Bill Text: NY A00668 | 2013-2014 | General Assembly | Amended


Bill Title: Directs the public service commission to require electric and steam corporations to provide rate reductions or refunds for inadequate or interrupted service; requires electric corporations, in cities having a population of one million or more, to reimburse ratepayers for damages to and losses of property and business caused by power outages lasting more than 12 hours during any 24-hour period; requires steam corporations, in cities having a population of one million or more, to reimburse ratepayers for damages to and losses of property and business caused by service interruptions lasting more than 48 hours.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2014-01-16 - print number 668a [A00668 Detail]

Download: New_York-2013-A00668-Amended.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        668--A
                              2013-2014 Regular Sessions
                                 I N  A S S E M B L Y
                                      (PREFILED)
                                    January 9, 2013
                                      ___________
       Introduced by M. of A. HEVESI -- read once and referred to the Committee
         on  Corporations,  Authorities  and  Commissions -- recommitted to the
         Committee on Corporations, Authorities and Commissions  in  accordance
         with  Assembly  Rule  3, sec. 2 -- committee discharged, bill amended,
         ordered reprinted as amended and recommitted to said committee
       AN ACT to amend the public service law, in relation to the power of  the
         public service commission to require refunds of or reductions in rates
         for inadequate or interrupted electric or steam service
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Subdivision 20 of section 66 of the public service law,  as
    2  added by chapter 394 of the laws of 1978, is amended to read as follows:
    3    20.  (A)  Notwithstanding  any  general  or special law, rule or regu-
    4  lation, the commission shall have the power to provide for the refund of
    5  any revenues received by any gas or electric corporation which cause the
    6  corporation to have revenues in the aggregate in excess of  its  author-
    7  ized  rate  of  return for a period of twelve months. The commission may
    8  initiate a proceeding with respect to such a refund after the conclusion
    9  of any such twelve month period.
