BILL NUMBER: S9251
SPONSOR: RAMOS
 
TITLE OF BILL:
An act to amend the public service law, in relation to prohibiting the
recovery of certain labor-related legal costs from ratepayers
 
PURPOSE OR GENERAL IDEA OF BILL:
To prohibit electric and gas utilities from recovering from ratepayers
the costs of litigation, arbitration, and other legal expenses incurred
in labor-related disputes with their employees or labor organizations.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 sets forth legislative findings and intent.
Section 2 amends the public service law to prohibit gas corporations,
electric corporations, and combination gas and electric corporations
from recovering through rates, surcharges, riders, or adjustment mech-
anisms any legal fees, settlements, judgments, awards, or related
expenses arising from labor-related disputes, including collective
bargaining disputes, grievances, arbitrations, unfair labor practice
proceedings, litigation involving a labor organization representing the
utility's employees, or workers' compensation loss adjustment expenses
to the prohibition. Such costs are deemed per se imprudent for purposes
of rate recovery and must be borne by shareholders.
The bill expressly preserves the ability of utilities to recover legal
costs related to proceedings initiated or required by the Public Service
Commission, regulatory compliance, customer service matters, consumer
protection actions, third-party claims, and other legal matters unre-
lated to labor relations. The Public Service Commission is directed to
promulgate rules to implement the provisions of the act.
Section 3provides for an immediate effective date.
 
JUSTIFICATION:
Utility rates are intended to recover the reasonable and necessary costs
of providing safe, reliable electric and gas service to the public.
Legal disputes between utilities and their workforce are management
decisions that do not benefit ratepayers and should not be subsidized
through customer bills. Allowing recovery of labor-related legal costs
shifts the financial burden of labor conflict onto the public and
reduces transparency in rate-setting. This bill clarifies that such
costs must be borne by shareholders, while preserving the Public Service
Commission's authority and protecting ratepayer interests.
 
LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately.