BILL NUMBER: S6710
SPONSOR: SKOUFIS
 
TITLE OF BILL:
An act to amend the public service law, in relation to false material
statements related to a public utility
 
PURPOSE:
This bill establishes civil penalties for making false material state-
ments to the public service commission in relation to a rate proceeding.
 
SUMMARY OF PROVISIONS:
Section 1 amends the public service law by adding a new subdivision 4-a
that would impose a $250,000 penalty for a public authority or the
employees thereof, to knowingly make a false material statement to the
public service commission in relation to a rate proceeding. Further,
failure to disclose a false material statement made during a rate case
to the commission within three days of discovering the false information
will also result in a $250,000 penalty.
Section 2 provides the effective date.
 
JUSTIFICATION:
The Public Service Commission regulates most of the utilities operating
in the state. Utility rates are set by the Commission, and are based on
the costs to the utility of providing the service. When utilities
provide inaccurate information, rates can be unnecessarily inflated,
causing financial harm to the customers. Instituting a civil forfeiture
for utilities that knowingly submit false information, or those that
discover false information was previously submitted and fail to disclose
such will deter utilities from wrongly inflating consumer rates.
 
LEGISLATIVE HISTORY:
Senate
2021-2022: S1085, PASSED SENATE
Assembly
2021-2022: A1225, Referred to corporations, authorities and commissions
 
FISCAL IMPLICATIONS:
None to the state.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S6710: 25 public service law