S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2613
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 24, 2019
                                ___________
 
 Introduced by M. of A. DINOWITZ, GOTTFRIED, COLTON, BLAKE, M. G. MILLER,
   SIMON,  SEAWRIGHT  --  Multi-Sponsored  by -- M. of A. COOK, DAVILA --
   read once and referred to the Committee on Energy
 
 AN ACT to amend the public service law, in relation to the establishment
   of reduced  residential rates for electric and natural gas service  to
   low-income customers
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 65 of the public service law is amended by adding a
 new subdivision 16 to read as follows:
   16. REDUCED RESIDENTIAL RATES FOR ELECTRIC AND NATURAL GAS SERVICE  TO
 LOW-INCOME  CUSTOMERS. (A) ELECTRIC AND GAS CORPORATIONS SHALL ESTABLISH
 AND CONTINUE REDUCED RATE SCHEDULES FOR LOW-INCOME ELECTRIC AND  NATURAL
 GAS  CUSTOMERS.  THE  AVERAGE EFFECTIVE RATE REDUCTION SHALL NOT BE LESS
 THAN TWENTY-FIVE PERCENT OR MORE THAN THIRTY-FIVE PERCENT OF THE  REVEN-
 UES  THAT  WOULD  HAVE  BEEN PRODUCED FOR THE SAME BILLED USAGE BY OTHER
 RESIDENTIAL CUSTOMERS RECEIVING FULL SERVICE FROM THE  UTILITY  WHO  ARE
 NOT ELIGIBLE FOR THE REDUCED RATE.
   (B)  REDUCED  RESIDENTIAL  RATES  FOR ELECTRIC AND NATURAL GAS SERVICE
 SHALL BE ESTABLISHED FOR ANY CUSTOMER WHO  RECEIVES  BENEFITS  FROM  THE
 SUPPLEMENTAL  SECURITY  INCOME PROGRAM FOR THE AGED OR DISABLED OR OTHER
 PERSONS, THE TEMPORARY ASSISTANCE TO NEEDY FAMILIES PROGRAM, SAFETY  NET
 ASSISTANCE,  THE  SUPPLEMENTAL  NUTRITION  ASSISTANCE  PROGRAM,  MEDICAL
 ASSISTANCE, THE HOME ENERGY ASSISTANCE PROGRAM, THE  TELEPHONE  LIFELINE
 ASSISTANCE  PROGRAM,  AND  ANY  OTHER  ADDITIONAL  ASSISTANCE PROGRAM OR
 INCOME STANDARD APPROVED BY THE COMMISSION.
   (C) PROVIDERS OF ELECTRIC AND NATURAL GAS SERVICE SHALL COOPERATE WITH
 THE COMMISSION AND SOCIAL  SERVICES  DISTRICTS  AND  OTHER  AGENCIES  TO
 CERTIFY  AND  RECERTIFY  CUSTOMER  ELIGIBILITY THROUGH PRIVACY PROTECTED
 DATA EXCHANGES APPROVED BY THE COMMISSION TO ACHIEVE  EFFICIENT  ENROLL-
 MENT OF ELIGIBLE CUSTOMERS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00765-01-9

