NY-PBS Public Service Law NY

Short title. This chapter shall be known as the "Public Service

Law." Reference in any law to the public service commission law shall

mean the public service law, and amendments, in form, to the public

service commission law enacted by the legislature of nineteen hundred

thirty shall be treated as amendments to the public service law.

Definitions. 1. The term "department" when used in this chapter,

means the department of public service, and the term "commission," means

the public service commission.

2. The term "commissioner," when used in this chapter, means one of

the members of the public service commission.

2-a. The term "co-generation facility", when used in this chapter,

includes any facility with an electric generating capacity of up to

eighty megawatts, and including any facility with an electric generating

capacity of up to one hundred twenty megawatts located at a project site

within an air terminal operated by the port authority of New York and

New Jersey and wholly contained within a city having a population of one

million or more, which produces electricity and useful thermal energy

solely for sale to the port authority of New York and New Jersey, for

use at the airport, for sale to an electric utility, and/or for sale to

the power authority of the state of New York, together with any related

facilities located at the same project site, which is fueled by coal,

gas, wood, alcohol, solid waste refuse-derived fuel, water or oil, to

the extent any such oil fueled facility was fueled by oil prior to the

effective date of this subdivision and there is no increase in the

amount of oil used at the facility or to the extent oil is used as a

backup fuel for such facility, and which simultaneously or sequentially

produces either electricity or shaft horsepower and useful thermal

energy which is used solely for industrial and/or commercial purposes.

2-b. The term "alternate energy production facility," when used in

this chapter, includes any solar, wind turbine, fuel cell, fuel-flexible

linear generator electric generating equipment, tidal, wave energy,

waste management resource recovery, refuse-derived fuel, wood burning

facility, or energy storage device utilizing batteries, flow batteries,

flywheels or compressed air, together with any related facilities

located at the same project site, with an electric generating capacity

of up to eighty megawatts, which produces electricity, gas or useful

thermal energy.

2-c. The term "small hydro facility", when used in this chapter,

includes any hydroelectric facility, together with any related

facilities located at the same project site, with an electric generating

capacity of up to eighty megawatts.

2-d. The term "related facilities" shall mean any land, work, system,

building, improvement, instrumentality or thing necessary or convenient

to the construction, completion or operation of any co-generation,

alternate energy production or small hydro facility and include also

such transmission or distribution facilities as may be necessary to

conduct electricity, gas or useful thermal energy to users located at or

near a project site.

3. The term "corporation," when used in this chapter, includes a

corporation, company, association and joint-stock association other than

a corporation, company, association or joint stock association

generating electricity, shaft horsepower, useful thermal energy or gas

solely from one or more co-generation, small hydro or alternate energy

production facilities or distributing electricity, shaft horsepower,

useful thermal energy or gas solely from one or more of such facilities

to users located at or near a project site.

4. The word "person," when used in this chapter, includes an

individual, firm or co-partnership other than an individual, firm or

co-partnership generating electricity, shaft horsepower, useful thermal

energy or gas solely from one or more co-generation, small hydro or

alternate energy production facilities or distributing electricity,

shaft horsepower, useful thermal energy or gas solely from one or more

of such facilities to users located at or near a project site; provided,

however, that an individual, firm or co-partnership generating or

distributing electricity or gas solely from one or more co-generation,

small hydro or alternate energy production facilities shall nevertheless

be considered a person for purposes of commission jurisdiction under

article seven of this chapter.

10. The term "gas plant," when used in this chapter, includes all real

estate, fixtures and personal property operated, owned, used or to be

used for or in connection with or to facilitate the manufacture,

conveying, transportation, distribution, sale or furnishing of gas

(natural or manufactured or mixture of both) for light, heat or power,

but does not include property used solely for or in connection with the

business of selling, distributing or furnishing of gas in enclosed

containers.

11. The term "gas corporation," when used in this chapter, includes

every corporation, company, association, joint-stock association,

partnership and person, their lessees, trustees or receivers appointed

by any court whatsoever, owning, operating or managing any gas plant or

thermal energy network (a) except where gas is made or produced and

distributed by the maker on or through private property solely for its

own use or the use of its tenants and not for sale to others, (b) except

where compressed natural gas is sold, distributed or furnished solely as

a fuel for use in motor vehicles, (c) except where manufactured gas is

sold by the producer only for use or resale by a gas corporation and

such gas of the producer and any affiliated producers does not exceed in

any one year thirty per cent of the total gas sold by any purchaser

thereof in the area in which such manufactured gas is resold either as

manufactured gas or as a component of mixed gas, and (d) except where

gas is made or produced solely from one or more alternate energy

production facilities or distributed solely from one or more of such

facilities to users located at or near a project site; provided,

however, that any producer not included within the meaning of "gas

corporation" by reason of exception (c) or (d) shall nevertheless be

considered a gas corporation for the purposes of commission jurisdiction

relating to the safety of the construction, operation, or maintenance of

plants manufacturing pipeline quality gas.

12. The term "electric plant," when used in this chapter, includes all

real estate, fixtures and personal property operated, owned, used or to

be used for or in connection with or to facilitate the generation,

transmission, distribution, sale or furnishing of electricity for light,

heat or power; and any conduits, ducts or other devices, materials,

apparatus or property for containing, holding or carrying conductors

used or to be used for the transmission of electricity for light, heat

or power, and also includes retired nuclear power reactors and their

associated systems, structures, fuel and waste storage facilities, real

estate, fixtures and personal property.

13. The term "electric corporation," when used in this chapter,

includes every corporation, company, association, joint-stock

association, partnership and person, their lessees, trustees or

receivers appointed by any court whatsoever (other than a railroad or

street railroad corporation generating electricity solely for railroad

or street railroad purposes or for the use of its tenants and not for

sale to others) owning, operating or managing any electric plant or

thermal energy network except where electricity or thermal energy is

generated or distributed by the producer solely on or through private

property for railroad or street railroad purposes or for its own use or

the use of its tenants and not for sale to others; or except where

electricity is generated by the producer solely from one or more

co-generation, small hydro or alternate energy production facilities or

distributed solely from one or more of such facilities to users located

at or near a project site.

14. The term "combination gas and electric corporation," when used in

sections twenty-five-a, sixty-five and sixty-six of this chapter,

includes any gas corporation operating in New York under common

ownership with an electric corporation operating in New York or any

electric corporation operating in New York under common ownership with a

gas corporation operating in New York, or any successor of either such

corporation; provided, however, that such term shall not include

municipally-owned utilities, and shall not include any generating

facilities owned or operated by either such corporation or any common

owner thereof, or any subsidiary of such common owner.

16. The term "municipality", when used in this chapter, includes a

city, village, town or lighting district, organized as provided by a

general or special act, provided, however, that the counties of Nassau,

Rockland, Suffolk and Westchester shall each be deemed a "municipality"

and consents issued by each such county pursuant to the transportation

corporations law and the county government law of Nassau county, local

law adopted by the county legislature of Rockland county, the Suffolk

county charter and the Westchester county charter respectively shall be

deemed "consents of local authorities" for the purpose of applying every

provision of this chapter applicable to consents of local authorities;

and provided further that no county, city, village, town or lighting

district shall be deemed a municipality with respect to any

co-generation, small hydro or alternate energy production facility owned

by one of the above from which electricity, useful thermal energy or gas

is generated or produced or distributed from one or more of such

facilities to users located at or near a project site.

17. The term "telephone corporation," when used in this chapter,

includes every corporation, company, association, joint-stock

association, partnership and person, their lessees, trustees or

receivers appointed by any court whatsoever, owning, operating or

managing any telephone line or part of telephone line used in the

conduct of the business of affording telephonic communication for hire;

excepting, however, any corporation, company, association, joint-stock

association, partnership or person, their lessees, trustees or

receivers, who or which do not operate the business of affording

telephonic communication for profit.

18. The term "telephone line," when used in this chapter, includes

conduits, ducts, poles, wires, cables, cross-arms, receivers,

transmitters, instruments, machines, appliances and all devices, real

estate, easements, apparatus, property and routes used, operated or

owned by any telephone corporation to facilitate the business of

affording telephonic communication up to and including the demarcation

point located on a subscriber's premises.

19. The term "telegraph corporation," when used in this chapter,

includes every corporation, company, association, joint-stock

association, partnership and person, their lessees, trustees or

receivers, appointed by any court whatsoever, owning, operating or

managing any telegraph line or part of telegraph line used in the

conduct of the business of affording for hire communication by

telegraph.

20. The term "telegraph line," when used in this chapter, includes

conduits, ducts, poles, wires, cables, cross-arms, instruments,

machines, appliances and all devices, real estate, easements, apparatus,

property and routes used, operated or owned by any telegraph corporation

to facilitate the business of affording communication by telegraph.

21. The term "steam plant," when used in this chapter, includes all

real estate, fixtures and personal property operated, owned, used or to

be used for or in connection with or to facilitate the generation,

transmission, distribution, sale or furnishing of steam for heat or

power.

22. The term "steam corporation," when used in this chapter, includes

every corporation, company, association, joint stock association,

partnership and person, their lessees, trustees or receivers appointed

by any court whatsoever owning, operating or managing any steam plant,

(a) except where steam is made or produced and distributed by the maker,

on or through private property solely for the maker's own use or the use

of the maker's tenant and not for sale to others, (b) except where steam

is made or produced by the maker solely from one or more co-generation

or alternate energy production facilities or distributed soley from one

or more of such facilities to users located at or near a project site or

(c) except where steam is made or produced and distributed solely for

the use of its members by a non-profit cooperative corporation organized

under the cooperative corporations law.

22-a. The term "telecommuting", when used in this chapter, shall mean

the conservation of energy through the reduction of travel by employees

of the department to and from their designated workplace through the use

of telecommunication and computer technology in tasks including, but not

limited to, information transfer and processing.

23. The term "utility company" or "public utility company" is used to

avoid repetitions in a provision applying to one or more persons or

corporations operating an agency or agencies for public service, and who

or which is or are subject to the jurisdiction, supervision and

regulations prescribed by or pursuant to provisions of this chapter

other than article 11; such term being so used only as a general term

descriptive of such a person or corporation.

24. The term "utility corporation" or "public utility corporation" is

an incorporated utility company.

25. The term "stock yard," when used in this chapter, includes all

real estate, fixtures and personal property owned, used or to be used in

connection with the business of affording facilities for the shipment of

live stock and for the care thereof for such purpose prior to the time

that transportation begins; and the term "stock yard company" includes

every corporation, association, joint stock association, partnership and

person, their lessees, trustees or receivers appointed by any court

whatsoever, operating or managing a stock yard.

26. The term "water system" when used in this chapter includes all

real estate, attachments, fixtures, impounded water, water-works, water

plant, water rights and personal property, and all property either real,

personal or mixed, owned, operated, used or to be used for or in

connection with or to facilitate the distribution, sale or furnishing of

water for domestic, commercial or public uses, but does not include

property used solely for or in connection with the business of bottling

or selling, distributing or furnishing bottled water.

27. The term "water-works corporation", when used in this chapter

includes every corporation, company, association, joint stock

association, partnership and person, their lessees, trustees or

receivers, appointed by any court whatsoever, owning, operating or

managing any water plant or water-works, except where water is

distributed solely on or through private property solely for the use of

the distributor or its tenants and not for sale to others.

28. "Thermal energy," when used in this chapter, shall mean piped

non-combustible fluids used for transferring heat into and out of

buildings for the purpose of eliminating any resultant on-site

greenhouse gas emissions of all types of heating and cooling processes,

including, but not limited to, comfort heating and cooling, domestic hot

water, and refrigeration.

29. "Thermal energy network," when used in this chapter, shall mean

all real estate, fixtures and personal property operated, owned, used or

to be used for or in connection with or to facilitate a utility-scale

distribution infrastructure project that supplies thermal energy.

Department of public service. There shall be in the state

government a department of public service. The chairman of the public

service commission shall be the chief executive officer of the

department. He or she shall appoint and shall have the power to remove,

subject to the provisions of the civil service law, all officers,

clerks, inspectors, experts and employees of the department, and to

approve all contracts for special service. The chairman shall designate

one of the commissioners in the department or an officer of the

department to act as deputy chairman during the absence or disability of

the chairman and during such times such deputy chairman shall possess

all the powers of the chairman as chief executive officer of the

department.

Transfer of lands. Notwithstanding any other provision of law,

any land, property, right, easement or fee under the jurisdiction of the

commission acquired in the name of the people of the state of New York

for the purpose of the construction, maintenance or development of a

grade crossing elimination project or acquired pursuant to any laws

applicable to grade crossing eliminations which is determined by the

commissioner of transportation to be of use or benefit for state

transportation purposes is transferred to the commissioner of

transportation. The commissioner of general services is authorized to

convey to the city of New York any of said parcels or interests which

the commissioner of transportation determines not to be necessary for

state transportation purposes. Such conveyances may be made on such

terms and conditions as the commissioner of general services may

determine.

Long Island office of the department. 1. There is hereby

established in the department an office to review and make

recommendations with respect to the operations and terms and conditions

of service of, and rates and budgets established by, the Long Island

power authority and/or its service provider.

2. Definitions. As used or referred to in this section:

(a) "Authority" means the Long Island power authority.

(b) "Service provider" means the entity under contract with the

authority to provide management and operation services associated with

the authority's electric transmission and distribution system and any

subsidiary of such entity that provides such services under contract.

However, the service provider and any affiliate of the service provider

with whom the authority or service provider contracts to provide

services associated with the authority's electric transmission and

distribution system shall not be considered an electric corporation

under this chapter.

(c) "Operations services agreement" means an agreement and any

amendments thereto between the Long Island lighting company dba LIPA or

the Long Island power authority and the service provider to provide

management and operation services associated with the authority's

electric transmission and distribution system.

3. General powers. In undertaking the requirements of this section,

subject to subdivisions (u) and (bb) through (hh) of section one

thousand twenty-f of the public authorities law, the department shall be

empowered and authorized to:

(a) Review and make recommendations to the board of the Long Island

power authority with respect to the rates and charges, including charges

related to energy efficiency and renewable energy programs, to be

established by the authority and become applicable on or after January

first, two thousand sixteen pursuant to subdivision (u) of section one

thousand twenty-f of the public authorities law.

(i) The purpose of such review is to make recommendations designed to

ensure that the authority and the service provider provide safe and

adequate transmission and distribution service at rates set at the

lowest level consistent with sound fiscal operating practices.

(ii) The department's recommendations shall be designed to be

consistent with ensuring that the revenue requirements related to such

rate review are sufficient to satisfy the authority's obligations with

respect to its bonds, notes and all other contracts.

(iii) In the context of such review, the department may make

recommendations with regard to the compensation or fee structure

included within the operations services agreement.

(iv) In undertaking such review and in making recommendations related

to the proposed rates and charges, the department shall establish

standards, policies and procedures that, at a minimum, provide for

public statement and evidentiary hearings and participation of

intervenors and other parties, and ensure that any final recommendations

related to the proposed rates and charges are provided to the authority

within two hundred forty days of the filing with the department of such

plan.

(v) The parties to any such rate review proceeding shall include, but

not be limited to, department staff, the authority, the service provider

and, to the extent it deems necessary or appropriate, the utility

intervention unit.

(b) Review the annual capital expenditures proposed by the service

provider and recommend such improvement in the manufacture, conveying,

transportation, distribution or supply of electricity, or in the methods

employed by the the service provider as in the department's judgment

allows for safe and adequate service.

(c) Annually review the emergency response plan of the authority and

the service provider in accordance with the following requirements:

(i) Examine and determine whether the emergency response plan is

consistent with the requirements of paragraph (a) of subdivision

twenty-one of section sixty-six of this chapter and any regulations or

orders promulgated thereto, and to recommend amendments of same; and

(ii) Review and make recommendations to the authority with respect to

the performance of the service provider in restoring service or

otherwise meeting the requirements of the emergency response plan during

an emergency event, defined for purposes of this section as an event

where widespread outages have occurred in the authority's service

territory due to a storm or other causes beyond the control of the

authority and its service provider, including making determinations with

respect to whether the service provider is reasonably able to implement

the emergency response plan, whether the length of any outages related

to such emergency were materially longer than they would otherwise have

been because the service provider failed to reasonably implement the

emergency response plan, the reasonableness of costs associated with

such emergency response, the costs, if any, that were unreasonably and

imprudently incurred by the service provider, and whether the service

provider would be liable for any such costs pursuant to the terms and

conditions of the operations services agreement.

(d) Upon notification to the Long Island power authority, undertake a

comprehensive and regular management and operations audit of the

authority and service provider pursuant to subdivision (bb) of section

one thousand twenty-f of the public authorities law. The department

shall have discretion to have such an audit performed by its staff, or

by an independent contractor. In every case in which an audit is

required pursuant to subdivision (bb) of section one thousand twenty-f

of the public authorities law performed by an independent auditor, the

department shall have the authority to select the auditor, and to

require the authority to enter into a contract with the auditor that is

consistent with the contracting-related requirements specified in

subdivision nineteen of section sixty-six of this chapter and the

requirements of subdivision (bb) of section one thousand twenty-f of the

public authorities law. Such contract shall provide further that the

auditor shall work for and under the direction of the department

according to such terms as the department may determine are necessary

and reasonable.

