Senate Bill S10667

2025-2026 Legislative Session

Establishes a presumption that certain refunds received by public utility companies and municipalities shall be passed on to ratepayers

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Current Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jul 24, 2026	referred to rules

2025-S10667 (ACTIVE) - Details

Current Committee:: Senate Rules
Law Section:: Public Service Law
Laws Affected:: Amd §113, Pub Serv L

2025-S10667 (ACTIVE) - Summary

Establishes a presumption that certain refunds received by public utility companies and municipalities shall be passed on to ratepayers through bill credits, direct refunds, reductions in future rates, or other methods that provide a direct and equitable benefit to affected ratepayers.

2025-S10667 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S10667

SPONSOR: COONEY
 
TITLE OF BILL:

An act to amend the public service law, in relation to establishing a
presumption that certain refunds received by public utility companies
and municipalities shall be passed on to ratepayers

 
PURPOSE:

This bill establishes a rebuttable presumption that the portion of a
refund attributable to costs previously recovered from utility consumers
shall be passed on to those consumers. The bill also limits the circum-
stances in which such funds may be used for another purpose, deducted
for recovery costs, or retained for the benefit of utility shareholders.

 
SUMMARY OF PROVISIONS:

Section one amends subdivision two of section 113 of the public service
law.

Paragraph (a) authorizes the Public Service Commission to determine the
portion of a refund received by or credited to a regulated public utili-
ty company or municipality, or applied as an offset against an existing
or future liability of such public utility company or municipality, that
is attributable to costs, taxes, fees, charges, or other amounts previ-
ously recovered from consumers through commission-authorized rates or
cost recovery mechanisms, and the just and reasonable disposition of any
remaining portion.

Paragraph (b) establishes a rebuttable presumption that the ratepayer-
attributable portion of the refund shall be passed on to consumers, less
any reasonable costs approved by the commission.

Paragraph (c) requires the commission to direct the refund, to the
extent practicable, to the consumers who bore the underlying costs or to
the _ appropriate customer classes. It authorizes distribution through
bill credits, direct refunds, reductions in future rates, or another
method providing a direct and equitable consumer benefit.

Paragraph (d) permits the presumption to be rebutted only upon a demon-
stration by the public utility company or municipality and a finding by
the commission that direct distribution is impracticable and an alterna-
tive disposition will provide consumers with a reasonably equivalent or
greater benefit, or that an alternative disposition is necessary to
prevent an imminent and material impairment of safe and adequate utility
service. Any disposition authorized to prevent such an impairment must
be limited to the amount necessary and used solely for that purpose.

Paragraph (e) prohibits any ratepayer-attributable portion of a refund
from being retained as profit or used for the benefit of shareholders.

Paragraph (f) permits the deduction of refund-recovery costs only when
the utility demonstrates that the costs were reasonable, documented,
prudently incurred, and directly necessary. Costs resulting from inade-
quate internal controls, a lack of reasonable care, or noncompliance may
not be deducted.

Paragraph (g) requires the commission to issue specific findings
supporting any approved cost deduction or departure from the statutory
presumption.

Paragraph (h) authorizing the Public Service Commission, upon applica-
tion by a municipality and a finding of undue fiscal hardship, to
approve a payment schedule of up to two years for municipalities
required to pay refunds under this section.

Section two provides an effective date.

 
JUSTIFICATION:

Utility rates include taxes, fees, operating expenses, and other costs
incurred in providing service. When these costs are included in rates,
consumers ultimately pay them through their utility bills.

If a utility later receives a refund of an amount previously recovered
from consumers, the resulting benefit should presumptively be returned
to those consumers. Current law gives the Public Service Commission
broad discretion over the disposition of utility refunds but does not
establish a clear ratepayer-first standard.

Recent proceedings involving substantial utility sales and tax refunds
have demonstrated the need for greater clarity. Disputes may arise over
how much of a refund should benefit consumers, whether recovery expenses
should be deducted, and whether shareholders should receive a portion of
the funds.

This bill provides that funds attributable to costs previously paid by
consumers should generally be returned to consumers. It preserves the
commission's authority to determine the appropriate method of distrib-
ution and allows the deduction of reasonable and necessary recovery
costs. At the same time, it prevents utilities from retaining ratepay-
er-funded refunds as shareholder profit or deducting costs caused by
their own inadequate controls or lack of reasonable care.

