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.
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.
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.
