Relates to denials of increased utility rates and charges

Showing the cosponsors who are on Agora, A to Z. The official record may list more.

• Democratic9

Shown in neutral colors by design; Agora is non-partisan.

◆ The sponsor's argument

Why Michelle Hinchey says this is needed

Under the current Public Service Law, when a utility company files for a rate increase, the Public Service Commission reviews the request and votes on a Joint Proposal or Recommended Decision. However, if a majori- ty of Commissioners vote to deny that Proposal or Decision without an alternative action in place, the utility's original rate increase request would automatically go into effect. This procedural gap creates a significant risk that rate increases would be implemented without proper review and undermines the regulatory process in place to protect ratepayers. Immediate legislative action is needed to close this danger- ous gap and prevent unapproved rate increases from being forced upon consumers. In 2023, Central Hudson, a utility in the Mid-Hudson Valley, filed for substantial increases in delivery rates-32% for electric and 29% for gas. The rate case moved through litigation, and after careful review, the Administrative Law Judge recommended reducing the original rate increases by 16%. The Public Service Commission (PSC) took further steps, lowering the final increase to just 5%. However, under the current Public Service Law, if the majority of the PSC had denied the 5% increase without proposing an alternative, Central Hudson's original request would have automatically gone into effect, resulting in a very significant rate hike. Such a situation is unreasonable and poses an unnecessary risk to consumers, and it is something New York State must ensure never happens. This bill will relieve the Commission of the undue burden of having to propose an alternative rate plan if they decide to deny the pending rate increase. It eliminates this problematic "Sophie's Choice" and provides the PSC with greater flexibility to perform its role more effectively at the conclusion of any rate case.

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.