Senate bill · S10667 (2025-26)
Establishes a presumption that certain refunds received by public utility companies shall be passed on to ratepayers
New York State Senate
Sponsor: Jeremy Cooney (State Senator, District 56, Democratic/Working Families)
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From NY Open Legislation, the NY Senate and Assembly, and official rosters. This record was last updated Oct 29, 2026. About our data
Summary
Establishes a presumption that certain refunds received by public utility companies shall be passed on to ratepayers through bill credits, direct refunds, reductions in future rates, or other methods that provide a direct and equitable benefit to affected ratepayers.
Summary from NY Open Legislation. How we handle summaries
Amends the Public Service Law.
Purpose, from the sponsor's memo
This bill establishes a rebuttable presumption that the portion of a refund attributable to costs previously recovered from utility consumers shall be passed on to those consumers. The bill also limits the circum- stances in which such funds may be used for another purpose, deducted for recovery costs, or retained for the benefit of utility shareholders. SUMMARY: Section one amends subdivision two of section 113 of the public service law. Paragraph (a) authorizes the Public Service Commission to determine the portion of a refund received by or credited to a regulated public utili- ty company or municipality, or applied as an offset against an existing or future liability of such public utility company or municipality, that is attributable to costs, taxes, fees, charges, or other amounts previ- ously recovered from consumers through commission-authorized rates or cost recovery mechanisms, and the just and reasonable disposition of any remaining portion. Paragraph (b) establishes a rebuttable presumption that the ratepayer- attributable portion of the refund shall be passed on to consumers, less any reasonable costs approved by the commission. Paragraph (c), requires the commission to direct the refund, to the extent practicable, to the consumers who bore the underlying costs or to the appropriate customer classes. It authorizes distribution through bill credits, direct refunds, reductions in future rates, or another method providing a direct and equitable consumer benefit. Paragraph (d) permits the presumption to be rebutted only upon a demon- stration by the public utility company or municipality and a finding by the commission that direct distribution is impracticable and an alterna- tive disposition will provide consumers with a reasonably equivalent or greater benefit, or that an alternative disposition is necessary to prevent an imminent and material impairment of safe and adequate utility service. Any disposition authorized to prevent such an impairment must be limited to the amount necessary and used solely for that purpose. Paragraph (e) prohibits any ratepayer-attributable portion of a refund from being retained as profit or used for the benefit of shareholders. Paragraph (f) permits the deduction of refund-recovery costs only when the utility demonstrates that the costs were reasonable, documented, prudently incurred, and directly necessary. Costs resulting from inade- quate internal controls, a lack of reasonable care, or noncompliance may not be deducted. Paragraph (g) requires the commission to issue specific findings supporting any approved cost deduction or departure from the statutory presumption. Paragraph (h) authorizes the Public Service Commission, upon application by a municipality and the finding of undue fiscal hardship, to approve a payment schedule of up to two years for municipalities required to pay refunds under this section. Paragraph (i) clarifies that the Department of Taxation and Finance makes the refund payment immediately and the municipality or county shall reimburse the department in accordance with any payment schedule pursuant to paragraph (h). Section two provides an effective date.
Filed with the bill. Read it on nysenate.gov (opens in a new tab)
Where it stands
Assigned to a committee for review.
- Introduced
- In committee
- Up for a vote
- Passed one chamber
- Passed
- Enacted
Committee
Rules · New York State Assembly
Also referred to Rules · New York State Senate.
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The sponsor's argument
Why Jeremy Cooney says this is needed
Utility rates include taxes, fees, operating expenses, and other costs incurred in providing service. When these costs are included in rates, consumers ultimately pay them through their utility bills. If a utility later receives a refund of an amount previously recovered from consumers, the resulting benefit should presumptively be returned to those consumers. Current law gives the Public Service Commission broad discretion over the disposition of utility refunds but does not establish a clear ratepayer-first standard. Recent proceedings involving substantial utility sales and tax refunds have demonstrated the need for greatest clarity. Disputes may arise over how much of a refund should benefit consumers, whether recovery expenses should be deducted, and whether shareholders should receive a portion of the funds. This bill provides that funds attributable to costs previously paid by consumers should generally be returned to consumers. It preserves the commission's authority to determine the appropriate method of distrib- ution and allows the deduction of reasonable and necessary recovery costs. At the same time, it prevents utilities from retaining ratepay- er-funded refunds as shareholder profit or,deducting costs caused by their own inadequate controls or lack of reasonable care. LEGISLATIVE HISTORY: N/A
This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.
Full history
- Sep 9, 2026
Amend (t) and Recommit to Rules
AMEND (T) AND RECOMMIT TO RULES
NY Senate
- Jul 24, 2026
Referred to committee
REFERRED TO RULES
NY Senate
Read the record
- Read on NY Senate (opens in a new tab) The official record on nysenate.gov.