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A04078 Summary:

BILL NOA04078
 
SAME ASSAME AS S01535
 
SPONSORCunningham
 
COSPNSRShimsky, Eichenstein, McDonough, Brown K
 
MLTSPNSR
 
Add §66-x, Pub Serv L
 
Relates to establishing requirements and penalties for combination utility companies during service outages; provides that a penalty for failure to reasonably comply with requirements that protect the overall reliability and continuity of combination utility company services shall be up to one hundred dollars per violation or for a pattern or practice of such violations up to one thousand dollars per violation.
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A04078 Actions:

BILL NOA04078
 
01/31/2025referred to energy
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A04078 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A4078
 
SPONSOR: Cunningham
  TITLE OF BILL: An act to amend the public service law, in relation to establishing requirements and penalties for combination utility companies during service outages   PURPOSE OR GENERAL IDEA OF BILL: This legislation amends the public service law by authorizing the public service commission to establish acceptable standards of performance for combination utility companies during power outages and power restoration efforts; imposes penalties for failure to perform.   SUMMARY OF PROVISIONS: Section 1 amends the public service law by adding a new section 66-T. Subsection la- grants power to the public service commission to set forth standards of acceptable performance that combination utility companies must abide by during power outages and power restoration efforts. Subsection lb- sets forth the requirement that the commission institute appropriate penalties against combination utility companies that have failed to reasonably comply with the provisions of this chapter and outlines examples of such penalties. Subsection lc- sets forth the definition of "combination utility company" Subsection 2- sets forth requirements that the commission establish a schedule for rebates and credits for service outages Subsection 3- authorizes the commission to investigative and review performance of combination utilities and determine culpability of combi- nation utility companies in restoring power Subsection 4- ensures that the fiscal responsibility of all penalties remain solely the responsibility of the combination utility company and are not added to the bills of customers. Section 2 sets forth the effective date.   JUSTIFICATION: To quell customers' uncertainties surrounding service outages and to ensure that families and small businesses are better protected during those times, we must enact standards for utilities' preparedness and response during emergencies and service outages. To reinforce those protections for our New York residents, it is critical that we hold utility companies liable, per violation, in the event they fail to reasonably protect against or properly respond during such service outages. These kinds of actions are especially important for New York state which has historically dealt with issues surrounding the severe storm response provided by utilities- i.e, during Hurricane Sandy, Hurricane Ida, and Hurricane Irene. When utility companies failed to properly respond during those storms, families around the state dealt with the resulting severe consequences, with plenty being forced out of their homes. This bill proposes that the Public Service Commission develop and establish a penalty system for combination utilities companies who fail to reasonably respond during service outages. This would grant the necessary safeguards to ensure that all customers are properly protected.   PRIOR LEGISLATIVE HISTORY: 2023-24: A4059/S2586 - referred to energy / Passed Senate   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.   EFFECTIVE DATE: Immediately.
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A04078 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          4078
 
                               2025-2026 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 31, 2025
                                       ___________
 
        Introduced  by  M.  of  A.  CUNNINGHAM  -- read once and referred to the
          Committee on Energy
 
        AN ACT to amend the public service  law,  in  relation  to  establishing
          requirements  and  penalties  for combination utility companies during
          service outages
 
          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  66-x to read as follows:
     3    § 66-x. Establishment of requirements and  penalties  for  combination
     4  utility  companies  during  service outages. 1. (a) The commission shall
     5  have the power to establish  standards  of  acceptable  performance  for
     6  combination  utility companies in the event of a power outage and subse-
     7  quent power restoration.
     8    (b) The commission shall also provide for a penalty in the event  that
     9  a  combination  utility  company is determined by the commission to have
    10  failed to reasonably comply by a preponderance of the evidence with  any
    11  provision  of  this chapter, or an order or regulation adopted under the
    12  authority of this chapter, which protects the  overall  reliability  and
    13  continuity  of  combination  utility company services, including but not
    14  limited to restoring service or otherwise meeting the requirements of an
    15  emergency service plan following a major outage event or emergency. Such
    16  penalty shall be up to one hundred dollars per violation of this section
    17  or, for a pattern or practice of such violations, of up to one  thousand
    18  dollars  per  violation.  A  violation  shall  be  judged per individual
    19  account and shall include both residential and commercial customers.
    20    (c) For the purposes of this section,  "combination  utility  company"
    21  shall  mean  a  utility  company  that  provides electric, gas, or steam
    22  service in a city with a population of one million or more.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02297-01-5

        A. 4078                             2
 
     1    2. The commission shall establish a schedule of  customer  credits  or
     2  rebates,  which  shall  be  awarded to customers that experience service
     3  outage conditions and for missed installation appointments.
     4    3. The commission is authorized to open an investigation to review the
     5  performance  of  any combination utility company in restoring service or
     6  otherwise meeting the requirements of an emergency response plan  during
     7  an emergency event. If, after evidentiary hearings or other investigato-
     8  ry proceedings, the commission finds that the combination utility compa-
     9  ny  failed  to  reasonably  implement its emergency response plan or the
    10  length of such combination utility  company's  outages  were  materially
    11  longer  than  they should have been, because of such combination utility
    12  company's failure to reasonably implement its emergency  response  plan,
    13  the commission may deny the recovery of any part of the service restora-
    14  tion  costs  caused  by  such  failure, commensurate with the degree and
    15  impact of the service outage; provided, however, that  nothing  in  this
    16  section  limits  the  commission's  authority  to  otherwise  commence a
    17  proceeding pursuant to sections  twenty-four,  twenty-five  and  twenty-
    18  five-a  of  this chapter, provided such action or penalty solely relates
    19  to the combination utility company's performance under the  requirements
    20  of the combination utility company's emergency response plan.
    21    4.  The  fiscal  impact  of  any payment made by a combination utility
    22  company or the officers thereof as a result of a penalty assessed pursu-
    23  ant to this section,  and  the  cost  of  litigation  and  investigation
    24  related to any such assessment shall not be borne by customers and shall
    25  not  be  added  to  bills rendered by the combination utility company to
    26  customers.
    27    § 2. This act shall take effect immediately.
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