 
LEGISLATIVE HISTORY:

N/A

 
FISCAL IMPLICATIONS:

This bill will have an indeterminable fiscal impact on the State and
local governments.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S10667 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10667
 
                             I N  S E N A T E
 
                               July 24, 2026
                                ___________
 
 Introduced  by  Sen.  COONEY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the public service law, in relation  to  establishing  a
   presumption  that certain refunds received by public utility companies
   and municipalities shall be passed on to ratepayers
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivision 2 of section 113 of the public service law, as
 added by chapter 530 of the laws of 1977, is amended to read as follows:
   2. (A) Whenever any public  utility  company  or  municipality,  whose
 rates  are  subject to the jurisdiction of the commission, shall receive
 any refund of amounts charged and collected from it by any  source,  the
 commission  shall  have power after a hearing, upon its own motion, upon
 complaint or upon the application of  such  public  utility  company  or
 municipality,  to determine [whether or not such refund should be passed
 on, in whole or in part, to the consumers of such public utility company
 or municipality and to order such public utility company or municipality
 to pass such refunds on to its consumers,  in  the  manner  and  to  the
 extent  determined just and reasonable by the commission] THE PORTION OF
 SUCH REFUND ATTRIBUTABLE  TO  COSTS,  TAXES,  FEES,  CHARGES,  OR  OTHER
 AMOUNTS  PREVIOUSLY RECOVERED FROM RATEPAYERS THROUGH RATES, CHARGES, OR
 OTHER COST RECOVERY MECHANISMS AUTHORIZED OR APPROVED BY THE COMMISSION,
 AND TO DETERMINE THE JUST AND REASONABLE DISPOSITION  OF  ANY  REMAINING
 PORTION OF SUCH REFUND.
   (B)  THERE  SHALL  BE  A  REBUTTABLE PRESUMPTION THAT THE PORTION OF A
 REFUND DETERMINED PURSUANT TO PARAGRAPH (A) OF THIS  SUBDIVISION  TO  BE
 ATTRIBUTABLE  TO  AMOUNTS  PREVIOUSLY RECOVERED FROM RATEPAYERS SHALL BE
 PASSED ON TO SUCH RATEPAYERS, LESS ANY COSTS PERMITTED BY THE COMMISSION
 PURSUANT TO PARAGRAPH (F) OF THIS SUBDIVISION.
   (C) THE COMMISSION SHALL ORDER SUCH PUBLIC UTILITY COMPANIES OR  MUNI-
 CIPALITIES  TO PASS SUCH PORTION OF THE REFUND ON, TO THE EXTENT PRACTI-
 CABLE, TO THE RATEPAYERS WHO BORE THE COSTS GIVING RISE TO  THE  REFUND.
 WHERE  DISTRIBUTION  TO SUCH RATEPAYERS IS IMPRACTICABLE, THE COMMISSION
 SHALL DIRECT SUCH PORTION TO THE APPROPRIATE CLASS OR CLASSES  OF  RATE-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD16213-01-6
 S. 10667                            2

