLY DETERMINED" MEANS A JUDICIAL
 DECISION: (I) BY THE HIGHEST COURT OF COMPETENT JURISDICTION; OR (II) BY
 A COURT OF COMPETENT JURISDICTION FROM WHICH NO APPEAL  HAS  BEEN  TAKEN
 AND THE TIME WITHIN WHICH TO APPEAL HAS EXPIRED.
   §  3.  The public service law is amended by adding a new section 54 to
 read as follows:
   § 54. INVESTIGATIONS RELATING TO RESIDENTIAL GAS, ELECTRIC  AND  STEAM
 UTILITY SERVICE. 1. FOR THE PURPOSES OF THIS SECTION, THE TERM "INVESTI-
 GATION"  SHALL  MEAN  A FORMAL PROCEEDING CONDUCTED BY THE COMMISSION TO
 EXAMINE THE POLICIES, PRACTICES, RATES, CHARGES,  SERVICES,  FACILITIES,
 OPERATIONS,  OR  MANAGEMENT  OF  A  UTILITY  CORPORATION OR TO DETERMINE
 COMPLIANCE WITH ANY LAW, RULE, REGULATION, ORDER, OR  TARIFF  APPLICABLE
 TO SUCH UTILITY CORPORATION. THE TERM "INVESTIGATION" SHALL INCLUDE SUCH
 PROCEEDINGS  CONDUCTED  PURSUANT TO SECTION SEVENTY-ONE OF THIS CHAPTER.
 NOTWITHSTANDING ANYTHING TO THE CONTRARY, THE TERM "INVESTIGATION" SHALL
 NOT INCLUDE COMMISSION INQUIRIES TRIGGERED  BY  AN  INDIVIDUAL  CUSTOMER
 COMPLAINT FILED PURSUANT TO SECTION FORTY-THREE OF THIS ARTICLE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00509-01-5

