BILL NUMBER: S9199
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:
This bill would create the State Office of the Utility Consumer Advocate
to represent residential utility consumers' interests in residential
utility matters at the state and federal level.
 
SUMMARY OF PROVISIONS:
Section one of the bill adds article 1-A to the public service law that
would establish the state Office of the Utility Consumer Advocate (UCA).
The UCA will be appointed by the governor to a six-year term. The
section also outlines the qualifications required for such an appointee
and his or her responsibilities as the UCA, including the operation of
the office.
The section outlines the powers of the office of the UCA, which include
initiating, intervening, and participating on behalf of residential
utility consumers in any proceedings before the Public Service Commis-
sion, the Federal Regulatory Energy Commission, the Federal Communi-
cations Commission, state and local administrative and regulatory agen-
cies, 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 section also requires an annual report from the office of the
UCA to the governor and legislature, which would be made available to
the public, and that would include information on all proceedings that
the office of the UCA participated in and the outcome of such
proceedings. Additionally, 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 two of the bill provides the effective date.
 
JUSTIFICATION:
Currently more than forty states and the District of Columbia have an
independent state agency that represents the interests of residential
utility customers. New York is one of few, states, and by far the larg-
est, 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 consumers in New York are represented by
the Public Service Commission as well as the Utility Intervention Unit,
a division of the Department of State. Neither of them can 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 like 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.
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 two hundred 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, saving them a considerable amount of money when it
comes to the utilities they use every day.
 
PRIOR LEGISLATIVE HISTORY:
2025: A.2468/S.6277 - Vetoed Memo 60
2023-24: A.1950 - Consumer Affairs and Protection / S.5503-Energy and
Telecommunications
2022: A.9570 - Consumer Affairs and Protection / S.8411-Energy and Tele-
communications
2021: A.3184/S.4884 - Vetoed Memo 55
2019-20: A.1966/S.4399 - Vetoed Memo 259
2017-18: A.7293-A - Third Reading Calendar / S.3923-A Energy and Tele-
communications
2015-16: A.180-A - Passed Assembly / S.3356-A - Energy and Telecommuni-
cations
2013-14: A.6239-B - Passed Assembly/ S.4550-B - Finance
 
FISCAL IMPLICATIONS:
Undetermined.
 
EFFECTIVE DATE:
This act shall take effect on the first of April next to succeed the
date on which it shall have become law.