Governor Hochul Signs into Law Legislation Sponsored by Senator Skoufis and Assemblyman Eichenstein Penalizing Public Utility Companies that Misrepresent Rate Increase Justification
The board on the Assembly Floor during voting on Assemblyman Eichenstein’s legislation.
Legislation sponsored by Assemblyman Simcha Eichenstein and Senator James Skoufis (S6710/A3746), which was signed into law earlier today by Governor Kathy Hochul, severely fines public utility companies that knowingly or deliberately provide false information to the NYS Public Service Commission in relation to rate increase proceedings.
In New York State, the Public Service Commission (PSC) regulates most utility companies that operate throughout the state and approves utility rate adjustments based on the cost of providing service. For too long, hard-working New Yorkers have been subjected to repeated unjust rate hikes with no recourse. There have been past instances where utility companies provided false and misleading data, or intentionally misrepresented key information to the PSC, which led to unfair and excessive rate increases. This new legislation will ensure that utility companies which deliberately misrepresent data and material as a means to obtain a rate increase approval from the PSC, will be subject to severe financial penalties of up to $250,000.
“Today, we are taking bold steps to ensure New Yorkers have greater transparency into the utility rate changes that impact their daily lives,” Governor Kathy Hochul said. “New Yorkers deserve to know why there is an increase in rates and how the revenue will be spent. These laws represent a new chapter of a fair, open and trustworthy utility system for New Yorkers.”
“In these challenging times, increases in utility rates place an extra burden on New Yorkers who are already struggling to pay their bills. When rates are unjustly inflated, it can be devastating to hard-working utility customers,” said Assemblyman Simcha Eichenstein. “I want to thank Governor Hochul for recognizing the importance of this legislation, which will serve to maintain fair and reasonable pricing, and will ensure that utility companies remain honest and accurate when providing information to the PSC. I am proud to have sponsored this legislation, along with Senator Skoufis in the Senate, to ensure that New Yorkers are not taken advantage of.”
State Senator James Skoufis said, “Simplifying and improving the transparency surrounding the process of major rate increases – and holding bad actors accountable – is an essential step toward increasing public understanding and ensuring utility companies are responsible to ratepayers. I am gratified to see the Governor enact S.6710 into law.”