S T A T E O F N E W Y O R K
________________________________________________________________________
9154--A
2025-2026 Regular Sessions
I N A S S E M B L Y
October 17, 2025
___________
Introduced by M. of A. BURKE -- read once and referred to the Committee
on Local Governments -- recommitted to the Committee on Local Govern-
ments 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 general municipal law and the public authorities
law, in relation to enacting the "utility fair acquisition act"
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Short title. This act shall be known and may be cited as
the "utility fair acquisition act".
§ 2. Section 362 of the general municipal law, as amended by chapter
838 of the laws of 1945, is amended to read as follows:
§ 362. Financing the cost of public utility service. 1. Any municipal
corporation may finance the cost of such public utility service in whole
or in part by levying taxes in the same manner as taxes are levied
pursuant to law for any permanent improvement by such municipal corpo-
ration, or the same may be financed in whole or in part pursuant to the
local finance law.
2. (A) IN ANY ACQUISITION BY A MUNICIPAL CORPORATION OF ELECTRIC
GENERATION, TRANSMISSION OR DISTRIBUTION INFRASTRUCTURE CURRENTLY OPER-
ATED BY A PUBLIC UTILITY COMPANY OR PRIVATE ENERGY PROVIDER, THE
APPRAISED VALUE SHALL BE REDUCED BY THE PROPORTIONAL VALUE OF INFRAS-
TRUCTURE THAT WAS FINANCED THROUGH CUSTOMER USER FEES, RATEPAYER
SURCHARGES, OR OTHER NON-INVESTOR-FUNDED MECHANISMS, AS DETERMINED BY
THE PUBLIC SERVICE COMMISSION.
(B) THE PUBLIC SERVICE COMMISSION SHALL, UPON REQUEST BY A MUNICIPAL
CORPORATION SEEKING TO ACQUIRE UTILITY ASSETS, DETERMINE THE EXTENT TO
WHICH SUCH ASSETS WERE FINANCED THROUGH CUSTOMER USER FEES, RATEPAYER
SURCHARGES, OR OTHER NON-INVESTOR-FUNDED MECHANISMS, AND SHALL ISSUE A
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13499-03-6
A. 9154--A 2
REPORT IDENTIFYING THE VALUE OF SUCH CONTRIBUTIONS AND RECOMMENDING A
COMMENSURATE REDUCTION IN THE ACQUISITION PRICE.
§ 3. The public authorities law is amended by adding a new section
2859 to read as follows:
§ 2859. FINANCING THE COST OF A PUBLIC UTILITY SERVICE. NOTWITHSTAND-
ING ANY OTHER PROVISIONS OF THIS TITLE OR THE PROVISIONS OF ANY GENERAL,
SPECIAL OR LOCAL LAW, ANY PUBLIC BENEFIT CORPORATION CREATED PURSUANT TO
ARTICLE FIVE OF THIS CHAPTER WHICH IS AUTHORIZED BY LAW TO PRODUCE,
DEVELOP, DISTRIBUTE AND SELL WATER, WATER SERVICES, FACILITIES AND
COMMODITIES SHALL HAVE THE POWER:
1. IN ANY ACQUISITION BY A PUBLIC UTILITY CORPORATION OF GENERATION,
TRANSMISSION OR DISTRIBUTION INFRASTRUCTURE CURRENTLY OPERATED BY A
PUBLIC UTILITY COMPANY OR PRIVATE ENERGY PROVIDER, THE APPRAISED VALUE
SHALL BE REDUCED BY THE PROPORTIONAL VALUE OF INFRASTRUCTURE THAT WAS
FINANCED THROUGH CUSTOMER USER FEES, RATEPAYER SURCHARGES, OR OTHER
NON-INVESTOR-FUNDED MECHANISMS, AS DETERMINED BY THE PUBLIC SERVICE
COMMISSION.
2. THE PUBLIC SERVICE COMMISSION SHALL, UPON REQUEST BY A PUBLIC UTIL-
ITY CORPORATION SEEKING TO ACQUIRE UTILITY ASSETS, DETERMINE THE EXTENT
TO WHICH SUCH ASSETS WERE FINANCED THROUGH CUSTOMER USER FEES, RATEPAYER
SURCHARGES, OR OTHER NON-INVESTOR-FUNDED MECHANISMS, AND SHALL ISSUE A
REPORT IDENTIFYING THE VALUE OF SUCH CONTRIBUTIONS AND RECOMMENDING A
COMMENSURATE REDUCTION IN THE ACQUISITION PRICE.
§ 4. This act shall take effect immediately.