Prohibits gas and electric corporations from recovering labor-related legal costs or workers' compensation loss adjustment expenses from ratepayers through rates, charges, surcharges, adjustment mechanisms, riders, or reconciliation mechanisms; defines labor-related legal activity.
STATE OF NEW YORK
________________________________________________________________________
10510
IN ASSEMBLY
March 6, 2026
___________
Introduced by M. of A. ROZIC -- read once and referred to the Committee
on Energy
AN ACT to amend the public service law, in relation to prohibiting the
recovery of certain labor-related legal costs from ratepayers
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Legislative findings and intent. The legislature finds that
2 public utilities subject to the jurisdiction of the public service
3 commission recover their costs through rates paid by customers pursuant
4 to a cost-of-service regulatory framework. The legislature further finds
5 that labor relations decisions, including litigation and dispute resol-
6 ution strategies involving represented employees and labor organiza-
7 tions, are management decisions that should not be subsidized by rate-
8 payers. It is therefore the intent of the legislature to clarify that
9 costs incurred by utilities in labor-related legal disputes shall be
10 borne by shareholders and shall not be recoverable from ratepayers,
11 while preserving the authority of the public service commission to over-
12 see rates, ensure system reliability, and protect the public interest.
13 § 2. The public service law is amended by adding a new section 66-x to
14 read as follows:
15 § 66-x. Labor-related legal cost recovery prohibited. 1. Notwith-
16 standing any other provision of law, no gas corporation, electric corpo-
17 ration, or combination gas and electric corporation shall recover from
18 ratepayers, through rates, charges, surcharges, adjustment mechanisms,
19 riders, or reconciliation mechanisms, any costs or expenses incurred in
20 connection with labor-related legal activity.
21 2. For purposes of this subdivision, "labor-related legal activity"
22 shall include, but not be limited to, legal fees, costs, settlements,
23 judgments, awards, and disbursements arising from or related to:
24 (a) collective bargaining negotiations or disputes;
25 (b) grievances, arbitrations, or contract interpretation or enforce-
26 ment proceedings with a labor organization;
27 (c) unfair labor practice proceedings or representation proceedings;
28 or
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14881-01-6
A. 10510 2
1 (d) litigation or administrative proceedings against, or initiated by,
2 a labor organization representing the corporation's employees.
3 3. Notwithstanding any other provision of law, no gas corporation,
4 electric corporation, or combination gas and electric corporation shall
5 recover from ratepayers, through rates, charges, surcharges, adjustment
6 mechanisms, riders, or reconciliation mechanisms any workers' compen-
7 sation loss adjustment expenses.
8 4. All costs and expenses described in this subdivision shall be
9 deemed per se imprudent for purposes of rate recovery and shall be borne
10 by the shareholders of the corporation.
11 5. Nothing in this subdivision shall be construed to prohibit the
12 recovery of costs associated with:
13 (a) proceedings required, initiated, or directed by the public service
14 commission;
15 (b) compliance with state or federal regulatory requirements unrelated
16 to labor relations;
17 (c) litigation involving customer service, consumer protection,
18 personal injury, property damage, or third-party claims; or
19 (d) legal matters unrelated to the labor relations between the corpo-
20 ration and its employees.
21 6. The commission shall promulgate such rules and regulations as may
22 be necessary to implement and administer the provisions of this section.
23 Such rules and regulations shall, at a minimum, require gas corpo-
24 rations, electric corporations, and combination gas and electric corpo-
25 rations to separately identify and account for labor-related legal costs
26 in all rate filings.
27 § 3. This act shall take effect immediately and shall apply to all
28 rate filings pending on or after such effective date.