 S. 904                              2
 
   2.  (A)  A UTILITY CORPORATION SHALL NOT IMPOSE LATE FEES, INTEREST OR
 PENALTIES DURING AN INVESTIGATION IF SUCH  UTILITY  CORPORATION  IS  THE
 SUBJECT  OF  A  PENDING  INVESTIGATION, PROVIDED HOWEVER, THAT SUCH LATE
 FEES, INTEREST AND PENALTIES MAY BE IMPOSED RETROACTIVELY IF SUCH INVES-
 TIGATION  IS  ISSUED A FINAL ORDER IN FAVOR OF SUCH UTILITY CORPORATION.
 SUCH LATE PAYMENT CHARGES SHALL BE IN COMPLIANCE WITH THE GUIDELINES SET
 FORTH IN SECTION FORTY-TWO OF THIS ARTICLE.
   (B) UPON THE FINAL DETERMINATION OR BY THE ISSUANCE OF A FINAL  ORDER,
 OF  ANY  INVESTIGATION  COVERED  BY  THIS  SECTION, THE COMMISSION SHALL
 EITHER (I) DETERMINE ANY ALLOWABLE PENALTIES THE UTILITY CORPORATION MAY
 IMPOSE UPON ITS CUSTOMERS, OR (II) WAIVE, OR PARTIALLY WAIVE, ANY INTER-
 EST OR FEES CHARGED BY THE UTILITY CORPORATION TO THE CONSUMER  ON  SUCH
 CONSUMER'S  BILLING  STATEMENTS DURING A PERIOD SUCH UTILITY CORPORATION
 DETERMINES TO BE RELATED TO SUCH INVESTIGATION.
   3. NOTWITHSTANDING ANY LAW, RULE, REGULATION, ORDER, OR TARIFF TO  THE
 CONTRARY,  UTILITY  SERVICE  SHALL  NOT  BE  TERMINATED  TO  RESIDENTIAL
 ACCOUNTS FOR NON-PAYMENT OF AN OVERDUE CHARGE FROM THE  COMMENCEMENT  OF
 ANY  COMMISSION  INVESTIGATION  UNTIL  ONE HUNDRED TWENTY DAYS AFTER THE
 FINDINGS OF SUCH INVESTIGATION HAVE BEEN PUBLISHED AND  A  DETERMINATION
 HAS BEEN ISSUED BY THE COMMISSION. NOTHING IN THIS SECTION SHALL PROHIB-
 IT A UTILITY CORPORATION FROM DISCONNECTING SERVICE NECESSARY TO PROTECT
 THE HEALTH AND SAFETY OF CUSTOMERS AND THE PUBLIC.
   4.  (A)  WITHIN  TEN DAYS OF THE COMMENCEMENT OF AN INVESTIGATION, THE
 UTILITY CORPORATION SHALL NOTIFY RESIDENTIAL CUSTOMERS OF SUCH  INVESTI-
 GATION.  FORMS OF NOTIFICATION OF AN INVESTIGATION FROM A UTILITY CORPO-
 RATION TO A RESIDENTIAL CUSTOMER SHALL INCLUDE, BUT NOT BE  LIMITED  TO,
 LETTERS,  NOTICES  ON  UTILITY BILLS, PHONE CALLS, AND NOTICES POSTED ON
 THE UTILITY CORPORATION'S WEBSITE.
   (B) WITHIN THREE DAYS OF THE COMMENCEMENT  OF  AN  INVESTIGATION,  THE
 DEPARTMENT  SHALL  POST  A NOTICE TO THE GENERAL PUBLIC OF SUCH INVESTI-
 GATION ON ITS WEBSITE.
   § 4. The public service law is amended by adding a new section 77-a to
 read as follows:
   § 77-A. INVESTIGATIONS RELATING TO COMMERCIAL GAS AND ELECTRIC UTILITY
 SERVICE. 1. FOR THE PURPOSES OF THIS SECTION, THE  TERM  "INVESTIGATION"
 SHALL  MEAN  A  FORMAL PROCEEDING CONDUCTED BY THE COMMISSION TO EXAMINE
 THE POLICIES, PRACTICES, RATES,  CHARGES,  SERVICES,  FACILITIES,  OPER-
 ATIONS,  OR  MANAGEMENT OF A UTILITY CORPORATION OR TO DETERMINE COMPLI-
 ANCE WITH ANY LAW, RULE, REGULATION, ORDER OR TARIFF APPLICABLE TO  SUCH
 UTILITY   CORPORATION.  THE  TERM  "INVESTIGATION"  SHALL  INCLUDE  SUCH
 PROCEEDINGS CONDUCTED PURSUANT TO SECTION SEVENTY-ONE OF  THIS  ARTICLE.
 NOTWITHSTANDING ANYTHING TO THE CONTRARY, THE TERM "INVESTIGATION" SHALL
 NOT  INCLUDE  COMMISSION  INQUIRIES  TRIGGERED BY AN INDIVIDUAL CUSTOMER
 COMPLAINT FILED PURSUANT TO SECTION FORTY-THREE OF THIS CHAPTER.
   2. (A) A UTILITY CORPORATION SHALL NOT IMPOSE LATE FEES,  INTEREST  OR
 PENALTIES  DURING  AN  INVESTIGATION  IF SUCH UTILITY CORPORATION IS THE
 SUBJECT OF A PENDING INVESTIGATION, PROVIDED  HOWEVER,  THAT  SUCH  LATE
 FEES, INTEREST AND PENALTIES MAY BE IMPOSED RETROACTIVELY IF SUCH INVES-
 TIGATION  IS  ISSUED A FINAL ORDER IN FAVOR OF SUCH UTILITY CORPORATION.
 SUCH LATE PAYMENT CHARGES SHALL BE IN COMPLIANCE WITH THE GUIDELINES SET
 FORTH IN SECTION SIXTY-FIVE OF THIS ARTICLE.
   (B) UPON THE FINAL DETERMINATION OR BY THE ISSUANCE OF A FINAL  ORDER,
 OF  ANY  INVESTIGATION  COVERED  BY  THIS  SECTION, THE COMMISSION SHALL
 EITHER (I) DETERMINE ANY ALLOWABLE PENALTIES THE UTILITY CORPORATION MAY
 IMPOSE UPON ITS CUSTOMERS, OR (II) WAIVE, OR PARTIALLY WAIVE, ANY INTER-
 EST OR FEES CHARGED BY SUCH UTILITY CORPORATION TO THE CONSUMER ON  SUCH
 S. 904                              3
 
