NY State Senate Bill 2017-S6741

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to energy and telecommunications
Jun 15, 2017	referred to rules

co-Sponsors

2017-S6741 (ACTIVE) - Details

See Assembly Version of this Bill:: A10491
Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Service Law
Laws Affected:: Add §65-c, Pub Serv L
Versions Introduced in 2019-2020 Legislative Session:: A2458

2017-S6741 (ACTIVE) - Summary

Relates to unauthorized changes in suppliers of natural gas and electric service.

2017-S6741 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S6741

 TITLE OF BILL :  An act to amend the public service law, in relation
to unauthorized changes in suppliers of natural gas and electric
service

 PURPOSE OR GENERAL IDEA OF BILL :

To prohibit unauthorized changes in suppliers of natural gas or
electric service and to establish additional enforcement methods.

 SUMMARY OF SPECIFIC PROVISIONS :

This bill would add a new section 65c to the Public Service Law to
prohibit a supplier of natural gas or electricity from making or
directing an unauthorized change in gas or electric service, commonly
known as slamming.

Two definitions are created. "Hold order or Freeze" which shall mean a
directive to retain the supplier of gas or electric service and,
"Supplier of gas or electric service" shall include any person, firm
or corporation that offers, sells or delivers all or part of natural
gas or electric service including, but not limited to, a gas or
electric distribution company, a gas or electric corporation, a gas or
electricity provider, marketer, aggregator or broker.

This bill would authorize the Public Service Commission (PSC) to
establish requirements for obtaining the authorization of a customer
to effect a change in the customer's supplier of gas or electric
service and for the verification of such change. This bill would also
authorize the PSC to punish violators of those requirements by seeking
a judicial penalty under Public Service Law Section 25 or an
administrative penalty not to exceed $1,000 for every violation
associated with each meter service point, and by seeking injunctive
relief. Section 25 of the Public Service Law currently authorizes
penalties, subject to judicial discretion, in amounts not to exceed
$100,000 per offense.

The PSC currently requires Energy Service Companies (ESCOs) to
establish procedures to obtain authorization of customers for a change
in gas and electric service and for the verification of such change,
as a condition of eligibility to serve customers in New York State.
Such eligibility may be revoked by the PSC if the ESCO fails to comply
with service requirements. Natural gas local distribution companies
require a written authorization or a verified oral declaration by a
customer prior to a change in supplier and may deny transportation of
gas on their systems to a marketer that fails to obtain the necessary
authorizations.

 JUSTIFICATION :

Competition in the electric and gas industries will provide many new
benefits for consumers, but experience gained since deregulation
suggests that the unauthorized change in gas or electric service,
known as slamming, is a concern with the deregulation of the electric
and gas industries. Unauthorized changes in electric and gas service
are deceitful business practices which anger consumers and can result
in increased charges for electricity and gas. Consumers also object to
the loss of control over their choice of supplier and the
inconvenience involved in returning to their original supplier.

 FISCAL IMPLICATIONS :

Increased revenue to general fund resulting from administrative and
judicial penalties.

 EFFECTIVE DATE :
This bill will take effect 120 days after it shall have become law;
provided, however, that effective immediately, the addition, amendment
and/or repeal of any rule or regulation necessary for the
implementation of this act on its effective date is authorized and
directed to be made and completed on or before such effective date.

2017-S6741 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6741
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               June 15, 2017
                                ___________
 
 Introduced  by Sens. KRUEGER, HAMILTON, PARKER -- read twice and ordered
   printed, and when printed to be committed to the Committee on Rules
 
