Bill Text: NY A10065 | 2019-2020 | General Assembly | Introduced

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Bill Title: Provides for a two percent cap on rate increases imposed by utilities.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-03-06 - referred to corporations, authorities and commissions [A10065 Detail]

Download: New_York-2019-A10065-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          10065

                   IN ASSEMBLY

                                      March 6, 2020
                                       ___________

        Introduced  by M. of A. GRIFFIN -- read once and referred to the Commit-
          tee on Corporations, Authorities and Commissions

        AN ACT to amend the public service law and the public  authorities  law,
          in  relation  to  providing  for  a  two percent cap on rate increases
          imposed by utilities

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Subdivision 1 of section 65 of the public service law, as
     2  amended by chapter 789 of the laws  of  1930,  is  amended  to  read  as
     3  follows:
     4    1. Every gas corporation, every electric corporation and every munici-
     5  pality  shall  furnish  and  provide such service, instrumentalities and
     6  facilities as shall be safe and adequate and in all  respects  just  and
     7  reasonable.  All  charges  made or demanded by any such gas corporation,
     8  electric corporation or municipality for gas, electricity or any service
     9  rendered or to be rendered, shall be just and reasonable  and  not  more
    10  than  allowed  by  law  or  by  order of the commission. Every unjust or
    11  unreasonable charge made or demanded for gas, electricity  or  any  such
    12  service, or in connection therewith, or in excess of that allowed by law
    13  or  by the order of the commission is prohibited.  No gas corporation or
    14  electric corporation shall increase rates and charges by more  than  two
    15  percent as measured on an annual basis.
    16    §  2.  Paragraphs  2 and 4 of subdivision (u) of section 1020-f of the
    17  public authorities law, as added by section 7 of part A of  chapter  173
    18  of the laws of 2013, are amended to read as follows:
    19    2.  The authority and the service provider shall thereafter submit for
    20  review to the department of public service any rate proposal that  would
    21  increase the rates and charges [and thus increase the aggregate revenues
    22  of  the  authority  by  more  than two and one-half]. Such rate proposal
    23  shall not provide for an increase of such rates and charges by more than
    24  two percent to be measured on an annual basis[; provided, however,  that
    25  the authority may place such rates and charges into effect on an interim
    26  basis, subject to prospective rate adjustment; provided, further, that a
    27  final  rate plan issued by the authority that would not so increase such

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14100-02-9
        A. 10065                            2

     1  rates and charges shall not be subject to the requirements of  paragraph
     2  four  of this subdivision and shall be considered final for the purposes
     3  of review under article seventy-eight of  the  civil  practice  law  and
     4  rules.    The authority and/or the service provider may otherwise submit
     5  for review to such department any  rate  proposal  irrespective  of  its
     6  effect on revenues].
     7    4.  Any  recommendations  associated  with  a  rate proposal submitted
     8  pursuant to paragraphs one and two of this subdivision shall be provided
     9  by the department of public service to the board of the authority  imme-
    10  diately  upon  their finalization by the department. Unless the board of
    11  the authority makes a preliminary determination in its  discretion  that
    12  any particular recommendation is inconsistent with the authority's sound
    13  fiscal  operating practices, any existing contractual or operating obli-
    14  gations, or the provision of safe and adequate service, the board  shall
    15  implement  such  recommendations as part of its final rate plan and such
    16  final determination shall be deemed to satisfy the requirements of  this
    17  subdivision  and  be  considered  final for the purposes of review under
    18  article seventy-eight of the civil practice law and rules.    The  board
    19  shall  not approve a final rate plan that increases rates and charges by
    20  more than two percent. The board shall make any such preliminary  deter-
    21  mination  of  inconsistency within thirty days of receipt of such recom-
    22  mendations, with notice  and  the  basis  of  such  determination  being
    23  provided  to  the  department  of  public service, and contemporaneously
    24  posted on the websites of the authority and its  service  provider.  The
    25  board  shall thereafter, within thirty days of such posting and with due
    26  advance notice to the public, hold a public hearing with respect to  its
    27  preliminary determination of inconsistency. At such hearing, the depart-
    28  ment  of public service shall present the basis for its recommendations,
    29  the board shall present the basis for its determination of inconsistency
    30  and the service provider may present its position. The authority and the
    31  service provider may, during the time period before such public  hearing
    32  reach  agreement  with  the department on disputed issues. Within thirty
    33  days after such  public  hearing,  the  board  of  the  authority  shall
    34  announce its final determination and planned implementation with respect
    35  to  any  such  recommendations.  The  authority's final determination of
    36  inconsistency  shall  be  subject  to  any  applicable  judicial  review
    37  proceeding,  including  review  available under article seventy-eight of
    38  the civil practice law and rules.
    39    § 3. This act shall take effect on the ninetieth day  after  it  shall
    40  have become a law.