Senate Bill S8530

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8530
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             October 15, 2025
                                ___________
 
 Introduced  by  Sen. MATTERA -- 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  enacting  the
   utility transparency and fair billing protection 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 transparency and fair billing protection act".
   §  2.  Legislative  findings  and  intent.  The legislature finds that
 misclassification of utility rates is a significant issue  that  affects
 consumers,  especially  the  elderly,  low-income  households, and those
 undergoing major home upgrades.
   The legislature further finds that utility companies have the  ability
 to proactively monitor and correct billing errors, but have failed to do
 so in many cases, leading to unnecessary financial burdens on consumers.
   It  is  the intent of the legislature to ensure that utility companies
 should bear the responsibility for maintaining accurate billing  systems
 and  making  timely  corrections  when billing errors occur, rather than
 placing the burden on consumers to monitor their own bills for potential
 errors.
   This proposed legislation aims to prevent consumers from  being  over-
 charged  due  to  misclassified  utility  rates  by  mandating proactive
 account reviews, automatic adjustments, and ensuring clear communication
 between utilities and customers. It  also  ensures  that  consumers  can
 easily  access  refunds  for  overcharges,  regardless  of  whether they
 actively reported the issue, and improves transparency and  fairness  in
 utility  billing practices. By enacting these protections, the law seeks
 to hold utilities accountable while safeguarding the financial  well-be-
 ing of consumers.
   §  3.  The  public service law is amended by adding a new article 3 to
 read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13864-01-5
              

 S. 8530                             2
 
                                 ARTICLE 3
             UTILITY TRANSPARENCY AND FAIR BILLING PROTECTION
 SECTION 60.   UTILITY OBLIGATIONS TO MONITOR BILLING CLASSIFICATIONS.
         60-A. CONSUMER PROTECTIONS AND REFUNDS.
         60-B. UTILITY REPORTING AND OVERSIGHT.
         60-C. CONSUMER NOTIFICATION.
         60-D. ENFORCEMENT AND PENALTIES.
         60-E. RULES AND REGULATIONS.
   § 60. UTILITY  OBLIGATIONS  TO  MONITOR  BILLING  CLASSIFICATIONS.  1.
 PROACTIVE ACCOUNT REVIEW. (A) ALL UTILITY COMPANIES  SHALL  IMPLEMENT  A
 PROACTIVE, AUTOMATED REVIEW SYSTEM THAT IDENTIFIES DISCREPANCIES IN RATE
 CLASSIFICATIONS,  PARTICULARLY FOR CUSTOMERS WHO HAVE INCREASED USAGE OR