 A. 2613                             2
 
   (D)  PROVIDERS  OF  ELECTRIC  AND  NATURAL GAS SERVICE SHALL STRIVE TO
 PROVIDE REDUCED RESIDENTIAL RATES TO ALL CUSTOMERS  ELIGIBLE  FOR  THEM,
 AND  SHALL  PROVIDE APPLICATION FORMS FOR REDUCED RATES TO ELIGIBLE LOW-
 INCOME CUSTOMERS ON THEIR WEBSITES,  AT  THEIR  OFFICES,  AND  BY  OTHER
 MEANS.  INFORMATION REGARDING THE AVAILABILITY AND ELIGIBILITY STANDARDS
 FOR REDUCED RATES SHALL BE PROVIDED TO RESIDENTIAL CUSTOMERS AT THE TIME
 OF  SERVICE  INITIATION, IN BILL INSERTS, IN COMMUNICATIONS TO CUSTOMERS
 IN ARREARS, AND BY OTHER MEANS REQUIRED OR APPROVED BY THE COMMISSION.
   (E) THE INCREMENTAL REVENUE EFFECTS OF ENHANCEMENT TO LOW-INCOME  RATE
 PROGRAMS UNDER THIS SECTION SHALL BE DEFERRED FOR SUBSEQUENT RATE MAKING
 TREATMENT  AND  APPROVAL  BY  THE COMMISSION. THE REVENUE IMPACT OF SUCH
 RATE REDUCTION SHALL BE MITIGATED BY (I) APPLYING ANY  EARNINGS  OF  THE
 UTILITY  ABOVE  THE ALLOWED RETURN ON EQUITY SET IN THE MOST RECENT RATE
 CASE, (II) DISALLOWING ANY PREMIUM ABOVE THE RATE OF RETURN ALLOWED  FOR
 NOT  FILING  A RATE CASE OR FOR SHARING OF OVEREARNINGS, (III) UTILIZING
 ANY UNCOMMITTED FUNDS AVAILABLE FROM CURRENT SURCHARGES ALLOWED  BY  THE
 COMMISSION  AND  NOT  EXPRESSLY  AUTHORIZED BY STATUTE, (IV) DISALLOWING
 RECOVERY FROM RATEPAYERS OF ANY COSTS OF EXECUTIVE COMPENSATION BONUSES.
 AFTER SUCH MITIGATION MEASURES, AND OTHER MITIGATION MEASURES WHICH  THE
 COMMISSION  MAY  APPROVE,  ANY  SHIFT OF REVENUE RESPONSIBILITY TO OTHER
 CUSTOMERS DUE TO THE REVENUE EFFECTS OF LOW-INCOME RATES  SHALL  NOT  BE
 BORNE SOLELY BY ANY SINGLE CLASS OF CUSTOMER.
   § 2. The public service law is amended by adding a new section 66-p to
 read as follows:
   § 66-P. REDUCED RESIDENTIAL RATES FOR ELECTRIC AND NATURAL GAS SERVICE
 TO  LOW-INCOME  CUSTOMERS.  1. THE COMMISSION SHALL REQUIRE ELECTRIC AND
 NATURAL GAS CORPORATIONS TO ESTABLISH  AND  CONTINUE  PROGRAMS  OF  RATE
 REDUCTION  AND  OTHER  ASSISTANCE TO LOW-INCOME RESIDENTIAL ELECTRIC AND
 NATURAL GAS CUSTOMERS, THE REVENUE IMPACT OF WHICH SHALL  NOT  BE  BORNE
 SOLELY  BY  ANY  SINGLE  CLASS  OF CUSTOMER. THE COMMISSION SHALL ENSURE
 APPROPRIATE LEVELS OF RATE REDUCTION FOR LOW-INCOME ELECTRIC AND NATURAL
 GAS CUSTOMERS TO MITIGATE HARDSHIP, WHICH SHALL NOT BE LESS  THAN  TWEN-
 TY-FIVE  PERCENT  OR  MORE THAN THIRTY-FIVE PERCENT OF THE REVENUES THAT
 WOULD HAVE BEEN PRODUCED FOR THE SAME BILLED USAGE BY OTHER  RESIDENTIAL
 CUSTOMERS  RECEIVING  FULL SERVICE FROM THE UTILITY WHO ARE NOT ELIGIBLE
 FOR  THE  REDUCED  RATE.  IN  ESTABLISHING  THE  APPROPRIATE  PERCENTAGE
 REDUCTION  THE  COMMISSION SHALL ENSURE TO THE EXTENT FEASIBLE THAT LOW-
 INCOME RATEPAYERS ARE NOT JEOPARDIZED OR OVERBURDENED BY RATES FOR ELEC-
 TRIC AND NATURAL GAS SERVICE.
   2. THE COMMISSION SHALL  ESTABLISH  CUSTOMER  INCOME  AND  CATEGORICAL
 ELIGIBILITY  STANDARDS  FOR  REDUCED RATES, WHICH SHALL INCLUDE, WITHOUT
 LIMITATION, ANY CUSTOMERS WHO RECEIVE  BENEFITS  FROM  THE  SUPPLEMENTAL
 SECURITY  INCOME  PROGRAM FOR THE AGED OR DISABLED OR OTHER PERSONS, THE
 TEMPORARY ASSISTANCE TO NEEDY FAMILIES PROGRAM, SAFETY  NET  ASSISTANCE,
 THE  SUPPLEMENTAL  NUTRITION ASSISTANCE PROGRAM, MEDICAL ASSISTANCE, THE
 HOME ENERGY ASSISTANCE PROGRAM, AND THE  TELEPHONE  LIFELINE  ASSISTANCE
 PROGRAM.
   3.  THE  COMMISSION SHALL PROMOTE FULL PENETRATION OF THE REDUCED RATE
 ASSISTANCE TO ALL ELIGIBLE  CUSTOMERS  THROUGH  PRIVACY  PROTECTED  DATA
 EXCHANGES  WITH  AGENCIES PROVIDING ASSISTANCE TO CATEGORICALLY ELIGIBLE
 CUSTOMERS TO ACHIEVE EFFICIENT ENROLLMENT, CERTIFICATION,  AND  PERIODIC
 RECERTIFICATION OF ELIGIBILITY.
   4.  THE COMMISSION SHALL REQUIRE PROVIDERS OF ELECTRIC AND NATURAL GAS
 SERVICE TO PROVIDE INFORMATION AND APPLICATION FORMS FOR  REDUCED  RATES
 TO  ELIGIBLE  LOW-INCOME  CUSTOMERS ON THEIR WEBSITES, AT THEIR OFFICES,
 AND BY OTHER MEANS, AND TO PROVIDE INFORMATION REGARDING THE AVAILABILI-

