S T A T E O F N E W Y O R K
________________________________________________________________________
994
2009-2010 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 7, 2009
___________
Introduced by M. of A. THIELE -- read once and referred to the Committee
on Energy
AN ACT to amend the public service law, in relation to energy conserva-
tion and lost revenues
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 72 of the public service law, as amended by chapter
212 of the laws of 1934, is amended to read as follows:
S 72. Notice and hearing; order fixing price of gas or electricity or
requiring improvement. Before proceeding under a complaint presented as
provided in section seventy-one OF THIS ARTICLE, the commission shall
cause notice of such complaint, and the purpose thereof, to be served
upon the person or corporation affected thereby. Such person or corpo-
ration shall have an opportunity to be heard in respect to the matters
complained of at a time and place to be specified in such notice. An
investigation may be instituted by the commission of its own motion as
to any matter of which complaint may be made, as provided in section
seventy-one of this [chapter] ARTICLE, or to enable it to ascertain the
facts requisite to the exercise of any power conferred upon it. After a
hearing and after such an investigation as shall have been made by the
commission or its officers, agents, examiners or inspectors, the commis-
sion may, by order, fix just and reasonable prices, rates and charges
for gas or electricity to be charged by such corporation or person, for
the service to be furnished notwithstanding that a higher or lower price
has been theretofore prescribed by general or special statute, contract,
grant, franchise condition, consent or other agreement, and may order
such improvement in the manufacture, conveying, transportation, distrib-
ution or supply of gas, in the manufacture, transmission or supply of
electricity, or in the methods employed by such person or corporation,
as will in its judgment be adequate, just and reasonable. Any such
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03135-01-9
A. 994 2
change in price shall be upon such terms, conditions or safeguards as
the commission may prescribe. If it shall be made to appear to the
satisfaction of the commission that the public interest requires a
change in the price of gas or electricity charged by any such person or
corporation, or that such change is necessary for the purpose of provid-
ing adequate and efficient service, or for the preservation of the prop-
erty, the commission, upon such terms, conditions or safeguards as it
deems proper, may authorize an immediate, reasonable, temporary increase
or decrease in such price pending a final determination of the price to
be thereafter charged by such person or corporation. The terms, condi-
tions or safeguards prescribed may include provisions for the purposes
for which the additional revenue derived from any such temporary
increase may be expended and for the impounding thereof until the same
shall be applied to the purposes so specified. The price fixed by the
commission under this section or under subdivision five of section
sixty-six OF THIS ARTICLE shall be the maximum price to be charged by
such person, corporation or municipality for gas or electricity for the
service to be furnished within the territory and for a period to be
fixed by the commission in the order, not exceeding three years except
in the case of a sliding scale, and thereafter until the commission
shall, upon its own motion or upon the complaint of any corporation,
person or municipality interested, fix a higher or lower maximum price
of gas or electricity to be thereafter charged. In determining the
price to be charged for gas or electricity the commission may consider
all facts which in its judgment have any bearing upon a proper determi-
nation of the question although not set forth in the complaint and not
within the allegations contained therein, with due regard among other
things to a reasonable average return upon capital actually expended and
to the necessity of making reservations out of income for surplus and
contingencies. At any hearing involving a rate, the burden of proof to
show that the change in rate or price if proposed by the person, corpo-
ration or municipality operating such utility, or that the existing rate
or price, if on motion of the commission or in a complaint filed with
the commission it is proposed to reduce the rate or price, is just and
reasonable shall be upon the person, corporation or municipality operat-
ing such utility; and the commission may give to the hearing and deci-
sion of such questions preference over all other questions pending
before it and decide the same as speedily as possible. Nothing in this
chapter contained shall be deemed to prohibit the commission from fixing
a sliding scale upward rate for natural gas, beginning at a fixed price
per unit for a small consumption and then increasing the price per unit
as the consumption is increased. HOWEVER, AT NO TIME WILL THE COMMISSION
AUTHORIZE A RATE INCREASE TO OFFSET REVENUE LOSS DUE TO ENERGY CONSERVA-
TION EFFORTS BY CONSUMERS.
S 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law.