 CHANGED THEIR SERVICE NEEDS.
   (B) SUCH SYSTEM SHALL AUTOMATICALLY FLAG ACCOUNTS WHERE  USAGE  SPIKES
 SUGGEST  A  POSSIBLE  MISCLASSIFICATION, INCLUDING BUT NOT LIMITED TO, A
 SHIFT FROM AN APPLIANCE RATE TO A HEATING RATE.
   (C) UTILITIES SHALL SEND QUARTERLY NOTIFICATIONS TO CUSTOMERS  INFORM-
 ING  THEM  OF  ANY DISCREPANCIES FOUND AND OFFERING THE OPTION TO REVIEW
 THEIR RATE CLASSIFICATION.
   2. AUTOMATIC ADJUSTMENT FOR MISCLASSIFIED ACCOUNTS. (A) IF AN  ACCOUNT
 IS FOUND TO BE MISCLASSIFIED, THE UTILITY SHALL AUTOMATICALLY ADJUST THE
 BILLING RATE TO THE CORRECT RATE CODE WITHIN THIRTY DAYS OF SUCH FINDING
 AND  RETROACTIVELY  APPLY  THE  CORRECT  RATE FOR THE PAST TWELVE MONTHS
 WITHOUT REQUIRING CUSTOMER ACTION.
   (B) WHERE AN ACCOUNT HAS BEEN FOUND TO BE MISCLASSIFIED  AS  DESCRIBED
 IN  PARAGRAPH  (A)  OF  THIS  SUBDIVISION,  THE UTILITY SHALL NOTIFY THE
 CUSTOMER OF THE ADJUSTMENT AND PROVIDE A CLEAR EXPLANATION  OF  HOW  THE
 CORRECTED RATE AFFECTS THEIR BILLING.
   3.  TIMELY  AND  TRANSPARENT  BILLING. (A) EVERY UTILITY COMPANY SHALL
 ENSURE THAT ALL BILLS  CLEARLY  INDICATE  THE  RATE  CODE  APPLIED,  THE
 SPECIFIC  TARIFF  CLASSIFICATION,  AND  THE  REASONS FOR ANY SIGNIFICANT
 CHANGES IN THE RATE.
   (B) EVERY UTILITY COMPANY SHALL GIVE ITS CUSTOMERS ACCESS TO AN ONLINE
 PORTAL OR EASY-TO-READ SUMMARY TO TRACK THEIR  RATE  CLASSIFICATION  AND
 ANY HISTORY OF RATE CHANGES.
   § 60-A. CONSUMER  PROTECTIONS AND REFUNDS. 1. RETROACTIVE REFUNDS. (A)
 A CUSTOMER WHO HAS BEEN BILLED AT  AN  INCORRECT  RATE  IS  ENTITLED  TO
 RETROACTIVE  REFUNDS  FOR UP TO SIX YEARS, EVEN IF THEY DID NOT DIRECTLY
 NOTIFY THE UTILITY COMPANY ABOUT THE CHANGE IN THEIR SERVICE.
   (B) A UTILITY COMPANY REQUIRED TO PAY A REFUND PURSUANT  TO  PARAGRAPH
 (A)  OF  THIS SUBDIVISION SHALL PROVIDE SUCH REFUND AS EITHER A LUMP SUM
 PAYMENT OR CREDIT ON FUTURE BILLS, DEPENDING ON THE  CUSTOMER'S  PREFER-
 ENCE.
   2.  NO REFUND CAP. NO UTILITY COMPANY SHALL LIMIT A REFUND REQUIRED TO
 BE PAID PURSUANT TO THIS SECTION TO A SET AMOUNT BASED ON THE  PERCEIVED
 FINANCIAL BURDEN OF ISSUING REFUNDS FOR MISCLASSIFIED ACCOUNTS.
   3. TRANSPARENCY IN REFUND POLICIES. EVERY UTILITY COMPANY SHALL CLEAR-
 LY  DISCLOSE THEIR REFUND AND BILLING ERROR POLICIES TO CUSTOMERS AT THE
 TIME OF SIGN-UP AND  ANNUALLY  THEREAFTER,  INCLUDING  THE  PROCESS  FOR
 REQUESTING A REVIEW OF INCORRECT RATE CLASSIFICATIONS.
   4.  CONSUMER  AWARENESS AND EDUCATION. (A) EVERY UTILITY COMPANY SHALL
 PROVIDE EDUCATIONAL MATERIALS TO CUSTOMERS AT THE TIME OF ACCOUNT  SETUP
 AND ANNUALLY THEREAFTER, EXPLAINING THE IMPORTANCE OF CORRECT RATE CLAS-
 SIFICATIONS AND HOW TO IDENTIFY BILLING ERRORS.
 S. 8530                             3
 