 A. 2613                             3
 
 TY AND ELIGIBILITY STANDARDS FOR REDUCED RATES TO RESIDENTIAL  CUSTOMERS
 AT  THE  TIME  OF SERVICE INITIATION, IN BILL INSERTS, IN COMMUNICATIONS
 WITH CUSTOMERS IN ARREARS, AND BY OTHER MEANS REQUIRED  OR  APPROVED  BY
 THE COMMISSION.
   5.  THE COMMISSION SHALL REQUIRE ELECTRIC AND NATURAL GAS CORPORATIONS
 TO ESTABLISH REDUCED RATES PURSUANT TO THIS SECTION TO BE  EFFECTIVE  NO
 LATER  THAN  JANUARY  FIRST,  TWO  THOUSAND TWENTY, AND TO FILE PERIODIC
 REPORTS AT LEAST ANNUALLY REGARDING THE  NUMBER  OF  ELIGIBLE  CUSTOMERS
 RECEIVING  REDUCED RATES, UTILITY EFFORTS TO PROVIDE REDUCED RESIDENTIAL
 RATES TO ALL CUSTOMERS ELIGIBLE FOR THEM, AND OTHER  INFORMATION  DEEMED
 NECESSARY  OR  APPROPRIATE  BY THE COMMISSION FOR THE EFFICIENT ADMINIS-
 TRATION OF THE REDUCED RATES.
   6. THE COMMISSION SHALL REQUIRE THAT THE INCREMENTAL  REVENUE  EFFECTS
 OF  ENHANCEMENT  TO  LOW-INCOME  RATE  PROGRAMS  UNDER  THIS  SECTION BE
 DEFERRED FOR SUBSEQUENT RATE MAKING TREATMENT. THE  INCREMENTAL  REVENUE
 IMPACT OF SUCH RATE REDUCTIONS SHALL BE MITIGATED BY:
   (A)  APPLYING  ANY EARNINGS OF THE UTILITY ABOVE THE ALLOWED RETURN ON
 EQUITY SET IN THE MOST RECENT RATE CASE, PURSUANT TO SUBDIVISION  TWENTY
 OF SECTION SIXTY-SIX OF THIS ARTICLE;
   (B)  DISALLOWING ANY RATE OF RETURN PREMIUM FOR NOT FILING A RATE CASE
 OR FOR SHARING OF OVEREARNINGS AFTER RATES ARE SET;
   (C) UTILIZING ANY UNCOMMITTED REVENUES FROM SURCHARGES ALLOWED BY  THE
 COMMISSION BUT NOT EXPRESSLY AUTHORIZED BY STATUTE; AND
   (D) DISALLOWING EXECUTIVE COMPENSATION OR BONUSES NOT ESSENTIAL TO THE
 PROVISION OF SAFE AND ADEQUATE SERVICE.
   AFTER  APPLYING REVENUES FROM SUCH SOURCES, AND OTHER MITIGATION MEAS-
 URES WHICH THE COMMISSION MAY APPROVE, ANY SHIFT OF REVENUE RESPONSIBIL-
 ITY TO OTHER CUSTOMERS DUE TO THE REVENUE EFFECTS  OF  LOW-INCOME  RATES
 SHALL NOT BE BORNE SOLELY BY ANY SINGLE CLASS OF CUSTOMER.
   §  3.  This  act  shall take effect on the sixtieth day after it shall
 have become a law.