Senate Bill S9251

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9251
 
                             I N  S E N A T E
 
                             February 18, 2026
                                ___________
 
 Introduced  by  Sen.  RAMOS  -- read twice and ordered printed, and when
   printed to be committed to the Committee on  Energy  and  Telecommuni-
   cations
 
 AN  ACT  to amend the public service law, in relation to prohibiting the
   recovery of certain labor-related legal costs from ratepayers
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative findings and intent. The legislature finds that
 public  utilities  subject  to  the  jurisdiction  of the public service
 commission recover their costs through rates paid by customers  pursuant
 to a cost-of-service regulatory framework. The legislature further finds
 that  labor relations decisions, including litigation and dispute resol-
 ution strategies involving represented  employees  and  labor  organiza-
 tions,  are  management decisions that should not be subsidized by rate-
 payers. It is therefore the intent of the legislature  to  clarify  that
 costs  incurred  by  utilities  in labor-related legal disputes shall be
 borne by shareholders and shall  not  be  recoverable  from  ratepayers,
 while preserving the authority of the public service commission to over-
 see rates, ensure system reliability, and protect the public interest.
   § 2. The public service law is amended by adding a new section 66-x to
 read as follows:
   §  66-X.  LABOR-RELATED  LEGAL  COST RECOVERY PROHIBITED. 1.  NOTWITH-
 STANDING ANY OTHER PROVISION OF LAW, NO GAS CORPORATION, ELECTRIC CORPO-
 RATION, OR COMBINATION GAS AND ELECTRIC CORPORATION SHALL  RECOVER  FROM
 RATEPAYERS,  THROUGH  RATES, CHARGES, SURCHARGES, ADJUSTMENT MECHANISMS,
 RIDERS, OR RECONCILIATION MECHANISMS, ANY COSTS OR EXPENSES INCURRED  IN
 CONNECTION WITH LABOR-RELATED LEGAL ACTIVITY.
   2.  FOR  PURPOSES  OF THIS SUBDIVISION, "LABOR-RELATED LEGAL ACTIVITY"
 SHALL INCLUDE, BUT NOT BE LIMITED TO, LEGAL  FEES,  COSTS,  SETTLEMENTS,
 JUDGMENTS, AWARDS, AND DISBURSEMENTS ARISING FROM OR RELATED TO:
   (A) COLLECTIVE BARGAINING NEGOTIATIONS OR DISPUTES;
   (B)  GRIEVANCES,  ARBITRATIONS, OR CONTRACT INTERPRETATION OR ENFORCE-
 MENT PROCEEDINGS WITH A LABOR ORGANIZATION;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14881-01-6
              

 S. 9251                             2
 
   (C) UNFAIR LABOR PRACTICE PROCEEDINGS OR  REPRESENTATION  PROCEEDINGS;
 OR
   (D) LITIGATION OR ADMINISTRATIVE PROCEEDINGS AGAINST, OR INITIATED BY,
 A LABOR ORGANIZATION REPRESENTING THE CORPORATION'S EMPLOYEES.
   3.  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW, NO GAS CORPORATION,
 ELECTRIC CORPORATION, OR COMBINATION GAS AND ELECTRIC CORPORATION  SHALL
 RECOVER  FROM RATEPAYERS, THROUGH RATES, CHARGES, SURCHARGES, ADJUSTMENT
 MECHANISMS, RIDERS, OR RECONCILIATION MECHANISMS  ANY  WORKERS'  COMPEN-
 SATION LOSS ADJUSTMENT EXPENSES.
   4.  ALL  COSTS  AND  EXPENSES  DESCRIBED  IN THIS SUBDIVISION SHALL BE
 DEEMED PER SE IMPRUDENT FOR PURPOSES OF RATE RECOVERY AND SHALL BE BORNE
 BY THE SHAREHOLDERS OF THE CORPORATION.
   5. NOTHING IN THIS SUBDIVISION SHALL  BE  CONSTRUED  TO  PROHIBIT  THE
 RECOVERY OF COSTS ASSOCIATED WITH:
   (A) PROCEEDINGS REQUIRED, INITIATED, OR DIRECTED BY THE PUBLIC SERVICE
 COMMISSION;
   (B) COMPLIANCE WITH STATE OR FEDERAL REGULATORY REQUIREMENTS UNRELATED
 TO LABOR RELATIONS;
   (C)   LITIGATION  INVOLVING  CUSTOMER  SERVICE,  CONSUMER  PROTECTION,
 PERSONAL INJURY, PROPERTY DAMAGE, OR THIRD-PARTY CLAIMS; OR
   (D) LEGAL MATTERS UNRELATED TO THE LABOR RELATIONS BETWEEN THE  CORPO-
 RATION AND ITS EMPLOYEES.
   6.  THE  COMMISSION SHALL PROMULGATE SUCH RULES AND REGULATIONS AS MAY
 BE NECESSARY TO IMPLEMENT AND ADMINISTER THE PROVISIONS OF THIS SECTION.
 SUCH RULES AND REGULATIONS SHALL,  AT  A  MINIMUM,  REQUIRE  GAS  CORPO-
 RATIONS,  ELECTRIC CORPORATIONS, AND COMBINATION GAS AND ELECTRIC CORPO-
 RATIONS TO SEPARATELY IDENTIFY AND ACCOUNT FOR LABOR-RELATED LEGAL COSTS
 IN ALL RATE FILINGS.
   § 3. This act shall take effect immediately and  shall  apply  to  all
 rate filings pending on or after such effective date.