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A05323 Summary:

BILL NOA05323A
 
SAME ASSAME AS S02711-A
 
SPONSORLucas
 
COSPNSRAubry, Colton, Kim, Shimsky
 
MLTSPNSR
 
Amd §65, add §66-w, Pub Serv L
 
Relates to the establishment of reduced residential rates for electric and natural gas service to low-income customers.
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A05323 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         5323--A
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                      March 7, 2023
                                       ___________
 
        Introduced  by  M.  of  A.  LUCAS,  AUBRY,  COLTON, KIM -- read once and
          referred to the Committee on Energy -- recommitted to the Committee on
          Energy in accordance  with  Assembly  Rule  3,  sec.  2  --  committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee

        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:
 
     1    Section 1. Section 65 of the public service law is amended by adding a
     2  new subdivision 17 to read as follows:
     3    17.  Reduced residential rates for electric and natural gas service to
     4  low-income customers. (a) Electric and gas corporations shall  establish
     5  and  continue reduced rate schedules for low-income electric and natural
     6  gas customers. The average effective rate reduction shall  not  be  less
     7  than  twenty-five percent or more than thirty-five percent of the reven-
     8  ues that would have been produced for the same  billed  usage  by  other
     9  residential  customers  receiving  full service from the utility who are
    10  not eligible for the reduced rate.
    11    (b) Reduced residential rates for electric  and  natural  gas  service
    12  shall  be  established  for  any customer who receives benefits from the
    13  supplemental security income program for the aged or disabled  or  other
    14  persons,  the temporary assistance to needy families program, safety net
    15  assistance,  the  supplemental  nutrition  assistance  program,  medical
    16  assistance,  the  home energy assistance program, the telephone lifeline
    17  assistance program, and  any  other  additional  assistance  program  or
    18  income standard approved by the commission.
    19    (c) Providers of electric and natural gas service shall cooperate with
    20  the  commission  and  social  services  districts  and other agencies to
    21  certify and recertify customer  eligibility  through  privacy  protected
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06370-03-4

        A. 5323--A                          2
 
     1  data  exchanges  approved by the commission to achieve efficient enroll-
     2  ment of eligible customers.
     3    (d)  Providers  of  electric  and  natural gas service shall strive to
     4  provide reduced residential rates to all customers  eligible  for  them,
     5  and  shall  provide application forms for reduced rates to eligible low-
     6  income customers on their websites,  at  their  offices,  and  by  other
     7  means.  Information regarding the availability and eligibility standards
     8  for reduced rates shall be provided to residential customers at the time
     9  of  service  initiation, in bill inserts, in communications to customers
    10  in arrears, and by other means required or approved by the commission.
    11    (e) The incremental revenue effects of enhancement to low-income  rate
    12  programs under this section shall be deferred for subsequent rate making
    13  treatment  and  approval  by  the commission. The revenue impact of such
    14  rate reduction shall be mitigated by (i) applying any  earnings  of  the
    15  utility  above  the allowed return on equity set in the most recent rate
    16  case, (ii) disallowing any premium above the rate of return allowed  for
    17  not  filing  a rate case or for sharing of overearnings, (iii) utilizing
    18  any uncommitted funds available from current surcharges allowed  by  the
    19  commission  and  not  expressly  authorized by statute, (iv) disallowing
    20  recovery from ratepayers of any costs of executive compensation bonuses.
    21  After such mitigation measures, and other mitigation measures which  the
    22  commission  may  approve,  any  shift of revenue responsibility to other
    23  customers due to the revenue effects of low-income rates  shall  not  be
    24  borne solely by any single class of customer.
    25    § 2. The public service law is amended by adding a new section 66-w to
    26  read as follows:
    27    § 66-w. Reduced residential rates for electric and natural gas service
    28  to  low-income  customers.  1. The commission shall require electric and
    29  natural gas corporations to establish  and  continue  programs  of  rate
    30  reduction  and  other  assistance to low-income residential electric and
    31  natural gas customers, the revenue impact of which shall  not  be  borne
    32  solely  by  any  single  class  of customer. The commission shall ensure
    33  appropriate levels of rate reduction for low-income electric and natural
    34  gas customers to mitigate hardship, which shall not be less  than  twen-
    35  ty-five  percent  or  more than thirty-five percent of the revenues that
    36  would have been produced for the same billed usage by other  residential
    37  customers  receiving  full service from the utility who are not eligible
    38  for  the  reduced  rate.  In  establishing  the  appropriate  percentage
    39  reduction  the  commission shall ensure to the extent feasible that low-
    40  income ratepayers are not jeopardized or overburdened by rates for elec-
    41  tric and natural gas service.
    42    2. The commission shall  establish  customer  income  and  categorical
    43  eligibility  standards  for  reduced rates, which shall include, without
    44  limitation, any customers who receive  benefits  from  the  supplemental
    45  security  income  program for the aged or disabled or other persons, the
    46  temporary assistance to needy families program, safety  net  assistance,
    47  the  supplemental  nutrition assistance program, medical assistance, the
    48  home energy assistance program, and the  telephone  lifeline  assistance
    49  program.
    50    3.  The  commission shall promote full penetration of the reduced rate
    51  assistance to all eligible  customers  through  privacy  protected  data
    52  exchanges  with  agencies providing assistance to categorically eligible
    53  customers to achieve efficient enrollment, certification,  and  periodic
    54  recertification of eligibility.
    55    4.  The commission shall require providers of electric and natural gas
    56  service to provide information and application forms for  reduced  rates

        A. 5323--A                          3
 
     1  to  eligible  low-income  customers on their websites, at their offices,
     2  and by other means, and to provide information regarding the availabili-
     3  ty and eligibility standards for reduced rates to residential  customers
     4  at  the  time  of service initiation, in bill inserts, in communications
     5  with customers in arrears, and by other means required  or  approved  by
     6  the commission.
     7    5.  The commission shall require electric and natural gas corporations
     8  to establish reduced rates pursuant to this section to be  effective  no
     9  later  than January first, two thousand twenty-six, and to file periodic
    10  reports at least annually regarding the  number  of  eligible  customers
    11  receiving  reduced rates, utility efforts to provide reduced residential
    12  rates to all customers eligible for them, and other  information  deemed
    13  necessary  or  appropriate  by the commission for the efficient adminis-
    14  tration of the reduced rates.
    15    6. The commission shall require that the incremental  revenue  effects
    16  of  enhancement  to  low-income  rate  programs  under  this  section be
    17  deferred for subsequent rate making treatment. The  incremental  revenue
    18  impact of such rate reductions shall be mitigated by:
    19    (a)  applying  any earnings of the utility above the allowed return on
    20  equity set in the most recent rate case, pursuant to subdivision  twenty
    21  of section sixty-six of this article;
    22    (b)  disallowing any rate of return premium for not filing a rate case
    23  or for sharing of overearnings after rates are set;
    24    (c) utilizing any uncommitted revenues from surcharges allowed by  the
    25  commission but not expressly authorized by statute; and
    26    (d) disallowing executive compensation or bonuses not essential to the
    27  provision of safe and adequate service.
    28    After  applying revenues from such sources, and other mitigation meas-
    29  ures which the commission may approve, any shift of revenue responsibil-
    30  ity to other customers due to the revenue effects  of  low-income  rates
    31  shall not be borne solely by any single class of customer.
    32    §  3.  This  act  shall take effect on the sixtieth day after it shall
    33  have become a law.
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