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; requires notice to the general public.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7537B
SPONSOR: Shrestha TITLE OF BILL:
An act to amend the public service law, in relation to termination of
certain utility services
PURPOSE OR GENERAL IDEA OF BILL:
This legislation protects residential and commercial utility customers
from late fees when the Public Service Commission (PSC) investigates a
utility. It also prevents terminations for 120 days after determinations
have been made. The bill also requires notices that make customers aware
that an investigation is taking place. This act shall be known and may
be cited as the "Consumer Utility Protections During Investigations Act"
or the "CUPDI act".
SUMMARY OF SPECIFIC 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 final determination in the public service law.
Section 3: Creates new section 54 in the public service law. The section
limits utility corporations' ability to impose late fees, interest, or
penalties during an investigation as defined by the section; applies
notice requirements; and directs the PSC to determine any interest or
fees that may be charged to a customer or if any fees shall be waived.
Section 4: Creates new section 77-a in the public service law. The
section limits utility corporations' ability to impose late fees, inter-
est, or penalties during an investigation as defined by the section;
applies notice requirements; and directs the PSC to determine any inter-
est or fees that may be charged to a customer or if any fees shall be
waived.
Section 5: Creates new section 85-a in the Public Service law. The
section limits utility corporations' ability to impose late fees, inter-
est, or penalties during an investigation as defined by the section;
applies notice requirements; and directs the PSC to determine any inter-
est or fees that may be charged to a customer or if any fees shall be
waived. Applies the protections and notice requirements to electric and
gas corporations.
Section 6: 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.
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.
PRIOR LEGISLATIVE HISTORY:
This is a new bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Municipalities will no longer be able to collect late fees during PSC
investigations. This 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.
STATE OF NEW YORK
________________________________________________________________________
7537--B
2023-2024 Regular Sessions
IN ASSEMBLY
May 25, 2023
___________
Introduced by M. of A. SHRESTHA, GALLAGHER, AUBRY, JACOBSON, STECK,
BURDICK, SIMON, MITAYNES, EPSTEIN, STIRPE, THIELE, MAMDANI, FORREST,
CARROLL, L. ROSENTHAL, DE LOS SANTOS, SEPTIMO, REYES, RAGA -- read
once and referred to the Committee on Corporations, Authorities and
Commissions -- recommitted to the Committee on Corporations, Authori-
ties and Commissions in accordance with Assembly Rule 3, sec. 2 --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee -- recommitted to the Committee on
Corporations, Authorities and Commissions 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 termination of
certain utility services
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "consumer utility protections during investigations act" or the
3 "CUPDI act".
4 § 2. Section 2 of the public service law is amended by adding a new
5 subdivision 30 to read as follows:
6 30. "Final determination" or "finally determined" means a judicial
7 decision: (i) by the highest court of competent jurisdiction; or (ii) by
8 a court of competent jurisdiction from which no appeal has been taken
9 and the time within which to appeal has expired.
10 § 3. The public service law is amended by adding a new section 54 to
11 read as follows:
12 § 54. Investigations relating to residential gas, electric and steam
13 utility service. 1. For the purposes of this section, the term "investi-
14 gation" shall mean a formal proceeding conducted by the commission to
15 examine the policies, practices, rates, charges, services, facilities,
16 operations, or management of a utility corporation or to determine
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD07069-10-4
A. 7537--B 2
1 compliance with any law, rule, regulation, order, or tariff applicable
2 to such utility corporation. The term "investigation" shall include such
3 proceedings conducted pursuant to section seventy-one of this chapter.
4 Notwithstanding anything to the contrary, the term "investigation" shall
5 not include commission inquiries triggered by an individual customer
6 complaint filed pursuant to section forty-three of this article.
7 2. (a) A utility corporation shall not impose late fees, interest or
8 penalties during an investigation if such utility corporation is the
9 subject of a pending investigation, provided however, that such late
10 fees, interest and penalties may be imposed retroactively if such inves-
11 tigation is issued a final order in favor of such utility corporation.
12 Such late payment charges shall be in compliance with the guidelines set
13 forth in section forty-two of this article.
14 (b) Upon the final determination or by the issuance of a final order,
15 of any investigation covered by this section, the commission shall
16 either (i) determine any allowable penalties the utility corporation may
17 impose upon its customers, or (ii) waive, or partially waive, any inter-
18 est or fees charged by the utility corporation to the consumer on such
19 consumer's billing statements during a period such utility corporation
20 determines to be related to such investigation.
21 3. Notwithstanding any law, rule, regulation, order, or tariff to the
22 contrary, utility service shall not be terminated to residential
23 accounts for non-payment of an overdue charge from the commencement of
24 any commission investigation until one hundred twenty days after the
25 findings of such investigation have been published and a determination
26 has been issued by the commission. Nothing in this section shall prohib-
27 it a utility corporation from disconnecting service necessary to protect
28 the health and safety of customers and the public.
29 4. (a) Within ten days of the commencement of an investigation, the
30 utility corporation shall notify residential customers of such investi-
31 gation. Forms of notification of an investigation from a utility corpo-
32 ration to a residential customer shall include, but not be limited to,
33 letters, notices on utility bills, phone calls, and notices posted on
34 the utility corporation's website.