 CONSUMER'S  BILLING  STATEMENTS DURING A PERIOD SUCH UTILITY CORPORATION
 DETERMINES TO BE RELATED TO SUCH INVESTIGATION.
   3.  NOTWITHSTANDING ANY LAW, RULE, REGULATION, ORDER, OR TARIFF TO THE
 CONTRARY,  UTILITY  SERVICE  SHALL  NOT  BE  TERMINATED  TO  RESIDENTIAL
 ACCOUNTS  FOR  NON-PAYMENT OF AN OVERDUE CHARGE FROM THE COMMENCEMENT OF
 ANY COMMISSION INVESTIGATION UNTIL ONE HUNDRED  TWENTY  DAYS  AFTER  THE
 FINDINGS  OF  SUCH INVESTIGATION HAVE BEEN PUBLISHED AND A DETERMINATION
 HAS BEEN ISSUED BY THE COMMISSION. NOTHING IN THIS SECTION SHALL PROHIB-
 IT A UTILITY CORPORATION FROM DISCONNECTING SERVICE NECESSARY TO PROTECT
 THE HEALTH AND SAFETY OF CUSTOMERS AND THE PUBLIC.
   4. (A) WITHIN TEN DAYS OF THE COMMENCEMENT OF  AN  INVESTIGATION,  THE
 UTILITY  CORPORATION SHALL NOTIFY RESIDENTIAL CUSTOMERS OF SUCH INVESTI-
 GATION. FORMS OF NOTIFICATION OF AN INVESTIGATION FROM A UTILITY  CORPO-
 RATION  TO  A RESIDENTIAL CUSTOMER SHALL INCLUDE, BUT NOT BE LIMITED TO,
 LETTERS, NOTICES ON UTILITY BILLS, PHONE CALLS, AND  NOTICES  POSTED  ON
 THE UTILITY CORPORATION'S WEBSITE.
   (B)  WITHIN  THREE  DAYS  OF THE COMMENCEMENT OF AN INVESTIGATION, THE
 DEPARTMENT SHALL POST A NOTICE TO THE GENERAL PUBLIC  OF  SUCH  INVESTI-
 GATION ON ITS WEBSITE.
   § 5. The public service law is amended by adding a new section 85-a to
 read as follows:
   §  85-A.  INVESTIGATIONS RELATING TO COMMERCIAL STEAM UTILITY SERVICE.
 1.  FOR THE PURPOSES OF THIS SECTION,  THE  TERM  "INVESTIGATION"  SHALL
 MEAN  A  FORMAL  PROCEEDING  CONDUCTED  BY THE COMMISSION TO EXAMINE THE
 POLICIES, PRACTICES, RATES, CHARGES, SERVICES,  FACILITIES,  OPERATIONS,
 OR  MANAGEMENT  OF A UTILITY CORPORATION OR TO DETERMINE COMPLIANCE WITH
 ANY LAW, RULE, REGULATION, ORDER OR TARIFF APPLICABLE  TO  SUCH  UTILITY
 CORPORATION.  THE  TERM  "INVESTIGATION"  SHALL INCLUDE SUCH PROCEEDINGS
 CONDUCTED PURSUANT TO SECTION SEVENTY-ONE OF  THIS  CHAPTER.    NOTWITH-
 STANDING  ANYTHING  TO  THE CONTRARY, THE TERM "INVESTIGATION" SHALL NOT
 INCLUDE  COMMISSION  INQUIRIES  TRIGGERED  BY  AN  INDIVIDUAL   CUSTOMER
 COMPLAINT FILED PURSUANT TO SECTION FORTY-THREE OF THIS CHAPTER.
   2.  (A) A UTILITY CORPORATION SHALL NOT IMPOSE LATE FEES, INTEREST, OR
 PENALTIES DURING AN INVESTIGATION IF SUCH  UTILITY  CORPORATION  IS  THE
 SUBJECT  OF  A  PENDING  INVESTIGATION, PROVIDED HOWEVER, THAT SUCH LATE
 FEES, INTEREST AND PENALTIES MAY BE IMPOSED RETROACTIVELY IF SUCH INVES-
 TIGATION IS ISSUED A FINAL ORDER IN FAVOR OF SUCH  UTILITY  CORPORATION.
 SUCH  LATE  PAYMENT CHARGES SHALL BE IN COMPLIANCE WITH SECTION SEVENTY-
 NINE OF THIS ARTICLE.
   (B) UPON THE FINAL DETERMINATION OR BY THE ISSUANCE OF A FINAL  ORDER,
 OF  ANY  INVESTIGATION  COVERED  BY  THIS  SECTION, THE COMMISSION SHALL
 EITHER (I) DETERMINE ANY ALLOWABLE PENALTIES THE UTILITY CORPORATION MAY
 IMPOSE UPON ITS CUSTOMERS, OR (II) WAIVE, OR PARTIALLY WAIVE, ANY INTER-
 EST OR FEES CHARGED BY THE UTILITY CORPORATION TO THE CONSUMER  ON  SUCH
 CONSUMER'S  BILLING  STATEMENTS DURING A PERIOD SUCH UTILITY CORPORATION
 DETERMINES TO BE RELATED TO SUCH INVESTIGATION.
   3. NOTWITHSTANDING ANY LAW, RULE, REGULATION, ORDER, OR TARIFF TO  THE
 CONTRARY,  UTILITY  SERVICE  SHALL  NOT  BE  TERMINATED  TO  RESIDENTIAL
 ACCOUNTS FOR NON-PAYMENT OF AN OVERDUE CHARGE FROM THE  COMMENCEMENT  OF
 ANY  COMMISSION  INVESTIGATION  UNTIL  ONE HUNDRED TWENTY DAYS AFTER THE
 FINDINGS OF SUCH INVESTIGATION HAVE BEEN PUBLISHED AND  A  DETERMINATION
 HAS BEEN ISSUED BY THE COMMISSION. NOTHING IN THIS SECTION SHALL PROHIB-
 IT A UTILITY CORPORATION FROM DISCONNECTING SERVICE NECESSARY TO PROTECT
 THE HEALTH AND SAFETY OF CUSTOMERS AND THE PUBLIC.
   4.  (A)  WITHIN  TEN DAYS OF THE COMMENCEMENT OF AN INVESTIGATION, THE
 UTILITY CORPORATION SHALL NOTIFY RESIDENTIAL CUSTOMERS OF SUCH  INVESTI-
 S. 904                              4
 