(e) Accept, investigate, mediate to resolve and make recommendations

to the Long Island power authority and/or the service provider regarding

the resolution of complaints from consumers in the authority's service

territory relating to, among other things, the provision of electric

service provided by the service provider and/or the authority.

(f) Review the net metering program implemented under subdivision (h)

of section one thousand twenty-g of the public authorities law and make

recommendations designed to ensure consistency with the requirements of

sections sixty-six-j and sixty-six-l of this chapter, and any

regulations and orders adopted thereto.

(g) Review and make recommendations with respect to any proposed plan

submitted by the Long Island power authority and/or the service provider

related to implementation of energy efficiency measures, distributed

generation or advanced grid technology programs having the purpose of

providing customers with tools to more efficiently and effectively

manage their energy usage and utility bills, and improving system

reliability and power quality.

(h) Review the data, information and reports submitted pursuant to

subdivision (hh) of section one thousand twenty-f of the public

authorities law and other pertinent information related to the metrics

in the operations services agreement, the Long Island power authority's

evaluation of such data, information and reports, and make

recommendations to the authority with respect to the service provider's

annual incentive-based compensation within thirty days of receipt of

such evaluation and information.

4. Review and inspection. To undertake the requirements of subdivision

two of this section, the department shall be authorized to inspect all

premises and facilities owned or operated by the authority and the

service provider, review all books and records of the authority and the

service provider, interview all appropriate personnel, and require

annual reporting consistent with the requirements of subdivision six of

section sixty-six of this chapter and any regulations and orders adopted

thereto; provided, however, that this authority shall not extend to

affiliates of the service provider.

* § 3-c. Office of renewable energy siting and electric transmission.

1. Definitions. For the purposes of this section, the following terms

shall have the following meanings:

(a) "Executive director" or "director" shall mean the executive

director of the office of renewable energy siting and electric

transmission.

(b) "ORES" and "office" shall mean the office of renewable energy

siting and electric transmission established pursuant to this section.

(c) "Siting permit" shall mean the major renewable energy facility

siting permit or major electric transmission facility permit issued by

the executive director pursuant to article VIII of this chapter, and the

rules and regulations promulgated by ORES and approved by the

commission.

2. General powers and responsibilities. (a) There is hereby

established in the department an office of renewable energy siting and

electric transmission.

(b) ORES shall accept applications and evaluate, issue, amend, and

approve the assignment and/or transfer of siting permits pursuant to

article VIII of this chapter. ORES shall exercise its authority by and

through the executive director.

(c) ORES, by and through the executive director, shall be authorized

to conduct hearings and dispute resolution proceedings, issue permits,

and adopt, subject to the approval of the public service commission,

such rules, regulations and procedures as may be necessary, or any

amendments or modifications thereto, convenient, or desirable to

effectuate the purposes of this section and article VIII of this

chapter.

(d) ORES shall, among other things, continue unimpeded the work of the

office of renewable energy siting established under the former section

ninety-four-c of the executive law. All permits issued by the former

office of renewable energy siting, established pursuant to former

section ninety-four-c of the executive law, and all certificates of

environmental compatibility and public need issued by the commission

pursuant to article VII of this chapter shall be considered for all

legal purposes to be permits issued by ORES.

(e) All final siting permits issued by ORES or heretofore issued by

the office of renewable energy siting established pursuant to the former

section ninety-four-c of the executive law are hereby enforceable by

ORES and the department pursuant to section twenty-four, section

twenty-five, and section twenty-six of this article as if issued by the

commission, except that such permits issued to combination gas and

electric corporations are also enforceable by ORES and the department

pursuant to section twenty-five-a of this article. ORES and the

department shall monitor, enforce, and administer compliance with any

terms and conditions set forth in a siting permit issued pursuant to

article VIII of this chapter and in doing so may use and rely on

authority provided to the commission otherwise available under this

chapter. Notwithstanding any other provision of law to the contrary, the

holder of a certificate or permit issued under article VIII of this

chapter, or a predecessor statute thereto, for a major renewable energy

facility with an electric generating capacity between twenty-five and

eighty megawatts or that otherwise opts into article VIII of this

chapter is subject to enforcement by ORES or the department pursuant to

sections twenty-four, twenty-five and twenty-six of this article.

(f) At the request of ORES, all other state agencies and authorities

are hereby authorized to provide support and render services to the

office within their respective functions.

* NB Repealed December 31, 2040

The public service commission. 1. There shall be in the

department of public service a public service commission, which shall

possess the powers and duties hereinafter specified, and also all powers

necessary or proper to enable it to carry out the purposes of this

chapter. The commission shall consist of five members, to be appointed

by the governor, by and with the advice and consent of the senate. A

commissioner shall be designated as chairman of the commission by the

governor to serve in such capacity at the pleasure of the governor or

until his term as commissioner expires whichever first occurs. At least

one commissioner shall have experience in utility consumer advocacy. No

more than three commissioners may be members of the same political party

unless, pursuant to action taken under subdivision two of this section,

the number of commissioners shall exceed five, and in such event no more

than four commissioners may be members of the same political party.

2. Notwithstanding subdivision one, whenever the commission shall

certify to the governor that additional commissioners are needed for the

proper disposition of the business before it, the governor may increase

the membership of the commission to seven members by appointing two

additional commissioners by and with the advice and consent of the

senate. The terms of office of such additional commissioners and the

filling of vacancies during such terms shall be governed by subdivision

three, except that upon the expiration of the terms of such additional

commissioners, no further appointments or reappointments shall be made

to such additional offices, unless the commission shall first certify to

the governor that the need for additional commissioners continues to

exist.

3. The term of office of a commissioner shall be six years from the

first day of February of the calendar year in which he shall be

appointed and commissioners shall serve on a full-time basis. Upon a

vacancy occuring otherwise than by expiration of term in the office of

any commissioner, the governor, by and with the advice and consent of

the senate, shall fill the vacancy by appointment for the unexpired

term.

4. Any commissioner appointed on or after July first, two thousand

twenty-two, pursuant to this section shall have education and training,

and three or more years of experience in one or more of the following

fields: economics, engineering, law, accounting, business management,

utility regulation, public policy, consumer advocacy or environmental

management.

Removals. The governor may remove any public service

commissioner, now in office or hereafter appointed, for inefficiency,

neglect of duty or misconduct in office, giving him a copy of the

charges against him, and an opportunity of being publicly heard in

person or by counsel in his own defense, upon not less than ten days'

notice. If such commissioner shall be removed the governor shall file in

the office of the department of state a complete statement of charges

made against such commissioner, and his findings thereon, together with

a complete record of the proceeding.

Jurisdiction, powers and duties of public service commission. 1.

The jurisdiction, supervision, powers and duties of the public service

commission shall extend under this chapter:

b. To the manufacture, conveying, transportation, sale or distribution

of gas (natural or manufactured or mixture of both) and electricity for

light, heat or power, to gas plants and to electric plants and to the

persons or corporations owning, leasing or operating the same.

c. To the manufacture, holding, distribution, transmission, sale or

furnishing of steam for heat or power, to steam plants and to the

persons or corporations owning, leasing or operating the same.

d. To every telephone line which lies wholly within the state and that

part within the state of New York of every telephone line which lies

partly within and partly without the state and to the persons or

corporations owning, leasing or operating any such telephone line.

e. To every telegraph line which lies wholly within the state and that

part within the state of New York of every telegraph line which lies

partly within and partly without the state and to the persons or

corporations owning, leasing or operating any such telegraph line.

f. To the furnishing or distribution of water for domestic, commercial

or public uses and to water systems and to the persons or corporations

owning, leasing or operating the same.

g. To every stock yard within the state and to the stock yard company

owning, leasing or operating the same, to the same extent and in respect

to the same objects and purposes as such jurisdiction extends, under

this chapter, to depots, freight houses and shipping stations of a

common carrier, including the duty of such stock yard company to submit

reports and be subjected to investigation as if it were a common

carrier, and the powers and duties of such commission to fix charges and

make and enforce orders relating to adequate service by such company.

h. A corporation or person owning or holding a majority of the stock

of a common carrier, gas corporation or electrical corporation subject

to the jurisdiction of the public service commission shall be subject to

the supervision of the public service commission in respect of the

relations between such common carrier, gas corporation or electrical

corporation and such owners or holders of a majority of the stock

thereof in so far as such relations arise from or by reason of such

ownership or holding of stock thereof or the receipt or holding of any

money or property thereof or from or by reason of any contract between

them; and in respect of such relations shall in like manner and to the

same extent as such common carrier, gas corporation or electrical

corporation be subject to examination of accounts, records and

memoranda, and shall furnish such reports and information as the public

service commission shall from time to time direct and require, and shall

be subject to like penalties for default therein.

i. To thermal energy provided by gas corporations, electric

corporations, or combination gas and electric corporations.

2. The commission shall encourage all persons and corporations subject

to its jurisdiction to formulate and carry out long-range programs,

individually or cooperatively, for the performance of their public

service responsibilities with economy, efficiency, and care for the

public safety, the preservation of environmental values and the

conservation of natural resources.

3. Application of the provisions of this chapter to one-way paging or

two-way mobile radio telephone service with the exception of such

services provided by means of cellular radio communication is suspended

unless the commission, no sooner than one year after the effective date

of this subdivision, makes a determination, after notice and hearing,

that regulation of such services should be reinstituted to the extent

found necessary to protect the public interest because of a lack of

effective competition.

4. Upon finding that it is in the public interest to do so, the

commission may exempt from any or all of the provisions of this chapter,

for such period of time as it deems appropriate, an association of

homeowners owning and operating any water plant or water-works and

distributing water only to customers having an interest and voice in its

operation.

5. The commission shall develop a plan to maximize the use of

telecommuting to conserve energy otherwise used by the personnel of the

department in commuting to their assigned workplace. Within one year of

the effective date of this subdivision, the commission shall submit a

report to the governor and the legislature on the impact of such plan to

include, but not be limited to, energy conservation, air quality,

workforce acceptance, office costs and potential cost savings.

6. a. Application of the provisions of this chapter to cellular

telephone services is suspended unless the commission, no sooner than

one year after the effective date of this subdivision, makes a

determination, after notice and hearing, that suspension of the

application of the provisions of this chapter shall cease to the extent

found necessary to protect the public interest.

b. For the purpose of determining whether a cellular provider is

subject to taxation under section one hundred eighty-six-a of the tax

law on a gross income or gross operating income basis, during a period

of suspension prescribed pursuant to this section, the tax status of

such provider shall be determined on the day previous to the day such

suspension commenced and such status shall continue during the period of

such suspension.

c. Notwithstanding paragraph a of this subdivision, the commission may

designate any commercial mobile radio or cellular telephone service

providers as an eligible telecommunications carrier for purposes of

providing lifeline service, in addition to any commercial mobile radio

or cellular telephone service providers designated as such pursuant to

47 U.S.C. § 214(e) and 47 U.S.C. § 214(e)(2), without requiring any such

provider to obtain a certificate of public convenience and necessity

pursuant to section ninety-nine of this chapter. The commission is

authorized and directed to promulgate all rules and regulations

necessary to implement the provisions of this paragraph, and to

establish standards and safeguards for approval as an eligible

telecommunications carrier for purposes of providing lifeline service.

Such standards and safeguards shall include, but not be limited to, the

provider's managerial, financial and technical capability and expertise,

including whether the provider has forfeited eligible telecommunications

carrier designation in another state or been subject to the imposition

of substantial monetary penalties by the federal communications

commission or another state. Upon adoption by the commission, such

standards and safeguards shall apply to new applicants, and shall not

apply to previously approved providers or affiliated entities of such

providers with common financial, managerial and technical capability and

expertise.

Corporations subject to chapter although not transacting

business. Corporations formed to acquire property or to transact

business which would be subject to the provisions of this chapter, and

corporations possessing franchises for any of the purposes contemplated

by this chapter, shall be deemed to be subject to the provisions of this

chapter although no property may have been acquired, business transacted

or franchises exercised.

Jurisdiction of commission over certain corporations, their

operations and facilities.

1. The commission shall have no jurisdiction, supervision, powers or

duties with respect to any corporation which is owned or controlled in

whole or in part by a gas corporation, an electric corporation or a gas

and electric corporation subject to the jurisdiction of the commission

the primary function of which is the leasing, as lessor or lessee and/or

operating of a facility or facilities for the manufacture of electricity

or steam, as is permitted by and provided in article 18-A of the general

municipal law, provided that such facility or facilities are located on

a parcel of land consisting of more than two hundred acres and formerly

owned by the United States government and in any county of the state

having a population of two million inhabitants or more and where the

electric or steam service does not cross streets which are publicly

maintained and open to the use of the public at large.

2. The provisions of this section shall apply only to corporations

which have entered into an initial lease executed prior to July first,

nineteen hundred eighty.

Organization and records; minutes as evidence; destruction of

certain records. 1. The commission shall have a secretary and assistant

secretaries to be appointed by the chairman. It shall be the duty of the

secretary to keep a full and true record of all proceedings and a

transcript of the public sessions of the commission. The record of the

proceedings of the commission shall be prima facie evidence of the

proceedings of the commission. The transcript of public sessions shall

be made available in the Albany and New York city offices that the

commission maintains. The chairman shall have charge of the organization

of its office, shall assign its employees to the several divisions or

bureaus and shall superintend the performance of their duties. The

secretary and assistant secretary, each commissioner and each hearing

officer or person designated to conduct an investigation may administer

oaths in all parts of the state, so far as the exercise of such power is

properly incidental to the performance of his duty or that of the

commission.

2. Such records and general correspondence as are no longer necessary

for the purposes of the commission may be destroyed upon the order of

the commission; but no such record, report or correspondence shall be

destroyed until it shall have been on file for at least five years.

3. Any opinion issued by the commission in a formal commission

proceeding shall include a record of the vote taken indicating the names

of the commissioners who voted in favor and the names of the

commissioners who voted against the opinion. Any statement of dissent

shall be attached to the majority's opinion.

Additional officers and employees. The chairman shall have power

to employ such officers, clerks, inspectors, experts and employees, and

to make such contracts for special services as he may deem to be

necessary to carry out this chapter, or to perform the duties and

exercise the powers conferred by law upon the commission. The chairman,

by certificate filed in the office of the commission may from time to

time, specially authorize any officer or employee of the commission to

conduct any investigation or hearing, which the commission is authorized

to conduct, to take testimony in respect of the subject or matter under

investigation, and report the testimony to the commission, and in the

conduct of such investigation or hearing such officer or employee shall

have all the powers of a commissioner.

Oath of office; eligibility of commissioners and officers. Each

commissioner and each person appointed to office by the chairman shall,

before entering upon the duties of his office, take and subscribe the

constitutional oath of office. The oaths of office other than those of a

commissioner shall be filed in the office of the commission. No person

shall be eligible for appointment or shall hold the office of

commissioner or be appointed to, or hold, any office or position under

the commission, who holds any official relation to any person or

corporation subject to the supervision of the commission, or who owns

stocks or bonds of any such corporation.

Offices of commission; meeting; stationery, et cetera. The

principal office of the public service commission shall be in the city

of Albany, in rooms designated by the commissioner of general services.

The public service commission shall also maintain a branch office in the

city of New York. The commission shall hold stated meetings at least

once a month during the year at its office. The offices shall be

supplied with all necessary books, maps, charts, stationery, office

furniture, telephone and telegraph connections and all other necessary

appliances, to be paid for in the same manner as other expenses

authorized by this chapter.

Quorum; powers of a commissioner. A majority of the duly

appointed commissioners shall constitute a quorum and not less than a

majority of such commissioners concurring may transact any business,

perform any duty or exercise any power of the commission. The commission

may hold meetings of the commission at any time or place within the

state. Any investigation, inquiry or hearing which the commission has

power to undertake or to hold may be undertaken or held by or before any

commissioner or before any specially authorized officer or employee of

the commission, provided that at least one commissioner shall hold at

least one public hearing without delegation of authority to any

specially authorized hearing officer or employee when such hearings are

mandated by applications for rate increases. All investigations,

inquiries, hearings and decisions of a commissioner or specially

authorized officer or employee shall be and be deemed to be the

investigations, inquiries, hearings and decisions of the commission and

every order made by a commissioner, when approved and confirmed by the

commission and ordered filed in its office, shall be and be deemed to be

the order of the commission.

Counsel to the commission; duties. It shall be the duty of

counsel to the commission, subject to the direction of the chairman, to

represent and appear for the people of the state and the commission in

all actions and proceedings involving any question under this chapter,

or within the jurisdiction of the commission, and, if directed to do so

to intervene, if possible, in any action or proceeding in which any such

question is involved; to commence and prosecute all actions and

proceedings directed or authorized, and to expedite in every way

possible final determination of all such actions and proceedings; and

generally to perform all duties and services delegated to or required of

him.