35 (b) Within three days of the commencement of an investigation, the
36 department shall post a notice to the general public of such investi-
37 gation on its website.
38 § 4. The public service law is amended by adding a new section 77-a to
39 read as follows:
40 § 77-a. Investigations relating to commercial gas and electric utility
41 service. 1. For the purposes of this section, the term "investigation"
42 shall mean a formal proceeding conducted by the commission to examine
43 the policies, practices, rates, charges, services, facilities, oper-
44 ations, or management of a utility corporation or to determine compli-
45 ance with any law, rule, regulation, order or tariff applicable to such
46 utility corporation. The term "investigation" shall include such
47 proceedings conducted pursuant to section seventy-one of this article.
48 Notwithstanding anything to the contrary, the term "investigation" shall
49 not include commission inquiries triggered by an individual customer
50 complaint filed pursuant to section forty-three of this chapter.
51 2. (a) A utility corporation shall not impose late fees, interest or
52 penalties during an investigation if such utility corporation is the
53 subject of a pending investigation, provided however, that such late
54 fees, interest and penalties may be imposed retroactively if such inves-
55 tigation is issued a final order in favor of such utility corporation.
A. 7537--B 3
1 Such late payment charges shall be in compliance with the guidelines set
2 forth in section sixty-five of this article.
3 (b) Upon the final determination or by the issuance of a final order,
4 of any investigation covered by this section, the commission shall
5 either (i) determine any allowable penalties the utility corporation may
6 impose upon its customers, or (ii) waive, or partially waive, any inter-
7 est or fees charged by such utility corporation to the consumer on such
8 consumer's billing statements during a period such utility corporation
9 determines to be related to such investigation.
10 3. Notwithstanding any law, rule, regulation, order, or tariff to the
11 contrary, utility service shall not be terminated to residential
12 accounts for non-payment of an overdue charge from the commencement of
13 any commission investigation until one hundred twenty days after the
14 findings of such investigation have been published and a determination
15 has been issued by the commission. Nothing in this section shall prohib-
16 it a utility corporation from disconnecting service necessary to protect
17 the health and safety of customers and the public.
18 4. (a) Within ten days of the commencement of an investigation, the
19 utility corporation shall notify residential customers of such investi-
20 gation. Forms of notification of an investigation from a utility corpo-
21 ration to a residential customer shall include, but not be limited to,
22 letters, notices on utility bills, phone calls, and notices posted on
23 the utility corporation's website.
24 (b) Within three days of the commencement of an investigation, the
25 department shall post a notice to the general public of such investi-
26 gation on its website.
27 § 5. The public service law is amended by adding a new section 85-a to
28 read as follows:
29 § 85-a. Investigations relating to commercial steam utility service.
30 1. For the purposes of this section, the term "investigation" shall
31 mean a formal proceeding conducted by the commission to examine the
32 policies, practices, rates, charges, services, facilities, operations,
33 or management of a utility corporation or to determine compliance with
34 any law, rule, regulation, order or tariff applicable to such utility
35 corporation. The term "investigation" shall include such proceedings
36 conducted pursuant to section seventy-one of this chapter. Notwith-
37 standing anything to the contrary, the term "investigation" shall not
38 include commission inquiries triggered by an individual customer
39 complaint filed pursuant to section forty-three of this chapter.
40 2. (a) A utility corporation shall not impose late fees, interest, or
41 penalties during an investigation if such utility corporation is the
42 subject of a pending investigation, provided however, that such late
43 fees, interest and penalties may be imposed retroactively if such inves-
44 tigation is issued a final order in favor of such utility corporation.
45 Such late payment charges shall be in compliance with section seventy-
46 nine of this article.
47 (b) Upon the final determination or by the issuance of a final order,
48 of any investigation covered by this section, the commission shall
49 either (i) determine any allowable penalties the utility corporation may
50 impose upon its customers, or (ii) waive, or partially waive, any inter-
51 est or fees charged by the utility corporation to the consumer on such
52 consumer's billing statements during a period such utility corporation
53 determines to be related to such investigation.
54 3. Notwithstanding any law, rule, regulation, order, or tariff to the
55 contrary, utility service shall not be terminated to residential
56 accounts for non-payment of an overdue charge from the commencement of
A. 7537--B 4
1 any commission investigation until one hundred twenty days after the
2 findings of such investigation have been published and a determination
3 has been issued by the commission. Nothing in this section shall prohib-
4 it a utility corporation from disconnecting service necessary to protect
5 the health and safety of customers and the public.
6 4. (a) Within ten days of the commencement of an investigation, the
7 utility corporation shall notify residential customers of such investi-
8 gation. Forms of notification of an investigation from a utility corpo-
9 ration to a residential customer shall include, but not be limited to,
10 letters, notices on utility bills, phone calls, and notices posted on
11 the utility corporation's website.
12 (b) Within three days of the commencement of an investigation, the
13 department shall post a notice to the general public of such investi-
14 gation on its website.
15 § 6. This act shall take effect on the thirtieth day after it shall
16 have become a law.
