Directs the department of public service to adjust each utility corporation's residential fixed charge upon such corporation's filing with the department of an amendment of rate schedules, to recover only the fixed costs and operation and maintenance expenses directly related to metering, billing, service connections and the provision of customer service.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A295B
SPONSOR: Carroll TITLE OF BILL:
An act to amend the public service law, in relation to adjustment of
electric residential fixed charges
PURPOSE:
The purpose of this legislation is to limit the fixed charges that resi-
dential consumers pay on their electric and gas utility bills.
SUMMARY OF PROVISIONS:
Section 1 - Amends public service law adding a new section 42-b. Utili-
ties will only be permitted to charge residential consumers for the
costs directly related to metering, billing, service connection, and
customer service. Utilities are required to provide information to resi-
dential customers regarding how fixed rates are calculated. The Depart-
ment of Public Service Would be prohibited from shifting costs to other
rate classes as a result of this legislation.
Section 2 - Effective Date.
JUSTIFICATION:
New Yorkers pay some of the highest fixed charges in the national on
their utility bills. Fixed charges are flat monthly fees that consumers
pay on their utility bills regardless of the energy they use. A recent
report by the Acadia Center found that in many cases utilities are
charging New Yorkers three times as much in fixed charges as they are
charging residents in nearby states. Fixed charges shift costs from
bigger energy users to those who can least afford it. A lower fixed
residential charge is important for New York's economic viability. High
fixed charges mean higher electric bills, which results in a higher cost
of living and less money to spend in the local economy.
LEGISLATIVE HISTORY:
A.8118/S.6241 of 2019-20;
A.1384/S.2837 of 2021-22, passed Senate
FISCAL IMPLICATIONS:
None
EFFECTIVE DATE:
Immediately
STATE OF NEW YORK
________________________________________________________________________
295--B
2023-2024 Regular Sessions
IN ASSEMBLY
January 4, 2023
___________
Introduced by M. of A. CARROLL, SHRESTHA, DICKENS, LUPARDO, REYES,
RIVERA, ANDERSON, JACKSON, L. ROSENTHAL, THIELE, ARDILA, SEAWRIGHT,
GUNTHER, SANTABARBARA, KELLES -- Multi-Sponsored by -- M. of A. SAYEGH
-- read once and referred to the Committee on Energy -- reported and
referred to the Committee on Ways and Means -- committee discharged,
bill amended, ordered reprinted as amended and recommitted to said
committee -- again reported from said committee with amendments,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the public service law, in relation to adjustment of
electric residential fixed charges
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The public service law is amended by adding a new section
2 42-b to read as follows:
3 § 42-b. Adjustment of electric distribution company residential fixed
4 charge. 1. As used in this section "residential fixed charge" means any
5 fixed fee charged to residential customers of an electric, gas or combi-
6 nation electric and gas utility corporation, including, but not limited
7 to, (a) a fixed charge for distribution basic service, (b) a distrib-
8 ution customer service charge, (c) a customer charge, or (d) a basic
9 service fee which is separate and distinct from any distribution charge
10 per kilowatt-hour.
11 2. The department shall adjust each utility corporation's residential
12 fixed charge upon such corporation's filing with the department of an
13 amendment of rate schedules pursuant to article four of this chapter, to
14 recover only the fixed costs and operation and maintenance expenses
15 directly related to metering, billing, service connections and the
16 provision of customer service.
17 3. The utility corporation shall provide clear and transparent infor-
18 mation on fixed charges to residential electric, gas, or combination
19 electric and gas utility customers, including, but not limited to, the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01632-04-3
A. 295--B 2
1 specific costs and expenses included in the calculation of such charges.
2 The information shall be easily accessible to customers, including
3 through the corporation's website and billing statements, and shall be
4 provided in a clear and understandable manner. The corporation shall
5 also provide customers with notice of any changes to fixed charges,
6 including the reasons for such changes and the impact on customers'
7 bills, in advance of the effective date of such changes.
8 4. The provisions of subdivisions two and three of this section shall
9 not permit or enable the department to cause a cost shift to other rate
10 classes.
11 § 2. This act shall take effect immediately.
