A00953 Summary:
| BILL NO | A00953B |
| SAME AS | SAME AS S00904-B |
| SPONSOR | Shrestha |
| COSPNSR | Gallagher, Jacobson, Steck, Burdick, Simon, Mitaynes, Epstein, Stirpe, Mamdani, Forrest, Carroll R, Rosenthal, De Los Santos, Septimo, Reyes, Raga, Colton |
| MLTSPNSR | |
| Amd §2, add §§54, 77-a, 85-a & 16-a, Pub Serv L | |
| 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; requires the public service commission to prepare reports on investigatory proceedings relating to gas, electric, and steam service. | |
A00953 Actions:
| BILL NO | A00953B | |||||||||||||||||||||||||||||||||||||||||||||||||
| 01/08/2025 | referred to corporations, authorities and commissions | |||||||||||||||||||||||||||||||||||||||||||||||||
| 03/31/2025 | amend (t) and recommit to corporations, authorities and commissions | |||||||||||||||||||||||||||||||||||||||||||||||||
| 03/31/2025 | print number 953a | |||||||||||||||||||||||||||||||||||||||||||||||||
| 04/29/2025 | reported referred to codes | |||||||||||||||||||||||||||||||||||||||||||||||||
| 06/08/2025 | reference changed to ways and means | |||||||||||||||||||||||||||||||||||||||||||||||||
| 06/09/2025 | reported referred to rules | |||||||||||||||||||||||||||||||||||||||||||||||||
| 06/09/2025 | amend and recommit to rules 953b | |||||||||||||||||||||||||||||||||||||||||||||||||
| 06/11/2025 | reported | |||||||||||||||||||||||||||||||||||||||||||||||||
| 06/11/2025 | rules report cal.602 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 06/11/2025 | ordered to third reading rules cal.602 | |||||||||||||||||||||||||||||||||||||||||||||||||
A00953 Memo:
Go to topNEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
TITLE OF BILL: An act to amend the public service law, in relation to termination of certain utility services and to reports on investigatory proceedings relating to gas, electric, and steam service 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: Establishes reporting requirements on investigatory proceedings as established in new sections 54, 77-a, and 85-a of the public service law. Section 7: 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-M0645 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: A7537-B of 2024: Ordered to third reading 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.
A00953 Text:
Go to topSTATE OF NEW YORK ________________________________________________________________________ 953--B 2025-2026 Regular Sessions IN ASSEMBLY (Prefiled) January 8, 2025 ___________ Introduced by M. of A. SHRESTHA, GALLAGHER, JACOBSON, STECK, BURDICK, SIMON, MITAYNES, EPSTEIN, STIRPE, MAMDANI, FORREST, R. CARROLL, ROSEN- THAL, DE LOS SANTOS, SEPTIMO, REYES, RAGA, COLTON -- read once and referred to the Committee on Corporations, Authorities and Commissions -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- reported and referred to the Committee on Codes -- reference changed to the Committee on Ways and Means -- reported and referred to the Committee on Rules -- Rules Committee discharged, bill amended, ordered reprinted as amended and recommitted to the Committee on Rules AN ACT to amend the public service law, in relation to termination of certain utility services and to reports on investigatory proceedings relating to gas, electric, and steam service 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 billing, rates, or charges of a utility corporation or any EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD00509-04-5A. 953--B 2 1 proceeding during which the commission deems it appropriate to pause the 2 charges described in subdivision two of this section. The term "inves- 3 tigation" shall include such proceedings conducted pursuant to section 4 seventy-one of this chapter. Notwithstanding any provision of law, rule 5 or regulation to the contrary, the term "investigation" shall not 6 include commission inquiries triggered by an individual customer 7 complaint filed pursuant to section forty-three of this article. The 8 term "investigation" shall not include a proceeding relating to a "major 9 change" as defined in paragraph (c) of subdivision twelve of section 10 sixty-six of this chapter. 11 2. (a) A utility corporation shall not impose late fees, interest or 12 penalties during an investigation if such utility corporation is the 13 subject of a pending investigation, provided however, that such late 14 fees, interest and penalties may be imposed retroactively if such inves- 15 tigation is issued a final order in favor of such utility corporation. 16 Such late payment charges shall be in compliance with the guidelines set 17 forth in section forty-two of this article. 