Enacts the "rate hike notice act"

• Democratic7
• Republican4

◆ The sponsor's argument

Why Leroy Comrie says this is needed

Energy utility bills are soaring across the state. The Public Service Commission (PSC) regulates utilities across the state and approves util- ity rate increases, called "rate cases." Details of rate cases are tech- nically available to the public, but rate case reports are dense, tech- nical, hard-to-find, and difficult to interpret for the majority of ratepayers. In recent years, rate cases have resulted in energy prices rising significantly for ratepayers across the state. For example, in New York City, the average Con Edison residential customer can expect to pay about $65 more per month in early 2025 as compared with 2023. By 2026, National Grid customers in Brooklyn, portions of Queens, and Staten Island can expect to pay over $60 more a month compared to early 2024. Meanwhile, upstate New York State Electric and Gas customers will see a $30 increase to their monthly electric bills between 2023 and 2025. Currently, it is difficult for the public to learn that a utility has requested to raise rates. Prior to 2024, utilities were required to inform residents in affected service areas about proposed rate increases by publishing a notice in a generally circulated newspaper. Responding to this grossly insufficient notice, the legislature and governor amended state law in 2024 to require the PSC to publish information on its website within ten days of commencement of a proceeding for a major rate change (Chapter 333 of the Laws of 2024).The information posted online must include the expected return on investment for the utility, what the revenue will be used for, how to get involved in the rate case, and more. While this requirement improved transparency around rate hikes, the majority of ratepayers are unlikely to check the PSC website for proposed rate changes, limiting the impact of this transparency measure. This legislation builds on the 2024 update to the public service law by requiring utilities to share information about rate cases directly with customers through text, email, and notification on the next monthly bill. Once a utility files with the PSC to increase rates, this bill will require utilities to directly alert customers. As a result, rate- payers can more readily learn about utilities' use of ratepayers' money, including utility profit margins. Additionally, ratepayers will learn how to participate in the ratemaking process and can plan for an increase in household expenses.

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.