S T A T E O F N E W Y O R K
________________________________________________________________________
5323--A
2023-2024 Regular Sessions
I N A S S E M B L Y
March 7, 2023
___________
Introduced by M. of A. LUCAS, AUBRY, COLTON, KIM -- read once and
referred to the Committee on Energy -- recommitted to the Committee on
Energy in accordance with Assembly Rule 3, sec. 2 -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
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 17 to read as follows:
17. 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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06370-03-4
A. 5323--A 2
DATA EXCHANGES APPROVED BY THE COMMISSION TO ACHIEVE EFFICIENT ENROLL-
MENT OF ELIGIBLE CUSTOMERS.
(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-w to
read as follows:
§ 66-W. 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
A. 5323--A 3
TO ELIGIBLE LOW-INCOME CUSTOMERS ON THEIR WEBSITES, AT THEIR OFFICES,
AND BY OTHER MEANS, AND TO PROVIDE INFORMATION REGARDING THE AVAILABILI-
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-SIX, 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.