BILL NUMBER: S6803B
SPONSOR: GONZALEZ
 
TITLE OF BILL:
An act to amend the public service law, in relation to termination of
certain utility services
 
PURPOSE OR GENERAL IDEA OF BILL:
This legislation protects residential and commercial utility customers
from late fees when the Public Service Commission (PSC) investigates a
utility. It also prevents terminations for 120 days after determinations
have been made. The bill also requires notices that make customers aware
that an investigation is taking place. This act shall be known and may
be cited as the "Consumer Utility Protections During Investigations Act"
or the "CUPDI act".
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Short title: This act shall be known and may be cited as the
"Consumer Utility Protections During Investigations Act" or the "CUPDI
Act".
Section 2: Defines final determination in the public service law.
Section 3: Creates new section 54 in the public service law. The section
limits utility corporations' ability to impose late fees, interest, or
penalties during an investigation as defined by the section; applies
notice requirements; and directs the PSC to determine any interest or
fees that may be charged to a customer or if any fees shall be waived.
Section 4: Creates new section 77-a in the public service law. The
section limits utility corporations' ability to impose late fees, inter-
est, or penalties during an investigation as defined by the section;
applies notice requirements; and directs the PSC to determine any inter-
est or fees that may be charged to a customer or if any fees shall be
waived.
Section 5: Creates new section 85-b in the Public Service law. The
section limits utility corporations' ability to impose late fees, inter-
est, or penalties during an investigation as defined by the section;
applies notice requirements; and directs the PSC to determine any inter-
est or fees that may be charged to a customer or if any fees shall be
waived. Applies the protections and notice requirements to electric and
gas corporations.
Section 6: Sets the effective date.
 
JUSTIFICATION:
Although utilities may voluntarily pause late fees and service termi-
nations for non-payment while they are under investigation by the PSC,
customers need guaranteed protections during such investigations.
If there is an investigation into a utility's improper practices, the
responsibility should not be on customers to pay what the utility claims
is owed and then try to recoup what they overpaid later. There have been
many instances in which an incorrect bill for thousands of dollars was
ultimately corrected to be significantly lower during an ongoing inves-
tigation. Utilities should bear the cost of these broadly disputed
charges while their practices are being investigated and for some time
afterwards that is adequate for customers to adjust to the change of
late fees and non-payment service terminations being reactivated.
On December 15, 2022, the PSC released an investigatory report for Case
22-M-0645 detailing numerous violations of the law and billing over-
charges after Central Hudson introduced a new Consumer Information
System. This case has illustrated the need to prohibit late fees and
nonpayment service terminations until the PSC's investigation is fully
closed and customers have had sufficient time to adjust.
 
PRIOR LEGISLATIVE HISTORY:
This is a new bill.
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Municipalities will no longer be able to collect late fees during PSC
investigations. This is not a significant source of revenue for munici-
palities.
 
EFFECTIVE DATE:
This act shall take effect on the thirtieth day after it is signed into
law.

Statutes affected:
S6803: 2 public service law, 32 public service law, 32(2) public service law, 89-l public service law, 91 public service law, 216 public service law, 399-zzzzz general business law
S6803B: 2 public service law