BILL NUMBER: S4989
SPONSOR: HARCKHAM
 
TITLE OF BILL:
An act to amend the public service law, the general business law and the
public authorities law, in relation to requiring utility service provid-
ers to disclose planned rate increases to consumers within a certain
amount of time
 
PURPOSE:
This legislation would require utility service providers to disclose
planned rate increases to consumers and to provide a mechanism to allow
the consumer to cancel service when notified of such a rate increase.
 
SUMMARY OF PROVISIONS:
Section 1 adds a new section 28 to the public service law to require any
gas corporation, electric corporation, water corporation or munici-
pality, steam corporation or telephone corporation to disclose to a
consumer any planned rate increases for services within 30 but not more
than seven days before such planned increase. This information shall be
communicated in a clear and conspicuous manner. This notification shall
be outside of any billing statement via phone, e-mail, letter, text or
any combination thereof with the statement "This is a notification of a
planned increase for the services currently being rendered". This commu-
nication shall provide information on how a consumer can contact the
service provider and shall include a mechanism to allow a consumer to
cancel their service.
Section 2 amends the General Business Law to require any cable or inter-
net service provider to disclose to a consumer any planned rate
increases for services within 30 but not more than seven days before
such planned increase. This information shall be communicated in a clear
and conspicuous manner. This notification shall be outside of any bill-
ing statement via phone, email, letter, text or any combination thereof
with the statement "This is a notification of a planned increase for the
services currently being rendered". This communication shall provide
information on how a consumer can contact the service provider and shall
include a mechanism to allow for a consumer to cancel their service.
Section 3 amends the public authorities law to require LIPA's service
provider to follow the provisions of Section 28 of the Public Service
Law.
Section 4 is the effective date.
 
JUSTIFICATION:
Now more than ever, consumers are experiencing frustration when looking
at a utility bill with unexplained increases in costs. Consumers are
often left searching through their bill, or any other correspondence
from their provider to see why prices are increasing. This legislation
simply tries to inform consumers in a clear and conspicuous manner that
a rate increase will be occurring. The goal of this bill is to make it
as easy as possible for consumers to know that their bill will be chang-
ing- simply requiring a provider to send out a separate and clear commu-
nication of a rate increase is a simple means to achieve this important
consumer protection.
 
LEGISLATIVE HISTORY:
2023-2024: S2993 - Died in Energy & Telecommunications
2021-2022: S6278/A9706 - Died in Energy and Telecommunications/Died on
Third Reading
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect in 180 days.

Statutes affected:
S4989: 1020-cc public authorities law