Bill Text: NY S06803 | 2023-2024 | General Assembly | Amended

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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 5-0)

Status: (Engrossed) 2024-06-07 - referred to ways and means [S06803 Detail]

Download: New_York-2023-S06803-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         6803--B
            Cal. No. 969

                               2023-2024 Regular Sessions

                    IN SENATE

                                      May 10, 2023
                                       ___________

        Introduced by Sens. GONZALEZ, BRISPORT, HINCHEY, SALAZAR, THOMAS -- read
          twice  and  ordered  printed,  and when printed to be committed to the
          Committee on Energy  and  Telecommunications  --  recommitted  to  the
          Committee  on  Energy and Telecommunications in accordance with Senate
          Rule  6,  sec.  8  --  committee  discharged,  bill  amended,  ordered
          reprinted  as  amended  and  recommitted to said committee -- reported
          favorably from said committee, ordered to  first  and  second  report,
          ordered  to  a third reading, amended and ordered reprinted, retaining
          its place in the order of third reading

        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

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07069-11-4
        S. 6803--B                          2

     1  proceedings  conducted  pursuant to section seventy-one of this chapter.
     2  Notwithstanding anything to the contrary, the term "investigation" shall
     3  not include commission inquiries triggered  by  an  individual  customer
     4  complaint filed pursuant to section forty-three of this article.
     5    2.  (a)  A utility corporation shall not impose late fees, interest or
     6  penalties during an investigation if such  utility  corporation  is  the
     7  subject  of  a  pending  investigation, provided however, that such late
     8  fees, interest and penalties may be imposed retroactively if such inves-
     9  tigation is issued a final order in favor of such  utility  corporation.
    10  Such late payment charges shall be in compliance with the guidelines set
    11  forth in section forty-two of this article.
    12    (b)  Upon the final determination or by the issuance of a final order,
    13  of any investigation covered  by  this  section,  the  commission  shall
    14  either (i) determine any allowable penalties the utility corporation may
    15  impose upon its customers, or (ii) waive, or partially waive, any inter-
    16  est  or  fees charged by the utility corporation to the consumer on such
    17  consumer's billing statements during a period such  utility  corporation
    18  determines to be related to such investigation.
    19    3.  Notwithstanding any law, rule, regulation, order, or tariff to the
    20  contrary,  utility  service  shall  not  be  terminated  to  residential
    21  accounts  for  non-payment of an overdue charge from the commencement of
    22  any commission investigation until one hundred  twenty  days  after  the
    23  findings  of  such investigation have been published and a determination
    24  has been issued by the commission. Nothing in this section shall prohib-
    25  it a utility corporation from disconnecting service necessary to protect
    26  the health and safety of customers and the public.
    27    4. (a) Within ten days of the commencement of  an  investigation,  the
    28  utility  corporation shall notify residential customers of such investi-
    29  gation. Forms of notification of an investigation from a utility  corpo-
    30  ration  to  a residential customer shall include, but not be limited to,
    31  letters, notices on utility bills, phone calls, and  notices  posted  on
    32  the utility corporation's website.
    33    (b)  Within  three  days  of the commencement of an investigation, the
    34  department shall post a notice to the general public  of  such  investi-
    35  gation on its website.
    36    § 4. The public service law is amended by adding a new section 77-a to
    37  read as follows:
    38    § 77-a. Investigations relating to commercial gas and electric utility
    39  service.  1.  For the purposes of this section, the term "investigation"
    40  shall mean a formal proceeding conducted by the  commission  to  examine
    41  the  policies,  practices,  rates,  charges, services, facilities, oper-
    42  ations, or management of a utility corporation or to  determine  compli-
    43  ance  with any law, rule, regulation, order or tariff applicable to such
    44  utility  corporation.  The  term  "investigation"  shall  include   such
    45  proceedings  conducted  pursuant to section seventy-one of this article.
    46  Notwithstanding anything to the contrary, the term "investigation" shall
    47  not include commission inquiries triggered  by  an  individual  customer
    48  complaint filed pursuant to section forty-three of this chapter.
    49    2.  (a)  A utility corporation shall not impose late fees, interest or
    50  penalties during an investigation if such  utility  corporation  is  the
    51  subject  of  a  pending  investigation, provided however, that such late
    52  fees, interest and penalties may be imposed retroactively if such inves-
    53  tigation is issued a final order in favor of such  utility  corporation.
    54  Such late payment charges shall be in compliance with the guidelines set
    55  forth in section sixty-five of this article.
        S. 6803--B                          3

