Forrest, Levenberg, Shrestha, Brown K, Valdez, McDonough, Santabarbara, Otis
MLTSPNSR
Amd §66, Pub Serv L
Enacts the "rate hike notice act" which requires utilities in the state of New York to provide notice of a proposed rate hike to a customer via text, email and via such customer's monthly billing statement.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5442B
SPONSOR: Mamdani TITLE OF BILL:
An act to amend the public service law, in relation to enacting the
"rate hike notice act"
PURPOSE:
To require text, email, and notice on monthly bills of proposed rate
increases by gas and electric utilities.
SUMMARY OF PROVISIONS:
Section 1 sets the title as the "Rate Hike Notice Act."
Section 2 amends subdivision 12 of section 66 of the public service law
to require gas and electric utilities to:
*Within one business day of publication of notice of a proposed rate
change on the Department of Public Service (DPS) website, provide text
notification of proposed rate changes to customers who receive texts
from the utility describing the average expected percentage change in
rates from the prior year.
*Within one business day of publication of notice of a proposed rate
change on the DPS website, provide email notification to customers who
receive email from the utility containing the same information of the
proposed rate change published on the DPS website.
*Within one billing cycle of the publication of notice of a proposed
rate change on the DPS website, include a separate page on the 'custom-
er's next monthly utility bill that contains the information on the
proposed rate change published on the DPS website.
Section 3 sets the effective date to sixty days after the bill's passage
into law.
JUSTIFICATION:
Energy utility bills are soaring across the state. The Public Service
Commission (PSC) regulates utilities across the state and approves util-
ity rate increases, called "rate cases." Details of rate cases are tech-
nically available to the public, but rate case reports are dense, tech-
nical, hard-to-find, and difficult to interpret for the majority of
ratepayers. In recent years, rate cases have resulted in energy prices
rising significantly for ratepayers across the state. For example, in
New York City, the average Con Edison residential customer can expect to
pay about $65 more per month in early 2025 as compared with 2023. By
2026, National Grid customers in Brooklyn, portions of Queens, and
Staten Island can expect to pay over $60 more a month compared to early
2024.
Meanwhile, upstate New York State Electric and Gas customers will see a
$30 increase to their monthly electric bills between 2023 and 2025.
Currently, it is difficult for the public to learn that a utility has
requested to raise rates. Prior to 2024, utilities were required to
inform residents in affected service areas about proposed rate increases
by publishing a notice in a generally circulated newspaper. Responding
to this grossly insufficient notice, the legislature and governor
amended state law in 2024 to require the PSC to publish information on
its website within ten days of commencement of a proceeding for a major
rate change (Chapter 333 of the Laws of 2024). The information posted
online must include the expected return on investment for the utility,
what the revenue will be used for, how to get involved in the rate case,
and more. While this requirement improved transparency around rate
hikes, the majority of ratepayers are unlikely to check the PSC website
for proposed rate changes, limiting the impact of this transparency
measure.
This legislation builds on the 2024 update to the public service law by
requiring utilities to share information about rate cases directly with
customers through text, email, and notification on the next monthly
bill. Once a utility files with the PSC to increase rates, this bill
will require utilities to directly alert customers. As a result, rate-
payers can more readily learn about utilities' use of ratepayers' money,
including utility profit margins. Additionally, ratepayers will learn
how to participate in the ratemaking process and can plan for an
increase in household expenses.
PRIOR LEGISLATIVE HISTORY:
2025: New Bill
FISCAL IMPLICATIONS:
De minimis.
EFFECTIVE DATE:
The act shall take effect sixty days after it becomes a law.
STATE OF NEW YORK
________________________________________________________________________
5442--B
2025-2026 Regular Sessions
IN ASSEMBLY
February 14, 2025
___________
Introduced by M. of A. MAMDANI, FORREST, LEVENBERG, SHRESTHA, K. BROWN,
VALDEZ, McDONOUGH -- read once and referred to the Committee on Energy
-- committee discharged, bill amended, ordered reprinted as amended
and recommitted to said committee -- again reported from said commit-
tee with amendments, ordered reprinted as amended and recommitted to
said committee
AN ACT to amend the public service law, in relation to enacting the
"rate hike notice act"
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 "rate hike notice act".
3 § 2. Subdivision 12 of section 66 of the public service law is amended
4 by adding a new paragraph (m) to read as follows:
5 (m) Within one business day of the publication of the information
6 required pursuant to subparagraph (i) of paragraph (l) of this subdivi-
7 sion, the commission shall require each utility to send electronic
8 notice of a proposed rate increase via text to all customers for whom
9 such utility contacts through text provided that such customers have
10 been provided an option to opt-out of such contact. The text shall
11 inform such customer that such utility is proposing a rate increase in
12 the customer's service area. Such text shall contain the following:
13 (i) the name of the utility proposing a rate increase;
14 (ii) the percentage increase to electricity and gas rates for the
15 typical residential customer;
16 (iii) the percentage increase to electricity and gas rates for the
17 typical commercial customer;
18 (iv) instructions for where ratepayers can find additional information
19 pertaining to the rate case; and
20 (v) clarification that this rate increase will not take effect until
21 approved or modified by the commission. Further, within one business
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04975-06-5
A. 5442--B 2
1 day of the publication of the information required pursuant to subpara-
2 graph (i) of paragraph (l) of this subdivision, the commission shall
3 also require each utility to send electronic notice of a proposed rate
4 increase via email to all customers for whom such utility contacts
5 through email, provided that such customers have been provided an option
6 to opt-out of such contact, and such email notice shall include informa-
7 tion identical to the information provided on the commission's website
8 pursuant to paragraph (l) of this subdivision. In addition, each utility
9 shall include a notice of a proposed rate increase in each customer's
10 next monthly bill statement and such notice in the monthly billing
11 statement shall consist of a separate page which shall include informa-
12 tion identical to the information provided on the commission's website
13 pursuant to paragraph (l) of this subdivision.
14 § 3. This act shall take effect on the sixtieth day after it shall
15 have become a law; provided, however, it shall not apply to any proceed-
16 ing before the Public Service Commission relating to a major change in
17 rates that was commenced prior to the effective date. Effective imme-
18 diately, the addition, amendment and/or repeal of any rule or regulation
19 necessary for the implementation of this act on its effective date are
20 authorized to be made and completed on or before such effective date.
