BILL NUMBER: S8530
SPONSOR: MATTERA
 
TITLE OF BILL:
An act to amend the public service law, in relation to enacting the
utility transparency and fair billing protection act
 
PURPOSE:
It is to protect utility customers from billing errors caused by the
misclassified rates.
 
SUMMARY OF PROVISIONS:
Section 1.This act shall be known and may be cited as 2 the "utility
transparency and fair billing protection act".
Section 2 Legislative findings and intent. The legislature finds that
misclassification of utility rates is a significant issue that affects
consumers, especially the elderly, low-income households, and those
undergoing major home upgrades.
Section 3 The public service law is amended by adding a new article 3 to
25 read as follows
Section 4 Effective date
 
JUSTIFICATION:
This bill is designed to protect utility consumers from billing errors
caused by misclassified rates, especially those ratepayers who have made
changes to their homes or businesses that have resulted an increase in
their gas or electricity usage, such as converting to gas heat or
installing new appliances.
The legislation requires utilities to proactively review and correct
customer billing classifications, offer clearer communication with
customers, ensure equitable refunds for overcharges, and increase
consumer awareness of their rights and obligations.
Under utility tariffs, certain uses of energy are charged at higher or
lower rates due to the nature of usage. For instance, the use of natural
gas for home heating is charged at a cheaper rate than the use of
natural gas to power appliances. Misclassification of utility rates is,
therefore, a significant issue that affects consumers, especially the
elderly, low-income households, and those undergoing major home
upgrades.
Utility companies have the technological ability to proactively monitor
and correct misclassification billing errors but have failed to do so in
many cases. This leads to unnecessary financial burdens on consumers.
This bill ensures that utility companies bear the responsibility for
maintaining accurate billing systems and requires the making of timely
corrections when billing errors occur, rather than placing the burden on
consumers to monitor their own bills for potential errors.
The bill aims to prevent consumers from being over-charged due to
misclassified utility rates by mandating proactive account reviews,
automatic adjustments, and ensuring clear communication between utili-
ties and customers. It also ensures that consumers can easily access
refunds for overcharges, regardless of whether they actively reported
the issue, and improves transparency and fairness in utility billing
practices. By enacting these protections, the law seeks to hold utili-
ties accountable while safeguarding the financial well-being of consum-
ers.
 
LEGISLATIVE HISTORY:
2025 New Bill
 
FISCAL IMPLICATIONS:
None to the State.
 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after 2 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 act on its effective date are authorized to be made and 5
completed on or before such effective date. Become law. Effective imme-
diately, the addition, amendment and/or repeal of any rule or regulation
necessary for the implementation of this act on its effective date are
authorized to be made are completed on or before such effective date.