 AN ACT to amend the public service  law,  in  relation  to  unauthorized
   changes in suppliers of natural gas and electric service
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The public service law is amended by adding a  new  section
 65-c to read as follows:
   §  65-C.  GAS  AND  ELECTRIC SERVICE; CHANGES IN PROVIDERS.   1. DEFI-
 NITIONS. AS USED IN THIS SECTION, THE FOLLOWING  TERMS  SHALL  HAVE  THE
 FOLLOWING MEANINGS:
   (A)  "HOLD  ORDER  OR  FREEZE"  SHALL  MEAN  A DIRECTIVE TO RETAIN THE
 SUPPLIER OF GAS OR ELECTRIC SERVICE; AND
   (B) "SUPPLIER OF GAS OR ELECTRIC SERVICE" SHALL MEAN AND  INCLUDE  ANY
 PERSON,  FIRM  OR CORPORATION THAT OFFERS, SELLS OR DELIVERS ALL OR PART
 OF NATURAL GAS OR ELECTRIC SERVICE, INCLUDING, BUT NOT LIMITED TO, A GAS
 OR ELECTRIC DISTRIBUTION COMPANY, A GAS OR ELECTRIC CORPORATION,  A  GAS
 OR ELECTRICITY PROVIDER, MARKETER, AGGREGATOR OR BROKER.
   2. UNAUTHORIZED CHANGES IN NATURAL GAS OR ELECTRIC SERVICE PROHIBITED.
 NO  SUPPLIER  OF  GAS  OR ELECTRIC SERVICE OR ANY PERSON, FIRM OR CORPO-
 RATION ACTING AS SUCH SUPPLIER'S AGENT OR REPRESENTATIVE SHALL ON BEHALF
 OF A CUSTOMER MAKE OR DIRECT ANY CHANGE IN A SUPPLIER OF GAS OR ELECTRIC
 SERVICE UNLESS SUCH SUPPLIER,  AGENT  OR  REPRESENTATIVE  COMPLIES  WITH
 AUTHORIZATION AND CONFIRMATION PROCEDURES ESTABLISHED BY THE COMMISSION.
 IN  CONSTRUING  AND ENFORCING THE PROVISIONS OF THIS SECTION, THE ACT OF
 ANY PERSON, FIRM OR CORPORATION ACTING AS AN AGENT OR REPRESENTATIVE  OF
 A  SUPPLIER  OF GAS OR ELECTRIC SERVICE SHALL BE DEEMED TO BE THE ACT OF
 SUCH SUPPLIER OF GAS OR ELECTRIC SERVICE.
   3. RULES AND REGULATIONS. THE COMMISSION SHALL HAVE THE  AUTHORITY  TO
 ESTABLISH  RULES  AND  REGULATIONS  RELATING  TO UNAUTHORIZED CHANGES IN
 SUPPLIERS OF GAS OR ELECTRIC SERVICE, WHICH, AMONG  OTHER  REQUIREMENTS,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD13224-01-7