   10    (B) NOTWITHSTANDING ANY GENERAL OR SPECIAL LAW,  RULE  OR  REGULATION,
   11  THE   COMMISSION   SHALL  IMPOSE  PROMPT,  MEANINGFUL  RATE  REFUNDS  OR
   12  REDUCTIONS IN INSTANCES WHERE ELECTRIC CORPORATIONS FAIL TO MEET  OBJEC-
   13  TIVELY  MEASURED  SERVICE  QUALITY STANDARDS. SUCH REFUNDS OR REDUCTIONS
   14  SHALL AT A MINIMUM EQUAL FIVE PERCENT OF THE AMOUNT BILLED TO A CUSTOMER
   15  FOR THE PROVISION OF ELECTRIC SERVICE FOR A PERIOD OF TWELVE  MONTHS  OR
   16  SUCH  LONGER  PERIOD AS THE COMMISSION MAY PRESCRIBE; PROVIDED, HOWEVER,
   17  THAT THE COMMISSION MAY PRESCRIBE A SCHEDULE SETTING FORTH BOTH  MINIMUM
   18  AND   MAXIMUM  AMOUNTS  THAT  A  CUSTOMER  MAY  RECEIVE  IN  REFUNDS  OR
   19  REDUCTIONS.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD01529-04-4
       A. 668--A                           2
    1    (C) IN ADDITION TO THE PROVISIONS OF PARAGRAPHS (A) AND  (B)  OF  THIS
    2  SUBDIVISION, IN EVERY INSTANCE WHERE ELECTRIC SERVICE IS INTERRUPTED DUE
    3  TO  A LOCAL DISTRIBUTION SYSTEM FAILURE LASTING FOR TWELVE HOURS OR MORE
    4  WITHIN A TWENTY-FOUR HOUR PERIOD, THE COMMISSION SHALL REQUIRE AN  ELEC-
    5  TRIC  CORPORATION  THAT DISTRIBUTES ELECTRICITY IN A CITY OF ONE MILLION
    6  OR MORE TO (1) REIMBURSE CUSTOMERS FOR DAMAGES TO OR LOSSES OF  PROPERTY
    7  INCLUDING,  BUT  NOT  LIMITED  TO PERISHABLE FOOD ITEMS AND MEDICATIONS,
    8  ELECTRICAL EQUIPMENT, COMPUTER EQUIPMENT,  AIR  CONDITIONING  EQUIPMENT,
    9  AND OTHER ELECTRONIC EQUIPMENT AND INSTRUMENTS USED BY COMMERCIAL ESTAB-
   10  LISHMENTS  OR  RESIDENCES;  AND  (2) PROVIDE APPROPRIATE COMPENSATION TO
   11  THOSE COMMERCIAL CUSTOMERS WHO HAVE LOST BUSINESS AS  A  RESULT  OF  THE
   12  SERVICE  INTERRUPTION. SUCH COMPENSATION SHALL BE BASED UPON THE AVERAGE
   13  REVENUES EARNED BY THE BUSINESS IN SIMILAR TIME PERIODS, OR, FOR  A  NEW
   14  BUSINESS,  THE  AVERAGE REVENUES EARNED BY SIMILAR BUSINESSES IN SIMILAR
   15  TIME PERIODS. THE COMMISSION MAY  PRESCRIBE  REASONABLE  LIMITS  ON  THE
   16  AMOUNT  OF  REIMBURSEMENT  AND  COMPENSATION  AVAILABLE  TO  A CUSTOMER;
   17  PROVIDED THAT SUCH AMOUNTS SHALL NOT BE LESS THAN FIVE  HUNDRED  DOLLARS
   18  FOR  LOSSES OF FOOD AND MEDICATIONS, ONE THOUSAND DOLLARS FOR DAMAGES TO
   19  ELECTRICAL EQUIPMENT AND INSTRUMENTS, AND TEN THOUSAND DOLLARS FOR  LOST
   20  BUSINESS.   ADDITIONAL REIMBURSEMENT AND COMPENSATION IN ACCORDANCE WITH
   21  THE PRECEDING REQUIREMENTS  SHALL  BE  PROVIDED  TO  EACH  CUSTOMER  WHO
   22  REMAINS  WITHOUT ELECTRICITY FOR EACH ADDITIONAL FORTY-EIGHT HOUR PERIOD
   23  THAT THE SERVICE INTERRUPTION CONTINUES. FOR THE PURPOSES OF THIS  PARA-
   24  GRAPH,  INTERRUPTION  OF  ELECTRIC  SERVICE  SHALL  BE DEEMED TO INCLUDE
   25  REDUCTIONS IN VOLTAGE THAT DAMAGE ELECTRIC EQUIPMENT OR RENDER IT  FUNC-
   26  TIONALLY  INOPERABLE.  THE COMMISSION MAY PROVIDE FOR REASONABLE LIMITA-
   27  TIONS ON  THE  AGGREGATE  AMOUNT  OF  REIMBURSEMENTS  AND  COMPENSATION,
   28  PROVIDED  THAT  ANY  SUCH  LIMITATIONS SHALL TAKE INTO CONSIDERATION THE
   29  DURATION OF THE INTERRUPTION AND ITS IMPACT ON RESIDENTIAL  AND  COMMER-
   30  CIAL CUSTOMERS.
   31    S  2.  Section 80 of the public service law is amended by adding a new
   32  subdivision 13 to read as follows:
   33    13. NOTWITHSTANDING ANY GENERAL OR SPECIAL LAW,  RULE  OR  REGULATION,
   34  HAVE  POWER  TO  IMPOSE PROMPT, MEANINGFUL RATE REFUNDS OR REDUCTIONS IN
   35  INSTANCES WHERE STEAM CORPORATIONS FAIL  TO  MEET  OBJECTIVELY  MEASURED
