S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 7099--A
    Cal. No. 774

                            I N  S E N A T E

                             April 28, 2014
                               ___________

Introduced  by Sens. MAZIARZ, RITCHIE -- read twice and ordered printed,
  and when printed to be committed to the Committee on Energy and  Tele-
  communications  --  reported favorably from said committee, ordered to
  first and second report, ordered  to  a  third  reading,  amended  and
  ordered reprinted, retaining its place in the order of third reading

AN  ACT  to  amend  the public service law, in relation to consumer cost
  mitigation programs

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Legislative intent. The 2013-14 winter season has brought
severe winter storms and temperatures well below average.  This  unusual
and  unpredictable  weather  has resulted in significantly higher energy
supply costs which has caused drastically higher utility bills for resi-
dential and small business utility customers. The higher utility charges
are a significant burden on our  residents  and  our  small  businesses.
Because utility companies have the expertise to monitor wholesale energy
supply  prices  and to calculate anticipated and actual increases in the
bills of utility customers, this information should be used  to  develop
and  implement  programs  to level out utility costs for these important
customers. Such programs can be structured and  implemented  to  provide
lower  and  more  stable energy costs for customers while simultaneously
allowing public utility companies to recoup their costs over  a  reason-
able  amount  of  time.  Therefore,  the  legislature  hereby  finds and
declares that it is in the public interest to require such  programs  in
order  to  ensure  safe  and  adequate  service with just and reasonable
charges across the state of New York.
  S 2. The public service law is amended by adding a new section 65-c to
read as follows:
  S 65-C. INCREASE IN ENERGY SUPPLY  PRICES;  CONSUMER  COST  MITIGATION
PROGRAM.  1.  SUBJECT  TO  THE  PROVISIONS  OF  SUBDIVISION  TWO OF THIS
SECTION, EACH PUBLIC UTILITY COMPANY SHALL  IMPLEMENT  A  CONSUMER  COST
MITIGATION  PROGRAM  SUBSTANTIALLY  SIMILAR  TO THE PROGRAM DESCRIBED IN
PUBLIC SERVICE COMMISSION CASE NUMBER 14-E-0026  IN  ORDER  TO  MITIGATE
ANTICIPATED   INCREASES  IN  CUSTOMER  UTILITY  CHARGES  RESULTING  FROM

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                      [ ] is old law to be omitted.
                                                           LBD14711-04-4

