NY State Senate Bill 2021-S438

Archive: Last Bill Status - In Senate Committee Consumer Protection 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 05, 2022	referred to consumer protection
Jan 06, 2021	referred to consumer protection

2021-S438 (ACTIVE) - Details

See Assembly Version of this Bill:: A1886
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Amd §349-d, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S7340, A9892
2023-2024: S2600, A2197

2021-S438 (ACTIVE) - Summary

Requires that a billing statement delivered to the customer by an energy services company include a side-by-side comparison showing both the price charged by the energy service company for commodity and delivery service during the prior billing period, and the price the customer would have paid had they taken commodity and delivery service from their local utility corporation or municipality; requires an energy service company to provide each of its customers with an annual statement comparing the price charged by the energy service company for commodity and delivery services and other energy-related value-added products over the prior twelve-month period with the price such customer would have paid had they taken commodity and delivery service from their local utility corporation or municipality.

2021-S438 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S438

SPONSOR: HOYLMAN
 
TITLE OF BILL:

An act to amend the general business law, in relation to requiring
comparison of prices charged by energy services companies

 
SUMMARY OF PROVISIONS:

Section 1 of this bill adds two new subdivisions 9 and 10 to Section
349-d of the General Business Law (Energy services company consumers
bill of rights.)

The new subdivision 9 would require a side-by-side comparison on the
first page of ESCO customers' billing statements of the price the ESCO
charged during the prior billing period, compared to the price the
customer would have paid if they had received service from their local
utility corporation or municipality. It would also require ESCOs to
provide an itemized list of prices charged by the ESCO for any energy-
related value-added products during such billing period.  The new subdi-
vision 10 would require ESCOs to provide their customers a yearly state-

ment comparing the price they charged for goods and services during the
prior year with the price the customer would have paid if they had
received service from their local utility corporation or municipality.

Section 2 of the bill establishes the effective date.

 
JUSTIFICATION:

Ever since New York began to de-regulate its retail energy market in the
late 1990s, the State has allowed energy service companies (ESCOs) to
sell energy to customers. These companies often promise that if custom-
ers transition away from their utility to an ESCO, they will see a host
of benefits including a reduced energy bill, greener energy, and other
side benefits.

However, the ESCO industry has shown itself over the years to be rife
with fraud, abuse, and deceptive business practices, prompting the
Department of Public Service to take steps to more closely regulate the
industry throughout the past decade. The Legislature also passed a law
in 2010 creating standards for ESCOs' marketing and business practices
and requiring the Public Service Commission to create an ESCO Consumers'
Bill of Rights.

Despite these steps, evidence continues to show that the average ESCO
customer consistently pays more for their electric and gas service than
they would otherwise have paid if they received service from their util-
ity. ESCO customers regularly complain that ESCOs will offer promotional
rates or items enticing customers to switch, but provide little to no
added benefit to customers and end up hiking rates significantly over
the long term, often unbeknownst to customers.  To protect New York's
energy consumers, this bill would require ESCOs to provide an on-bill
comparison of the rates they charge their customers and the rates the
customers would have paid had they taken service from their local utili-
ty company or municipality. This will allow ESCOs who claim to provide a
genuine benefit to their customers to demonstrate evidence backing up
that claim on each bill, while providing notice to consumers who are
being unfairly overcharged.  The bill would also require ESCOs to
provide an itemized list of the prices they charge for additional
value-added products, and require them to provide their customers with a
yearly statement comparing their rates with the local utility corpo-
ration or municipality's rates over the past twelve-month period.

 
LEGISLATIVE HISTORY:

S.7340 of 2019-2020 (Hoylman): Died in Consumer Protection

A.9092 of 2019-2020 (Dinowitz): Died in Consumer Affairs and Protection

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE. DATE:

This act shall take effect on the one hundred eightieth day after it
shall have become a law. Effective immediately, the addition, amendment
and/or repeal of any rule or regulation necessary for the implementation
of this actò on its effective date are authorized and directed to be
made and completed on or before such effective date.

2021-S438 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    438
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  Sen. HOYLMAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Consumer Protection
 
 AN ACT to amend the general  business  law,  in  relation  to  requiring
   comparison of prices charged by energy services companies