 PAYERS THROUGH A JUST AND REASONABLE METHOD OF DISTRIBUTION. SUCH METHOD
 MAY INCLUDE BILL CREDITS, DIRECT REFUNDS, REDUCTIONS IN FUTURE RATES, OR
 ANOTHER  METHOD THAT PROVIDES A DIRECT AND EQUITABLE BENEFIT TO AFFECTED
 RATEPAYERS.
   (D)  THE  PRESUMPTION  ESTABLISHED  PURSUANT  TO PARAGRAPH (B) OF THIS
 SUBDIVISION MAY BE REBUTTED ONLY UPON  A  DEMONSTRATION  BY  THE  PUBLIC
 UTILITY COMPANY OR MUNICIPALITY, AND A FINDING BY THE COMMISSION, THAT:
   (I)  DIRECT  DISTRIBUTION  TO AFFECTED RATEPAYERS IS IMPRACTICABLE AND
 SUCH ALTERNATIVE DISPOSITION WILL PROVIDE SUCH RATEPAYERS WITH A REASON-
 ABLY EQUIVALENT OR GREATER BENEFIT; OR
   (II) AN ALTERNATIVE DISPOSITION IS NECESSARY TO PREVENT  IMMINENT  AND
 MATERIAL  IMPAIRMENT  OF  THE  PROVISION  OF  SAFE  AND ADEQUATE UTILITY
 SERVICE. ANY ALTERNATIVE DISPOSITION AUTHORIZED PURSUANT TO THIS SUBPAR-
 AGRAPH SHALL BE LIMITED TO THE AMOUNT NECESSARY TO PREVENT SUCH  IMPAIR-
 MENT AND SHALL BE USED SOLELY FOR THAT PURPOSE.
   (E)  NO  PORTION OF A REFUND ATTRIBUTABLE TO AMOUNTS PREVIOUSLY RECOV-
 ERED FROM RATEPAYERS SHALL BE RETAINED AS EARNINGS OR PROFIT  OR  OTHER-
 WISE USED FOR THE DIRECT OR INDIRECT BENEFIT OF SHAREHOLDERS.
   (F)  COSTS  INCURRED  BY  A  PUBLIC UTILITY COMPANY OR MUNICIPALITY TO
 IDENTIFY, PURSUE, OR OBTAIN A REFUND SHALL NOT REDUCE THE AMOUNT  PASSED
 ON  TO  RATEPAYERS  UNLESS  THE  PUBLIC  UTILITY COMPANY OR MUNICIPALITY
 DEMONSTRATES, AND THE COMMISSION FINDS, THAT SUCH COSTS WERE REASONABLE,
 DOCUMENTED, PRUDENTLY INCURRED, AND DIRECTLY  NECESSARY  TO  OBTAIN  THE
 REFUND. THE COMMISSION SHALL NOT PERMIT THE DEDUCTION OF COSTS ATTRIBUT-
 ABLE TO A FAILURE BY THE PUBLIC UTILITY COMPANY OR MUNICIPALITY TO MAIN-
 TAIN  ADEQUATE  INTERNAL  CONTROLS,  EXERCISE REASONABLE CARE, OR COMPLY
 WITH APPLICABLE LEGAL, ACCOUNTING, OR REGULATORY REQUIREMENTS.
   (G) ANY ORDER AUTHORIZING AN ALTERNATIVE DISPOSITION PURSUANT TO PARA-
 GRAPH (D) OF THIS SUBDIVISION  OR  PERMITTING  THE  DEDUCTION  OF  COSTS
 PURSUANT  TO  PARAGRAPH (F) OF THIS SUBDIVISION SHALL SET FORTH SPECIFIC
 FINDINGS IDENTIFYING THE AMOUNT AND SOURCE OF THE  REFUND,  THE  PORTION
 ATTRIBUTABLE  TO AMOUNTS PREVIOUSLY RECOVERED FROM RATEPAYERS, ANY COSTS
 PERMITTED TO BE DEDUCTED, THE METHOD BY WHICH AFFECTED  RATEPAYERS  WILL
 RECEIVE  THE  BENEFIT  OF  THE REFUND, AND THE REASONS FOR ANY DEPARTURE
 FROM THE PRESUMPTION ESTABLISHED  PURSUANT  TO  PARAGRAPH  (B)  OF  THIS
 SUBDIVISION.
   (H)  WHERE  A  MUNICIPALITY  IS  REQUIRED  TO MAKE PAYMENT OF A REFUND
 SUBJECT TO THIS SUBDIVISION, THE COMMISSION MAY, UPON APPLICATION BY THE
 MUNICIPALITY AND UPON A FINDING THAT IMMEDIATE PAYMENT WOULD  IMPOSE  AN
 UNDUE  FISCAL  HARDSHIP  OR REQUIRE AN UNBUDGETED EXPENDITURE THAT WOULD
 MATERIALLY IMPAIR THE MUNICIPALITY'S  FISCAL  STABILITY  OR  ABILITY  TO
 PROVIDE  ESSENTIAL GOVERNMENTAL SERVICES, AUTHORIZE SUCH MUNICIPALITY TO
 SATISFY ITS REFUND OBLIGATION PURSUANT TO  A  PAYMENT  SCHEDULE  NOT  TO
 EXCEED TWO YEARS. IN APPROVING ANY SUCH PAYMENT SCHEDULE, THE COMMISSION
 SHALL  CONSIDER THE INTERESTS OF AFFECTED RATEPAYERS, THE MUNICIPALITY'S
 FINANCIAL CONDITION, AND THE  NEED  TO  ENSURE  TIMELY  PAYMENT  OF  THE
 REFUND.  ANY ORDER ISSUED PURSUANT TO THIS PARAGRAPH SHALL ESTABLISH THE
 AMOUNT AND TIMING OF INSTALLMENT PAYMENTS AND MAY INCLUDE SUCH TERMS AND
 CONDITIONS AS THE COMMISSION DEEMS JUST AND REASONABLE.
   § 2. This act shall take effect immediately.

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Senate Bill S10667

Sponsored By

Current Bill Status - In Senate Committee Rules Committee

Actions

2025-S10667 (ACTIVE) - Details

2025-S10667 (ACTIVE) - Summary

2025-S10667 (ACTIVE) - Sponsor Memo

2025-S10667 (ACTIVE) - Bill Text download pdf

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Sponsored By

Jeremy Cooney

Current Bill Status - In Senate Committee Rules Committee

Actions

2025-S10667 (ACTIVE) - Details

2025-S10667 (ACTIVE) - Summary

2025-S10667 (ACTIVE) - Sponsor Memo

2025-S10667 (ACTIVE) - Bill Text download pdf

Comments