BILL NUMBER: S6277
SPONSOR: SCARCELLA-SPANTON
 
TITLE OF BILL:
An act to amend the public service law, in relation to creating the
state office of the utility consumer advocate
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill would create the State Office of the Utility Consumer Advocate
(UCA).
 
SUMMARY OF PROVISIONS:
Section 1 amends the public service law by adding a new article 1-A that
would establish the state Office of the Utility Consumer Advocate. The
governor to a six-year term will appoint the UCA. The section also
outlines the qualifications required for such an appointee and his or
her responsibilities as the LICA, including the operation of the office.
The powers of the office of the office, include initiating, intervening,
and participating on behalf of residential utility consumers in an
proceedings before the Public Service Commission, the Federal Regulatory
Energy Commission, the Federal Communications Commission, state and
local administrative and regulatory agencies, and state and federal
courts in any matter or proceeding that may substantially affect the
interests of residential utility customers. The section also allows the
UCA to exercise and have independence in all actions of the office.
The new article 1-A also requires an annual report from the office to
the governor and legislature as, which would be made available to the
public, and would include information on all proceedings that the office
of the UCA participated in and the outcome of such proceedings. Addi-
tionally, the report shall include estimated savings to residential
utility customers that resulted from intervention by the UCA, and lastly
any policy recommendations and suggested statutory amendments that the
UCA deems necessary.
Section 2 sets the effective date of April 1 next succeeding the date on
which it shall have become law.
 
JUSTIFICATION:
Currently more than 40 states and the District of Columbia have an inde-
pendent state agency that represents the interests of residential utili-
ty customers. New York is one of few states, and by far the largest,
without such an independent office. In the wake of Superstorm Sandy, .
Hurricane Irene, and Tropical Storm Lee, consumers in New York have been
left without a voice and real representation when it comes to utility
services.
This bill would create the State Office of the Utility Consumer Advocate
to serve as an independent advocate and appear on behalf of New York
consumers in state and federal regulatory proceedings, as well as judi-
cial review proceedings concerning rates and conditions of public
service utilities. Currently the Public Service Commission as well as
the Utility Intervention Unit, a division of the Department of State,
represent consumers in New York. Neither of them is able to act solely
on behalf of the interest of consumers.
The Public Service Commission mediates the competing interests of utili-
ties and others in their proceedings to develop facts upon which their
decisions are ultimately based. The utility providers as well as large
commercial and industrial customers have an active and able presence in
such proceedings; however, there is a glaring lack of input from any
parties representing consumers. The Utility Intervention Unit operates
under the direction of the Secretary of the State, who has created a
non-statutory subordinate at-will position for the Director of the Util-
ity Intervention Unit. The Utility Consumer Advocate would be appointed
by the Governor, subject to Senate confirmation, and would serve a term
of six years similar to the Chairman of the Public Service Commission.
Therefore, the Utility Consumer Advocate would not be an at-will employ-
ee subject to removal without cause by the Secretary of State or Gover-
nor. This would allow for actual independent action on behalf of resi-
dential consumers without the concern of removal for such action.
The recent (August 2020) Tropical Storm Isaias shows the need for this
legislation. According to Newsday - "PSEG, which serves 1.1 million
customers on the Island and the Rockaways, saw an almost complete break-
down of its communication systems, rendering almost useless the more
than $1 billion in ratepayer and taxpayer-funded upgrades to computer
systems, telecom networks, its website and text-in outage system, smart
meters and the regional grid."
https://vvvvw.newsday.com/long-island/storm-pseg-li-isaias1.47882102
In other states where such an office exists, residential consumers have
seen drastic savings in comparison to the actual amount of funding that
goes to these offices. California's Division of Ratepayer Advocates
lobbied over 200 times on behalf of California consumers and saved them
over $4 billion in rates saved and increases avoided; in fact, they
estimate that for every $1 spent representing and advocating on behalf
of California's public utility customers, the average customer saved
$153 per year The creation of an appointed advocate with the powers
allotted in this bill would give New York utility customers a voice at
the table, save them a considerable amount of money when it comes to the
utilities they use every day.
Sponsors continue to disagree with the vetoes of this legislation.
Further recent 28.8% increase in electricity prices, the highest over-
the-month increase in CPI history just points to the need for such an
advocate. (https://www.amny.com/news/surging-electr cityprices-fuelin-
ginflation-nice)
 
PRIOR LEGISLATIVE HISTORY:
2024; Held in Energy and Telecommunications Senate Committee.
 
FISCAL IMPLICATIONS:
To be determined
 
EFFECTIVE DATE:
This act shall take effect of April 1 next succeeding the date on which
It shall have become law