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivisions 9, 10, 11 and  12  of  section  349-d  of  the
 general  business  law, subdivision 9 as amended by section 34 of part A
 of chapter 62 of the laws of 2011 and subdivisions  10,  11  and  12  as
 added  by  chapter  416  of  the  laws  of  2010, are amended to read as
 follows:
   9. THE FIRST PAGE OF EACH BILLING STATEMENT FROM AN ESCO DELIVERED  TO
 THE  CUSTOMER,  EITHER BY THE ESCO DIRECTLY OR BY A UTILITY CORPORATION,
 BY A MUNICIPALITY OR BY ANY OTHER METHOD, SHALL INCLUDE  A  SIDE-BY-SIDE
 COMPARISON  SHOWING BOTH THE PRICE CHARGED BY THE ESCO FOR COMMODITY AND
 DELIVERY SERVICE DURING THE PRIOR BILLING  PERIOD,  AND  THE  PRICE  THE
 CUSTOMER  WOULD  HAVE PAID HAD THEY TAKEN COMMODITY AND DELIVERY SERVICE
 FROM THEIR LOCAL UTILITY CORPORATION  OR  MUNICIPALITY,  AS  APPLICABLE.
 SUCH  STATEMENT  SHALL ALSO INCLUDE, SEPARATELY AND APART FROM THE PRICE
 CHARGED BY THE ESCO FOR COMMODITY AND DELIVERY SERVICE, AN ITEMIZED LIST
 OF PRICES  CHARGED  BY  THE  ESCO  FOR  ANY  ENERGY-RELATED  VALUE-ADDED
 PRODUCTS PROVIDED BY THE ESCO DURING THE PRIOR BILLING PERIOD.
   10.  EVERY  TWELVE MONTHS, AN ESCO SHALL PROVIDE EACH OF ITS CUSTOMERS
 WITH A STATEMENT COMPARING THE PRICE CHARGED BY THE ESCO  FOR  COMMODITY
 AND DELIVERY SERVICES AND OTHER ENERGY-RELATED VALUE-ADDED PRODUCTS OVER
 THE  PRIOR  TWELVE-MONTH  PERIOD WITH THE PRICE SUCH CUSTOMER WOULD HAVE
 PAID HAD THEY TAKEN COMMODITY AND  DELIVERY  SERVICE  FROM  THEIR  LOCAL
 UTILITY  CORPORATION  OR  MUNICIPALITY,  AS APPLICABLE, FOR SUCH PERIOD.
 SUCH STATEMENT SHALL CONVEY SUCH INFORMATION IN A MANNER  THAT  UNAMBIG-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD02379-01-1

 S. 438                              2
 
 UOUSLY  CONVEYS WHETHER THE CUSTOMER IS SAVING MONEY OR PAYING A PREMIUM
 FOR SERVICE FROM THE ESCO OVER SUCH PERIOD.
   11.  The attorney general, upon his or her own motion or upon referral
 from the public service commission, the Long Island power  authority  or
 the  department  of  state,  may bring a civil action against any energy
 services company that violates any provision of  this  section  and  may
 recover  (a)  a  civil  penalty  not  to exceed one thousand dollars per
 violation; and (b) costs and reasonable attorney's  fees.  In  any  such
 proceeding the court may direct restitution.
   [10.]  12.  In addition to the right of action granted to the attorney
 general pursuant to this section, any person who  has  been  injured  by
 reason  of  any  violation of this section may bring an action in his or
 her own name to enjoin such unlawful  act  or  practice,  an  action  to
 recover  his or her actual damages or five hundred dollars, whichever is
 greater, or both  such  actions.  The  court  may,  in  its  discretion,
 increase the award of damages to an amount not to exceed three times the
 actual  damages  up  to  ten  thousand  dollars,  if the court finds the
 defendant willfully or knowingly violated this section.  The  court  may
 award reasonable attorney's fees to a prevailing plaintiff.
   [11.] 13. Nothing in this section shall be deemed to limit any author-
 ity of the public service commission or the Long Island power authority,
 which  existed  before  the  effective  date  of this section, to limit,
 suspend or revoke the eligibility of an energy services company to  sell
 or  offer for sale any energy services for violation of any provision of
 law, rule, regulation  or  policy  enforceable  by  such  commission  or
 authority.
   [12.] 14. Nothing in this section shall be deemed to limit any author-
 ity of the public service commission or the Long Island power authority,
 which  existed before the effective date of this section, to adopt addi-
 tional guidelines, practices, policies, rules or regulations relating to
 the marketing practices of energy services companies to residential  and
 commercial  customers, whether in person (including door to door), or by
 mail, telephone or other electronic means,  that  are  not  inconsistent
 with the provisions of this section.
   § 2. This act shall take effect on the one hundred eightieth day after
 it  shall have become a law. Effective immediately, the addition, amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation of this act on its effective date are authorized to be made on or
 before such date.

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Senate Bill S438

Sponsored By

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

2021-S438 (ACTIVE) - Details

2021-S438 (ACTIVE) - Summary

2021-S438 (ACTIVE) - Sponsor Memo

2021-S438 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S438

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Sponsored By

Brad Hoylman-Sigal

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

2021-S438 (ACTIVE) - Details

2021-S438 (ACTIVE) - Summary

2021-S438 (ACTIVE) - Sponsor Memo

2021-S438 (ACTIVE) - Bill Text download pdf

Comments