Requires the public service commission to publish certain information prior to a major rate change by a public gas or electric utility including an explanation of why the rate change is requested and a summary of how the proposed revenue will be spent.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9827
SPONSOR: Barrett TITLE OF BILL:
An act to amend the public service law, in relation to information
required to be published prior to a major rate change by a public gas or
electric utility
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to make utility rate cases within the Public
Service Commission more transparent and accessible to the public.
SUMMARY OF PROVISIONS:
This bill would require the Public Service Commission (PSC) to make
available a one-page summary of major rate cases, both after their
initiation and upon conclusion, which would include important informa-
tion about the rate case notably potential financial impacts of rate
payers. It would also require the summary to be published on their
website and shared with newspapers and legislators.
JUSTIFICATION:
The Public Service Commission (PSC) regulates public utilities across
the state and is tasked with approving utility rate increases. The proc-
ess by which this happens, called a rate case, is a complicated, techni-
cal, and overwhelming process which often has immense consequences for
the average citizen of the state. While all of the documents of this
process are in principle available to the public, finding them, sorting
through them and making sense of them can be nothing short of a full-
time job.
This bill aims to simplify and improve the transparency of this process
for the average ratepayer by making it easier for them to understand how
a rate case might affect them. Requiring PSC to provide a short summary
of important rate case information, such as average rate increases and
how to submit public comment, is a necessary step at improving this
complicated process and helping promote public understanding and partic-
ipation.
PRIOR LEGISLATIVE HISTORY:
This is a new bill.
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect on the sixtieth day after it shall have
become law.
STATE OF NEW YORK
________________________________________________________________________
9827
IN ASSEMBLY
April 11, 2024
___________
Introduced by M. of A. BARRETT -- read once and referred to the Commit-
tee on Energy
AN ACT to amend the public service law, in relation to information
required to be published prior to a major rate change by a public gas
or electric utility
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 12 of section 66 of the public service law is
2 amended by adding a new paragraph (l) to read as follows:
3 (1) (i) The commission shall, within ten days of the commencement of
4 any matter involving a major change in a rate for electric or gas
5 service, publish, in a readily accessible location on the department's
6 website, a summary in plain language, not to exceed one page or five
7 hundred words, to the extent such information is available, containing
8 the following:
9 (A) the proposed rate term;
10 (B) the total proposed rate change, in both percentage change from
11 prior rate year and absolute requested tariff value, including yearly or
12 sliding scale breakdown if applicable;
13 (C) the average proposed rate change for a residential, commercial,
14 and industrial ratepayer, including yearly or sliding scale breakdown if
15 applicable;
16 (D) an explanation of why the rate changes are requested and a summary
17 of how the proposed revenue will be spent;
18 (E) the proposed return on equity in both percentage and absolute
19 value over the total rate term;
20 (F) an estimated timeline of relevant hearings, comment periods, and
21 deadlines;
22 (G) an explanation of how to submit public comment; and
23 (H) any other information the commission finds relevant.
24 (ii) The commission shall, within ten days of the issuance of an order
25 adopting a rate change for electric or gas service or a tariff relating
26 to a major change in a rate for electric or gas service, publish, in a
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15220-02-4
A. 9827 2
1 readily accessible location on the department's website, a summary, not
2 to exceed one page or five hundred words, containing the following:
3 (A) the rate term;
4 (B) the total rate change, in both percentage change from prior rate
5 year and absolute tariff value, including yearly or sliding scale break-
6 down if applicable;
7 (C) a comparison of the initial proposed rate change and absolute
8 tariff value and the final approved rate and tariff value;
9 (D) the average rate change for a residential, commercial, and indus-
10 trial ratepayer, including yearly or sliding scale breakdown if applica-
11 ble;
12 (E) a summary of how the revenue will be spent;
13 (F) the authorized return on equity in both percentage and absolute
14 value over the total rate term;
15 (G) a summary of other proposals relevant to ratepayers such as earn-
16 ings adjustment mechanisms, excess revenue allocation, performance
17 metrics, affordability programs, and additional fees; and
18 (H) any other information the commission finds relevant.
19 (iii) In addition to the requirements of paragraph (b) of this subdi-
20 vision, the commission shall send such summaries to members of the
21 legislature who represent any portion of the territory impacted by the
22 proposed change as well as newspapers having general circulation in each
23 county containing the territory affected by the proposed change.
24 § 2. This act shall take effect on the sixtieth day after it shall
25 have become a law.
