BILL NUMBER: S1552
SPONSOR: PARKER
 
TITLE OF BILL:
An act to amend the public service law, in relation to the establishment
of reduced residential rates for electric and natural gas service to
low-income customers
 
PURPOSE OF BILL:
The bill is designed to protect seniors, the disabled and other persons
who receive certain benefits and supports for needy families from the
inordinately high electric and gas rates in New York State and to
prevent vulnerable persons from having their utilities shut off, causing
health and economic hardship to such consumers.
 
SUMMARY OF PROVISIONS OF BILL:
Section one amends the Public Service Law by adding a new subdivision 16
to section 65.
Paragraph (a) provides for the state's electric and gas corporations to
establish and continue reduced rate schedules for low-income customers
of between 25T to 35% of applicable charges.
Paragraph (b) sets forth the eligibility criteria for such reduced
rates, to be established for any customer who receives benefits from
Supplemental Social Security for the Aged or Disabled, Temporary Assist-
ance to Need: Families, Safety Net Assistance, Supplemental Nutrition
Assistance (SNAP, medical assistance, Home Energy Assistance (HEAP),
telephone Lifeline Assistance and any additional programs or higher
income standards approved by the Public Service Commission (PSC).
Paragraph (c) requires providers of electric and gas service to cooper-
ate with the PSC and local social service districts and other agencies
in the certification and recertification of eligible customers.
Paragraph (d) sets forth criteria for application forms and the
provision' regarding the availability of reduced rates.
Paragraph (e) directs the mitigation of the impact of such reduced resi-
dential rates to eligible customers through various mechanisms at the
disposal of the PSC within its regulatory and rate setting authority.
Section 2 amends Article 4 of the Public Service Law by adding a new
section 66-u, reduced residential rates for electric and natural gas
service to low-income customers.
Section 3 of the bill is the effective date.
 
JUSTIFICATION:
Utility service is an absolute necessity of life, regardless of a house-
hold's income 1 evel. Lives are threatened when people don't have safe,
reliable acces s to electricity, heating, and water supply. Society pays
early when terminations occur. These added costs are reflected in higher
emergency public assistance and medical care, increased homelessness,the
illness or death of vulnerable people, and the cost of putting out fires
due to the use of other means of light and heat such as the use of
candles.
New York electric utility rates for residential customers are 50's high-
er than the national average. That is simply not affordable for many
customers.
Furthermore, Shut offs and Shut Off notices place many customers with
unaffordable bills in jeopardy of losing essential utility services. In
addition, threats of utility shut offs add extreme stress and compound
many families and seniors' already precarious financial circumstances.
Utility shutoff threats and actual shutoffs often can spiral into crisis
situations, create danger- ous conditions in homes and apartment build-
ings, which could result in the loss of life or other serious harm to
customers and their neighbors.
Typically, shutoff notices and shutoff surge in the months of April,
May, and June, otherwise known as "Shutoff Season." Consequently, it
becomes even more important that low-income customers, eligible seniors
and disabled persons and others who are Eligible for assistance receive
some relief from 17,a,: York's utility rates, which are the highest in
the nation.
The legislation is necessary to assist New York families, seniors, the
disabled and other low-income persons and cushion the in from New York's
inordinately high Electric and gas rates, which will in turn protect
them and the State's finances from the hardships and costs that ensue
when people's utility service is not affordable.
 
LEGISLATIVE HISTORY:
2023/24: S2711A- REFERRED TO ENERGY AND TELECOMMUNICATIONS
2022-22: S3298 - REFERRED TO ENERGY AND TELECOMMUNICATIONS
2019/20: S.1621 - REFERRED TO ENERGY AND TELECOMMUNICATIONS
2017/18: S.2878 - Energy and Telecommunications
2015-16: S.5819A - Amend and Recommit to Energy and Telecommunications
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None. Significant savings to consumers on a low- or fixed-income through
the creation of reduced rates for these eligible consumers. In addi-
tion, the bill would reduce expenditures to the state and localities for
emergency utility assistance provided under Social Services L131-s, by
reducing the need for, and the amount of such assistance. That program
requires payment of up to four months' bills for applicants whose
service is, or is about to be, shut off for nonpayment. The low-income
rates proposed in the bill should enable many customers to avoid seeking
assistance, and for those who do, the amount of aid needed will be
significantly less.
 
EFFECTIVE DATE:
This act shall take effect on the sixtieth day after enactment.

Statutes affected:
S1552: 65 public service law