BILL NUMBER: S5553B
SPONSOR: COMRIE
 
TITLE OF BILL:
An act to amend the public service law, in relation to enacting the
"rate hike notice act"
 
PURPOSE::
To require text, email, and notice on monthly bills of proposed rate
increases by gas and electric utilities.
 
SUMMARY OF PROVISIONS::
Section 1 promulgates the bill as the "Rate Hike Notice Act."
Section 2 amends subdivision 12 of section 66 of the public service law
to require respective gas and electric utilities within one business day
to notify consumers via text and email the percentage increase to elec-
tricity and gas rates for residential and commercial customers; and
instructions for where said ratepayers can find additional information
pertaining to the rate case.
Section 3 sets the effective date to sixty days after the bill's passage
into law.
 
JUSTIFICATION::
Energy utility bills are soaring across the state. The Public Service
Commission (PSC) regulates utilities across the state and approves util-
ity rate increases, called "rate cases." Details of rate cases are tech-
nically available to the public, but rate case reports are dense, tech-
nical, hard-tofind, and difficult to interpret for the majority of
ratepayers. In recent years, rate cases have resulted in energy prices
rising significantly for ratepayers across the state. For example, in
New York City, the average Con Edison residential customer can expect to
pay about $65 more per month in early 2025 as compared with 2023. By
2026, National Grid customers in Brooklyn, portions of Queens, and
Staten Island can expect to pay over $60 more a month compared to early
2024. Meanwhile, upstate New York State Electric and Gas customers will
see a $30 increase to their monthly electric bills between 2023 and
2025.
Currently, it is difficult for the public to learn that a utility has
requested to raise rates. Prior to 2024, utilities were required to
inform residents in affected service areas about proposed rate increases
by publishing a notice in a generally circulated newspaper.Responding to
this grossly insufficient notice, the legislature and governor amended
state law in 2024 to require the PSC to publish information on its
website within ten days of commencement of a proceeding for a major rate
change (Chapter 333 of the Laws of 2024).The information posted online
must include the expected return on investment for the utility, what the
revenue will be used for, how to get involved in the rate case, and
more. While this requirement improved transparency around rate hikes,
the majority of ratepayers are unlikely to check the PSC website for
proposed rate changes, limiting the impact of this transparency measure.
This legislation builds on the 2024 update to the public service law by
requiring utilities to share information about rate cases directly with
customers through text, email, and notification on the next monthly
bill. Once a utility files with the PSC to increase rates, this bill
will require utilities to directly alert customers. As a result, rate-
payers can more readily learn about utilities' use of ratepayers' money,
including utility profit margins. Additionally, ratepayers will learn
how to participate in the ratemaking process and can plan for an
increase in household expenses.
 
FISCAL IMPLICATIONS::
Minimal.
 
EFFECTIVE DATE::
The act shall take effect sixty days after it becomes a law.

Statutes affected:
S5553: 66 public service law, 66(12) public service law
S5553A: 66 public service law, 66(12) public service law
S5553B: 66 public service law, 66(12) public service law