Senate Bill S3714

                                 BILL NUMBER:  S3714

 TITLE OF BILL :

An act to amend the public service law, in relation to shared meter
conditions


 PURPOSE OF THE BILL :

The purpose of this bill is to (1) amend the shared meter provisions
of the Public Service Law (PSL) to eliminate, for buildings with no
more than three residential apartments, the statutory payment imposed
after discovery of a shared meter condition, and (2) to preclude
inadvertent creation of shared meter conditions in two-family
dwellings that are not separately metered.

 SUMMARY OF PROVISIONS :

Section 1 of this bill would amend PSL §52(5)(d) to limit the
applicability of subsection (d) to owners of buildings with more than
three residential apartments, thus making the provision inapplicable
to owners of buildings with three or fewer residential apartments.

Section 2 of this bill would further amend PSL §52 to add a new
subdivision 13 to prohibit a utility, in cases where electric, gas or
              

steam service is furnished to a two-family house containing units that
are not separately metered, from accepting an application from a
non-owner occupant to become customer of record for utility service
provided through the single meter.

Section 3 of this bill would amend PSL §34(3)(a) to make a conforming
amendment regarding provision of service to two-family dwellings.

Section 4 of this bill would provide for an immediate effective date.

 EXISTING LAW :

PSL §52 currently requires utilities, when a shared meter is found, to
(1) bill the owner of the building and credit the shared meter
customer (the tenant) for shared area charges (PSL §§ S2(1)(h); PSL
§52(5)(b) and (c)); (2) subject to certain limitations, place the
account for the shared meter in the owner's name for future service,
unless the owner has corrected the shared meter condition within 120
days after notice was sent to the owner of the final determination
that a shared meter condition exists (PSL §52(5)(b); and (3) subject
to certain limitations, bill the owner and credit the tenant for "an
estimated amount of charges for the past 12 months of all service
measured by the shared meter" (the" 12 month assessment") (PSL
§S2(5)(d)).

Section 52(5)d) permits an owner to petition the Commission or its
designee to reduce the 12 month assessment and if the amount is unduly
burdensome end unfair, the Commission may reduce the assessment to no
less than 25% of the original charge. The amount of the reduction, if
any, will be credited to the owner's account. These provisions would
remain in full force and effect for owners of buildings with more than
three residential apartments.

PSL §34(3)(a) requires the Commission to establish, by regulation, a
requirement that any occupant of; two-family dwelling may prevent
termination of service if such occupant applies for and is eligible
for such service.

 PRIOR LEGISLATIVE HISTORY :

In 2008, S.7704 was referred to the Senate Energy & Telecommunications
Committee.

 STATEMENT IN SUPPORT :

Shared meters measures gas, electric or steam service to a tenant's
dwelling as well as to common areas outside that dwelling (e.g.,
hallways, stairs, lobbies, basements, garages or outdoor area),
meaning that the tenant pays for all service for all of such areas
measured through that meter (PSL § 52(1)(b)).

The 12-month assessment is an additional charge that applies to shared
meter conditions discovered by a person or entity other than the
building owner or landlord, and is intended to motivate owners to
correct shared meter conditions before tenants complain. The
assessment requires the owner to repay 12 months' worth of the shared
area charges, as well as 12 months' worth of the tenant's own usage
within the tenant's dwelling. The assessment is above and beyond the
compensatory shared area charges. Despite annual notification efforts
by gas and electric utilities (PSL §52(9)), however, many small
building owners remain unaware of the provisions regarding shared
meters. Shared meter conditions are more prevalent in smaller
buildings as owners often occupied an apartment in these buildings at
some point, and paid for common area service or heating usage hilled
to their meters, When owners moved out and rented their apartments or
sold the buildings, the wiring or piping remained intact and shared
meter conditions resulted as tenants, rather than the owner, were
paying for the shared area charges.

Some who are subject to the assessment perceive the assessment as
irrational and unfair. While the provision allowing an owner to
request reduction of the 12-month assessment provides mitigation of
the 12-month assessment, it does not eliminate this charge which, even
at a mitigated amount, can he substantial. Eliminating the 12-month
assessment for smaller buildings would not affect the statutory
requirement that owners correct the shared meter condition or take
over the shared meter account going forward, and pay compensatory
charges to the tenant for the shared area service.

PSL §34(3)(a) - enacted before the shared meter requirements -
requires the Commission to provide two options for a tenant in a two-
family house to prevent discontinuance of gas or electric service that
is not separately metered where, presumably, the owner has failed to
pay utility charges, The first option allows an occupant to apply for
service and become the customer of record and thus liable for future
payments and responsible to the utility for any unpaid amounts after
he or she takes over the account, The second allows an occupant to
avoid termination of utility service to the entire building by paring
only the current charges for such service, without becoming the
customer of record. This option provides the occupant with the same
benefits as the first - continued receipt of service and the right to
off-set amounts paid to the utility against rent payments - without
resulting in ongoing liability for utility charges. While both options
prevent termination and permit the tenant, under Real Property Law
§235-a, to offset amounts paid for such utility bills against their
rent payments. the first results in a shared meter condition for the
tenant.

This is counterproductive as the tenant is then embroiled in a shared
meter investigation and, instead of the tenant making utility payments
(and offsetting them against rent), the owner becomes the account
holder, contrary to the intent of PSL §34. Amending PSL §34 would
provide tenants with the option to prevent termination by paying the
current charges without accepting the ongoing liability of becoming
the customer of record.

 BUDGET IMPLICATIONS :

None.

 EFFECTIVE DATE :
This bill would become effective upon enactment.