18 (b) Upon the final determination or by the issuance of a final order, 19 of any investigation covered by this section, the commission shall 20 either (i) determine any allowable penalties the utility corporation may 21 impose upon its customers, or (ii) waive, or partially waive, any inter- 22 est or fees charged by the utility corporation to the consumer on such 23 consumer's billing statements during a period such utility corporation 24 determines to be related to such investigation. 25 3. Notwithstanding any law, rule, regulation, order, or tariff to the 26 contrary, utility service shall not be terminated to residential 27 accounts for non-payment of an overdue charge from the commencement of 28 any commission investigation until one hundred twenty days after the 29 findings of such investigation have been published and a determination 30 has been issued by the commission. Nothing in this section shall prohib- 31 it a utility corporation from disconnecting service necessary to protect 32 the health and safety of customers and the public. 33 4. (a) Within ten days of the commencement of an investigation, the 34 utility corporation shall notify residential customers of such investi- 35 gation. Forms of notification of an investigation from a utility corpo- 36 ration to a residential customer shall include, but not be limited to, 37 letters, notices on utility bills, phone calls, and notices posted on 38 the utility corporation's website. 39 (b) Within three days of the commencement of an investigation, the 40 department shall post a notice to the general public of such investi- 41 gation on its website. 42 § 4. The public service law is amended by adding a new section 77-a to 43 read as follows: 44 § 77-a. Investigations relating to commercial gas and electric utility 45 service. 1. For the purposes of this section, the term "investigation" 46 shall mean a formal proceeding conducted by the commission to examine 47 the billing, rates, or charges of a utility corporation or any proceed- 48 ing during which the commission deems it appropriate to pause the charg- 49 es described in subdivision two of this section. The term "investi- 50 gation" shall include such proceedings conducted pursuant to section 51 seventy-one of this article. Notwithstanding any law, rule or regu- 52 lation to the contrary, the term "investigation" shall not include 53 commission inquiries triggered by an individual customer complaint filed 54 pursuant to section forty-three of this chapter. The term "investi- 55 gation" shall not include a proceeding relating to a "major change" asA. 953--B 3 1 defined in paragraph (c) of subdivision twelve of section sixty-six of 2 this article. 3 2. (a) A utility corporation shall not impose late fees, interest or 4 penalties during an investigation if such utility corporation is the 5 subject of a pending investigation, provided however, that such late 6 fees, interest and penalties may be imposed retroactively if such inves- 7 tigation is issued a final order in favor of such utility corporation. 8 Such late payment charges shall be in compliance with the guidelines set 9 forth in section sixty-five of this article. 10 (b) Upon the final determination or by the issuance of a final order, 11 of any investigation covered by this section, the commission shall 12 either (i) determine any allowable penalties the utility corporation may 13 impose upon its customers, or (ii) waive, or partially waive, any inter- 14 est or fees charged by such utility corporation to the consumer on such 15 consumer's billing statements during a period such utility corporation 16 determines to be related to such investigation. 17 3. Notwithstanding any law, rule, regulation, order, or tariff to the 18 contrary, utility service shall not be terminated to residential 19 accounts for non-payment of an overdue charge from the commencement of 20 any commission investigation until one hundred twenty days after the 21 findings of such investigation have been published and a determination 22 has been issued by the commission. Nothing in this section shall prohib- 23 it a utility corporation from disconnecting service necessary to protect 24 the health and safety of customers and the public. 25 4. (a) Within ten days of the commencement of an investigation, the 26 utility corporation shall notify residential customers of such investi- 27 gation. Forms of notification of an investigation from a utility corpo- 28 ration to a residential customer shall include, but not be limited to, 29 letters, notices on utility bills, phone calls, and notices posted on 30 the utility corporation's website. 