   36  SERVICE QUALITY STANDARDS. SUCH REFUNDS OR REDUCTIONS SHALL AT A MINIMUM
   37  EQUAL  FIVE PERCENT OF THE AMOUNT BILLED TO A CUSTOMER FOR THE PROVISION
   38  OF SERVICE FOR A PERIOD OF TWELVE MONTHS OR SUCH LONGER  PERIOD  AS  THE
   39  COMMISSION  MAY  PRESCRIBE;  PROVIDED,  HOWEVER, THAT THE COMMISSION MAY
   40  PRESCRIBE A SCHEDULE SETTING FORTH BOTH MINIMUM AND MAXIMUM AMOUNTS THAT
   41  A CUSTOMER MAY RECEIVE IN REFUNDS OR REDUCTIONS. IN ADDITION,  IN  EVERY
   42  INSTANCE  WHERE SERVICE IS INTERRUPTED FOR A PERIOD OF FORTY-EIGHT HOURS
   43  OR SUCH LESSER PERIOD AS THE COMMISSION MAY  DETERMINE,  THE  COMMISSION
   44  SHALL REQUIRE A STEAM CORPORATION THAT PROVIDES SERVICE IN A CITY OF ONE
   45  MILLION OR MORE TO REIMBURSE CUSTOMERS FOR DAMAGES TO OR LOSSES OF PROP-
   46  ERTY AND TO PROVIDE APPROPRIATE COMPENSATION TO THOSE COMMERCIAL CUSTOM-
   47  ERS WHO HAVE LOST BUSINESS AS A RESULT OF THE SERVICE INTERRUPTION. SUCH
   48  COMPENSATION  SHALL  BE  BASED  UPON  THE AVERAGE REVENUES EARNED BY THE
   49  BUSINESS IN SIMILAR TIME PERIODS, OR, FOR A NEW  BUSINESS,  THE  AVERAGE
   50  REVENUES  EARNED  BY  SIMILAR  BUSINESSES  IN  SIMILAR TIME PERIODS. THE
   51  COMMISSION MAY PRESCRIBE REASONABLE LIMITS ON THE AMOUNT  OF  REIMBURSE-
   52  MENT  AND  COMPENSATION  AVAILABLE  TO  A  CUSTOMER;  PROVIDED THAT SUCH
   53  AMOUNTS SHALL NOT BE LESS THAN FIVE HUNDRED DOLLARS FOR LOSSES OF  PROP-
   54  ERTY  AND  TEN THOUSAND DOLLARS FOR LOST BUSINESS. ADDITIONAL REIMBURSE-
   55  MENT AND COMPENSATION IN  ACCORDANCE  WITH  THE  PRECEDING  REQUIREMENTS
   56  SHALL  BE PROVIDED TO EACH CUSTOMER WHO REMAINS WITHOUT SERVICE FOR EACH
       A. 668--A                           3
    1  ADDITIONAL FORTY-EIGHT HOUR PERIOD, OR LESSER PERIOD  AS  DETERMINED  BY
    2  THE  COMMISSION, THAT THE SERVICE INTERRUPTION CONTINUES. THE COMMISSION
    3  MAY PROVIDE FOR  REASONABLE  LIMITATIONS  ON  THE  AGGREGATE  AMOUNT  OF
    4  REIMBURSEMENTS  AND  COMPENSATION,  PROVIDED  THAT  ANY SUCH LIMITATIONS
    5  SHALL TAKE INTO CONSIDERATION THE DURATION OF THE INTERRUPTION  AND  ITS
    6  IMPACT ON RESIDENTIAL AND COMMERCIAL CUSTOMERS.
    7    S  3.  On or before April 1, 2015, the public service commission shall
    8  review its existing policies and shall report to the  governor,  speaker
    9  of the assembly, the temporary president of the senate, the chair of the
   10  senate  finance  committee,  the  chair  of  the assembly ways and means
   11  committee, the chair of the assembly energy committee and the  chair  of
   12  the senate energy and telecommunications committee on whether additional
   13  legislation,  regulations  or  other  actions  are needed to ensure that
   14  electric and steam  corporations  adequately  reimburse  and  compensate
   15  their  customers for losses due to service interruptions and other fail-
   16  ures to provide safe and adequate service  as  required  by  the  public
   17  service law.
   18    S 4. This act shall take effect on the one hundred eightieth day after
   19  it shall have become a law. Provided, that the public service commission
   20  is  immediately  authorized  and  directed  to take any and all actions,
   21  including but not limited to the promulgation of any necessary rules and
   22  the review of reimbursement  and  compensation  policies,  necessary  to
   23  fully implement the provisions of this act on its effective date.
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