Bill Text: NY A00953 | 2025-2026 | General Assembly | Introduced


Bill Title: Prohibits utility corporations from imposing late fees, interest, or penalties during an investigation by the commission; allows retroactive late fees, interest, or penalties if a determination is made in favor of such utility corporation; prohibits utility services from being terminated during an investigation by the commission; requires utility corporations to notify customers of investigations; requires notice to the general public.

Spectrum: Partisan Bill (Democrat 17-0)

Status: (Introduced) 2025-01-08 - referred to corporations, authorities and commissions [A00953 Detail]

Download: New_York-2025-A00953-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                           953

                               2025-2026 Regular Sessions

                   IN ASSEMBLY

                                       (Prefiled)

                                     January 8, 2025
                                       ___________

        Introduced  by  M.  of A. SHRESTHA, GALLAGHER, JACOBSON, STECK, BURDICK,
          SIMON, MITAYNES, EPSTEIN, STIRPE, MAMDANI, FORREST, R. CARROLL, ROSEN-
          THAL, DE LOS SANTOS, SEPTIMO, REYES, RAGA -- read once and referred to
          the Committee on Corporations, Authorities and Commissions

        AN ACT to amend the public service law, in relation  to  termination  of
          certain utility services

          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  "consumer  utility  protections  during  investigations act" or the
     3  "CUPDI act".
     4    § 2. Section 2 of the public service law is amended by  adding  a  new
     5  subdivision 30 to read as follows:
     6    30.  "Final  determination"  or  "finally determined" means a judicial
     7  decision: (i) by the highest court of competent jurisdiction; or (ii) by
     8  a court of competent jurisdiction from which no appeal  has  been  taken
     9  and the time within which to appeal has expired.
    10    §  3.  The public service law is amended by adding a new section 54 to
    11  read as follows:
    12    § 54. Investigations relating to residential gas, electric  and  steam
    13  utility service. 1. For the purposes of this section, the term "investi-
    14  gation"  shall  mean  a formal proceeding conducted by the commission to
    15  examine the policies, practices, rates, charges,  services,  facilities,
    16  operations,  or  management  of  a  utility  corporation or to determine
    17  compliance with any law, rule, regulation, order, or  tariff  applicable
    18  to such utility corporation. The term "investigation" shall include such
    19  proceedings  conducted  pursuant to section seventy-one of this chapter.
    20  Notwithstanding anything to the contrary, the term "investigation" shall
    21  not include commission inquiries triggered  by  an  individual  customer
    22  complaint filed pursuant to section forty-three of this article.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00509-01-5

        A. 953                              2

     1    2.  (a)  A utility corporation shall not impose late fees, interest or
     2  penalties during an investigation if such  utility  corporation  is  the
     3  subject  of  a  pending  investigation, provided however, that such late
     4  fees, interest and penalties may be imposed retroactively if such inves-
     5  tigation  is  issued a final order in favor of such utility corporation.
     6  Such late payment charges shall be in compliance with the guidelines set
     7  forth in section forty-two of this article.
     8    (b) Upon the final determination or by the issuance of a final  order,
     9  of  any  investigation  covered  by  this  section, the commission shall
    10  either (i) determine any allowable penalties the utility corporation may
    11  impose upon its customers, or (ii) waive, or partially waive, any inter-
    12  est or fees charged by the utility corporation to the consumer  on  such
    13  consumer's  billing  statements during a period such utility corporation
    14  determines to be related to such investigation.
    15    3. Notwithstanding any law, rule, regulation, order, or tariff to  the
    16  contrary,  utility  service  shall  not  be  terminated  to  residential
    17  accounts for non-payment of an overdue charge from the  commencement  of
    18  any  commission  investigation  until  one hundred twenty days after the
    19  findings of such investigation have been published and  a  determination
    20  has been issued by the commission. Nothing in this section shall prohib-
    21  it a utility corporation from disconnecting service necessary to protect
    22  the health and safety of customers and the public.
    23    4.  (a)  Within  ten days of the commencement of an investigation, the
    24  utility corporation shall notify residential customers of such  investi-
    25  gation.  Forms of notification of an investigation from a utility corpo-
    26  ration to a residential customer shall include, but not be  limited  to,
    27  letters,  notices  on  utility bills, phone calls, and notices posted on
    28  the utility corporation's website.
    29    (b) Within three days of the commencement  of  an  investigation,  the
    30  department  shall  post  a notice to the general public of such investi-
    31  gation on its website.
    32    § 4. The public service law is amended by adding a new section 77-a to
    33  read as follows:
    34    § 77-a. Investigations relating to commercial gas and electric utility
    35  service. 1. For the purposes of this section, the  term  "investigation"
    36  shall  mean  a  formal proceeding conducted by the commission to examine
    37  the policies, practices, rates,  charges,  services,  facilities,  oper-
    38  ations,  or  management of a utility corporation or to determine compli-
    39  ance with any law, rule, regulation, order or tariff applicable to  such
    40  utility   corporation.  The  term  "investigation"  shall  include  such
    41  proceedings conducted pursuant to section seventy-one of  this  article.
    42  Notwithstanding anything to the contrary, the term "investigation" shall
    43  not  include  commission  inquiries  triggered by an individual customer
    44  complaint filed pursuant to section forty-three of this chapter.
    45    2. (a) A utility corporation shall not impose late fees,  interest  or
    46  penalties  during  an  investigation  if such utility corporation is the
    47  subject of a pending investigation, provided  however,  that  such  late
    48  fees, interest and penalties may be imposed retroactively if such inves-
    49  tigation  is  issued a final order in favor of such utility corporation.
    50  Such late payment charges shall be in compliance with the guidelines set
    51  forth in section sixty-five of this article.
    52    (b) Upon the final determination or by the issuance of a final  order,
    53  of  any  investigation  covered  by  this  section, the commission shall
    54  either (i) determine any allowable penalties the utility corporation may
    55  impose upon its customers, or (ii) waive, or partially waive, any inter-
    56  est or fees charged by such utility corporation to the consumer on  such