 S. 6741                             2
 
 ESTABLISH PROCEDURES FOR A CUSTOMER TO CONFIRM A CHANGE IN A SUPPLIER OF
 GAS OR ELECTRIC SERVICE MADE BY ANOTHER GAS OR ELECTRIC SERVICE SUPPLIER
 ON BEHALF OF THE CUSTOMER AND SET FORTH METHODS FOR ENFORCING SUCH RULES
 AND REGULATIONS.
   4. HOLD ORDER OR FREEZE. THE COMMISSION MAY, IF IT DETERMINES IT TO BE
 NECESSARY, REQUIRE ANY GAS OR ELECTRIC CORPORATION THAT OWNS OR OPERATES
 THE TRANSMISSION LINES THAT CONTROL ROUTING, SELECTION, OR BILLING FUNC-
 TIONS  NECESSARY TO IMPLEMENT A HOLD ORDER OR FREEZE TO OFFER IT TO END-
 USE CUSTOMERS AS A METHOD OF REDUCING INCIDENTS OF UNAUTHORIZED  CHANGES
 IN  SUPPLIERS OF GAS OR ELECTRIC SERVICE. SUCH CORPORATION SHALL PERFORM
 ANY HOLD ORDER OR FREEZE PROCEDURE IN A NON-DISCRIMINATORY AND  COMPETI-
 TIVELY  NEUTRAL  MANNER THAT DOES NOT GIVE SUCH CORPORATION AN ADVANTAGE
 OVER ITS COMPETITORS IN THE GAS OR ELECTRIC SERVICE MARKET.
   5. BILLING INFORMATION. WHEN A CUSTOMER OR A NEW SUPPLIER  OF  GAS  OR
 ELECTRIC SERVICE ON BEHALF OF A CUSTOMER MAKES A CHANGE IN A SUPPLIER OF
 GAS  OR  ELECTRIC  SERVICE,  THE NEW PROVIDER OF GAS OR ELECTRIC SERVICE
 SHALL BE RESPONSIBLE FOR INSERTION OF A CONSPICUOUS NOTICE  ON  OR  WITH
 THE  CUSTOMER'S  FIRST  BILL  FOR WHICH THE CHANGE IS EFFECTIVE OR SHALL
 SEND A SEPARATE NOTICE WITHIN SIXTY DAYS  INFORMING  THE  CUSTOMER  THAT
 SUCH  CHANGE  WAS MADE. ANY BILL SHALL CONTAIN THE NAME OF EACH PROVIDER
 OF GAS OR ELECTRIC SERVICE FOR WHICH BILLING IS PROVIDED.
   6. PENALTIES. A VIOLATION OF THE PROVISIONS OF THIS SECTION IS SUBJECT
 EITHER TO THE JUDICIAL PENALTY AUTHORIZED IN SECTION TWENTY-FIVE OF THIS
 CHAPTER FOR THE FAILURE OR NEGLECT TO OBEY OR COMPLY WITH A PROVISION OF
 THIS CHAPTER OR THE ADMINISTRATIVE PENALTY ESTABLISHED IN THIS  SECTION.
 IN SEEKING SUCH JUDICIAL PENALTY OR ASSESSING SUCH ADMINISTRATIVE PENAL-
 TY,  THE  COMMISSION  SHALL  CONSIDER THE NATURE, CIRCUMSTANCES, EXTENT,
 GRAVITY AND NUMBER OF THE VIOLATIONS, AND WITH RESPECT TO THE  VIOLATOR,
 THE  DEGREE  OF  CULPABILITY, ANY HISTORY OF PRIOR OFFENSES AND REPEATED
 VIOLATIONS, AND SUCH OTHER MATTERS AS MAY BE APPROPRIATE  AND  RELEVANT.
 THE REMEDIES PROVIDED BY THIS SECTION ARE IN ADDITION TO ANY OTHER REME-
 DIES PROVIDED IN LAW.
   7. ENFORCEMENT. THE COMMISSION, AFTER OPPORTUNITY FOR A HEARING, SHALL
 HAVE  THE AUTHORITY TO ASSESS DIRECTLY AN ADMINISTRATIVE PENALTY AGAINST
 ANY SUPPLIER OF GAS OR  ELECTRIC  SERVICE  FOR  EACH  VIOLATION  OF  THE
 PROVISIONS  OF  THIS  SECTION OR ORDER OF THE COMMISSION IMPLEMENTING OR
 ENFORCING THE PROVISIONS OF THIS SECTION. SUCH PENALTY SHALL NOT  EXCEED
 ONE  THOUSAND  DOLLARS  FOR  EACH  VIOLATION  ASSOCIATED WITH EACH METER
 SERVICE POINT. ALL MONEYS  RECOVERED  FROM  ANY  ADMINISTRATIVE  PENALTY
 SHALL BE PAID INTO THE STATE TREASURY TO THE CREDIT OF THE GENERAL FUND.
   8.  PROCEEDINGS.  WHENEVER THE COMMISSION DETERMINES THAT ANY SUPPLIER
 OF GAS OR  ELECTRIC  SERVICE  IS  VIOLATING  OR  ABOUT  TO  VIOLATE  ANY
 PROVISION  OF  THIS SECTION OR ANY REGULATION OR ORDER OF THE COMMISSION
 IMPLEMENTING OR ENFORCING THE PROVISIONS OF THIS SECTION, OR HAS  FAILED
 TO  PAY ANY PENALTY ASSESSED PURSUANT TO THE PROVISIONS OF THIS SECTION,
 THE COMMISSIONER SHALL HAVE POWER TO  BRING  AN  ACTION  OR  ENFORCEMENT
 PROCEEDING AS PROVIDED BY SECTION TWENTY-SIX OF THIS CHAPTER.
   § 2. This act shall take effect on the one hundred twentieth day after
 it shall have become a law; provided, however, that effective immediate-
 ly,  the  addition,  amendment  and/or  repeal of any rule or regulation
 necessary for the implementation of this act on its effective  date  are
 authorized  and  directed  to  be  made  and completed on or before such
 effective date.

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Senate Bill S6741

Sponsored By

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

co-Sponsors

2017-S6741 (ACTIVE) - Details

2017-S6741 (ACTIVE) - Summary

2017-S6741 (ACTIVE) - Sponsor Memo

2017-S6741 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S6741

Share this bill

Sponsored By

Liz Krueger

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

co-Sponsors

Jesse Hamilton

Kevin S. Parker

2017-S6741 (ACTIVE) - Details

2017-S6741 (ACTIVE) - Summary

2017-S6741 (ACTIVE) - Sponsor Memo

2017-S6741 (ACTIVE) - Bill Text download pdf

Comments