Assembly Bill A10510

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10510
 
                           I N  A S S E M B L Y
 
                               March 6, 2026
                                ___________
 
 Introduced  by M. of A. ROZIC -- read once and referred to the Committee
   on Energy
 
 AN ACT to amend the public service law, in relation to  prohibiting  the
   recovery of certain labor-related legal costs from ratepayers
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Legislative findings and intent. The legislature finds that
 public utilities subject to  the  jurisdiction  of  the  public  service
 commission  recover their costs through rates paid by customers pursuant
 to a cost-of-service regulatory framework. The legislature further finds
 that labor relations decisions, including litigation and dispute  resol-
 ution  strategies  involving  represented  employees and labor organiza-
 tions, are management decisions that should not be subsidized  by  rate-
 payers.  It  is  therefore the intent of the legislature to clarify that
 costs incurred by utilities in labor-related  legal  disputes  shall  be
 borne  by  shareholders  and  shall  not be recoverable from ratepayers,
 while preserving the authority of the public service commission to over-
 see rates, ensure system reliability, and protect the public interest.
   § 2. The public service law is amended by adding a new section 66-x to
 read as follows:
   § 66-X. LABOR-RELATED LEGAL COST RECOVERY  PROHIBITED.  1.    NOTWITH-
 STANDING ANY OTHER PROVISION OF LAW, NO GAS CORPORATION, ELECTRIC CORPO-
 RATION,  OR  COMBINATION GAS AND ELECTRIC CORPORATION SHALL RECOVER FROM
 RATEPAYERS, THROUGH RATES, CHARGES, SURCHARGES,  ADJUSTMENT  MECHANISMS,
 RIDERS,  OR RECONCILIATION MECHANISMS, ANY COSTS OR EXPENSES INCURRED IN
 CONNECTION WITH LABOR-RELATED LEGAL ACTIVITY.
   2. FOR PURPOSES OF THIS SUBDIVISION,  "LABOR-RELATED  LEGAL  ACTIVITY"
 SHALL  INCLUDE,  BUT  NOT BE LIMITED TO, LEGAL FEES, COSTS, SETTLEMENTS,
 JUDGMENTS, AWARDS, AND DISBURSEMENTS ARISING FROM OR RELATED TO:
   (A) COLLECTIVE BARGAINING NEGOTIATIONS OR DISPUTES;
   (B) GRIEVANCES, ARBITRATIONS, OR CONTRACT INTERPRETATION  OR  ENFORCE-
 MENT PROCEEDINGS WITH A LABOR ORGANIZATION;
   (C)  UNFAIR  LABOR PRACTICE PROCEEDINGS OR REPRESENTATION PROCEEDINGS;
 OR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14881-01-6
 A. 10510                            2
 
   (D) LITIGATION OR ADMINISTRATIVE PROCEEDINGS AGAINST, OR INITIATED BY,
 A LABOR ORGANIZATION REPRESENTING THE CORPORATION'S EMPLOYEES.
   3.  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW, NO GAS CORPORATION,
 ELECTRIC CORPORATION, OR COMBINATION GAS AND ELECTRIC CORPORATION  SHALL
 RECOVER  FROM RATEPAYERS, THROUGH RATES, CHARGES, SURCHARGES, ADJUSTMENT
 MECHANISMS, RIDERS, OR RECONCILIATION MECHANISMS  ANY  WORKERS'  COMPEN-
 SATION LOSS ADJUSTMENT EXPENSES.
   4.  ALL  COSTS  AND  EXPENSES  DESCRIBED  IN THIS SUBDIVISION SHALL BE
 DEEMED PER SE IMPRUDENT FOR PURPOSES OF RATE RECOVERY AND SHALL BE BORNE
 BY THE SHAREHOLDERS OF THE CORPORATION.
   5. NOTHING IN THIS SUBDIVISION SHALL  BE  CONSTRUED  TO  PROHIBIT  THE
 RECOVERY OF COSTS ASSOCIATED WITH:
   (A) PROCEEDINGS REQUIRED, INITIATED, OR DIRECTED BY THE PUBLIC SERVICE
 COMMISSION;
   (B) COMPLIANCE WITH STATE OR FEDERAL REGULATORY REQUIREMENTS UNRELATED
 TO LABOR RELATIONS;
   (C)   LITIGATION  INVOLVING  CUSTOMER  SERVICE,  CONSUMER  PROTECTION,
 PERSONAL INJURY, PROPERTY DAMAGE, OR THIRD-PARTY CLAIMS; OR
   (D) LEGAL MATTERS UNRELATED TO THE LABOR RELATIONS BETWEEN THE  CORPO-
 RATION AND ITS EMPLOYEES.
   6.  THE  COMMISSION SHALL PROMULGATE SUCH RULES AND REGULATIONS AS MAY
 BE NECESSARY TO IMPLEMENT AND ADMINISTER THE PROVISIONS OF THIS SECTION.
 SUCH RULES AND REGULATIONS SHALL,  AT  A  MINIMUM,  REQUIRE  GAS  CORPO-
 RATIONS,  ELECTRIC CORPORATIONS, AND COMBINATION GAS AND ELECTRIC CORPO-
 RATIONS TO SEPARATELY IDENTIFY AND ACCOUNT FOR LABOR-RELATED LEGAL COSTS
 IN ALL RATE FILINGS.
   § 3. This act shall take effect immediately and  shall  apply  to  all
 rate filings pending on or after such effective date.