BILL NUMBER: S904
SPONSOR: GONZALEZ
 
TITLE OF BILL:
An act to amend the public service law, in relation to termination of
certain utility services
 
PURPOSE:
This legislation protects residential and commercial utility customers
from late fees and service terminations when the Public Service Commis-
sion (PSC) investigates a utility, and 120 days after determinations
have been made. The bill also requires notices that make customers aware
that a suspension of late fees and service terminations due to non-pay-
ment are in effect, and it prohibits the uncollected overdue charges
resulting from this act to be passed onto ratepayers.
 
SUMMARY OF 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 investigation.
Section 3: Applies the protections and notice requirements to electric
and gas corporations.
Section 4: Applies the protections and notice requirements to waterworks
corporations.
Section 5: Applies the protections and notice requirements to munici-
palities.
Section 6: Applies the protections and notice requirements to telephone
corporations.
Section 7: Applies the protections and notice requirements to cable and
television corporations.
Section 8: Applies the protections and notice requirements to broadband
service providers. Section 9: 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, and
for these protections to be clearly communicated to them during the
period in which they are active. This bill institutes such protections.
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.
 
LEGISLATIVE HISTORY:
06/07/24 S6803-B PASSED SENATE /A7537-B Third Reading
 
FISCAL IMPLICATIONS:
Municipalities will no longer be able to collect late fees during PSC
investigations. Ais 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:
S904: 2 public service law