S. 7099--A                          2

PROJECTED OR ACTUAL INCREASES IN ENERGY SUPPLY PRICES. EACH PUBLIC UTIL-
ITY COMPANY SHALL SUBMIT ITS CONSUMER COST  MITIGATION  PROGRAM  TO  THE
COMMISSION FOR APPROVAL. THE COMMISSION SHALL REVIEW SUCH SUBMISSIONS ON
AN EXPEDITED BASIS.
  2.  (A)  EACH  PUBLIC  UTILITY COMPANY SHALL PROVIDE A COST MITIGATION
ADJUSTMENT TO UTILITY SUPPLY SERVICE CUSTOMERS WHEN SUCH PUBLIC  UTILITY
DETERMINES,  PURSUANT  TO  THE  PROVISIONS  OF ITS TARIFF FILED WITH AND
APPROVED BY THE COMMISSION, THAT AN  ACTUAL  OR  PROJECTED  INCREASE  IN
ENERGY  SUPPLY  COSTS WILL RESULT IN AN ANTICIPATED INCREASE IN CUSTOMER
UTILITY ENERGY SUPPLY CHARGES OF AT LEAST FIFTEEN PERCENT OVER THE PRIOR
MONTH'S ENERGY SUPPLY CHARGES. IN CALCULATING  THE  ANTICIPATED  PERCENT
INCREASE  IN  CUSTOMER  UTILITY  CHARGES, A PUBLIC UTILITY COMPANY SHALL
BASE SUCH CALCULATION ON USAGE OF SIX HUNDRED KWH PER MONTH FOR RESIDEN-
TIAL CUSTOMERS AND FIFTEEN HUNDRED KWH  PER  MONTH  FOR  SMALL  BUSINESS
CUSTOMERS;  PROVIDED  HOWEVER, THAT A PUBLIC UTILITY COMPANY MAY, IN ITS
DISCRETION, PETITION THE COMMISSION TO USE  OTHER  USAGE  BENCHMARKS  IN
CALCULATING  THE ANTICIPATED PERCENT INCREASE IN CUSTOMER UTILITY CHARG-
ES.
  (B) THE COST ADJUSTMENT PROVIDED TO UTILITY SUPPLY  SERVICE  CUSTOMERS
UNDER A CONSUMER COST MITIGATION PROGRAM SHALL BE IN THE FORM OF A CRED-
IT ON THE SUPPLY PORTION OF THE UTILITY SUPPLY SERVICE CUSTOMERS' UTILI-
TY  BILLS.  SUCH  CREDIT  SHALL BE IDENTIFIED BY AN APPROPRIATE NAME AND
PLACED CONSPICUOUSLY ON CUSTOMERS' BILLS.
  (C) EACH PUBLIC  UTILITY  COMPANY  SHALL  CONSPICUOUSLY  POST  ON  ITS
WEBSITE  DETAILS  ABOUT  ITS CONSUMER COST MITIGATION PROGRAM AS SOON AS
PRACTICABLE AFTER APPROVAL OF  SUCH  PROGRAM  BY  THE  COMMISSION.  EACH
PUBLIC UTILITY COMPANY SHALL ALSO PROVIDE WRITTEN NOTICE OF ITS CONSUMER
COST  MITIGATION  PROGRAM  TO  CONSUMERS  AS  SOON  AS PRACTICABLE AFTER
APPROVAL OF SUCH PROGRAM BY THE COMMISSION. SUCH  NOTICE  SHALL  CONTAIN
DETAILS  ON  THE  CONSUMER  COST  MITIGATION  PROGRAM INCLUDING, BUT NOT
LIMITED TO, AN EXPLANATION OF HOW SUCH PROGRAM WORKS AND AN  EXPLANATION
OF  THE  TIMING, DURATION AND EFFECT OF PAY-BACK PERIODS. SUCH NOTICE TO
CUSTOMERS MAY ALSO INCLUDE INFORMATION ON THE PUBLIC  UTILITY  COMPANY'S
BUDGET  PLAN,  PAYMENT ASSISTANCE PROGRAM, OR ANY OTHER DEFERRED PAYMENT
PLAN THAT IT OFFERS AS AN OPTION TO CUSTOMERS.    WRITTEN  NOTICE  TO  A
CUSTOMER  UNDER THIS SECTION MAY BE ACCOMPLISHED THROUGH ELECTRONIC MAIL
IF SUCH CUSTOMER PROVIDES HIS OR HER EMAIL ADDRESS TO THE PUBLIC UTILITY
COMPANY.
  (D) EACH PUBLIC UTILITY COMPANY MAY ESTABLISH A  COST  RECOVERY  MECH-
ANISM  TO  COLLECT  DEFERRED  PAYMENTS  OWED  BY  UTILITY SUPPLY SERVICE
CUSTOMERS UNDER A CONSUMER COST MITIGATION PROGRAM. SUCH  COST  RECOVERY
MECHANISM  SHALL COLLECT FROM THE SUPPLY PORTION OF THE UTILITY'S SUPPLY
SERVICE CUSTOMER UTILITY BILLS DEFERRED  PAYMENTS  FROM  UTILITY  SUPPLY
SERVICE  CUSTOMERS  OVER A PERIOD OF TIME NO SHORTER THAN TWELVE MONTHS,
UNLESS A SHORTER PERIOD OF TIME IS APPROVED BY THE COMMISSION.
  3. DEFINITIONS. FOR THE PURPOSES OF THIS  SECTION,  THE  TERM  "PUBLIC
UTILITY  COMPANY" SHALL MEAN ANY INVESTOR OWNED UTILITY COMPANY; AND THE
TERM "CUSTOMER" SHALL MEAN ANY RESIDENTIAL OR  SMALL  BUSINESS  CUSTOMER
TAKING  BOTH  DELIVERY  AND  SUPPLY SERVICES FROM SUCH PUBLIC UTILITY AS
DETERMINED BY THE PROVISIONS OF A PUBLIC UTILITY COMPANY'S TARIFF  FILED
WITH AND APPROVED BY THE COMMISSION.
  S  3.  This  act shall take effect on the ninetieth day after it shall
have become a law.