Expenses. All officers, clerks, inspectors, experts and

employees of the commission shall receive the compensation fixed by the

chairman of the commission within the amounts appropriated therefor by

the legislature. The commissioners and counsel to the commission may

receive, in lieu of expenses, twenty-five dollars per day, and a

proportionate amount thereof for each fraction of a day, while engaged

in the performance of official duties at a place other than the city to

which they are regularly assigned, and shall be reimbursed for the

actual and necessary cost of transportation incurred by them; this

provision, however, shall not be applicable to the chairman or a

commissioner receiving a definite sum in lieu of traveling expenses. The

officers, clerks, inspectors, experts and employees, shall have

reimbursed to them all actual and necessary traveling and other expenses

and disbursements incurred or made by them in the discharge of their

official duties.

Payment of salaries and expenses. All salaries and expenses of

the public service commission shall be paid monthly from the state

treasury upon the audit and warrant of the comptroller out of the funds

provided therefor.

Certain acts prohibited. Every commissioner, and every person

employed or appointed to office in the department is hereby forbidden

and prohibited to solicit, suggest, request or recommend, directly or

indirectly, to any corporation or person subject to the supervision of

the commission, or to any officer, attorney, agent or employee thereof,

the appointment of any person to any office, place, position or

employment. And every such corporation and person, and every officer,

attorney, agent and employee thereof, is hereby forbidden and prohibited

to offer to any commissioner or to any person employed by the department

any office, place, appointment or position, or to offer or give to any

commissioner, or to any officer employed or appointed to office in the

department any free pass or transportation or any reduction in fare to

which the public generally are not entitled or free carriage for

property or any present, gift or gratuity of any kind. If any

commissioner or any person employed or appointed to office in the

department shall violate any provision of this section he shall be

removed from office. Every commissioner and every person employed or

appointed to office in the department shall be and be deemed to be a

public officer. Any employee or agent of the department who divulges any

confidential information which may come to his knowledge during the

course of any inspection or examination of the property, accounts,

records or memoranda of any person, corporation or municipality subject

to the jurisdiction of the commission, except insofar as he may be

directed by the commission, or by a court or judge, or authorized by

law, shall be guilty of a misdemeanor.

Reports of commission. 1. All proceedings of the commission and

all documents and records in its possession shall be public records.

2. The commission shall conduct a hearing and take testimony relative

to any pending legislation with respect to any person, corporation or

matter within the jurisdiction of the commission, if requested to do so

by the legislature or by either branch thereof or by a standing

committee of either branch thereof or by the governor or by any such

person or corporation, and shall report its conclusions to the

legislature. The commission may also recommend the enactment of such

legislation with respect to any matter within its jurisdiction as it

deems wise or necessary in the public interest.

Certified copies of papers filed to be evidence. Copies of all

official documents and orders filed or deposited according to law in the

office of the commission, certified by a commissioner or by the

secretary or assistant secretary of the commission to be true copies of

the originals, under the official seal of the division, shall be

evidence in like manner as the originals.

Costs and expenses of the commission and department and the

assessment of such costs and expenses. 1. All costs and expenses of the

department and commission shall be paid pursuant to appropriation on the

certification of the chairman of the department and upon the audit and

warrant of the comptroller. The state treasury shall be reimbursed

therefore by payments to be made thereto from all moneys collected

pursuant to this chapter. The total of such costs and expenses shall be

borne by the public utility companies (including for the purposes of

this section municipalities other than municipalities as defined in

section eighty-nine-l of this chapter), corporations (including the

power authority of the state of New York), and persons subject to the

commission's regulation, to be assessed in the manner provided in

subdivisions two, three and four of this section and section two hundred

seventeen of this chapter.

1-a. All costs and expenses of the department related to the

department's responsibilities under section three-b of this chapter

shall be paid pursuant to appropriation on the certification of the

chairman of the department and upon the audit and warrant of the

comptroller. For the state fiscal year beginning on April first, two

thousand fourteen and each state fiscal year thereafter, payments are to

be made from all moneys collected from the Long Island power authority

pursuant to this section. The total of such costs and expenses shall be

assessed on such authority in the manner provided in subdivisions two,

three and four of this section.

2. (a) The chairman of the department shall estimate prior to the

start of each state fiscal year the total costs and expenses, including

the compensation and expenses of the commission and the department,

their officers, agents and employees, and including the cost of

retirement contributions, social security, health and dental insurance,

survivor's benefits, workers' compensation, unemployment insurance and

other fringe benefits required to be paid by the state for the personnel

of the commission and the department, and including all other items of

maintenance and operation expenses, and all other direct and indirect

costs. Based on such estimates, the chairman shall determine the amount

to be paid by each assessed public utility company and the Long Island

power authority and a bill shall be rendered to each such public utility

company and authority.

(b) The bill for each public utility company and the Long Island power

authority shall be rendered on or before February first preceding each

fiscal year, and shall be for the amount equal to the product of the

aforesaid estimated costs and expenses of conducting the department's

and commission's total operations during the fiscal year for which

billing is being made multiplied by the proportion which compares:

(1) the gross operating revenues, over and above five hundred thousand

dollars, for that utility company or the authority derived from

intrastate utility operations in the last preceding calendar year, or

other twelve month period as determined by the chairman, to:

(2) the total of the gross operating revenues, derived from intrastate

utility operations for all utility companies and the authority in the

state which revenues are included under subparagraph one of this

paragraph.

For the purposes of calculating the commodity cost component of its

gross operating revenue, where the utility delivers to end-use customers

electricity and/or natural gas commodities that are sold to such

customers by a third party, such utility shall include in its revenues

an estimate of the sales revenue for the electric and/or natural gas

commodities that it delivers, including all such commodities sold to

end-use customers by third parties, in such manner as to assure that all

end-use delivery customers, regardless of the entity from which they

purchase their electric and/or natural gas commodities, bear a fair and

proportionate share of the assessment imposed herein, as the commission

may determine.

(c) The minimum assessment for any utility company, as well as the

Long Island power authority, whose gross revenues from intrastate

utility operations are in excess of five hundred thousand dollars in the

preceding calendar year shall be two hundred dollars.

(d) The amount of such bill for fiscal years beginning on or after

April first, nineteen hundred eighty-three so rendered shall be paid by

such public utility company and such authority to the department on or

before April first; provided, however, that any such utility company or

such authority may elect to make partial payments for such costs and

expenses on March tenth of the preceding fiscal year and on September

tenth of such fiscal year. Each such partial payment shall be a sum

equal to fifty percentum of the estimate of costs and expenses to be

assessed against such utility company or authority under the provisions

of this subdivision and shall not be less than two hundred dollars.

(e) During the course of any state fiscal year, the chairman may

increase or decrease the estimate of costs and expenses. In such case,

revised bills shall be sent to each public utility company and such

authority, and such increase or decrease shall be equally apportioned

against the remaining payments for such fiscal year.

(f) On or before October tenth of each year, the chairman shall

compute the actual costs and expenses of the department and the

commission and adjustments or other corrections as needed for the

preceding state fiscal year and, after deducting the amounts recovered

pursuant to subdivisions three and four of this section, shall, on or

before October twentieth, send to each public utility company and/or the

authority affected thereby a statement setting forth the amount due and

payable by, or the amount standing to the credit of, such public utility

company and/or the authority. Any amount owing by any public utility

company and/or the authority shall be paid not later than thirty days

following the date such statement is received. Any such amount standing

to the credit of any public utility company shall be refunded by the

commission or, at the option of such utility company, shall be applied

as a credit against any succeeding payment due.

(g) The total amount which may be charged to any public utility

company and the Long Island power authority under authority of this

subdivision for any state fiscal year shall not exceed one per centum of

such public utility company's or authority's gross operating revenues

derived from intrastate utility operations in the last preceding

calendar year, or other twelve month period as determined by the

chairman; provided, however, that no corporation or person that is

subject to the jurisdiction of the commission only with respect to

safety, or the power authority of the state of New York, shall be

subject to the general assessment provided for under this subdivision.

Notwithstanding the provisions of subdivision one of this section, for

telephone corporations as defined in subdivision seventeen of section

two of this article, the total amount which may be charged such

corporations for department expenses under the authority of subdivision

one of this section for any state fiscal year shall not exceed one-third

of one percentum of such corporation's gross operating revenue, over and

above five hundred thousand dollars, derived from intrastate utility

operations in the last preceding calendar year, or other twelve month

period as determined by the chairman.

(h) On-bill recovery charges billed pursuant to section sixty-six-m of

this chapter shall be excluded from any determination of an entity's

gross operating revenues derived from intrastate utility operations for

purposes of this section.

3. In the case of corporations or persons subject to the jurisdiction

of the commission only with respect to safety, the chairman of the

department shall ascertain from time to time, but not less than once in

each fiscal year, all direct and indirect costs of investigating (a) the

safety of the pipelines conveying gas at pressures in excess of one

hundred twenty-five pounds per square inch gauge or conveying liquid

petroleum products of such corporations or persons and (b) the safety of

any gas plant of corporations manufacturing pipeline quality gas and

subject to the safety jurisdiction of the commission by virtue of the

proviso to exception (b) of subdivision eleven of section two of this

chapter. The chairman shall for each investigation assess such costs

against such corporations or persons whose pipelines or plants have been

investigated. Bills for such an investigation may be rendered from time

to time but not less than once in each fiscal year, and the amount of

such bills shall be paid by the appropriate corporation or person to the

department within thirty days from the date of rendition. The total

amount which may be charged to any corporation or person for any state

fiscal year as the cost of investigating the safety of pipelines shall

not exceed one hundred dollars times the sum of the products obtained by

multiplying the mileage (to the nearest tenth) of each section of any

such pipeline in the state in use at the end of the preceding calendar

year by its nominal diameter in feet (to the nearest tenth). The total

amount which may be charged to any pipeline quality gas manufacturing

company for any state fiscal year as the costs of investigating the

safety of the plant of such company shall not exceed one-third of one

per centum of the estimate of the average annual gross revenues from the

sales of manufactured gas over a three-year period of operation or

anticipated operation, as determined by the chairman, of such pipeline

quality gas manufacturing company.

* 4. In the case of the power authority of the state of New York, the

chairperson of the department shall ascertain from time to time, but not

less than once in each fiscal year, all direct and indirect costs of

investigating requests by the power authority of the state of New York

to establish new, major electric transmission facilities and major

renewable energy facilities or to establish new, major electric

generating facilities. The chairperson shall for each such investigation

assess such costs against the power authority of the state of New York.

Bills for such an investigation may be rendered from time to time, but

not less than once in each fiscal year, and the amount of such bills

shall be paid by the power authority of the state of New York to the

department within thirty days from the date of rendition.

* NB Effective until December 31, 2040

* 4. In the case of the power authority of the state of New York, the

chairman of the department shall ascertain from time to time, but not

less than once in each fiscal year, all direct and indirect costs of

investigating requests by the power authority of the state of New York

to establish new, major utility transmission facilities as defined in

article seven of this chapter or to establish new, major steam electric

generating facilities as defined in article eight of this chapter. The

chairman shall for each such investigation assess such costs against the

power authority of the state of New York. Bills for such an

investigation may be rendered from time to time, but not less than once

in each fiscal year, and the amount of such bills shall be paid by the

power authority of the state of New York to the department within thirty

days from the date of rendition.

* NB Effective December 31, 2040

4-a. In the case of research, development and demonstration of new

energy technologies, the director of the budget may enter into

contracts, subject to the availability of appropriations, with the New

York state energy research and development authority for the costs of

such research, development and demonstration beyond such amounts as may

be available to the New York state energy research and development

authority for such purposes from bonds, grants or other sources. On or

before February first preceding each fiscal year, the chairman of the

authority shall estimate and transmit to the chairman of the department

of public service the total costs of authority research, development and

demonstration projected to be authorized by contracts with the director

of the budget for such fiscal year. The chairman of the department shall

apportion the costs of such research, development and demonstration in

accordance with the billing procedures of this section among gas

corporations and electric corporations as defined in section two of this

chapter. Such apportionment shall be excluded from the general

assessment provided for under subdivision two of this section. The total

amount which may be charged to any gas corporation and electric

corporation for any state fiscal year shall be .6 cents per one thousand

cubic feet for gas sold and .006 cents per kilowatt hour of electricity

sold by such corporations in their intrastate utility operations the

last preceding calendar year.

4-b. In the case of research, development and demonstration of new

energy technologies, the director of the budget may enter into

contracts, subject to the availability of appropriations, with the New

York state energy research and development authority for the costs of

such research, development and demonstration beyond such amounts as may

be available to the New York state energy research and development

authority for such purposes from bonds, grants or other sources,

including the power authority of the state of New York. Not later than

November first preceding each fiscal year, the energy research and

development authority and the power authority of the state of New York

shall agree as to a specific level of financial support to be provided

by the power authority of the state of New York for the energy research

and development authority's energy research development and

demonstration activities for such fiscal year. Such level of financial

support shall be incorporated in the annual budget request submitted by

the energy research and development authority and shall be reflected as

an offset to recommended appropriations for research, development and

demonstration of new energy technologies; provided, however, that the

sum of such recommended appropriations and such offset shall not exceed

twelve million dollars. One hundred per centum of the costs of such

research, development and demonstration not supplemented by bonds,

grants or other sources, not to exceed nine million six hundred thousand

dollars, shall be apportioned in accordance with the billing procedures

of this section, provided, that such costs shall be apportioned among

gas corporations and electric corporations as defined in section two of

this chapter and shall be excluded from the general assessment provided

for under subdivision two of this section. The total amount which may be

charged to any gas corporation and electric corporation for any state

fiscal year shall be .6 cents per one thousand cubic feet for gas sold

and .006 cents per kilowatt hour of electricity sold by such

corporations in their intrastate utility operations the last preceding

calendar year.

5. On demand made within thirty days of the rendition of any bill

pursuant to subdivision two, three or four of this section, the party so

charged shall be afforded an opportunity to be heard as to the amount

thereof. Any amounts of such bills not paid within thirty days from the

date of determination upon such hearings, or, if none shall be demanded,

on the date upon which such payment is due, shall bear interest at a

rate to be prescribed by regulation of the commission. Such rate shall

be not less than six percentum per annum nor more than the rate of

interest prescribed by the superintendent of financial services pursuant

to the provisions of section fourteen-a of the banking law in effect on

the day immediately preceeding the date on which the provisions of this

subdivision as amended become effective, but if the commission has not

set such rate, interest at six percentum per annum shall apply. Any

interest rate set by the commission shall become effective not less than

sixty days after such rate is promulgated.

Refunds by the commission. Whenever it appears that any

person, firm, corporation or municipal corporation, has paid to the

commission fees or other charges in excess of the amount legally

chargeable against such person, firm, corporation or municipal

corporation, the commission shall have power, within three years after

the date of such payment, to refund to such person, firm, corporation or

municipal corporation the amount of such excess. Such refund may be made

upon audit by the comptroller, from any moneys in the hands of the

commission, not as yet turned over to the department of taxation and

finance.

Attendance of witnesses and their fees. 1. The commission shall

have power to issue subpoenas and subpoena duces tecum. All subpoenas

shall be signed and issued by a commissioner, by an officer or employee

of the commission specially authorized to conduct an investigation or

hearing or by the secretary or assistant secretary of the commission.

The fees of witnesses required to attend before the commission, or a

commissioner, or an officer or employee specially authorized to conduct

an investigation or hearing, shall be the same as in the case of a

subpoena issued out of a court of record, and paid when the witness is

excused from further attendance. Except as is herein provided subpoenas

shall be regulated by the civil practice law and rules. Whenever a

subpoena is issued at the instance of a complainant, respondent, or

other party to any proceeding before the commission, the cost of service

thereof and the fee of the witness shall be borne by the party at whose

instance the witness is summoned.

2. If a person subpoenaed to attend before the commission or a

commissioner, or an officer or employee specially authorized to conduct

an investigation or hearing, fails to obey the command of such subpoena,

without reasonable cause, or if a person in attendance before the

commission or commissioner, or an officer or employee specially

authorized to conduct an investigation or hearing, shall, without

reasonable cause, refuse to be sworn or to be examined or to answer a

question or to produce a book or papers, when ordered so to do by the

commission, or a commissioner, or an officer or employee specially

authorized to conduct an investigation or hearing, or to subscribe and

swear to his deposition after it has been correctly reduced to writing,

he shall be guilty of a misdemeanor and may be prosecuted therefor in

any court of competent criminal jurisdiction.

Practice before the commission; immunity of witnesses. 1. All

hearings before the commission or a commissioner, or an officer or

employee specially authorized to conduct an investigation or hearing,

shall be governed by rules to be adopted and prescribed by the

commission. And in all investigations, inquiries or hearings the

commission or a commissioner, or an officer or employee specially

authorized to conduct an investigation or hearing, shall not be bound by

the technical rules of evidence.

