BILL NUMBER: S8908
SPONSOR: COMRIE
 
TITLE OF BILL:
An act to amend the public service law, in relation to certain sanctions
and civil penalties
 
PURPOSE:
To require that civil penalties and forfeitures recovered from public
utilities for violations of the Public Service Law or Public Service
Commission orders be returned directly to affected ratepayers through
bill credits, rather than deposited into the State's general fund or
distributed at the discretion of the Commission.
 
SUMMARY OF PROVISIONS:
This bill amends sections 24 and 25-a of the Public Service Law to
ensure that civil penalties and forfeitures assessed against regulated
utilities are returned directly to ratepayers in a timely and transpar-
ent manner.
Specifically, the bill: Amends section 24 of the Public Service Law to
require that all civil penalties and forfeitures recovered in enforce-
ment actions brought by the Public Service Commission be returned to
ratepayers through direct bill credits, as soon as practicable and no
later than ninety days after recovery.
Amends subdivision 7 of section 25-a of the Public Service Law to
require that penalties assessed for violations of utility service stand-
ards be returned to ratepayers through direct bill credits within the
same timeframe, replacing existing language that allows the Commission
discretion in how such funds are distributed for the benefit of ratepay-
ers.
Establishes an effective date of 120 days after enactment, while author-
izing necessary rulemaking to occur in advance.
 
JUSTIFICATION:
Public utilities are granted monopoly service territories and are
subject to regulatory oversight in exchange for providing safe, reli-
able, and adequate service at just and reasonable rates. When utilities
violate the law or fail to comply with Public Service Commission orders,
civil penalties are imposed to enforce accountability.
Under current law, penalties recovered under section 24 are deposited
into the State's general fund, and penalties under section 25-a may be
distributed for the benefit of ratepayers in a manner determined by the
Commission. As a result, customers who experience service failures do
not consistently receive direct or timely financial relief.
This bill restores the intended consumer-protection purpose of civil
penalties by ensuring that the financial consequences of utility miscon-
duct directly benefit the customers who pay utility bills. Returning
penalties through automatic bill credits provides meaningful ratepayer
relief, strengthens accountability, and reinforces public confidence in
utility regulation.
By establishing a clear deadline for refunds, the bill also promotes
transparency and prevents unnecessary delays in delivering relief to
customers.
 
PRIOR LEGISLATIVE HISTORY:
This is a new bill.
 
FISCAL IMPLICATIONS:
None to the State. The bill redirects existing civil penalty revenues to
ratepayers and does not create new penalties or enforcement costs.
 
EFFECTIVE DATE:
This act shall take effect on the one hundred twentieth day after it
becomes law.

Statutes affected:
S8908: 24 public service law, 25-a public service law, 25-a(7) public service law