31 (b) Within three days of the commencement of an investigation, the 32 department shall post a notice to the general public of such investi- 33 gation on its website. 34 § 5. The public service law is amended by adding a new section 85-a to 35 read as follows: 36 § 85-a. Investigations relating to commercial steam utility service. 37 1. For the purposes of this section, the term "investigation" shall 38 mean a formal proceeding conducted by the commission to examine the 39 billing, rates, or charges, of a utility corporation or any proceeding 40 during which the commission deems it appropriate to pause the charges 41 described in subdivision two of this section. The term "investigation" 42 shall include such proceedings conducted pursuant to section seventy-one 43 of this chapter. Notwithstanding any law, rule or regulation to the 44 contrary, the term "investigation" shall not include commission 45 inquiries triggered by an individual customer complaint filed pursuant 46 to section forty-three of this chapter. The term "investigation" shall 47 not include a proceeding relating to a "major change" as defined in 48 paragraph (c) of subdivision twelve of section sixty-six of this chap- 49 ter. 50 2. (a) A utility corporation shall not impose late fees, interest, or 51 penalties during an investigation if such utility corporation is the 52 subject of a pending investigation, provided however, that such late 53 fees, interest and penalties may be imposed retroactively if such inves- 54 tigation is issued a final order in favor of such utility corporation. 55 Such late payment charges shall be in compliance with section seventy- 56 nine of this article.A. 953--B 4 1 (b) Upon the final determination or by the issuance of a final order, 2 of any investigation covered by this section, the commission shall 3 either (i) determine any allowable penalties the utility corporation may 4 impose upon its customers, or (ii) waive, or partially waive, any inter- 5 est or fees charged by the utility corporation to the consumer on such 6 consumer's billing statements during a period such utility corporation 7 determines to be related to such investigation. 8 3. Notwithstanding any law, rule, regulation, order, or tariff to the 9 contrary, utility service shall not be terminated to residential 10 accounts for non-payment of an overdue charge from the commencement of 11 any commission investigation until one hundred twenty days after the 12 findings of such investigation have been published and a determination 13 has been issued by the commission. Nothing in this section shall prohib- 14 it a utility corporation from disconnecting service necessary to protect 15 the health and safety of customers and the public. 16 4. (a) Within ten days of the commencement of an investigation, the 17 utility corporation shall notify residential customers of such investi- 18 gation. Forms of notification of an investigation from a utility corpo- 19 ration to a residential customer shall include, but not be limited to, 20 letters, notices on utility bills, phone calls, and notices posted on 21 the utility corporation's website. 22 (b) Within three days of the commencement of an investigation, the 23 department shall post a notice to the general public of such investi- 24 gation on its website. 25 § 6. The public service law is amended by adding a new section 16-a to 26 read as follows: 27 § 16-a. Reports on investigatory proceedings relating to gas, elec- 28 tric, and steam service. The commission shall submit to the governor, 29 the speaker of the assembly, the temporary president of the senate, the 30 chair of the assembly corporations, commissions, and authorities commit- 31 tee, and the chair of the senate energy and telecommunications committee 32 an annual report detailing the list of investigations that were deemed 33 applicable under sections fifty-four, seventy-seven-a, and eighty-five-a 34 of this chapter. Such report shall include an explanation of the 35 instances where the commission has deemed the use of such provisions 36 appropriate. Additionally, the report shall include all appropriate 37 case numbers, or docket numbers where applicable, utilized in the 38 commission's records keeping systems and any other information that the 39 commission deems necessary. 40 For the purposes of this section, the term "investigation" shall have 41 the same meaning as defined in sections fifty-four, seventy-seven-a, and 42 eighty-five-a of this chapter. 43 § 7. This act shall take effect on the thirtieth day after it shall 44 have become a law.