2. In any investigation or inquiry by or upon any hearing before the

commission or any commissioner, or an officer or employee specially

authorized to conduct an investigation or hearing, the commission, any

commissioner or the officer conducting the investigation or hearing may

confer immunity in accordance with the provisions of section 50.20 of

the criminal procedure law.

Court proceedings; preferences. All actions and proceedings

under this chapter, and all actions and proceedings commenced or

prosecuted by order of the commission, and all actions and proceedings

to which the commission or the people of the state of New York may be

parties, and in which any question arises under this chapter, or under

the railroad law, or under or concerning any order or action of the

commission, shall be preferred over all other civil causes except

election causes in all courts of the state of New York and shall be

heard and determined in preference to all other civil business pending

therein excepting election causes, irrespective of position on the

calendar. The same preference shall be granted upon application in any

action or proceeding in which the commission may be allowed to

intervene.

Rehearing before commission. After an order has been made by

the commission any corporation or person interested therein shall have

the right to apply for a rehearing in respect to any matter determined

therein, but any such application must be made within thirty days after

the service of such order, unless the commission for good cause shown

shall otherwise direct; and the commission shall grant and hold such a

rehearing if in its judgment sufficient reason therefore be made to

appear. The decision of the commission granting or refusing the

application for a rehearing shall be made within thirty days after the

making of such application. If a rehearing shall be granted, the same

shall be determined by the commission within thirty days after the same

shall be finally submitted. An application for such a rehearing shall

not excuse any corporation or person from complying with or obeying any

order or any requirement of any order of the commission, or operate in

any manner to stay or postpone the enforcement thereof except as the

commission may by order direct. If, after such rehearing and a

consideration of the facts, including those arising since the making of

the order, the commission shall be of opinion that the original order or

any part thereof is in any respect unjust or unwarranted, or should be

changed, the commission may abrogate or change the same. An order made

after any such rehearing abrogating or changing the original order shall

have the same force and effect as an original order but shall not affect

any right or the enforcement of any right arising from or by virtue of

the original order.

Service and effect of orders; stay. 1. Every order of the

commission shall be served upon every person or corporation to be

affected thereby by electronic service in a manner and format provided

for in regulations established by the commission or alternatively, if

non-electronic service is requested by such person or corporation,

either by personal delivery of a copy thereof, or by the mailing of a

copy thereof, in a sealed package with postage prepaid, to the person to

be affected thereby or, in the case of a corporation, to any officer or

agent thereof upon whom a summons may be served in accordance with the

provisions of the civil practice law and rules. The commission shall

provide, upon request, a certified copy thereof or a copy thereof

bearing the seal of the commission. Within a time specified in the order

of the commission every person and corporation upon whom it is served

must if so required in the order notify the commission, in writing,

whether the terms of the order are accepted and will be obeyed and in

the case of a corporation such notification shall be signed and

acknowledged by a person or officer duly authorized by the corporation

to execute such acceptance and agreement. Every order of the commission

shall take effect at a time therein specified and shall continue in

force either for a period which may be designated therein or until

changed or abrogated by the commission, unless such order be

unauthorized by this chapter or any other act or be in violation of a

provision of the constitution of the state or of the United States.

2. No order staying or suspending an order of the commission fixing

any rate, fare or charge or joint rate, fare or charge shall be made by

the supreme court otherwise than upon notice and after hearing; and if

the order of the commission is suspended, the order suspending the same

shall contain a specific finding based upon evidence submitted to the

court and identified by reference thereto, that great and irreparable

damage would otherwise result to the petitioner and specifying the

nature of the damage.

3. Notwithstanding the provisions of subdivision one of this section,

the commission, or a person designated by the commission to act in its

place, may, verbally or in writing, order a public utility company or

municipality to initiate, continue or restore service to a residential

customer, whenever a reasonable question regarding the circumstances of

a termination or refusal of service exists, whenever a dispute with

respect to utility charges or service is pending, or whenever

termination or refusal of service is likely to affect a person's health

and safety; provided that, a verbal order shall be confirmed by the

commission or its designee by sending within five business days a

written notice to the utility. The commission shall issue regulations

implementing this section.

Action to recover penalties or forfeitures. An action to

recover a penalty or a forfeiture under this chapter or to enforce the

powers of the commission may be brought in any court of competent

jurisdiction in this state in the name of the people of the state of New

York, and shall be commenced and prosecuted to final judgment by the

commission. In any such action all penalties and forfeitures incurred up

to the time of commencing the same may be sued for and recovered

therein, and the commencement of an action to recover a penalty or

forfeiture shall not be, or be held to be, a waiver of the right to

recover any other penalty or forfeiture; if the defendant in such action

shall prove that during any portion of the time for which it is sought

to recover penalties or forfeitures for a violation of an order or

regulation of the commission the defendant was actually and in good

faith prosecuting a suit, action or proceeding in the courts to set

aside such order or regulation, the court shall remit the penalties or

forfeitures incurred during the pendency of such suit, action or

proceeding. All moneys recovered in any such action, together with the

costs thereof, shall be paid into the state treasury to the credit of

the general fund. Any such action may be compromised or discontinued on

application of the commission upon such terms as the court shall approve

and order. An action may be maintained by the commission for the whole

or any part of the penalties or forfeitures prescribed in this chapter,

and judgment may be rendered for the amount demanded in the complaint,

or for any less amount, as justice may require.

Notice to be given to department of state prior to rate

increase.

1. Notwithstanding any inconsistent general, special or local law or

rule or regulation to the contrary, the commission shall to the extent

the department shall so request in any cases or class of cases, give

notice to the department of any filed statement proposing to modify or

increase rates, services, schedule of rates or any other rating rule or

to adopt or amend any rate or service rules or regulations within five

days after the commission shall have received such statement from any

utility subject to its jurisdiction; provided, however, that in lieu of

giving such notice, the commission may direct that the utility give such

notice to the department.

2. In any such case in which the department shall file with the

commission a statement of intent to be a party, the department shall

have and in its discretion may exercise all the rights and privileges of

a party.

3. For the purposes of this section, the term "commission" shall mean

the public service commission.

Notice to be given Long Island power authority prior to rate

increase. 1. Notwithstanding any inconsistent general, special or local

law or rule or regulation to the contrary, the commission shall to the

extent the Long Island power authority shall so request in any cases or

class of cases, relating to a gas or electric corporation operating

within the service territory of the authority, give notice to the

authority of any filed statement proposing to modify or increase rates,

services, schedule of rates or any other rating rule or to adopt or

amend any rate or service rules or regulations within five days after

the commission shall have received such statement from any gas or

electric corporation within the service territory of the Long Island

Power authority subject to its jurisdiction; provided, however, that in

lieu of giving such notice, the commission may direct that the gas or

electric corporation give such notice to the authority.

2. In any such case in which the authority shall file with the

commission a statement of intent to be a party, the authority shall have

and in its discretion may exercise all the rights and privileges of a

party.

3. For the purposes of this section, the term "authority" shall mean

the Long Island power authority, the term "commission" shall mean the

public service commission.

Penalties. 1. Every public utility company, corporation or

person and the officers, agents and employees thereof shall obey and

comply with every provision of this chapter and every order or

regulation adopted under authority of this chapter so long as the same

shall be in force.

2. Any public utility company, corporation or person and the officers,

agents and employees thereof that knowingly fails or neglects to obey or

comply with a provision of this chapter or an order adopted under

authority of this chapter so long as the same shall be in force, shall

forfeit to the people of the state of New York a sum not exceeding one

hundred thousand dollars constituting a civil penalty for each and every

offense and, in the case of a continuing violation, each day shall be

deemed a separate and distinct offense.

3. Notwithstanding the provisions of subdivision two of this section,

any such public utility company, corporation or person and the officers,

agents and employees thereof that knowingly fails or neglects to obey or

comply with a provision of this chapter, or an order or regulation

adopted under the authority of this chapter, adopted specifically for

the protection of human safety, including but not limited to the

commission's code of gas safety regulations shall, if it is determined

by the commission that such safety violation caused or constituted a

contributing factor in bringing about a death or personal injury,

forfeit to the state of New York a sum not to exceed the greater of:

(a) two hundred and fifty thousand dollars constituting a civil

penalty for each separate and distinct offense; provided, however, that

for purposes of this paragraph each day of a continuing violation shall

not be deemed a separate and distinct offense. The total period of a

continuing violation, as well as every distinct violation, shall be

similarly treated as a separate and distinct offense for purposes of

this paragraph; or

(b) the maximum forfeiture determined in accordance with subdivision

two of this section.

4. Notwithstanding the provisions of subdivision one or two of this

section, a public utility company, corporation or person and the

officers, agents and employees thereof that knowingly fails or neglects

to obey or comply with a provision of this chapter, or an order or

regulation adopted under authority of this chapter, designed to protect

the overall reliability and continuity of electric service, shall

forfeit to the state of New York a sum not to exceed the greater of:

(a) five hundred thousand dollars constituting a civil penalty for

each separate and distinct offense; provided, however, that for purposes

of this paragraph each day of a continuing violation shall not be deemed

a separate and distinct offense. The total period of a continuing

violation, as well as every distinct violation, shall be similarly

treated as a separate and distinct offense for purposes of this

paragraph; or

(b) the maximum forfeiture determined in accordance with subdivision

two of this section.

4-a. (a) Notwithstanding the provisions of subdivision one or two of

this section, any public utility company or corporation, and the

officers, agents or employees thereof that knowingly makes a false

material statement, representation or certification to the commission in

any rate proceeding shall forfeit to the state of New York a sum not to

exceed two hundred fifty thousand dollars. Each false material

statement, representation or certification shall constitute a separate

and distinct offense for purposes of this section.

(b) A public utility company or corporation, and the officers, agents

or employees thereof that discover that a false material statement,

representation or certification was previously made to the commission in

relation to a rate proceeding shall disclose such false material

statement, representation or certification to the commission within

three business days of discovery. Failure to make such disclosure shall

constitute a knowing violation of this subdivision and shall cause such

public utility company or corporation and the officers, agents or

employees thereof to be liable for forfeiture pursuant to this

subdivision.

5. Penalties provided for pursuant to this section shall be recovered

in an action as provided in section twenty-four of this article.

6. Any payment made by a public utility company, corporation or person

and the officers, agents and employees thereof as a result of an action

as provided in section twenty-four of this article and the cost of

litigation and investigation related to any such action shall not be

included by the commission in revenue requirements used to establish

rates and charges.

7. In construing and enforcing the provisions of this chapter relating

to forfeitures and penalties, the act of any director, officer, agent or

employee of a public utility company, corporation or person acting

within the scope of his or her official duties or employment shall be

deemed to be the act of such public utility company, corporation or

person.

Combination gas and electric corporations; administrative

sanctions; recovery of penalties. Notwithstanding sections twenty-four

and twenty-five of this article: 1. Every combination gas and electric

corporation and the officers thereof shall adhere to every provision of

this chapter and every order or regulation adopted under authority of

this chapter so long as the same shall be in force.

2. (a) The commission shall have the authority to assess a civil

penalty against a combination gas and electric corporation and the

officers thereof subject to the jurisdiction, supervision, or regulation

pursuant to this chapter in an amount as set forth in this section. In

determining the amount of any penalty to be assessed pursuant to this

section, the commission shall consider: (i) the seriousness of the

violation for which a penalty is sought; (ii) the nature and extent of

any previous violations for which penalties have been assessed against

the corporation or officer; (iii) whether there was knowledge of the

violation; (iv) the gross revenues and financial status of the

corporation; and (v) such other factors as the commission may deem

appropriate and relevant. The remedies provided by this subdivision are

in addition to any other remedies provided in law.

(b) Whenever the commission has reason to believe that a combination

gas and electric corporation or such officers thereof should be subject

to imposition of a civil penalty as set forth in this subdivision, it

shall notify such corporation or officer. Such notice shall include, but

shall not be limited to: (i) the date and a brief description of the

facts and nature of each act or failure to act for which such penalty is

proposed; (ii) a list of each statute, regulation or order that the

commission alleges has been violated; and (iii) the amount of each

penalty that the commission proposes to assess.

(c) Whenever the commission has reason to believe that a combination

gas and electric corporation or such officers thereof should be subject

to imposition of a civil penalty or penalties as set forth in this

subdivision, the commission shall hold a hearing to demonstrate why the

proposed penalty or penalties should be assessed against such

combination gas and electric corporation or such officers.

3. Any combination gas and electric corporation determined by the

commission to have failed to reasonably comply as shown by a

preponderance of the evidence with a provision of this chapter,

regulation or an order adopted under authority of this chapter so long

as the same shall be in force shall forfeit a sum not exceeding the

greater of one hundred thousand dollars or two one-hundredths of one

percent of the annual intrastate gross operating revenue of the

corporation, not including taxes paid to and revenues collected on

behalf of government entities, constituting a civil penalty for each and

every offense and, in the case of a continuing violation, each day shall

be deemed a separate and distinct offense.

4. Notwithstanding the provisions of subdivision three of this

section, any such combination gas and electric corporation determined by

the commission to have failed to reasonably comply with a provision of

this chapter, or an order or regulation adopted under the authority of

this chapter specifically for the protection of human safety or

prevention of significant damage to real property, including, but not

limited to, the commission's code of gas safety regulations shall, if it

is determined by the commission by a preponderance of the evidence that

such safety violation caused or constituted a contributing factor in

bringing about: (a) a death or personal injury; or (b) damage to real

property in excess of fifty thousand dollars, forfeit a sum not to

exceed the greater of:

(i) two hundred fifty thousand dollars or three one-hundredths of one

percent of the annual intrastate gross operating revenue of the

corporation, not including taxes paid to and revenues collected on

behalf of government entities, whichever is greater, constituting a

civil penalty for each separate and distinct offense; provided, however,

that for purposes of this paragraph, each day of a continuing violation

shall not be deemed a separate and distinct offense. The total period of

a continuing violation, as well as every distinct violation, shall be

similarly treated as a separate and distinct offense for purposes of

this paragraph; or

(ii) the maximum forfeiture determined in accordance with subdivision

three of this section.

5. Notwithstanding the provisions of subdivision three or four of this

section, a combination gas and electric corporation determined by the

commission to have failed to reasonably comply by a preponderance of the

evidence with a provision of this chapter, or an order or regulation

adopted under authority of this chapter, designed to protect the overall

reliability and continuity of electric service, including but not

limited to the restoration of electric service following a major outage

event or emergency, shall forfeit a sum not to exceed the greater of:

(a) five hundred thousand dollars or four one-hundredths of one

percent of the annual intrastate gross operating revenue of the

corporation, not including taxes paid to and revenues collected on

behalf of government entities, whichever is greater, constituting a

civil penalty for each separate and distinct offense; provided, however,

that for purposes of this paragraph each day of a continuing violation

shall not be deemed a separate and distinct offense. The total period of

a continuing violation, as well as every distinct violation shall be

similarly treated as a separate and distinct offense for purposes of

this paragraph; or

(b) the maximum forfeiture determined in accordance with subdivision

three of this section.

6. Any officer of any combination gas and electric corporation

determined by the commission to have violated the provisions of

subdivision three, four, or five of this section, and who knowingly

violates a provision of this chapter, regulation or an order adopted

under authority of this chapter so long as the same shall be in force

shall forfeit a sum not to exceed one hundred thousand dollars

constituting a civil penalty for each and every offense and, in the case

of a continuing violation, each day shall be deemed a separate and

distinct offense.

7. Any such assessment may be compromised or discontinued by the

commission. All moneys recovered pursuant to this section, together with

the costs thereof, shall be remitted to, or for the benefit of, the

ratepayers in a manner to be determined by the commission.

8. Upon a failure by a combination gas and electric corporation or

officer to remit any penalty assessed by the commission pursuant to this

section, the commission, through its counsel, may institute an action or

special proceeding to collect the penalty in a court of competent

jurisdiction.

9. Any payment made by a combination gas and electric corporation or

the officers thereof as a result of an assessment as provided in this

section, and the cost of litigation and investigation related to any

such assessment, shall not be recoverable from ratepayers.

10. In construing and enforcing the provisions of this chapter

relating to penalties, the act of any director, officer, agent or

employee of a combined gas and electric corporation acting within the

scope of his or her official duties or employment shall be deemed to be

the act of such corporation.

11. It shall be a violation of this chapter should a director, officer

or employee of a public utility company, corporation, person acting in

his or her official duties or employment, or an agent acting on behalf

of an employer take retaliatory personnel action such as discharge,

suspension, demotion, penalization or discrimination against an employee

for reporting a violation of a provision of this chapter of an order or

regulation adopted under the authority of this chapter, including, but

not limited to, those governing safe and adequate service, protection of

human safety or prevention of significant damage to real property,

including, but not limited to, the commission's code of gas safety.

Nothing in this subdivision shall be deemed to diminish the rights,

privileges or remedies of any employee under any other law or

regulation, including but not limited to article twenty-C of the labor

law and section seventy-five-b of the civil service law, or under any

collective bargaining agreement or employment contract.

