S T A T E O F N E W Y O R K
________________________________________________________________________
7963--A
2025-2026 Regular Sessions
I N A S S E M B L Y
April 16, 2025
___________
Introduced by M. of A. TAPIA -- read once and referred to the Committee
on Corporations, Authorities and Commissions -- committee discharged,
bill amended, ordered reprinted as amended and recommitted to said
committee
AN ACT to amend the public service law, in relation to eliminating late
fees for residential utility customers
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 42 of the public service law, as added by chapter
713 of the laws of 1981, subdivision 3 as added by chapter 388 of the
laws of 2011, is amended to read as follows:
§ 42. Other charges. 1. (A) A utility corporation or municipality may
impose late payment charges ON NON-RESIDENTIAL CUSTOMERS not in excess
of one and one-half percent per month on the unpaid balance of any bill
including any interest thereon. NO SUCH LATE PAYMENT CHARGE SHALL BE
IMPOSED ON ANY RESIDENTIAL CUSTOMER OR SMALL BUSINESS CUSTOMER. Any
such late payment charge ON NON-RESIDENTIAL CUSTOMERS, however, may not
be imposed if the bill is the subject of a pending complaint with the
utility or municipality provided, however, that such charge may be
imposed retroactively if the complaint is finally resolved in favor of
the utility or municipality.
(B) FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM "SMALL BUSINESS
CUSTOMER" SHALL MEAN A CUSTOMER WHO IS AN ELECTRIC CUSTOMER THAT MEETS
THE CRITERIA IN SUBPARAGRAPH (I) OF THIS PARAGRAPH, A GAS CUSTOMER THAT
MEETS THE CRITERIA IN SUBPARAGRAPH (II) OF THIS PARAGRAPH, OR BOTH:
(I) A NON-RESIDENTIAL ELECTRIC SERVICE CUSTOMER THAT RECEIVES SERVICE
EITHER UNDER A NON-DEMAND BILLED RATE, OR UNDER A DEMAND BILLED RATE,
PROVIDED THE HIGHEST METERED DEMAND WAS LESS THAN OR EQUAL TO FORTY
KILOWATTS DURING THE PREVIOUS TWELVE MONTHS;
(II) A GAS CUSTOMER THAT HAS AN ACTUAL GAS CONSUMPTION THAT DOES NOT
EXCEED SEVEN HUNDRED FIFTY DEKATHERMS PER YEAR, OR, FOR CUSTOMERS WITH
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11200-02-5
A. 7963--A 2
LESS THAN ONE YEAR OF ACTUAL METER READINGS, IS A GAS CUSTOMER THAT HAS
AN AVERAGE ACTUAL MONTHLY USAGE THAT WHEN MULTIPLIED BY TWELVE DOES NOT
EXCEED SEVEN HUNDRED FIFTY DEKATHERMS.
2. [Except as provided in subdivision one of this section, no] NO
utility corporation or municipality may charge any residential customer
a late payment charge, penalty, fee, interest, or other charge of any
kind for any late payment, collection effort, service disconnection or
deferred payment agreement occasioned by the customer's failure to pay
timely for gas or electric service.
3. The rights and responsibilities of residential customers partic-
ipating in green jobs-green New York on-bill recovery pursuant to
section sixty-six-m of this chapter shall be substantially comparable to
those of electric and gas customers not participating in on-bill recov-
ery, and charges for on-bill recovery shall be treated as charges for
utility service for the purpose of this article, provided that:
(a) all determinations and safeguards related to the termination and
reconnection of service shall apply to on-bill recovery charges billed
by a utility pursuant to such section;
(b) in the event that the responsibility for making utility payments
has been assumed by occupants of a multiple dwelling pursuant to section
thirty-three of this article or by occupants of a two-family dwelling
pursuant to section thirty-four of this article, such occupants shall
not be billed for any arrears of on-bill recovery charges or any
prospective on-bill recovery charges, which shall remain the responsi-
bility of the incurring customer;
(c) deferred payment agreements pursuant to section thirty-seven of
this article shall be available to customers participating in on-bill
recovery on the same terms as other customers, and the utility shall
retain the same discretion to defer termination of service as for any
other delinquent customer;
(d) where a customer has a budget billing plan or levelized payment
plan pursuant to section thirty-eight of this article, the utility shall
recalculate the payments under such plan to reflect the projected
effects of installing energy efficiency measures as soon as practicable
after receipt of information on the energy audit and qualified energy
efficiency services selected;
(e) on-bill recovery charges shall not be subject to the provisions of
section forty-one of this article;
(f) late payment charges on unpaid on-bill recovery charges shall be
determined as provided in this section, or as otherwise consented to by
the customer in the agreement for green jobs-green New York on-bill
recovery and any such charges shall be remitted to the New York state
energy research and development authority;
(g) notwithstanding the provisions of section forty-three of this
article, when a complaint is related solely to work performed under the
green jobs-green New York program or to the appropriate amount of
on-bill recovery charges, the utility shall only be required to inform
the customer of the complaint handling procedures of the New York state
energy research and development authority, which shall retain responsi-
bility for handling such complaints, and such complaints shall not be
deemed to be complaints about utility service in any other commission
action or proceeding; and
(h) billing information provided pursuant to section forty-four of
this article shall include information on green jobs-green New York
on-bill recovery charges, including the basis for such charges, and any
information or inserts provided by the New York state energy research
A. 7963--A 3
and development authority related thereto. In addition, at least annual-
ly the authority shall provide the utility with information for inclu-
sion or insertion in the customer's bill that sets forth the amount and
duration of remaining on-bill recovery charges and the authority's
contact information and procedures for resolving customer complaints
with such charges.
§ 2. This act shall take effect immediately.