BILL NUMBER: S7165A

SPONSOR: HINCHEY
 
TITLE OF BILL:

An act to amend the public service law, in relation to authorizing
consideration of non-economic loss suffered by consumers when determin-
ing penalties

 
PURPOSE:

This bill authorizes the public service commission to consider non-eco-
nomic losses suffered by consumers in issuing penalties, including nego-
tiated settlements, with utilities.

 
SUMMARY OF PROVISIONS:

Section 1 amends public service law section 25 to authorize the public
service commission to consider non-economic losses such as pain and
suffering or mental anguish in determining penalties, including negoti-
ated settlements, between the PSC, the department of public service, and
public utility corporations, for violations of existing law.
              

Section 2 amends public service law section 25-a to authorize the public
service commission to consider non-economic losses such as pain and
suffering or mental anguish in determining penalties, including negoti-
ated settlements, between the PSC, the department of public service, and
combination gas and electric corporations, for violations of existing
law.

Section 3 sets the effective date

 
JUSTIFICATION:

The public service commission (PSC) has oversight of utility companies
and can assess penalties against them for violations of statutory and
regulatory requirements. Public service law spells out different levels
of maximum penalties based on the nature and frequency of such
violations.

However, the statute is unclear on whether the PSC, in determining such
penalties, can account for non-economic damages suffered by consumers.
When a utility fails to meet its obligations, whether through poor
customer service, abusive billing practices, or other harmful actions,
the impact on New Yorkers can go beyond simple economic losses. Inaccu-
rate or over-billing, for example, can destabilize families causing
adverse emotional impacts, fear, and insecurity - overdrafting someone's
account may cause them to be late on other bills impacting their credit
score; it may cause someone to be late on rent or homeowner payments
jeopardizing their living situation; overcharging a customer may upend a
monthly budget forcing them to choose between groceries or paying the
bills. These are only a few real examples of dire situations that poor
utility company service has caused across the state. Each leaves a far
more damaging impact than just the financial cost of reconciling
payment.

This bill gives the PSC clear statutory authority to consider such non-
economic damages when determining penalties or negotiated settlements
with utilities.
 
LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None

 
EFFECTIVE DATE:
Immediate