Enforcement proceedings. Whenever the commission shall be of the

opinion that a public utility company, corporation or person and the

officers, agents or employees thereof is failing or omitting or is about

to fail or omit to do anything required of it by any provision of this

chapter or by order or regulation, adopted under the authority of this

chapter or is doing anything or about to do anything, or permitting

anything or about to permit anything to be done contrary to or in

violation of any provision of this chapter or an order or regulation

adopted pursuant to this chapter, the commission may direct counsel to

the commission to commence an action or special proceeding in the

supreme court in the name of the commission for the purpose of having

such violations or threatened violations stopped and prevented. Counsel

to the commission shall thereupon begin an action or special proceeding

alleging the violation complained of and praying for appropriate relief.

In case of default in answer or after answer, the court shall

immediately inquire into the facts and circumstances in such manner as

the court shall direct. Such other corporations or persons, as it shall

seem to the court necessary or proper to join as parties in order to

make its judgment effective may be joined as parties to the action or

proceeding. The final judgment in any such action or special proceeding

shall either dismiss the action or special proceeding, direct judgment

as prayed for in the complaint or petition, or be in such other form as

the court may determine is just and reasonable.

Public availability of certain competitive requests for

proposals. Any competitive requests for proposals relating to the

generation of electricity, initiated as part of a proceeding before the

commission and issued by any electric corporation having a retail

franchise service territory in the state, shall be made available to the

department and filed in the proceeding to which such requests for

proposals pertain according to the department's regulations for the

filing of documents with the department's secretary.

Residential gas, electric and steam service policy. This article

shall apply to the provision of all or any part of the gas, electric or

steam service provided to any residential customer by any gas, electric

or steam and municipalities corporation or municipality. It is hereby

declared to be the policy of this state that the continued provision of

all or any part of such gas, electric and steam service to all

residential customers without unreasonable qualifications or lengthy

delays is necessary for the preservation of the health and general

welfare and is in the public interest.

Applications for service. 1. Every gas corporation, electric

corporation or municipality shall provide residential service upon the

oral or written request of an applicant, provided that the commission

may require that requests for service be in writing under circumstances

as it deems necessary and proper as set forth by regulation, and

provided further that the applicant:

(a) makes full payment for residential utility service provided to a

prior account in his name; or

(b) agrees to make payments under a deferred payment plan of any

amounts due for service to a prior account in his name and makes a down

payment based on criteria to be established by the commission. No such

down payment shall exceed one-half of any money due from an applicant

for residential utility service, or three months average billing,

whichever is less; or

(c) is a recipient of public assistance, supplemental security income

or additional state payments pursuant to the social services law, or is

an applicant for such assistance, income or payments, and the utility

corporation or the municipality receives payment from, or is notified of

the applicant's eligibility for utility payments by the social services

official of the social services district in which such person resides

for amounts due for service to a prior account in the applicant's name,

together with guarantee of future payments to the extent authorized by

the social services law.

2. In the event a utility corporation or municipality denies an

applicant's application for service it shall provide prompt written

notice to such applicant of its reasons for denying service, specify

what the applicant must do to qualify for service, and advise the

applicant of his right to investigation and review of the denial of

service by the department if the applicant considers such denial to be

without justification. Any such notice denying service shall be sent to

an applicant within three business days after either a completed oral or

written application for service is received, provided however, the

commission may specify a different period for good cause. The commission

may also establish such additional notice requirements upon a utility

corporation or municipality as it believes necessary to assure

reasonable notification and protection for applicants.

3. Subject to the requirements of subdivisions four and five of this

section, whenever a residential customer moves to a new residence within

the service territory of the same utility corporation or municipality,

he shall be eligible to receive service at the new residence and such

service shall be considered a continuation of service in all respects,

with any deferred payment agreement honored, and with all rights of such

customer and such utility corporation provided by this article

unimpaired.

* 4. In the case of any application for service to a building which is

not supplied with electricity or gas, a utility corporation or

municipality shall be obligated to provide service to such a building,

provided however, that the commission may require applicants for service

to buildings located in excess of one hundred feet from gas or electric

transmission lines to pay or agree in writing to pay material and

installation costs relating to the applicant's proportion of the pipe,

conduit, duct or wire, or other facilities to be installed.

* NB Effective until December 19, 2026

* 4. In the case of any application for electric service to a building

which is not supplied with electricity, a utility corporation or

municipality shall be obligated to provide electric service to such a

building, provided however, that the commission may require applicants

for service to buildings located in excess of one hundred feet from

electric transmission lines to pay or agree in writing to pay material

and installation costs relating to the applicant's proportion of the

pipe, conduit, duct or wire, or other facilities to be installed.

* NB Effective December 19, 2026

* 4-a. In the case of any application for gas service to a building

which is not supplied with gas, a utility corporation or municipality

shall be obligated to provide gas service to such building, provided

however, that the commission shall require applicants for gas service to

such building to pay or agree in writing to pay material and

installation costs relating to the pipe or other facilities to be

installed to enable service to the applicant.

* NB Effective December 19, 2026

5. A utility corporation or municipality shall institute service to

any applicant who meets the requirement of subdivision one of this

section, within five business days after such applicant applies for

service, provided however, such requirement shall not apply where the

institution of service within five business days is prevented by adverse

weather conditions, serious physical impediments, construction

requirements, labor disputes or law. A utility corporation or

municipality shall initiate service promptly to applicants, and any such

corporation or municipality which fails to provide timely service to an

applicant as required by this subdivision without good cause as

determined by the commission, shall forfeit and pay to such applicant

the sum of twenty-five dollars per day for each day that such service is

not supplied. The chairman shall designate such officers and employees

as he deems necessary to act on complaints relating to applications for

service.

6. In the event the service sought in applications submitted pursuant

to this section is comprised of the provision of gas or electricity

commodity only, nothing in this section shall require the provision of

such service to any and all such applicants; provided, however, that

nothing in this subdivision shall prevent or preclude the commission or

a court from ordering the provision of such service to all such

applicants if such order is authorized pursuant to or required to

implement a provision of law other than this article.

Use of preferred name and pronouns. 1. Every utility

corporation or municipality shall provide applicants for residential

service and residential customers with a convenient option to request

that the utility corporation or municipality use their preferred name

and/or preferred pronouns in all written or oral communications between

the utility corporation or municipality and the applicant or customer,

as well as all statements or documentation relating to a customer's

residential service, regardless of whether such applicant or customer's

preferred name differs from their current legal name.

2. If an applicant or customer's preferred name differs from their

current legal name, a utility corporation or municipality may require

such applicant or customer to provide reasonable proof of identity using

their legal name, provided that such information shall be used solely to

verify the applicant or customer's identity or for other purposes

required by law.

3. No utility corporation or municipality shall:

(a) willfully and repeatedly fail to use an applicant or customer's

preferred name and/or preferred pronouns after being clearly informed of

the preferred name and/or preferred pronouns pursuant to subdivision one

of this section; or

(b) require an applicant or customer to specify their sexual

orientation or gender identity or expression in order to use their

preferred name and/or preferred pronouns.

Termination of service. 1. Generally. Any termination of

residential utility service by utility corporations or municipalities

shall be in accordance with all relevant provisions of this article.

2. Utility service may be terminated, except as otherwise provided in

this section, if any person supplied with electric or gas service to a

residence:

(a) fails to pay charges for any service rendered during the preceding

twelve months, provided however that the commission by regulations may

permit the termination of service for bills due for service rendered

during periods in excess of twelve months where (i) there was a dispute

between such person and the utility corporation or municipality

concerning the bill during the twelve month period, (ii) delays in

termination are not the fault of the utility or were due to the culpable

conduct of such person, or (iii) such bills are necessary to adjust

estimated bills; or

(b) fails to pay amounts due under a deferred payment plan; or

(c) fails to pay or agree in writing to pay equipment and installation

charges relating to initiation of service; and

(d) is sent a final notice of termination no less than fifteen days

before the termination date shown on the notice. Any such notice shall,

at a minimum, clearly state the reason for termination of service; how

termination may be avoided; that the utility corporation or municipality

has available procedures for handling complaints; a summary of the

protections available under this article; that any customer eligible for

such protections should contact the utility corporation or municipality;

and such other provisions as the commission may require. A utility

corporation or municipality may not issue a final notice of termination

unless at least twenty days have elapsed from the date payment was due.

The commission may increase the number of days before which a final

notice of termination may be sent.

3. The commission shall safeguard from termination, or require

restoration of service to, those residents who will suffer serious

impairments to health or safety as a result of such termination or

failure to restore services. The regulations shall include, but not be

limited to:

(a) Medical emergencies. The commission shall require the continuation

or restoration of utility service to a customer's residence where a

medical emergency exists. The commission shall provide for written

certification by a medical doctor, nurse practitioner or local board of

health that termination of service or failure to restore service will

aggravate an existing medical emergency at a customer's residence,

provided that the commission may authorize an initial certification by

telephone if written certification is provided within five business

days. The commission shall provide for the duration, form, content and

renewal of written certificates. With respect to the renewal of written

certificates, the commission may require the customer to demonstrate an

inability to pay charges for service. The commission shall, in

consultation with the departments of health and social services and the

office for the aging, establish criteria to be used by a medical doctor,

nurse practitioner or local board of health in making a determination

that a medical emergency exists or that the absence of service will

aggravate an existing medical emergency.

(b) Customers who are elderly, blind, or disabled. The commission

shall provide special procedures to be followed by a utility or

municipality with respect to the termination or restoration of service

to a residence where the customer is known to or identified to the

utility to be blind, disabled, or sixty-two years of age or older;

provided that all the remaining residents of the household are sixty-two

years of age or older, eighteen years of age or under, or blind or

disabled. The commission shall afford reasonable protections to elderly,

blind or disabled customers, including a requirement that the utility

corporation or municipality make a diligent effort to contact by

telephone or in person an adult resident at the customer's premises at

least seventy-two hours prior to termination of service. The commission

shall also establish reasonable procedures for identifying customers

eligible for the protections of this section.

(c) Special procedures for cold weather periods. (i) The commission

shall establish procedures to be followed by a utility or municipality

supplying heat related service in cold weather periods. Such procedures

shall be designed to identify and assist, prior to termination of

service, those residents who may suffer serious impairment to health or

safety as a result of any such termination. The commission shall

establish the applicable cold weather periods; specify criteria for

identifying residents who are likely to suffer serious impairments, and

require that such service not be terminated unless a representative of

the utility or municipality makes a diligent effort to contact by

telephone or in person an adult resident of the customer's premises at

least seventy-two hours prior to termination, makes a personal visit at

the time of termination and provides the customer with information

regarding the protections available under this article. The commission

shall provide for the manner in which such contacts and personal visits

are made. (ii) The commission shall also require a utility or

municipality supplying service to continue service to customers where a

serious impairment to health or safety is likely to result from

termination of service and the person supplied is unable because of

mental or physical problems to manage his or her own resources or to

protect himself or herself from neglect or hazardous situations without

the assistance of others. Doubts shall be resolved in favor of continued

service. Continuations of service shall be for a period of time to be

established by the commission. The commission shall consult with the

department of social services and the state office for the aging in

implementing the provisions of this paragraph.

4. The commission shall preclude terminations for nonpayment other

than between the hours of eight a.m. and four p.m., Monday through

Thursday, provided that such day or the following day is not a public

holiday as defined in the general construction law.

5. (a) In the event the service to a residential customer terminated

pursuant to this section or the service to a multiple-family dwelling

pursuant to section thirty-three of this article or a two-family

dwelling pursuant to section thirty-four of this article consists of the

provision of gas or electricity commodity only, the utility providing

distribution services to such customer shall suspend the provision of

such distribution services and the provision of any other related

services to such customer if:

(i) The utility providing distribution services to such customer is

notified of the termination in such manner and form as the commission

shall, by regulation, prescribe; which notification shall include

documentation sufficient to confirm that such termination was, in all

respects, in compliance with this article and that the conditions set

forth in this subdivision have been met;

(ii) Except in the case of a service to a multiple dwelling pursuant

to section thirty-three of this article, such customer was billed using

a billing system in which all charges for service were present on a

single bill;

(iii) Such utility providing distribution services provided such

services to the customer at the time of the termination;

(iv) The utility implementing the termination confirms that it is able

to and will take all actions within its control necessary to resume the

provision of electric or gas commodity to such customer in accordance

with the agreement for such service between such utility and such

customer, if the customer makes full payment of the amount of arrears

that were the basis for the termination of service;

(v) The utility implementing the termination has not assigned its

right to obtain payment of the arrears to an entity that is not a

utility for purposes of this article; and

(vi) Less than one year has elapsed since such termination of

commodity service has occurred.

(b) All notices provided pursuant to this article in connection with

such termination shall include notice of the suspension of services

that, pursuant to this subdivision, can occur coincidental with such

termination and shall state the amount which must be paid to the utility

making the termination in order to obtain the resumption of service from

such terminating utility and, if different, the amount which must be

paid to the utility making the termination to end such suspension of

services.

(c) The utility shall make its best efforts to institute such

suspension of distribution service promptly and shall receive reasonable

compensation from the terminating utility, as determined by the

commission, for any costs associated with such suspension of

distribution services. Any payments for arrears made by a customer after

the termination of service shall be allocated equitably on a pro rata

basis between the terminating utility and the utility that provided

distribution services, to the extent arrears are owed to both such

utilities.

(d) Such suspension shall end upon the occurrence of any of the

conditions identified in paragraphs (a) through (e) of subdivision one

of section thirty-five of this article, upon the expiration of one year

after such termination of commodity service, or upon the receipt of

payments by or on behalf of the customer to the terminating utility such

that the amount paid by such customer to the terminating utility plus

the amount previously paid the terminating utility plus any other

charges paid to the utility providing distribution service during the

period when such customer's arrears accrued is equal to or greater than

the amount such customer would have paid if the entire utility service

had been obtained from the utility providing distribution services

during such period.

6. Implementation of the provisions of this section shall not limit

the contractual remedies for damages which might be available to the

terminating utility provided that an award of such damages is not

inconsistent with any of the provisions of this article.

Discontinuance of residential utility service to multiple

dwellings. 1. Notwithstanding any other provisions of law, no public

utility company or municipality shall discontinue gas, electric or steam

service to an entire multiple dwelling (as defined in the multiple

dwelling law or the multiple residence law) located anywhere in this

state for nonpayment of bills rendered for service unless such utility

shall have given fifteen days written notice of its intention so to

discontinue as follows:

(a) Such notice shall be served personally on the owner of the

premises affected, or in lieu thereof, to the person, firm, or

corporation to whom or which the last preceding bill has been rendered

and from whom or which the utility has received payment therefor, and to

the superintendent or other person in charge of the building or premises

affected, if it can be readily ascertained that there is such

superintendent or other person in charge.

(b) In lieu of personal delivery to the person or persons, firm or

corporation specified in (a) above, such notice may be mailed in a

postpaid wrapper to the address of such person or persons, firm or

corporation.

(c) In addition to the notice prescribed by paragraph (a) or (b) of

this subdivision, fifteen days written notice shall be (i) posted in the

public areas of such multiple dwelling, (ii) mailed to the "Occupant" of

each unit in that multiple dwelling, (iii) mailed to the local health

officer and the director of the social services district for the

political subdivision in which the multiple dwelling is located, (iv) if

the multiple dwelling is located in a city or a village, mailed to the

mayor thereof, or if there be none, to the manager, or, if the multiple

dwelling is located in a town, then mailed to the town supervisor, (v)

mailed to the county executive of the county in which the multiple

dwelling is located, or if there be none, then to the chairman of such

county's legislative body, and (vi) mailed to the office of the New York

state long term care ombudsman, if the multiple dwelling is a

residential health care facility as defined in subdivision three of

section twenty-eight hundred one of the public health law, an adult care

facility as defined in subdivision twenty-one of section two of the

social services law, or an assisted living residence as defined in

subdivision one of section forty-six hundred fifty-one of the public

health law as added by chapter two of the laws of two thousand four.

Notice required by subparagraphs (iv) and (v) of this paragraph may be

mailed to the persons specified therein or to their respective

designees. The notice required by this paragraph shall state the

intended date of discontinuance of service, the amount due for such

service, and the procedure by which any tenant or public agency may make

such payment and thereby avoid discontinuance of service.

(d) The written notice required by subparagraphs (iii), (iv), (v) and

(vi) of paragraph (c) of this subdivision shall be repeated not more

than four days nor less than two days prior to such discontinuance.

1-a. Whenever a notice of intention to discontinue utility service has

been made pursuant to the provisions of this section and obligations

owed the utility or municipality have been satisfied, the utility or

municipality shall notify, in the same manner as it gave such notice of

intention, the occupant of each unit that the intention to discontinue

utility service no longer exists.

2. For the purposes of this section, the department charged with

enforcing the multiple dwelling law shall prepare a schedule of all

multiple dwellings within its jurisdiction and shall provide a copy of

such schedule to any gas, steam or electric corporation or municipality

subject to the provisions of this section. Such schedule shall be

revised semi-annually and a revised copy provided to such corporation.

