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.