BILL NUMBER: S3876
SPONSOR: HOYLMAN-SIGAL
 
TITLE OF BILL:
An act to amend the general business law, in relation to requiring
comparison of prices charged by energy services companies
 
SUMMARY OF PROVISIONS:
Section 1 of this bill adds two new subdivisions 9 and 10 to Section
349-d of the General Business Law (Energy services company consumers
bill of rights.)
The new subdivision 9 would require a side-by-side comparison on the
first page of ESCO customers' billing statements of the price the ESCO
charged during the prior billing period, compared to the price the
customer would have paid if they had received service from their local
utility corporation or municipality. It would also require ESCOs to
provide an itemized list of prices charged by the ESCO for any energy-
related value-added products during such billing period.
The new subdivision 10 would require ESCOs to provide their customers a
yearly statement comparing the price they charged for goods and services
during the prior year with the price the customer would have paid if
they had received service from their local utility corporation or muni-
cipality.
Section 2 of the bill establishes the effective date.
 
JUSTIFICATION:
Ever since New York began to de-regulate its retail energy market in the
late 1990s, the State has allowed energy service companies (ESCOs) to
sell energy to customers. These companies often promise that if custom-
ers transition away from their utility to an ESCO, they will see a host
of benefits including a reduced energy bill, greener energy, and other
side benefits.
However, the ESCO industry has shown itself over the years to be rife
with fraud, abuse, and deceptive business practices, prompting the
Department of Public Service to take steps to more closely regulate the
industry throughout the past decade. The Legislature also passed a law
in 2010 creating standards for ESCOs' marketing and business practices
and requiring the Public Service Commission to create an ESCO Consumers'
Bill of Rights.
Despite these steps, evidence continues to show that the average ESCO
customer consistently pays more for their electric and gas service than
they would otherwise have paid if they received service from their util-
ity. ESCO customers regularly complain that ESCOs will offer promotional
rates or items enticing customers to switch, but provide little to no
added benefit to customers and end up hiking rates significantly over
the long term, often unbeknownst to customers.
To protect New York's energy consumers, this bill would require ESCOs to
provide an on-bill comparison of the rates they charge their customers
and the rates the customers would have paid had they taken service from
their local utility company or municipality. This will allow ESCOs who
claim to provide a genuine benefit to their customers to demonstrate
evidence backing up that claim on each bill, while providing notice to
consumers who are being unfairly overcharged.
The bill would also require ESCOs to provide an itemized list of the
prices they charge for additional value-added products, and require them
to provide their customers with a yearly statement comparing their rates
with the local utility corporation or municipality's rates over the past
twelve-month period.
 
LEGISLATIVE HISTORY:
S.2600 of 2023-2024 (Hoylman-Sigal): Died in Consumer Protections
A.2197 of 2023-2024 (Dinowitz): Passed Assembly
S.0438 of 2021-2022 (Hoylman): Died in Consumer Protections
A.1886 of 2021=2022 (Dinowitz): Ordered to Third Reading Rules Calendar
S.7340 of 2019-2020 (Hoylman): Died in Consumer Protection
A.9092 of 2019-2020 (Dinowitz): Died in Consumer Affairs and Protection
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE. DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law. Effective immediately, the addition, amendment
and/or repeal of any rule or regulation necessary for the implementation
of this actò on its effective date are authorized and directed to be
made and completed on or before such effective date.