NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A1745A
SPONSOR: Dinowitz TITLE OF BILL:
An act to amend the public service law, in relation to complaint handl-
ing procedures by the public service commission
PURPOSE:
To ensure that legitimate billing and related complaints made by consum-
ers and other affected entities against utilities are handled in an
effective and timely fashion and a decision rendered.
SUMMARY OF SPECIFIC PROVISIONS:
Section one of the bill amends § 43 of the public service law to provide
the following: Improved complaint handling procedures, including cover-
age of all complaints, reporting on such complaints within reasonable
and defined time periods, requirement that all reports be made in writ-
ing and provide documentation; penalties on non-complying utilities.
JUSTIFICATION:
This legislation adds the necessary guidance and teeth to the existing
procedure for resolving all consumer complaints against utilities, which
almost always center around disputed billing charges. Even though New
York State Department of Public Service has announced that it will imme-
diately work with utilities across the state to ensure any customers
affected by COVID-19 will not lose power or heat due to financial hard-
ship, the reality'is that consumer issues with utilities have existed
long before COVID-19 and has only worsened during the pandemic. By
refusing to repay customers as well as failing to even acknowledge
consumer billing complaints, utilities are acting contrary to the
collective public interest at a time when consumers desperately need
financial assistance.
Just as utility customers deserve the assurance of continuity of essen-
tial electric and gas service during the coronavirus pandemic, they also
deserve any money that is rightfully owed to them by the utilities
during this time of unprecedented financial hardship throughout the
state. Wrongfully withholding hundreds of millions in customer money, or
simply not responding to consumer complaints within a reasonable amount
of time, adds to the pain of financial hardship already facing so many
New Yorkers.
The current process lacks actual and enforceable timelines, due process,
clear evidentiary standards and penalties for willful non-compliance on
the part of utilities. The absence of any clear guideposts on procedure
and lack of consequences for flouting compliance make this legislation
necessary, as in practice, large utilities simply ignore the legitimate
complaints of consumers and other smaller, vulnerable entities such as
small businesses and nonprofits.
PRIOR LEGISLATIVE HISTORY:
2022: A.2038 - Reported to Rules / S.2744 - Energy and Telecommuni-
cations
2021: A.2038 - Reference changed to Corporations, Authorities and
Commissions / S.2744 - Energy and Telecommunications
2019-2020: A.10682 - Corporations, Authorities and Commissions / S.8301
Energy and Telecommunications
FISCAL IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law. Effective immediately, the addition, amendment, and/or
repeal of any rules and regulations necessary to implement the
provisions of this act on its effective date are authorized and directed
to be completed on or before such effective date.
STATE OF NEW YORK
________________________________________________________________________
1745--A
2023-2024 Regular Sessions
IN ASSEMBLY
January 20, 2023
___________
Introduced by M. of A. DINOWITZ, SEAWRIGHT -- read once and referred to
the Committee on Corporations, Authorities and Commissions -- recom-
mitted to the Committee on Corporations, Authorities and Commissions
in accordance with Assembly Rule 3, sec. 2 -- committee discharged,
bill amended, ordered reprinted as amended and recommitted to said
committee
AN ACT to amend the public service law, in relation to complaint handl-
ing procedures by the public service commission
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 43 of the public service law, as added by chapter
2 713 of the laws of 1981, subdivision 3 as added by chapter 686 of the
3 laws of 2002, is amended to read as follows:
4 § 43. Complaint handling procedures. 1. The commission shall maintain
5 regulations for the handling of [residential] all customer complaints,
6 which at a minimum shall require that each utility or municipality: (a)
7 maintain procedures, and provide a copy of those procedures, as amended,
8 to the commission, for prompt investigation of any complaint on a bill
9 for gas, steam, or electric service rendered or a deposit required and
10 for prompt reporting to the complainant [of] within: (i) fifteen busi-
11 ness days after the result of such investigation for a utility corpo-
12 ration; or (ii) thirty business days after the result of such investi-
13 gation for a municipality. [If such] Such report [is made orally, the
14 utility corporation or municipality shall offer the complainant upon a
15 written request the opportunity to receive the report in writing] shall
16 be in writing and provide all supporting documentation; (b) inform any
17 complainant [whose complaint is resolved in favor of the utility corpo-
18 ration or municipality, in whole or in part,] of the availability of the
19 commission's complaint handling procedures; (c) refrain from terminating
20 service for nonpayment so long as a complaint is pending before a utili-
21 ty, municipality or the commission and for fifteen days thereafter, or
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00810-02-4
A. 1745--A 2
1 for such period as the commission for good cause shall establish;
2 provided however, that as a condition of continued service during the
3 pendency of any such dispute, a customer shall pay the undisputed
4 portions of any bill for service including bills for current usage, or
5 such amounts as the commission determines reasonably reflect the cost of
6 usage to such customer; and (d) refrain from treating the disputed
7 portion of any bill as late during the pendency of any complaint before
8 the utility or municipality.
9 2. The commission shall maintain regulations for complaint handling
10 procedures including complaints with respect to the negotiation of a
11 deferred payment agreement which shall include, at a minimum: (a)
12 provision for investigation and informal review and for appeal to the
13 commission [in its discretion]; (b) that the burden of proof in all
14 proceedings shall be on the utility corporation or municipality, except
15 as otherwise provided by the commission for good cause; and (c)
16 provision for parties to receive a written determination of any
17 complaint[, upon request,] in plain and simple English, which determi-
18 nation shall set forth the relevant facts established, the reasons for
19 the determination, what actions must be taken and what further proce-
20 dures are available to a complainant.
21 3. [The commission shall use its best efforts to complete its investi-
22 gation and review and to issue, within ninety days, its final written
23 determination of any appeal to it pursuant to this section.] Failure by
24 any utility corporation or municipality to provide a response as
25 provided by subdivision one of this section, shall invoke a penalty of:
26 (a) one hundred dollars per business day for each business day that
27 exceeds the initial fifteen business day period for a utility corpo-
28 ration; or (b) twenty-five dollars per business day for each business
29 day that exceeds the initial thirty business day period for a munici-
30 pality.
31 § 2. This act shall take effect on the ninetieth day after it shall
32 have become a law. Effective immediately, the addition, amendment,
33 and/or repeal of any rule or regulation necessary to implement the
34 provisions of this act on its effective date are authorized and directed
35 to be completed on or before such effective date.
