BILL NUMBER: S4936
SPONSOR: COMRIE
 
TITLE OF BILL:
An act to amend the public service law and the public authorities law,
in relation to providing for a two percent cap on rate increases imposed
by utilities
 
PURPOSE:
To better regulate and contain cost burden on utility ratepayers in New
York State.
 
SUMMARY OF PROVISIONS:
Subdivision 1 of section 65 of the public service law, as amended by
chapter 789 of the laws of 1930, is amended as described in the bill.
 
JUSTIFICATION:
New York has had an established system in place for several years that
was intended to ensure careful reviews of utility company rate increases
and to contain those costs to ensure ratepayers would be protected from
being charged unaffordable rates for these basic necessities.
Today, New York is home to some of the highest utility rates in the
country, with several counties or geographical regions paying rates that
are not affordable by anyone's definition. This bill changes law to
attempt a new approach toward affordable utilities.
A decade ago, New York reached similar thresholds with property taxes.
At that time, despite systems of accountability in place and good
intentions by many, our local property taxes in New York became unaf-
fordable for many. A 2% property tax cap was implemented and has been
successful at slowing the rate of growth in that area. No doubt some
changes were (and are still) necessary, but overall, the cap accom-
plished its intent and has been made permanent in New York.
Utility services provided by public municipalities are exempted from
this bill, because the rate decisions are made by local elected offi-
cials who can be directly held accountable by ratepayers, unlike all
other rate increase decisions in New York, which are decided by
unelected bodies. A 2% cap on utilities has significant potential for
success in achieving the goal of making utilities more affordable in our
state.
 
PRIOR LEGISLATIVE HISTORY:
A.10065 of 2020 - Corporate Committee
2021-2022: S4627
2023-2024; S5559
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None. Some savings could be realized at the state level through NYS
Public Service Department.
 
EFFECTIVE DATE:
Ninetieth day after it becomes law.

Statutes affected:
S4936: 65 public service law, 65(1) public service law