Every county, and every municipality to which the multiple dwelling law

does not apply, which county or municipality has compiled or hereafter

may compile a listing of all multiple dwellings within its jurisdiction

shall make such listing available without charge to any gas, steam or

electric corporation providing service in such county or municipality.

3. Any gas, electric or steam corporation or municipality which

willfully fails to comply with the provisions of this section shall be

liable for a penalty of twenty-five dollars for each occupied unit of

the multiple dwelling for each day during which service is unlawfully

discontinued; provided, however, that when the only non-compliance with

this section is failure to mail notice to each "Occupant" as required by

clause (ii) of paragraph (c) of subdivision one above the penalty shall

be twenty-five dollars for each occupied unit of the multiple dwelling

to which notice was not mailed for each day during which service is

unlawfully discontinued. An action to recover a penalty under this

section may be brought by the counsel to the commission in any court of

competent jurisdiction in this state in the name of the people of the

state of New York. Any moneys recovered in such action shall be paid to

the state treasury to the credit of the general fund.

4. Any person who willfully interferes with the posting of the notice

specified in clause (i) of paragraph (c) of subdivision one above by any

gas, steam or electric corporation or municipality, willfully defaces or

mutilates any such notice, or willfully removes the same from the place

where it is posted by such company prior to the date specified therein

for the discontinuance of service shall be guilty of a violation and,

upon conviction, shall be punished by a fine not exceeding twenty-five

dollars.

5. The commission shall maintain rules and regulations for the payment

by tenants of utility bills for gas, electric or steam service in a

multiple dwelling to which this section applies where the owner of any

such multiple dwelling, or the person, firm or corporation to whom or

which the last preceding bill has been rendered or from whom or which

the utility or municipality has received payment therefor, has failed to

pay such utility bills. Such rules and regulations shall (a) provide

that utility service may not be discontinued to any such multiple

dwelling as long as the tenants continue to make timely payments in

accordance with established procedures; (b) include designation of an

office to advise tenants of the rights and procedures available pursuant

to such rules and regulations; (c) assure that tenants shall not be

liable for bills more than two months in arrears; and (d) require the

commission upon petition of twenty-five percent of the tenants of such

multiple dwelling to meet with representatives of such tenants and the

owner, person, firm or corporation to whom or which the last preceding

bill has been rendered or from whom or which the utility has received

payment therefor.

Discontinuance of utility service in two family dwellings. 1.

Notwithstanding any other provision of law, no utility corporation or

municipality shall terminate gas or electric service to a two family

dwelling that it knows contains units where service is not metered

separately unless such utility or municipality shall have given fifteen

days' written notice of its intention to terminate service as follows:

(a) a copy of such notice shall be mailed to the owner of the premises

affected, or in lieu thereof, to the person, firm or corporation to whom

or which the last preceding service bill has been rendered, and

(b) a copy of such notice shall be mailed or otherwise delivered to

each occupied unit, and

(c) where possible, a copy of such notice shall be posted in a

conspicuous place at or within the dwelling.

2. The commission shall affirmatively approve or provide for the form

and content of notices required by subdivision one of this section. Such

notices shall state the intended date of termination of service, the

amount due for such service, and the procedure by which any occupant may

make payment or take action to avoid termination of service.

3. The commission shall provide by regulation:

(a) that any occupant may prevent termination of service if such

occupant applies for and is eligible for such service;

(b) that any occupant may prevent termination of service by making

payments in accordance with established procedures. In no event shall

such payments include bills more than two months in arrears. Any

occupant who chooses to pay current charges shall not be liable for any

future bills which may be rendered for utility service supplied to the

dwelling. The utility corporation or municipality shall continue to

render all bills to the customer with a copy to be sent to any occupant

upon request; and

(c) staff to advise occupants of the provisions of this section and

the commission's regulations.

4. Whenever the obligations owed to the utility corporation or

municipality for service to a dwelling have been satisfied, the

corporation or municipality shall notify an occupant of each dwelling

which was given notice of intent to terminate service.

Reconnection of service. 1. The commission shall by regulation

establish reasonable conditions under which an electric or gas

corporation or municipality shall be required to take all actions within

such corporation or municipality's control and, where applicable,

consistent with the provision of the agreement for commodity service, if

any, between the corporation and the customer, provided such provisions

are consistent with this article to reconnect service to residential

customers. Such conditions shall include, but not be limited to,

requirements for reconnection of service within twenty-four hours,

unless prevented by circumstances beyond the utility's or municipality's

control, (a) upon receipt by a corporation or municipality of the full

amount of arrears which were the basis for termination of service, (b)

upon the signing of a deferred payment plan together with a down payment

based on criteria to be established by the commission, provided that no

such down payment shall exceed one-half of the amount which was the

basis of termination, or the amount of three months billing, whichever

is less, (c) upon the direction of the commission, (d) upon the receipt

of a commitment of a direct payment or a written guarantee of payment

from the social services official of the social services district in

which the customer resides or (e) where the utility or municipality has

notice that a serious impairment to health or safety is likely to result

if service is not reconnected. With respect to reconnection on the basis

of serious impairment of health or safety doubts shall be resolved in

favor of reconnection of service. The chairman shall designate such

officers and employees as he deems necessary to act on requests for

service reconnections.

2. Where any utility corporation or municipality is required to

reconnect service within twenty-four hours and fails or neglects to do

so without good cause as determined by the commission, it shall forfeit

and pay to the customer the sum of not less than twenty-five dollars nor

more than fifty dollars per day for each day thereafter, as determined

by the commission, that such service is not supplied.

Residential service deposits. 1. On and after January first,

nineteen hundred eighty-two, no utility corporation or municipality

shall require any new residential customer, other than a seasonal or

short term customer, to post a security deposit as a condition of

receiving utility service. In addition, no utility corporation or

municipality shall after the first day of September, nineteen hundred

eighty-two, or such earlier date as the commission may determine,

require a current residential customer to post a security deposit other

than such a customer who is delinquent according to standards set by the

commission. Deposits held on the first day of September, nineteen

hundred eighty-two, or such earlier date as the commission may

determine, shall be returned to the customer immediately, but not later

than the next bill for service; provided, however, that this provision

shall not apply to deposits of delinquent customers. No utility

corporation or municipality shall require any known recipient of public

assistance, supplemental security income benefits or additional state

payments to post a security deposit as a condition of receiving service.

2. Notwithstanding the provisions of subdivision one of this section,

the commission, after investigation and hearing, may authorize any

utility corporation or municipality to require and hold security

deposits from residential customers or applicants for service upon a

finding that the collection and maintenance of such deposits is cost

effective to the utility as a whole without regard to cash flow and the

availability of capital.

3. In any case where customer deposits are authorized by this section,

a utility corporation or municipality may require a customer or

applicant for service to deposit a reasonable sum of money according to

the estimated quantity of such services necessary to supply the customer

or applicant for service for two months, to secure payment for such

services actually rendered, or for the rental of fixtures, instruments

and facilities actually supplied. Every such utility corporation and

municipality shall allow to every such customer or applicant for service

interest on the sum deposited at a rate per annum to be prescribed from

time to time and at least annually by the commission in light of current

economic conditions and current charges paid for moneys borrowed by such

utility, taking into account the expenses incurred by such utility in

obtaining, handling, returning or crediting the sum deposited. Such

interest shall be paid upon the return of the deposit, provided however,

that whenever such deposit has been held for a period of one year, the

interest shall be credited to the customer or applicant for service on

the first billing for utility service rendered after the end of such

period. If a customer or applicant for service is not delinquent in the

payment of any billing during such one year period, the deposit shall be

refunded promptly at the end thereof, without prejudice to the utility's

or municipality's right to require a deposit thereafter in the event of

a delinquency. All utility corporations and municipalities shall exempt

from deposit requirements any customer or applicant for service who is

sixty-two years of age or older, unless the customer or applicant for

service is a bad credit risk according to standards set by the

commission.

Deferred payment agreements. 1. No utility corporation or

municipality shall terminate or refuse to take all actions within such

corporation or municipality's control and, where applicable, consistent

with the provisions of the agreement for commodity service, if any,

between the corporation and the customer, provided such provisions are

consistent with this article, to restore service to a residential

customer, because of arrears owed the utility corporation or

municipality, unless the utility or municipality offers such customer a

deferred payment agreement for such arrears; provided, however, that a

deferred payment agreement under this article shall not be available to

any customer who the commission determines has the resources available

to pay his bill, and provided further, however, that any such agreement

may provide for the customer to make a downpayment of the arrears,

provided that no such downpayment shall exceed one-half of the amount of

arrears or three months average billing, whichever is less. In addition,

the commission shall provide by regulation that (a) all deferred payment

agreements authorized by this article be fair and equitable, considering

the customer's financial circumstances; (b) that such agreements

obligate customers to make timely payment of current charges for service

together with payment of arrears during the pendency of the agreements;

that such agreements may be renegotiated and amended where the customer

can demonstrate that there have been significant changes in his or her

financial circumstances which have arisen due to conditions beyond the

customer's control, and that, if the customer receives a utility service

by the receipt of portions of such service from each of two or more

utility corporations and is billed for such service through a single

bill, the payments pursuant to the deferred payment agreement for

current charges shall be allocated to each such utility corporation

based on the current charges owing to each and the payments for arrears

shall be allocated equitably on a pro-rata basis between such utility

corporations based on the amount of arrears owing to each.

2. Upon offering any deferred payment agreement, and prior to the

signing thereof, a utility corporation or municipality shall give a

customer a copy of the agreement, in a form established or affirmatively

approved by the commission, which shall contain a conspicuous, bold type

notice that the customer may request the assistance of the commission in

reaching an agreement. Any such agreement shall be signed in duplicate

by the utility or municipality and the customer and each shall receive a

signed copy thereof.

Budget or levelized payment plans; quarterly billing. 1. Every

utility corporation or municipality shall offer residential customers a

budget billing plan or levelized payment plan for payment of charges for

gas or electric service. Any such plans shall also be offered to

customers who are condominium associations or cooperative housing

corporations regardless of whether such associations or corporations are

classified as residential or commercial customers.

2. Every utility corporation or municipality shall offer residential

customers who are sixty-two years of age or older, as an alternative to

monthly billing, a plan for payment on a quarterly basis of charges for

gas and electric service rendered by such corporation or municipality,

provided that such customer's average annual billing is not more than

one hundred fifty dollars.

3. The commission may establish such terms and conditions for plans

required under this section as it deems necessary or proper.

Meter reading and estimated bills. 1. A utility corporation or

municipality may, in accordance with such requirements as the commission

may impose by regulation, render an estimated bill for any billing

period if: (a) the procedure used by such utility or municipality for

calculating estimated bills has been approved by the commission, and the

bill clearly indicates that it is based on an estimated reading and (b)

the utility owning the meter and providing the meter reading data on

which the estimated bill will be based or the municipality has made

reasonable effort to obtain an actual meter reading or (c) circumstances

beyond the control of the utility or municipality made an actual reading

of the meter extremely difficult or (d) circumstances indicate a

reported reading is likely to be erroneous, or (e) an estimated reading

is prescribed or authorized by the commission for a billing period

between periods when actual meter readings are scheduled or for seasonal

or short term customers.

2. Where a utility corporation owning the meter and supplying meter

reading data for a bill or a municipality fails to gain access to a

meter for a period of four months or two billing periods, whichever is

greater, the corporation or municipality shall take reasonable actions

to obtain an actual meter reading. Such additional actions may include,

but not be limited to: making an appointment with the customer or such

other person who controls access to the meter for a reading at a time

other than within normal business hours, offering the customer the

opportunity to phone in a meter reading, or providing a card to the

customer on which he or she may record the reading and mail it to the

utility or municipality.

3. Where a utility corporation or municipality has submitted an

estimated bill or bills to a residential customer, and such estimate or

estimates significantly understate the actual amount of money owed by

such customer, the customer shall have the right to pay the difference

between the estimated charges and the actual charges in regular monthly

installments over a reasonable period. The commission shall establish by

regulation the minimum amount for any such underbilling, and the length

of any such period; provided, however, that no such installment period

shall be less than three months.

4. Upon discontinuation of utility service to a residential customer,

a gas or electric corporation shall notify such customer of their right

to an actual meter reading. It shall be the right of every residential

customer of a gas or electric corporation, upon the discontinuation of

utility service, to obtain, upon request, an actual meter reading by

such customer's gas or electric corporation. A gas or electric

corporation shall provide such a reading within forty-eight hours of

such request, provided that if circumstances beyond the control of the

gas or electric corporation make an actual reading of the meter

extremely difficult, such corporation shall not be required to provide

an actual meter reading. A gas or electric corporation shall not be

required to provide a physical meter reading during a holiday or

non-work day, but shall instead provide such meter reading on the next

workday.

Voluntary third-party notification. 1. Every utility corporation

or municipality shall permit a residential customer to designate a third

party to receive notice of the total amount due or past due on all

bills, the amounts of any payments paid by or on behalf of such

residential customer, and copies of all notices relating to termination

of service and notices relating to collection of amounts due sent to

such residential customer, provided that the designated third party

indicates in writing a willingness to receive such notices, and provided

further, where a residential customer opts for third-party

notifications, such residential customer may opt to continue to receive

such notices.

2. Every utility corporation or municipality shall permit a landlord,

upon written request of both the landlord and tenant, to designate a

third party to be notified of all requests for discontinuance of service

to units occupied by such tenant, provided that the designed third party

indicates in writing a willingness to receive such notices, and provided

further, where the tenant and landlord customers opt for third-party

notifications, such tenant and landlord customers may opt to continue to

receive such notices.

Finality of certain utility charges. 1. Notwithstanding any

other provision of law, if a utility corporation or municipality does

not render a residential customer for gas or electric service, with the

exception of a seasonal or short-term customer as defined by rule of the

commission, a monthly bill for gas and/or electric services used by such

customer during that monthly period, or, in the case of bi-monthly meter

reads, during that month and the prior month, within three months from

the end date of such monthly billing period, then, such residential

customer shall not be charged for such gas and electric services which

were not billed to the customer as provided herein, unless the failure

of the corporation or municipality to bill sooner was not due to the

neglect of the corporation or municipality or was due to the culpable

conduct of the customer. If the customer remains liable for such

service, the utility shall permit payments to be made under an

installment payment plan, provided, however, that the utility or

municipality may require prompt payment if the non-billing resulted from

the culpable conduct of the customer. Any such installment payment plan

may provide for a downpayment of up to one-half of the amounts due from

the customer, or three months average billing, whichever is less.

2. Notwithstanding any other provision of law, a utility corporation

or municipality may not adjust upward a bill previously rendered to a

residential customer after the expiration of twelve months from the time

service to which the adjustment pertains was provided unless (a) failure

to bill correctly was caused by the customer's culpable conduct or was

not due to the neglect of the utility or municipality; (b) such

adjustment is necessary to adjust a budget payment plan; or (c) there

was a dispute between the utility or municipality and the customer

concerning the bill during the twelve-month period. A utility or

municipality issuing an additional or increased bill charging for

services rendered twelve or more months prior to such date of issuance

shall include with it a notice giving the reason for the late billing.

3. No public utility company or municipality may render a bill for

previously unbilled service, or adjust upward a bill previously

rendered, to a residential customer after the expiration of twenty-four

months from the time service to which the bill or adjustment pertains

was provided. This provision shall not apply when the culpable conduct

of a customer caused or contributed to the failure of the company or

municipality to have rendered a timely or accurate billing.

Other charges. 1. A utility corporation or municipality may

impose late payment charges not in excess of one and one-half percent

per month on the unpaid balance of any bill including any interest

thereon. Any such late payment charge, however, may not be imposed if

the bill is the subject of a pending complaint with the utility or

municipality provided, however, that such charge may be imposed

retroactively if the complaint is finally resolved in favor of the

utility or municipality.

2. Except as provided in subdivision one of this section, no utility

corporation or municipality may charge any residential customer a late

payment charge, penalty, fee, interest, or other charge of any kind for

any late payment, collection effort, service disconnection or deferred

payment agreement occasioned by the customer's failure to pay timely for

gas or electric service.

