Senate Bill S4991

                                 
BILL NUMBER: S4991

SPONSOR: HARCKHAM
 
TITLE OF BILL:

An act to amend the public service law and the public authorities law,
in relation to requiring utility service providers to disclose and
report third-party contracts within a certain amount of time

 
PURPOSE:

Requires utility service providers to disclose and report third-party
contracts within a certain amount of time

 
SUMMARY OF PROVISIONS:

Section 1 amends the public service law by adding new section 28 which
provides that any gas provider of last resort or electric provider of
last resort shall publicly notice each purchase of electricity supply,
energy or capacity, within seven days of purchase. The utility shall
report the following to the department for immediate posting of any
third-party supply purchase: the price, the quantity purchased, and the
              

start and end dates of the contract.

Section 2 amends the public authorities law by adding new subdivision 3
which requires that service providers shall be subject to the provisions
of section 28 of the public service law.

Section 3 states the effective date.

 
JUSTIFICATION:

Electricity costs have recently spiked meaning price hikes continue to
hit consumers without warning. New Yorkers are unable to plan for stark
changes that deeply affect household budgets. Even further, rates on
average have been cited as unpredictable even for the industry- profes-
sionals have no information on the electricity supply that regulated
utilities sign in order to serve consumers. Rate changes have been
unusually stark from month-to-month. For example, electricity supply
charges in some utilities nearly tripled from one month to the next,
stayed at historically high levels for months, then came back down for a
month, without explanation or warning.  Consumers have no idea what the
future will hold.

This legislation will solve that problem.

Community Choice Electricity aggregations will be able to predict future
utility prices, as they contract for fixed or less volatile rates for
consumers. Electricity market professionals and consumer protection
organizations will be able to project utility rates more accurately.

Consumers will have better information from consumer protection organ-
izations to judge whether a private market supply offer is good or bad.
Consumers will also be able to adequately budget out utility costs.
Supply companies and Community Choice aggregations will be able to gain
offers from supply companies to serve low-income consumers, as the
Public Service Commission requires guaranteed savings plans and utility
rates in order to serve low-income consumers.

The ask of utilities is not onerous. This legislation mirrors require-
ments for Community Choice aggregations, which must inform residents in
advance, of price and of how prices will fluctuate over time. It does
not require utilities to name the counter-parties with whom they
contract, therefore, counter-parties will not find their contracts
disclosed. It does not restrict negotiation because utilities merely
need to report on the terms of any contract after the contract is
signed. This legislation is framed to remain objective, simple and veri-
fiable.

With little or no cost to regulated entities and to consumers as a
whole, this bill creates consumer and low-income protection, enhanced
and responsible competition, good governance, and transparent behavior
in a regulated market. We must effectively address many powerful market
failures that have clearly surfaced within the last year.

 
LEGISLATIVE HISTORY:

2023-2024: S5368 - Died in Energy & Telecommunications

2021-2022: S9195 - Died in Energy and Telecommunications

 
FISCAL IMPLICATIONS:

None to the State.

 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law.