S T A T E O F N E W Y O R K
________________________________________________________________________
1468
2013-2014 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 9, 2013
___________
Introduced by M. of A. CAHILL, COLTON, FINCH -- Multi-Sponsored by -- M.
of A. DINOWITZ, GALEF, GLICK, GOTTFRIED, JACOBS, LUPARDO, MAISEL,
RUSSELL, SWEENEY, WEISENBERG -- read once and referred to the Commit-
tee on Corporations, Authorities and Commissions
AN ACT to amend the public service law, in relation to requiring
evidence and consideration of the economic impact of utility rates and
charges by the public service commission
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 1 of section 65 of the public service law, as
amended by chapter 789 of the laws of 1930, is amended to read as
follows:
1. Every gas corporation, every electric corporation and every munici-
pality shall furnish and provide such service, instrumentalities and
facilities as shall be safe and adequate and in all respects just and
reasonable. All charges made or demanded by any such gas corporation,
electric corporation or municipality for gas, electricity or any service
rendered or to be rendered, shall be just and reasonable and not more
than allowed by law or by order of the commission. IN DETERMINING WHETH-
ER CHARGES ARE JUST AND REASONABLE, CONSIDERATION SHALL BE GIVEN TO THE
ECONOMIC IMPACT OF SUCH CHARGES UPON CONSUMERS AND THE AREA SERVED BY
EACH SUCH GAS CORPORATION, ELECTRIC CORPORATION AND MUNICIPALITY. Every
unjust or unreasonable charge made or demanded for gas, electricity or
any such service, or in connection therewith, or in excess of that
allowed by law or by the order of the commission is prohibited.
S 2. Subdivision 1 of section 79 of the public service law, as amended
by chapter 134 of the laws of 1921, is amended to read as follows:
1. Every steam corporation shall furnish and provide such service,
instrumentalities and facilities as shall be safe and adequate and in
all respects just and reasonable. All charges made or demanded by any
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03526-01-3
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such corporation for such service rendered or to be rendered shall be
just and reasonable and not more than allowed by order of the commis-
sion. IN DETERMINING WHETHER CHARGES ARE JUST AND REASONABLE, CONSIDER-
ATION SHALL BE GIVEN TO THE ECONOMIC IMPACT OF SUCH CHARGES UPON CONSUM-
ERS AND THE AREA SERVED BY EACH SUCH STEAM CORPORATION. Every unjust or
unreasonable charge made or demanded for such service, or in connection
therewith or in excess of that allowed by law or by the commission is
prohibited.
S 3. Subdivision 1 of section 89-b of the public service law, as added
by chapter 715 of the laws of 1931, is amended to read as follows:
1. Every water-works corporation shall furnish and provide such
service, instrumentalities and facilities as shall be safe and adequate
and in all respects just and reasonable. All charges made or demanded by
any such water-works corporation for water, or for equipment furnished
or for any service rendered or to be rendered shall be just and reason-
able and not more than allowed by law or by order of the commission. IN
DETERMINING WHETHER CHARGES ARE JUST AND REASONABLE, CONSIDERATION SHALL
BE GIVEN TO THE ECONOMIC IMPACT OF SUCH CHARGES UPON CONSUMERS AND THE
AREA SERVED BY EACH SUCH WATER-WORKS CORPORATION. Every unjust or unrea-
sonable charge made or demanded for water or for equipment furnished or
for any such service, or in connection therewith, or in excess of that
allowed by law or by the order of the commission is prohibited.
S 4. Subdivision 1 of section 91 of the public service law, as added
by chapter 673 of the laws of 1910, is amended to read as follows:
1. Every telegraph corporation and every telephone corporation shall
furnish and provide with respect to its business such instrumentalities
and facilities as shall be adequate and in all respects just and reason-
able. All charges made or demanded by any telegraph corporation or tele-
phone corporation for any service rendered or to be rendered in
connection therewith shall be just and reasonable and not more than
allowed by law or by order of the commission. IN DETERMINING WHETHER
CHARGES ARE JUST AND REASONABLE, CONSIDERATION SHALL BE GIVEN TO THE
ECONOMIC IMPACT OF SUCH CHARGES UPON CONSUMERS AND THE AREA SERVED BY
EACH SUCH TELEGRAPH CORPORATION AND TELEPHONE CORPORATION. Every unjust
or unreasonable charge made or demanded for any such service or in
connection therewith or in excess of that allowed by law or by order of
the commission is prohibited and declared to be unlawful.
S 5. The public service law is amended by adding a new section 119-d
to read as follows:
S 119-D. ECONOMIC IMPACT. 1. PRIOR TO APPROVING ANY MAJOR INCREASE IN
RATES OR CHARGES PROPOSED BY A PUBLIC UTILITY COMPANY OR MUNICIPALITY,
THE COMMISSION SHALL CONSIDER THE ECONOMIC IMPACT OF ANY SUCH PROPOSED
INCREASE IN THE RATES OR CHARGES UPON CONSUMERS IN THE AREA SERVED BY
THE COMPANY OR MUNICIPALITY PROPOSING SUCH INCREASE. FOR PURPOSES OF
THIS SUBDIVISION, "MAJOR INCREASE" SHALL MEAN AN INCREASE IN THE RATES
AND CHARGES WHICH WOULD INCREASE THE AGGREGATE REVENUES OF THE APPLICANT
MORE THAN THE GREATER OF THREE HUNDRED THOUSAND DOLLARS OR TWO AND ONE-
HALF PERCENT.
2. THE COMMISSION SHALL CONSIDER UNEMPLOYMENT DATA, MEDIAN INCOME
INFORMATION AND THE NUMBER OF PERSONS RECEIVING SOCIAL SERVICES ASSIST-
ANCE WITH RESPECT TO THE APPLICABLE SERVICE AREA. IN ADDITION, THE
COMMISSION SHALL CONSIDER IN REACHING ITS DETERMINATION IN ANY SUCH RATE
CASE:
A. THE AVERAGE MONTHLY UTILITY BILL FOR EACH CLASS OF CUSTOMERS WHO
WOULD BE AFFECTED BY AN INCREASED RATE OR CHARGE AND THE ESTIMATED
INCREASED UTILITY BILL FOR EACH SUCH CLASS OF CUSTOMERS; AND
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B. THE LATEST FEDERAL BUREAU OF LABOR STATISTICS CONSUMER PRICE INDEX
FIGURES INDICATING THE AVERAGE COST OF LIVING AND THE AVERAGE COST OF
FUEL AND UTILITIES FOR THE NATION AND, IF POSSIBLE FOR THE STATE OR THE
SERVICE AREA AFFECTED BY SUCH INCREASED RATE OR CHARGE.
S 6. This act shall take effect immediately and shall apply to each
request for increased rates or charges submitted on or after the effec-
tive date of this act.