3. The rights and responsibilities of residential customers

participating in green jobs-green New York on-bill recovery pursuant to

section sixty-six-m of this chapter shall be substantially comparable to

those of electric and gas customers not participating in on-bill

recovery, and charges for on-bill recovery shall be treated as charges

for utility service for the purpose of this article, provided that:

(a) all determinations and safeguards related to the termination and

reconnection of service shall apply to on-bill recovery charges billed

by a utility pursuant to such section;

(b) in the event that the responsibility for making utility payments

has been assumed by occupants of a multiple dwelling pursuant to section

thirty-three of this article or by occupants of a two-family dwelling

pursuant to section thirty-four of this article, such occupants shall

not be billed for any arrears of on-bill recovery charges or any

prospective on-bill recovery charges, which shall remain the

responsibility of the incurring customer;

(c) deferred payment agreements pursuant to section thirty-seven of

this article shall be available to customers participating in on-bill

recovery on the same terms as other customers, and the utility shall

retain the same discretion to defer termination of service as for any

other delinquent customer;

(d) where a customer has a budget billing plan or levelized payment

plan pursuant to section thirty-eight of this article, the utility shall

recalculate the payments under such plan to reflect the projected

effects of installing energy efficiency measures as soon as practicable

after receipt of information on the energy audit and qualified energy

efficiency services selected;

(e) on-bill recovery charges shall not be subject to the provisions of

section forty-one of this article;

(f) late payment charges on unpaid on-bill recovery charges shall be

determined as provided in this section, or as otherwise consented to by

the customer in the agreement for green jobs-green New York on-bill

recovery and any such charges shall be remitted to the New York state

energy research and development authority;

(g) notwithstanding the provisions of section forty-three of this

article, when a complaint is related solely to work performed under the

green jobs-green New York program or to the appropriate amount of

on-bill recovery charges, the utility shall only be required to inform

the customer of the complaint handling procedures of the New York state

energy research and development authority, which shall retain

responsibility for handling such complaints, and such complaints shall

not be deemed to be complaints about utility service in any other

commission action or proceeding; and

(h) billing information provided pursuant to section forty-four of

this article shall include information on green jobs-green New York

on-bill recovery charges, including the basis for such charges, and any

information or inserts provided by the New York state energy research

and development authority related thereto. In addition, at least

annually the authority shall provide the utility with information for

inclusion or insertion in the customer's bill that sets forth the amount

and duration of remaining on-bill recovery charges and the authority's

contact information and procedures for resolving customer complaints

with such charges.

Payment of wages to workers; certain cases. 1. The legislature

hereby finds that the protection of critical infrastructure is furthered

by the enhanced training, experience and expertise of workers in all

positions at such facilities. Given that the state of New York, due to

its representation as a beacon of liberty, diversity and equality, and

its history of being the target of terrorist attacks, will always be a

target for those who wish to do this country and this state harm, New

York has a fundamental obligation to harden its infrastructure against

any such threats or activity. In hardening the infrastructure there is

no greater asset than the human capital that serve at the front lines of

the effort to thwart terrorist attacks. The electric and steam

generating facilities in the state, when active, provide a target that

requires the hardening not only of the physical infrastructure but the

human infrastructure as well. Turnover in such positions, for the

service workers who provide cleaning, security and maintenance services

at such active generating facilities will decrease if the workers are

paid increased wages. The reduction of turnover will allow for the more

developed and trained workforce to continue to provide the measure of

safety and security the state requires. Given that important state

interest, it is therefore found and declared that the workers at such

facilities shall be trained to ensure their ability to meet the security

needs of the facilities that they work upon. It is further found and

declared that the reduction of turnover may be accomplished by the

payment of rates of pay in line with those prevailing in such trade or

occupation, as otherwise defined.

2. The wages paid, and benefits provided, to building service

employees who are employed at a work location that is an active major

electric or steam generating facility, or at a transmission or

distribution facility considered critical infrastructure as determined

by the division of homeland security and emergency services in

consultation with the department, shall be subject to article nine of

the labor law. For purposes of this section "major electric generating

facility" means an electric generating facility with a nameplate

generating capacity of twenty-five thousand kilowatts or more, including

interconnection electric transmission lines and fuel gas transmission

lines, and "major steam generating facility" means a steam generating

facility with a generating capacity to be determined by the department.

Complaint handling procedures. 1. The commission shall maintain

regulations for the handling of residential customer complaints, which

at a minimum shall require that each utility or municipality: (a)

maintain procedures for prompt investigation of any complaint on a bill

for gas or electric service rendered or a deposit required and for

prompt reporting to the complainant of the result of such investigation.

If such report is made orally, the utility corporation or municipality

shall offer the complainant upon a written request the opportunity to

receive the report in writing; (b) inform any complainant whose

complaint is resolved in favor of the utility corporation or

municipality, in whole or in part, of the availability of the

commission's complaint handling procedures; (c) refrain from terminating

service for nonpayment so long as a complaint is pending before a

utility, municipality or the commission and for fifteen days thereafter,

or for such period as the commission for good cause shall establish;

provided however, that as a condition of continued service during the

pendency of any such dispute, a customer shall pay the undisputed

portions of any bill for service including bills for current usage, or

such amounts as the commission determines reasonably reflect the cost of

usage to such customer; and (d) refrain from treating the disputed

portion of any bill as late during the pendency of any complaint before

the utility or municipality.

2. The commission shall maintain regulations for complaint handling

procedures including complaints with respect to the negotiation of a

deferred payment agreement which shall include, at a minimum: (a)

provision for investigation and informal review and for appeal to the

commission in its discretion; (b) that the burden of proof in all

proceedings shall be on the utility corporation or municipality, except

as otherwise provided by the commission for good cause; and (c)

provision for parties to receive a written determination of any

complaint, upon request, in plain and simple English, which

determination shall set forth the relevant facts established, the

reasons for the determination, what actions must be taken and what

further procedures are available to a complainant.

3. The commission shall use its best efforts to complete its

investigation and review and to issue, within ninety days, its final

written determination of any appeal to it pursuant to this section.

Utility bills; informational notices. 1. Every utility

corporation or municipality shall assure that bills for service to

residential customers adequately explain the charges for service in

clear and understandable form and language. The commission may, from

time to time, specify the form and content of such bills to further the

objectives of this subdivision.

2. The public service commission and the state board of elections

shall coordinate a voluntary program with public utilities whereby at

the time service is initiated to a residential customer, a utility

corporation or municipality may provide each such customer with a voter

registration and a change-of-residence registration form.

3. At the time that service is initiated to a residential customer,

and at least once every year thereafter, a utility corporation or

municipality shall provide each such customer with an additional notice

which summarizes the rights and obligations of residential customers

relating to the rendition of service. At the time any such notice is

provided a customer, a utility corporation or municipality shall inquire

as to the customer's eligibility for the protection afforded the

elderly, blind, disabled and other customers under this article. The

commission shall, by regulation, establish procedures to assure, to the

extent practicable, that residential customers served by more than one

utility corporation or municipality for gas service or for electric

service shall not receive duplicative annual notices in connection with

such gas service or in connection with such electric service.

4. The commission shall require every utility corporation or

municipality providing service to a county wherein at least twenty

percent of the population regularly speak a language other than English

according to the most recent federal census to offer, at the request of

a residential customer residing in such a county, to prepare and send to

such customer its messages on bills and notices in both English and the

other language.

5. At least once a year, every utility corporation, energy services

company or municipality shall provide its customers with a notice that

billing statements are available in large print format. Upon written

request by a customer, a utility corporation, energy services company or

municipality shall provide the customer's billing statements in the

large print format commencing no later than sixty days after the date

upon which the request is received by the utility corporation, energy

services company or municipality. The provisions of this subdivision

shall apply only to printed statements. For the purposes of this

section, "large print" shall mean a printed font size of sixteen or

greater to illuminate billing information. For the purposes of this

section, "energy services company" or "ESCO" shall mean an entity

eligible to sell energy services to end-use customers using the

transmission or distribution system of a utility corporation.

6. Upon customer request, every utility corporation, energy services

company or municipality shall provide copies of previous billing

statements and/or statements verifying that such person requesting the

document is a customer of such utility corporation, energy services

company or municipality. Utility companies, energy services companies

and municipalities shall not impose any fee, charge or surcharge for

such requests.

7. Notwithstanding any other provision of law, as part of every

billing statement, any utility corporation that serves more than fifteen

thousand customers in the state shall provide the average daily usage

per month or the monthly usage at the customer's address for the prior

thirteen months. Additionally, notwithstanding any conflicting provision

of law, upon request by the customer, such utility corporation shall

provide monthly billing charge amounts at such customer's address for

the thirteen months prior to the current billing period, no later than

thirty days after such request is made.

Payment agencies. A utility corporation or municipality may

permit its customers to pay their bills to a payment agent. The date of

payment to any such agent shall be regarded as the date of payment to

the utility or municipality.

Emergency disconnections to residences. Notwithstanding any

other section of this article, a utility corporation in ownership or

control of the meters, pipes, fittings, wires and other apparatus

associated with the establishment of service to a residence or a

municipality may disconnect service to a residence when an emergency may

threaten the health or safety of a person, the surrounding area or the

utility's or municipality's distribution system. The utility corporation

or municipality shall act promptly to assure restoration of service as

soon as feasible. Service shall be restored to any residence before it

may be terminated for any other reason.

Inspection and examination of apparatus. 1. A duly authorized

agent of a utility corporation or municipality may enter any dwelling,

building or other location supplied with gas or electricity by the

utility corporation or municipality, for the purpose of inspecting and

examining the meters, pipes, fittings, wires and other apparatus for

regulating, supplying and/or ascertaining the quantity supplied, under

the following terms and conditions:

(a) the agent exhibits a photo-identification badge and a written

authority signed by the president or vice-president and secretary or

assistant secretary of the corporation, or by the mayor or clerk of a

municipal corporation or by the chairman and secretary of a municipal

board in control of a municipal utility, and

(b) any such inspection and examination shall be conducted on a

non-holiday work day between eight a.m. and six p.m. or such other

reasonable time requested by the customer, except when an emergency may

threaten the health or safety of a person, the surrounding area or the

utility's or municipality's distribution system, or except when the

commission by regulation establishes a different time for the inspection

and examination where there is evidence of meter tampering or theft of

services.

2. Except when an emergency may threaten the health or safety of a

person, the surrounding area or the utility's or municipality's

distribution system or where authorized by court order, an agent of a

utility or municipality, otherwise duly authorized to inspect and

examine apparatus may not enter locked premises without permission of a

person lawfully in control of the premises, nor use any manner of force

to carry out such inspection and examination.

Emergency hotline. 1. The commission shall establish a toll free

number, to be attended from nine o'clock a.m. to nine o'clock p.m. each

business day, which a residential customer may use to contact a

commission designee authorized to order the reconnection, continuation

or initiation of residential gas or electric service whenever a

reasonable question regarding the circumstances of a termination or

refusal of service exists or whenever the health and safety of a person

is involved.

2. Each utility corporation or municipality shall designate an

employee who can be contacted by the commission's designee and who is

authorized to direct an ordered reconnection, continuation or initiation

of service.

3. The commission may by regulation alter the time requirement for

operation of the emergency hotline as set forth in this section if the

commission determines that such alteration continues to provide

substantial emergency access to the commission by residential customers.

Utility services; domestic violence victims. 1. Every utility

corporation shall allow a person who is under a shared contract with

such utility corporation to opt-out of such contract without fee,

penalty or charge when such person is a victim of domestic violence and

provides an attestation in writing that they no longer wish to be a

party to such contract due to their status as a victim of domestic

violence. Such utility corporation may not require such person to

disclose confidential information or details relating to such person's

status as a victim of domestic violence, as a condition of permitting

such person to opt-out of such contract. Further, such utility

corporation may not make release from such contract contingent on: (a)

maintaining contractual or billing responsibility of a separated account

with the provider; (b) approval of separation by the primary account

holder, if the primary account holder is not the person making such

request; or (c) a prohibition or limitation on the separation as a

result of arrears accrued by the account. Such utility corporation shall

release such person from such contract no later than seven days after

receiving such opt-out request. Such utility corporation shall dispose

of information submitted by such person no later than thirty days after

receiving such information in a manner as to maintain confidentiality of

such information.

2. Every utility corporation shall make information about the options

and process described in subdivision one of this section readily

available to customers on the website and any mobile application of such

utility corporation, and in other forms of public-facing customer

communication.

3. A covered provider and any officer, director, employee, vendor or

agent thereof shall not be subject to liability for any claims arising

from an action taken or omission made with respect to compliance with

this section.

Residential steam service. The rights and responsibilities of

customers receiving residential steam service from steam corporations

shall be substantially comparable to those of gas and electric customers

under this article. The commission shall take such actions as it deems

necessary and proper to achieve this objective.

Residential water service. Every water-works corporation with

gross revenues in excess of two hundred fifty thousand dollars shall

provide residential service in accordance with all relevant provisions

of this article. The commission shall adopt such rules and regulations

as it deems necessary and proper to implement the provisions of this

section.

Rules and regulations. The commission shall adopt such

additional rules and regulations as it deems necessary and proper to

implement the provisions of this act.

Gas, electric and steam service to tenants provided through

shared meters. 1. Definitions: As used in this section, the following

terms shall have the following meanings:

(a) "Owner" means and includes the owner or owners of the freehold of

the premises or lesser estate therein, mortgagee or vendee in

possession, assignee of rents, receiver, executor, trustee, lessee,

agent, or any other person, firm or corporation, directly or indirectly

in control of a dwelling.

(b) "Shared meter" means any utility meter that measures gas, electric

or steam service provided to a tenant's dwelling and also measures such

service to areas outside that dwelling and such tenant pays charges for

the service to areas outside the dwelling measured through such meter.

(c) "Dwelling" means any building or structure or portion thereof

which is occupied in whole or in part as the home, residence or sleeping

place of one or more human beings, including any equipment located

outside such building or structure or portion thereof which is under the

exclusive use and control of the occupant, and is either rented, leased,

let or hired out, to be occupied, or is occupied as the residence or

home of one or more human beings.

(d) "Utility" means any gas, electric and steam corporation and/or

municipality providing service to residential customers.

(e) "Shared meter customer" means any tenant who rents a dwelling from

an owner that is served by a shared utility meter for which the tenant,

rather than the owner, is the utility's customer of record.

(f) "Extraordinary cost" means the cost, as determined by a qualified

professional, of installing equipment necessary to eliminate a shared

meter in a dwelling or portion thereof which is in excess of the amount

of rent for four months rental of such dwelling. The commission shall

adopt additional rules for determining extraordinary cost based upon

whether the amount of service measured by the shared meter that is

utilized outside the shared meter customer's dwelling is sufficient to

warrant the cost of such installation.

(g) "Legal impediment" means a restriction which prevents separate

metering, rewiring, or repiping due to zoning ordinances which limit the

number or type or location of meters in a building or due to the

historical significance of the structure or such other legal

restrictions as determined by the commission in its rules.

(h) "Shared area charges" means that portion of charges billed to the

shared meter customer which remains after excluding the estimated

charges for service used by the shared meter customer and where

applicable, a third party, for the period during which the owner

maintained a shared meter condition in violation of this section or six

years whichever is shorter.

(i) "Third party involvement" means that a third party whose utility

service was to be measured through another meter had caused or

benefitted from a shared meter condition.

2. Owner's responsibility for service measured through a shared meter.

(a) An owner shall eliminate any shared meter condition or, in the

alternative, establish an account in the owner's name for all the shared

area charges for service measured through a shared meter effective six

years prior to the discovery of or determination that a shared meter

condition exists, or the first day of the tenancy, or the date the

shared meter condition began, or the sixtieth day after the owner knew

or should have known that third party involvement exists, or the date

the owner assumed title to the dwelling, whichever is most recent in

time and for all future service measured by the shared meter. The

utility shall, upon an owner's application, open such an account and

bill the owner for all applicable shared area charges and all future

service measured by the shared meter through such account.

(b) (i) In the event that a legal impediment or extraordinary cost

prevents elimination of a shared meter condition or in the event that

the service measured through the shared meter is minimal, under

commission rules adopted, pursuant to subdivision eight of this section,

the owner, as an alternative to eliminating the shared meter condition,

may enter into a mutually acceptable written agreement with the shared

meter customer and where applicable, a third party, for apportioning the

charges for service measured through the shared meter; provided,

however, that the shared meter customer shall pay only for the estimated

amount of service provided to the shared meter customer's dwelling, or

(ii) In the event that there is an existing written agreement between

the owner and the shared meter customer, and where applicable, a third

party, for the apportionment of charges for service measured by a shared

meter prior to October twenty-fourth, nineteen hundred ninety-one, such

agreement will remain in effect, as an alternative to eliminating the

shared meter condition or establishing an account in the owner's name,

until any lease or rental agreement for the rental of the dwelling

expires, provided, however, that the shared meter customer or third

party may request the commission or its designee to review the existing

written agreement if such shared meter customer or third party believes

the terms are unfair or unreasonable. If the commission or its designee

finds that the terms of the existing written agreement are unfair or

unreasonable, the commission or its designee shall void such agreement

and assist the interested parties in negotiating and executing a

mutually acceptable written agreement.

(c) (i) In the event that a mutually acceptable written agreement is

negotiated and executed, the owner shall provide a copy of the agreement

to the utility, the shared meter customer, and where applicable, a third

party.

(ii) If the interested parties are unable to negotiate a mutually

acceptable written agreement, the commission or its designee, upon a

complaint by a customer or owner, shall order a remedy, consistent with

the relief provided in this section, as it deems proper. The commission

or its designee shall have the authority to apportion estimated charges

for service measured by a shared meter among the owner, shared meter

customer and any third party.