        A. 953                              3

     1  consumer's  billing  statements during a period such utility corporation
     2  determines to be related to such investigation.
     3    3.  Notwithstanding any law, rule, regulation, order, or tariff to the
     4  contrary,  utility  service  shall  not  be  terminated  to  residential
     5  accounts  for  non-payment of an overdue charge from the commencement of
     6  any commission investigation until one hundred  twenty  days  after  the
     7  findings  of  such investigation have been published and a determination
     8  has been issued by the commission. Nothing in this section shall prohib-
     9  it a utility corporation from disconnecting service necessary to protect
    10  the health and safety of customers and the public.
    11    4. (a) Within ten days of the commencement of  an  investigation,  the
    12  utility  corporation shall notify residential customers of such investi-
    13  gation. Forms of notification of an investigation from a utility  corpo-
    14  ration  to  a residential customer shall include, but not be limited to,
    15  letters, notices on utility bills, phone calls, and  notices  posted  on
    16  the utility corporation's website.
    17    (b)  Within  three  days  of the commencement of an investigation, the
    18  department shall post a notice to the general public  of  such  investi-
    19  gation on its website.
    20    § 5. The public service law is amended by adding a new section 85-a to
    21  read as follows:
    22    §  85-a.  Investigations relating to commercial steam utility service.
    23  1.  For the purposes of this section,  the  term  "investigation"  shall
    24  mean  a  formal  proceeding  conducted  by the commission to examine the
    25  policies, practices, rates, charges, services,  facilities,  operations,
    26  or  management  of a utility corporation or to determine compliance with
    27  any law, rule, regulation, order or tariff applicable  to  such  utility
    28  corporation.  The  term  "investigation"  shall include such proceedings
    29  conducted pursuant to section seventy-one of  this  chapter.    Notwith-
    30  standing  anything  to  the contrary, the term "investigation" shall not
    31  include  commission  inquiries  triggered  by  an  individual   customer
    32  complaint filed pursuant to section forty-three of this chapter.
    33    2.  (a) A utility corporation shall not impose late fees, interest, or
    34  penalties during an investigation if such  utility  corporation  is  the
    35  subject  of  a  pending  investigation, provided however, that such late
    36  fees, interest and penalties may be imposed retroactively if such inves-
    37  tigation is issued a final order in favor of such  utility  corporation.
    38  Such  late  payment charges shall be in compliance with section seventy-
    39  nine of this article.
    40    (b) Upon the final determination or by the issuance of a final  order,
    41  of  any  investigation  covered  by  this  section, the commission shall
    42  either (i) determine any allowable penalties the utility corporation may
    43  impose upon its customers, or (ii) waive, or partially waive, any inter-
    44  est or fees charged by the utility corporation to the consumer  on  such
    45  consumer's  billing  statements during a period such utility corporation
    46  determines to be related to such investigation.
    47    3. Notwithstanding any law, rule, regulation, order, or tariff to  the
    48  contrary,  utility  service  shall  not  be  terminated  to  residential
    49  accounts for non-payment of an overdue charge from the  commencement  of
    50  any  commission  investigation  until  one hundred twenty days after the
    51  findings of such investigation have been published and  a  determination
    52  has been issued by the commission. Nothing in this section shall prohib-
    53  it a utility corporation from disconnecting service necessary to protect
    54  the health and safety of customers and the public.
    55    4.  (a)  Within  ten days of the commencement of an investigation, the
    56  utility corporation shall notify residential customers of such  investi-

        A. 953                              4

     1  gation.  Forms of notification of an investigation from a utility corpo-
     2  ration to a residential customer shall include, but not be  limited  to,
     3  letters,  notices  on  utility bills, phone calls, and notices posted on
     4  the utility corporation's website.
     5    (b)  Within  three  days  of the commencement of an investigation, the
     6  department shall post a notice to the general public  of  such  investi-
     7  gation on its website.
     8    §  6.  This  act shall take effect on the thirtieth day after it shall
     9  have become a law.
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