     1    (b)  Upon the final determination or by the issuance of a final order,
     2  of any investigation covered  by  this  section,  the  commission  shall
     3  either (i) determine any allowable penalties the utility corporation may
     4  impose upon its customers, or (ii) waive, or partially waive, any inter-
     5  est  or fees charged by such utility corporation to the consumer on such
     6  consumer's billing statements during a period such  utility  corporation
     7  determines to be related to such investigation.
     8    3.  Notwithstanding any law, rule, regulation, order, or tariff to the
     9  contrary,  utility  service  shall  not  be  terminated  to  residential
    10  accounts  for  non-payment of an overdue charge from the commencement of
    11  any commission investigation until one hundred  twenty  days  after  the
    12  findings  of  such investigation have been published and a determination
    13  has been issued by the commission. Nothing in this section shall prohib-
    14  it a utility corporation from disconnecting service necessary to protect
    15  the health and safety of customers and the public.
    16    4. (a) Within ten days of the commencement of  an  investigation,  the
    17  utility  corporation shall notify residential customers of such investi-
    18  gation. Forms of notification of an investigation from a utility  corpo-
    19  ration  to  a residential customer shall include, but not be limited to,
    20  letters, notices on utility bills, phone calls, and  notices  posted  on
    21  the utility corporation's website.
    22    (b)  Within  three  days  of the commencement of an investigation, the
    23  department shall post a notice to the general public  of  such  investi-
    24  gation on its website.
    25    § 5. The public service law is amended by adding a new section 85-a to
    26  read as follows:
    27    §  85-a.  Investigations relating to commercial steam utility service.
    28  1.  For the purposes of this section,  the  term  "investigation"  shall
    29  mean  a  formal  proceeding  conducted  by the commission to examine the
    30  policies, practices, rates, charges, services,  facilities,  operations,
    31  or  management  of a utility corporation or to determine compliance with
    32  any law, rule, regulation, order or tariff applicable  to  such  utility
    33  corporation.  The  term  "investigation"  shall include such proceedings
    34  conducted pursuant to section seventy-one of  this  chapter.    Notwith-
    35  standing  anything  to  the contrary, the term "investigation" shall not
    36  include  commission  inquiries  triggered  by  an  individual   customer
    37  complaint filed pursuant to section forty-three of this chapter.
    38    2.  (a) A utility corporation shall not impose late fees, interest, or
    39  penalties during an investigation if such  utility  corporation  is  the
    40  subject  of  a  pending  investigation, provided however, that such late
    41  fees, interest and penalties may be imposed retroactively if such inves-
    42  tigation is issued a final order in favor of such  utility  corporation.
    43  Such  late  payment charges shall be in compliance with section seventy-
    44  nine of this article.
    45    (b) Upon the final determination or by the issuance of a final  order,
    46  of  any  investigation  covered  by  this  section, the commission shall
    47  either (i) determine any allowable penalties the utility corporation may
    48  impose upon its customers, or (ii) waive, or partially waive, any inter-
    49  est or fees charged by the utility corporation to the consumer  on  such
    50  consumer's  billing  statements during a period such utility corporation
    51  determines to be related to such investigation.
    52    3. Notwithstanding any law, rule, regulation, order, or tariff to  the
    53  contrary,  utility  service  shall  not  be  terminated  to  residential
    54  accounts for non-payment of an overdue charge from the  commencement  of
    55  any  commission  investigation  until  one hundred twenty days after the
    56  findings of such investigation have been published and  a  determination
        S. 6803--B                          4

     1  has been issued by the commission. Nothing in this section shall prohib-
     2  it a utility corporation from disconnecting service necessary to protect
     3  the health and safety of customers and the public.
     4    4.  (a)  Within  ten days of the commencement of an investigation, the
     5  utility corporation shall notify residential customers of such  investi-
     6  gation.  Forms of notification of an investigation from a utility corpo-
     7  ration to a residential customer shall include, but not be  limited  to,
     8  letters,  notices  on  utility bills, phone calls, and notices posted on
     9  the utility corporation's website.
    10    (b) Within three days of the commencement  of  an  investigation,  the
    11  department  shall  post  a notice to the general public of such investi-
    12  gation on its website.
    13    § 6. This act shall take effect on the thirtieth day  after  it  shall
    14  have become a law.