Assembly Bill A2235

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2235
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 15, 2025
                                ___________
 
 Introduced  by  M. of A. EICHENSTEIN, BORES -- read once and referred to
   the Committee on Corporations, Authorities and Commissions
 
 AN ACT to amend the public service law and the public  authorities  law,
   in  relation  to  providing  for  a  two percent cap on rate increases
   imposed by utilities

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision 1 of section 65 of the public service law, as
 amended by chapter 789 of the laws  of  1930,  is  amended  to  read  as
 follows:
   1. Every gas corporation, every electric corporation and every munici-
 pality  shall  furnish  and  provide such service, instrumentalities and
 facilities as shall be safe and adequate and in all  respects  just  and
 reasonable.  All  charges  made or demanded by any such gas corporation,
 electric corporation or municipality for gas, electricity or any service
 rendered or to be rendered, shall be just and reasonable  and  not  more
 than  allowed  by  law  or  by  order of the commission. Every unjust or
 unreasonable charge made or demanded for gas, electricity  or  any  such
 service, or in connection therewith, or in excess of that allowed by law
 or  by the order of the commission is prohibited.  NO GAS CORPORATION OR
 ELECTRIC CORPORATION SHALL INCREASE RATES BY MORE THAN  TWO  PERCENT  AS
 MEASURED ON AN ANNUAL BASIS.
   §  2.  Paragraphs  2 and 4 of subdivision (u) of section 1020-f of the
 public authorities law, as added by section 7 of part A of  chapter  173
 of the laws of 2013, are amended to read as follows:
   2.  The authority and the service provider shall thereafter submit for
 review to the department of public service any rate proposal that  would
 increase the rates and charges [and thus increase the aggregate revenues
 of  the  authority  by  more  than two and one-half]. SUCH RATE PROPOSAL
 SHALL NOT PROVIDE FOR AN INCREASE OF SUCH RATES BY MORE THAN TWO percent
 to be measured on an annual basis[; provided, however, that the authori-

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02276-01-5
              

 A. 2235                             2

 ty may place such rates and charges into effect  on  an  interim  basis,
 subject  to prospective rate adjustment; provided, further, that a final
 rate plan issued by the authority that would not so increase such  rates
 and  charges  shall not be subject to the requirements of paragraph four
 of this subdivision and shall be considered final for  the  purposes  of
 review  under article seventy-eight of the civil practice law and rules.
 The authority and/or the  service  provider  may  otherwise  submit  for
 review  to  such department any rate proposal irrespective of its effect
 on revenues].
   4. Any recommendations  associated  with  a  rate  proposal  submitted
 pursuant to paragraphs one and two of this subdivision shall be provided
 by  the department of public service to the board of the authority imme-
 diately upon their finalization by the department. Unless the  board  of
 the  authority  makes a preliminary determination in its discretion that
 any particular recommendation is inconsistent with the authority's sound
 fiscal operating practices, any existing contractual or operating  obli-
 gations,  or the provision of safe and adequate service, the board shall
 implement such recommendations as part of its final rate plan  and  such
 final  determination shall be deemed to satisfy the requirements of this
 subdivision and be considered final for the  purposes  of  review  under
 article  seventy-eight  of  the civil practice law and rules.  THE BOARD
 SHALL NOT APPROVE A FINAL RATE PLAN THAT INCREASES RATES  BY  MORE  THAN
 TWO  PERCENT. The board shall make any such preliminary determination of
 inconsistency within thirty days of  receipt  of  such  recommendations,
 with  notice  and  the basis of such determination being provided to the
 department of  public  service,  and  contemporaneously  posted  on  the
 websites  of  the  authority  and  its service provider. The board shall
 thereafter, within thirty days of such  posting  and  with  due  advance
 notice to the public, hold a public hearing with respect to its prelimi-
 nary  determination of inconsistency. At such hearing, the department of
 public service shall present the  basis  for  its  recommendations,  the
 board shall present the basis for its determination of inconsistency and
 the  service  provider  may  present its position. The authority and the
 service provider may, during the time period before such public  hearing
 reach  agreement  with  the department on disputed issues. Within thirty
 days after such  public  hearing,  the  board  of  the  authority  shall
 announce its final determination and planned implementation with respect
 to  any  such  recommendations.  The  authority's final determination of
 inconsistency  shall  be  subject  to  any  applicable  judicial  review
 proceeding,  including  review  available under article seventy-eight of
 the civil practice law and rules.
   § 3. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.