New York A 2235: Provides for a two percent cap on rate increases imposed by utilities

Bill Text

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A02235 Summary:

BILL NOA02235 

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SAME ASSAME AS S04936

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SPONSOREichenstein

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COSPNSRBores

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MLTSPNSR

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Amd §65, Pub Serv L; amd §1020-f, Pub Auth L

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Provides for a two percent cap on rate increases imposed by utilities.

Go to top A02235 Actions:

BILL NOA02235 

&nbsp

01/15/2025referred to corporations, authorities and commissions

01/07/2026referred to corporations, authorities and commissions

Go to topA02235 Committee&nbspVotes:

Go to topA02235 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topA02235 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 2235

 2025-2026 Regular Sessions

 IN ASSEMBLY

 January 15, 2025
 ___________

 Introduced by M. of A. EICHENSTEIN, BORES -- read once and referred to
 the Committee on Corporations, Authorities and Commissions

 AN ACT to amend the public service law and the public authorities law,
 in relation to providing for a two percent cap on rate increases
 imposed by utilities

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Subdivision 1 of section 65 of the public service law, as
 2 amended by chapter 789 of the laws of 1930, is amended to read as
 3 follows:
 4 1. Every gas corporation, every electric corporation and every munici-
 5 pality shall furnish and provide such service, instrumentalities and
 6 facilities as shall be safe and adequate and in all respects just and
 7 reasonable. All charges made or demanded by any such gas corporation,
 8 electric corporation or municipality for gas, electricity or any service
 9 rendered or to be rendered, shall be just and reasonable and not more
 10 than allowed by law or by order of the commission. Every unjust or
 11 unreasonable charge made or demanded for gas, electricity or any such
 12 service, or in connection therewith, or in excess of that allowed by law
 13 or by the order of the commission is prohibited. No gas corporation or
 14 electric corporation shall increase rates by more than two percent as
 15 measured on an annual basis.
 16 § 2. Paragraphs 2 and 4 of subdivision (u) of section 1020-f of the
 17 public authorities law, as added by section 7 of part A of chapter 173
 18 of the laws of 2013, are amended to read as follows:
 19 2. The authority and the service provider shall thereafter submit for
 20 review to the department of public service any rate proposal that would
 21 increase the rates and charges [and thus increase the aggregate revenues
 22 of the authority by more than two and one-half]. Such rate proposal
 23 shall not provide for an increase of such rates by more than two percent
 24 to be measured on an annual basis[; provided, however, that the authori-

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD02276-01-5

 A. 2235 2

 1 ty may place such rates and charges into effect on an interim basis,
 2 subject to prospective rate adjustment; provided, further, that a final
 3 rate plan issued by the authority that would not so increase such rates
 4 and charges shall not be subject to the requirements of paragraph four
 5 of this subdivision and shall be considered final for the purposes of
 6 review under article seventy-eight of the civil practice law and rules.
 7 The authority and/or the service provider may otherwise submit for
 8 review to such department any rate proposal irrespective of its effect
 9 on revenues].
 10 4. Any recommendations associated with a rate proposal submitted
 11 pursuant to paragraphs one and two of this subdivision shall be provided
 12 by the department of public service to the board of the authority imme-
 13 diately upon their finalization by the department. Unless the board of
 14 the authority makes a preliminary determination in its discretion that
 15 any particular recommendation is inconsistent with the authority's sound
 16 fiscal operating practices, any existing contractual or operating obli-
 17 gations, or the provision of safe and adequate service, the board shall
 18 implement such recommendations as part of its final rate plan and such
 19 final determination shall be deemed to satisfy the requirements of this
 20 subdivision and