 GATION.  FORMS OF NOTIFICATION OF AN INVESTIGATION FROM A UTILITY CORPO-
 RATION TO A RESIDENTIAL CUSTOMER SHALL INCLUDE, BUT NOT BE  LIMITED  TO,
 LETTERS,  NOTICES  ON  UTILITY BILLS, PHONE CALLS, AND NOTICES POSTED ON
 THE UTILITY CORPORATION'S WEBSITE.
   (B)  WITHIN  THREE  DAYS  OF THE COMMENCEMENT OF AN INVESTIGATION, THE
 DEPARTMENT SHALL POST A NOTICE TO THE GENERAL PUBLIC  OF  SUCH  INVESTI-
 GATION ON ITS WEBSITE.
   §  6.  This  act shall take effect on the thirtieth day after it shall
 have become a law.

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Senate Bill S904

Sponsored By

Current Bill Status - In Senate Committee Energy And Telecommunications Committee

co-Sponsors

2025-S904 (ACTIVE) - Details

2025-S904 (ACTIVE) - Summary

2025-S904 (ACTIVE) - Sponsor Memo

2025-S904 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S904

Share this bill

Sponsored By

Kristen Gonzalez

Current Bill Status - In Senate Committee Energy And Telecommunications Committee

co-Sponsors

Jabari Brisport

Michelle Hinchey

Julia Salazar

2025-S904 (ACTIVE) - Details

2025-S904 (ACTIVE) - Summary

2025-S904 (ACTIVE) - Sponsor Memo

2025-S904 (ACTIVE) - Bill Text download pdf

Comments