   (B)  SUCH  EDUCATIONAL MATERIAL SHALL EXPLAIN HOW CUSTOMERS CAN NOTIFY
 THE UTILITY OF SERVICE CHANGES  AND  WHAT  DOCUMENTATION  IS  NEEDED  TO
 ENSURE THE RATE CLASSIFICATION IS UPDATED CORRECTLY.
   § 60-B. UTILITY REPORTING AND OVERSIGHT. 1. ANNUAL RATE REVIEW REPORT.
 (A)  EVERY  UTILITY COMPANY SHALL SUBMIT AN ANNUAL REPORT TO THE DEPART-
 MENT DETAILING:
   (I) THE NUMBER OF ACCOUNTS REVIEWED FOR MISCLASSIFIED RATES;
   (II) THE NUMBER OF RATE ADJUSTMENTS  MADE,  INCLUDING  THE  AMOUNT  OF
 REFUNDS ISSUED; AND
   (III) THE NUMBER OF CUSTOMER COMPLAINTS AND HOW THEY WERE RESOLVED.
   (B)  THE  DEPARTMENT  SHALL  PUBLISH  THE REPORTS RECEIVED PURSUANT TO
 PARAGRAPH (A) OF THIS SUBDIVISION ON ITS PUBLIC WEBSITE.
   2. REGULATORY OVERSIGHT. (A) THE  DEPARTMENT  SHALL  REGULARLY  REVIEW
 UTILITY  COMPLIANCE  WITH THE PROVISIONS OF THIS ARTICLE. THE DEPARTMENT
 SHALL CONDUCT RANDOM AUDITS TO ENSURE  UTILITY  COMPANIES  ARE  PROPERLY
 MONITORING AND CORRECTING MISCLASSIFIED ACCOUNTS.
   (B) IF A UTILITY COMPANY IS FOUND TO BE IN VIOLATION OF THE PROVISIONS
 OF  THIS  ARTICLE,  THE DEPARTMENT MAY IMPOSE FINANCIAL PENALTIES AND/OR
 REQUIRE CORRECTIVE ACTION, INCLUDING BUT NOT  LIMITED  TO,  COMPENSATING
 CUSTOMERS FOR OVERCHARGES.
   § 60-C. CONSUMER  NOTIFICATION.  1.  NOTIFICATION  REQUIREMENTS. (A) A
 UTILITY COMPANY SHALL SEND A WRITTEN NOTICE  TO  THE  CUSTOMER  ALERTING
 THEM TO A POTENTIAL MISCLASSIFICATION AND OFFERING ASSISTANCE IN REVIEW-
 ING  THE  RATE  WITHIN  THIRTY DAYS WHEN SUCH CUSTOMER'S USAGE INCREASES
 SUBSTANTIALLY.
   (B) IF A RATE ADJUSTMENT IS MADE DUE TO A CHANGE IN USAGE, THE UTILITY
 COMPANY SHALL ALSO SEND A WRITTEN EXPLANATION  DETAILING  THE  NEW  RATE
 CLASSIFICATION AND THE IMPACT ON THE CUSTOMER'S BILLING.
   2.  SPECIAL  PROTECTIONS  FOR  VULNERABLE  POPULATIONS.  EVERY UTILITY
 COMPANY SHALL PROVIDE THE NOTIFICATIONS REQUIRED PURSUANT TO SUBDIVISION
 ONE OF THIS SECTION WITHIN FIFTEEN DAYS WHERE THE APPLICABLE CUSTOMER IS
 A LOW-INCOME HOUSEHOLD, SENIOR CITIZEN, MILITARY VETERAN OR  A  CUSTOMER
 ENROLLED  IN AN ENERGY ASSISTANCE PROGRAM. SUCH NOTIFICATIONS SHALL MEET
 ALL OF THE REQUIREMENTS  OF  THIS  SUBDIVISION  AND  SHALL  ADDITIONALLY
 INCLUDE  A  DIRECT  CONTACT  PHONE  NUMBER FOR SUCH CUSTOMERS TO RESOLVE
 ISSUES SEPARATE FROM THE CONTACT INFORMATION PROVIDED TO  CUSTOMERS  NOT
 COVERED BY THE PROVISIONS OF THIS SUBDIVISION.
   § 60-D. ENFORCEMENT  AND  PENALTIES.  1. PENALTIES FOR NON-COMPLIANCE.
 (A) IF A UTILITY COMPANY FAILS TO COMPLY WITH THE  PROACTIVE  REVIEW  OR
 REFUND REQUIREMENTS PURSUANT TO SECTIONS SIXTY AND SIXTY-A OF THIS ARTI-
 CLE,  THE  DEPARTMENT  MAY  FINE SUCH UTILITY COMPANY UP TO FIVE HUNDRED
 THOUSAND DOLLARS PER VIOLATION.
   (B) WHERE A UTILITY  COMPANY  HAS  PREVIOUSLY  BEEN  FOUND  TO  BE  IN
 VIOLATION OF SECTIONS SIXTY OR SIXTY-A OF THIS ARTICLE PURSUANT TO PARA-
 GRAPH  (A)  OF  THIS  SUBDIVISION  THE  DEPARTMENT  MAY  TAKE ADDITIONAL
 ACTIONS, INCLUDING TEMPORARY SUSPENSION  OF  RATE  INCREASES,  INCREASED
 FINES OR OTHER CORRECTIVE ACTIONS AS DETERMINED BY THE DEPARTMENT.
   2.  CONSUMER  REDRESS  MECHANISM.  (A) CUSTOMERS WHO BELIEVE THEY WERE
 MISCLASSIFIED BUT CANNOT RESOLVE THE ISSUE WITH THE UTILITY MAY  FILE  A
 COMPLAINT  WITH  THE  DEPARTMENT, WHICH SHALL HAVE SIXTY DAYS TO RESOLVE
 THE ISSUE ON BEHALF OF THE CUSTOMER.
   (B) WHERE THE DEPARTMENT IS UNABLE TO RESOLVE AN ISSUE ON BEHALF OF  A
 UTILITY  COMPANY CUSTOMER PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION,
 SUCH CUSTOMER MAY FILE AN ACTION AGAINST  THE  UTILITY  COMPANY  IN  ANY
 COURT  OF  COMPETENT JURISDICTION FOR DAMAGES, INCLUDING ANY OVERCHARGES
 AND LEGAL FEES.
 S. 8530                             4
 
   § 60-E. RULES AND REGULATIONS. THE COMMISSIONER SHALL  PROMULGATE  ALL
 RULES AND REGULATIONS NECESSARY FOR THE IMPLEMENTATION OF THIS ARTICLE.
   § 4. This act shall take effect on the one hundred eightieth day after
 it  shall have become a law. Effective immediately, the addition, amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation of this act on its effective date are authorized to be  made  and
 completed on or before such effective date.