3. The provisions of this section: (a) may not be waived by an owner,

tenant, or utility; and

(b) shall not affect the validity of a lease or rental agreement in

effect on or before the effective date of this section. For purposes of

this section, renewals and extensions of leases and rental agreements

that commence after the effective date of this section shall be deemed

to be new leases and rental agreements.

4. Determination of shared meter condition. (a) Upon a customer's

verbal or written complaint that a shared meter is measuring service to

the customer's dwelling and that the customer is responsible for the

charges for such service or upon receipt of other information indicating

that a shared meter may exist, a utility shall notify the owner in

writing of the owner's responsibilities under this section, that a

complaint was received or information obtained that a shared meter may

exist, and that the utility is required to conduct an investigation. If

such utility is not the utility in ownership or control of the meters

and related pipes, fittings, wires and other apparatus associated with

the establishment and measurement of service to such customer's

dwelling, notice shall also be provided to such metering utility. Upon

the request of an owner or upon a complaint by a customer or upon

receipt of information indicating that a shared meter may exist, such

metering utility shall investigate and determine whether such service is

or is not measured by a shared meter. Such metering utility may

determine if separate metering or rewiring or repiping is possible and

shall provide the owner with information describing how shared meter

conditions can be eliminated. The investigation shall include, but not

be limited to, conducting appropriate tests, an examination of wiring,

piping, meters and heating equipment in the building as may be needed,

an estimate of gas, electricity or steam used in the shared meter

customer's dwelling and in areas outside the dwelling, and a review of

billing records.

(b) The determination shall be provided in writing, within thirty

business days of the date of the complaint or receipt of information or

owner's request, to the customer, the owner, any other tenants receiving

service measured by the shared meter, and any other utility providing

service to such customer through such meter. Such written determination

shall include a description of the specific areas outside the dwelling

served by the shared meter, the nature of the uses of the service, and

the proportional amount of service registered on the shared meter that

is provided to the shared meter customer's dwelling and to areas outside

the dwelling. A notice shall be included with the determination

informing the recipients of the availability of the commission's

complaint handling procedures, and providing the department's address

and telephone number for filing objections to such determination.

(c) Failure of an owner to provide access to any common area in the

building or to cooperate with any reasonable request made by the

investigating utility shall result in a determination that the

customer's dwelling is served by a shared meter, specifying the owner's

action that such utility understood to be a failure to cooperate.

Failure of a customer making a shared meter complaint to provide access

to a dwelling controlled by the customer or to cooperate with any

reasonable request made by the investigating utility shall cause the

utility to suspend the investigation and to notify in writing the

customer and the owner that the investigation is suspended, specifying

the customer's action that such utility understood to be a failure to

cooperate. A utility duly acting under this paragraph is entitled to

make the determinations provided for and shall be held harmless from any

subsequent monetary claim by an owner that the dwelling was not served

by a shared meter or by a shared meter customer that the dwelling was

served by a shared meter.

(d) Any customer filing a complaint under this section or owner who

disagrees with a utility's determination may utilize the commission's

complaint handling procedures to obtain a written departmental

determination by complaining to the department within forty-five days

after receipt of the utility's determination. In the event that the

utility fails to provide a determination on a complaint under this

section within the required time period, the department shall

investigate, upon the shared meter customer's or owner's request, and

issue a written determination. The commission or its designee shall have

the authority to apportion estimated charges for service measured by a

shared meter among the owner, shared meter customer and any third party.

5. Change in billing. Notwithstanding any inconsistent provision of

law, one hundred twenty days after notice is sent to the owner that the

utility or the department has made a final determination that the shared

meter customer's dwelling is served by a shared meter in violation of

subdivision two of this section:

(a) the utility shall verify that, pursuant to subdivision two of this

section, the owner has eliminated the shared meter condition or has

entered into a mutually acceptable written agreement with the shared

meter customer and where applicable, a third party, for apportioning the

charges for service measured by the shared meter and has provided a copy

to the utility, or, as an alternative to eliminating the shared meter

condition, has established a separate account in the owner's name as the

customer of record for all applicable shared area charges and all future

service measured by the shared meter;

(b) if the owner has not eliminated the shared meter or entered into

such agreement or established such account or if the amount of the

service is not minimal under commission rules adopted pursuant to

subdivision eight of this section, the utility shall establish an

account in the owner's name as the customer of record for service

measured through the shared meter and bill the owner for all applicable

shared area charges and all future service measured through the shared

meter; provided, however, that the commission or its designee may grant

an extension not to exceed ninety days to an owner if, in its judgment,

extenuating circumstances beyond an owner's control prevented timely

compliance, or such shared meter is the subject of an ongoing department

review regarding the apportionment of estimated charges pursuant to

subparagraph (ii) of paragraph (c) of subdivision two of this section;

(c) the utility shall refund to the customer or cancel shared area

charges; provided, however, that when third party involvement exists,

the utility shall credit the shared meter customer for all the estimated

charges of the third party;

(d) when such determination follows a customer complaint regarding a

shared meter condition or a utility discovery of a shared meter

condition that is not in response to an owner's request for a utility

inspection for a shared meter condition, with respect to utility service

billed after December first, nineteen hundred ninety-six, the utility

shall comply with the provisions of paragraphs (a), (b) and (c) of this

subdivision, and further bill the owner and refund to the shared meter

customer an estimated amount of charges for twelve months of all service

measured by the shared meter; provided, however, that this paragraph

shall not apply to a shared meter condition if service measured through

the shared meter is minimal under commission rules adopted pursuant to

subdivision eight of this section. An owner so billed may petition the

commission or its designee for a determination that the amount of such

bill is excessive and that such bill and refund be adjusted accordingly;

provided, however, neither the adjusted bill nor the adjusted refund

shall be less than twenty-five percent of the total amount of the

original bill. The commission is authorized to make such a determination

and adjustment if it finds that a bill and refund of twelve months'

charges is unduly burdensome and unfair. In making such determination

the commission or its designee shall consider the total amount of the

bill and refund in relation to the shared area charges over such twelve

month period and any other equitable factors established by the

commission; and

(e) the utility shall bill the third party, when third party

involvement exists, instead of the owner, for the applicable estimated

charges for service used by the third party credited by the utility to

the shared meter customer.

6. Refunded and cancelled utility charges. (a) No owner may bill a

shared meter customer or otherwise recover from such customer any

portion of the cancelled charges or charges refunded to such customer

and shall not bill such customer for any portion or percentage of any

future shared meter bills in the owner's name; provided, however, that

this section shall not preclude an owner from increasing future rents by

a specific sum to the extent otherwise permitted by law.

(b) A shared meter customer who receives a refund from a utility

pursuant to this section shall return a proportional share of that

refund to each person who had paid that shared meter customer for

utility service associated with the payment so refunded. The utility

shall be held harmless from the claim of any person for a share of any

payment so refunded.

7. Remedies. Where the owner or shared meter customer demonstrates the

existence of third party involvement, the owner or shared meter customer

shall be entitled respectively to recover the charges billed by the

utility to the owner's account, or to the shared meter customer's

account, pursuant to this section in a civil action against the third

party in a court of competent jurisdiction.

8. Minimal service. Notwithstanding any provision of this section to

the contrary, the commission shall determine an appropriate quantity of

service on a shared meter that is utilized outside of the shared meter

customer's dwelling which is to be considered minimal in commission

rules and regulations.

9. Notice requirements. On or before December first, nineteen hundred

ninety-five, every utility shall notify its residential customers and

each owner served by the utility of the requirements of this section.

Each utility may request from its customers the names and addresses of

the owners or recipients of rent for dwellings occupied by the customers

or obtain such names and addresses from any available public records in

order to provide the notice required by this subdivision. Such notice

shall be mailed in a postpaid wrapper under separate cover than bills

for service to the premises. Every utility shall also provide notice at

least annually to owners of dwellings, to the extent practicable, under

a plan submitted by the utility and approved by the department. Every

utility shall also implement an outreach program subsequent to such

written notice. Each utility shall submit a plan to provide notice

within sixty days of the effective date of this subdivision. In

addition, every utility shall notify each of its customers at least

annually, of the requirements that apply to owners, shared meter

customers and utilities pursuant to this section and shall include the

department's address and phone number for questions and complaints. In

addition, each utility may arrange for the publication of notices in

newspapers or the broadcasting in other media of notices describing such

requirements. The notices shall be subject to the approval of the

department.

10. Treatment of refunds. (a) Where, as of the effective date of this

subdivision, an owner of a building consisting of one to five dwelling

units has been billed for service measured through a shared meter

without an apportionment of charges for service used by the shared meter

customer and, where applicable, a third party, the utility shall refund

to the owner, upon the written request of the owner, any charges which

represent service used in the shared meter customer's dwelling and,

where applicable, a third party. Such written request must be submitted

no later than December first, nineteen hundred ninety-seven, provided

that an owner may petition the commission or its designee for an

extension upon a finding that such owner has not received timely or

adequate notice of the availability of such refund. In any case where an

owner has been billed but has not paid for such service, the utility

shall only collect from the owner shared area charges. The utility shall

not attempt to charge the shared meter customer or the third party for

any monies refunded to the owner pursuant to this section.

(b) In any case where a shared meter customer is entitled, following a

final determination of shared meter condition prior to the effective

date of this subdivision, to a refund but has not received such refund

because the owner has not made payments for which the owner was billed,

such shared meter customer shall receive his or her refund from the

utility.

(c) Notwithstanding any other provision of this section, in the case

where a shared meter customer is entitled, following a final

determination of a shared meter condition, to a refund or cancellation

of shared meter charges and title to the dwelling has been transferred

to a new owner, such shared meter customer shall receive his or her

refund from the utility for charges for service measured through a

shared meter, excluding the estimated charges for service used in the

shared meter customer's dwelling, for the period of time effective six

years prior to the discovery of or determination that a shared meter

condition exists, or the first day of the tenancy, or the date the

shared meter condition began, whichever is most recent in time.

(d) The commission shall investigate whether and to what extent

refunds provided pursuant to this subdivision were made necessary by

inadequate notice to customers regarding the provisions of this section.

11. Other relief. Notwithstanding any other provision of this section,

the rights of a utility customer under this article to seek and obtain

relief for payments made for service not provided to his or her dwelling

shall not be diminished in any manner. Unless otherwise specified in

this section, the rights of a utility to collect payment for service

rendered but unpaid shall not be diminished in any manner.

12. Apportionment. The commission shall establish guidelines for

estimating the amount of utility use in other space outside the shared

meter customer's dwelling and for apportioning costs required by this

section.

Application. For purposes of this article, a reference to a gas

corporation, an electric corporation, a utility company, or a utility

corporation shall include, but is not limited to, any entity that, in

any manner, sells or facilitates the sale or furnishing of gas or

electricity to residential customers. No provision of this article or of

this chapter authorizes or permits the provision of gas or electricity

service by any such corporation or other entity in any manner other than

in full compliance with the provisions of this article or to authorize

the commission to waive compliance with any requirement of this article

for any such corporation or other entity.

Prohibition of utilities engaging in detrimental conduct

towards a residential customer. 1. A utility corporation or

municipality, or energy services companies subject to the department's

uniform business practices and section three hundred forty-nine and

three hundred forty-nine-d of the general business law, also known as

ESCOs, shall not engage in any conduct the natural consequence of which

is to harass, oppress, or abuse any residential customer in connection

with the handling of a residential customer complaint, the offering

and/or negotiating of a deferred payment agreement, or the collection of

an unpaid balance or any other obligation owed by such customer.

2. All utilities or municipal utilities or ESCOs in violation of this

section shall be subject to fines, penalties and enforcement by the

department pursuant to sections twenty-four, twenty-five, twenty-five-a,

and twenty-six of this chapter, and all such other legal or equitable

remedies as may be necessary or convenient for protection of consumers

against the prohibited behaviors described in subdivision one of this

section.

3. The commission shall promulgate rules and regulations necessary to

implement and enforce the provisions of this section.

Application of article. This article shall apply to the

conveying, transportation and furnishing of petroleum and other such

flammable liquids, for any purpose, by way of pipeline. Within the

meaning of any provision of this article, the term, "liquid petroleum",

shall include crude oil, natural gasoline, natural gas liquids,

liquefied petroleum gas, liquid petroleum products and any other such

flammable liquids.

Powers of the commission in respect to liquid petroleum

pipeline safety. The commission shall:

1. Have general supervision over the safety standards of all liquid

petroleum pipeline corporations having authority under any general or

special law or under any charter or franchise to lay down and maintain

pipelines, ducts or conduits under or above the surface of any area of

the state for the purpose of the conveying, transporting and furnishing

of liquid petroleum and any other such flammable liquids.

2. Examine or investigate the methods employed in the conveying,

transporting and furnishing of liquid petroleum in and through the

state, and have the power to order such reasonable improvements as would

best promote the public interest and preserve and protect the public

health and safety, and in the pursuit of same, establish a basic code of

liquid petroleum pipeline safety rules and regulations.

3. Have the power, either through its members, or inspectors, or

employees duly authorized by it, to enter upon and to inspect the

property, pipes, ducts and conduits of any corporation engaged in the

transportation of petroleum via pipeline.

Application of article. This article shall apply to the

manufacture, conveying, transportation and furnishing of gas (natural or

manufactured or mixture of both) for light, heat or power and the

generation, furnishing and transmission of electricity for light, heat

or power. Within the meaning of any provision of this article, each of

the terms "gas corporation" and "electric corporation" also shall

include a gas and electric corporation, that is, such a corporation as

is organized for the objects and purposes of both a gas corporation and

an electric corporation, as the context of such provisions and the

powers actually exercised by such gas and electric corporation may

require.

Safe and adequate service; just and reasonable charges; unjust

discrimination; unreasonable preference; protection of privacy. 1. Every

gas corporation, every electric corporation and every municipality shall

furnish and provide such service, instrumentalities and facilities as

shall be safe and adequate and in all respects just and reasonable. All

charges made or demanded by any such gas corporation, electric

corporation or municipality for gas, electricity or any service rendered

or to be rendered, shall be just and reasonable and not more than

allowed by law or by order of the commission. Every unjust or

unreasonable charge made or demanded for gas, electricity or any such

service, or in connection therewith, or in excess of that allowed by law

or by the order of the commission is prohibited.

2. No gas corporation, electric corporation or municipality shall

directly or indirectly, by any special rate, rebate, drawback or other

device or method, charge, demand, collect or receive from any person or

corporation a greater or less compensation for gas or electricity or for

any service rendered or to be rendered or in connection therewith,

except as authorized in this chapter, than it charges, demands, collects

or receives from any other person or corporation for doing a like and

contemporaneous service with respect thereto under the same or

substantially similar circumstances or conditions.

3. No gas corporation, electric corporation or municipality shall make

or grant any undue or unreasonable preference or advantage to any

person, corporation or locality, or to any particular description of

service in any respect whatsoever, or subject any particular person,

corporation or locality or any particular description of service to any

undue or unreasonable prejudice or disadvantage in any respect

whatsoever.

4. Nothing in this chapter shall be taken to prohibit a gas

corporation or electric corporation from establishing a sliding scale

for a fixed period for the automatic adjustment or charges for gas,

electricity or any service rendered or to be rendered and the dividends

to be paid to stockholders of such gas corporation or electric

corporation, provided that the sliding scale shall first have been filed

with and approved by the commission; but nothing in this subdivision

shall operate to prevent the commission after the expiration of such

fixed period from fixing proper, just and reasonable rates and charges

to be made for service as authorized in this article.

5. Nothing in this chapter shall be taken to prohibit a gas

corporation or electrical corporation from establishing classifications

of service based upon the quantity used, the time when used, the purpose

for which used, the duration of use or upon any other reasonable

consideration, and providing schedules of just and reasonable graduated

rates applicable thereto. No such classification, schedule, rate or

charge shall be lawful unless it shall be filed with and approved by the

commission, and every such classification, rate or charge shall be

subject to change, alteration and modification by the commission.

6. Service charges prohibited. Every gas corporation shall charge for

gas supplied a fair and reasonable price. No such corporation shall make

or impose an additional charge or fee for service or for the

installation of apparatus or the use of apparatus installed, except that

a charge may be made:

(a) where entry, inspection or examination as authorized by

subdivision nine of this section is denied;

(b) for reconnecting the service to a person or corporation if the

service to such person or corporation was disconnected, in accordance

with applicable legal requirements, for non-payment of bills for

service;

(b-1) for expenses reasonably incurred as determined by the commission

in cases of meter tampering and theft of service. Such expenses shall

include, but not be limited to, the cost of investigating, repairing and

replacing meters and pipes, and the cost of moving a meter and

installing it in a secure location;

(c) for a remote meter reading device upon the request and consent of

the customer;

(d) for installation of capital improvements and fixtures to promote

energy efficiency upon the request and consent of the customer,

including but not limited to the performance of qualified energy

efficiency services for customers participating in green jobs-green New

York on-bill recovery pursuant to section sixty-six-m of this article;

or

(e) for the provision of thermal energy service.

7. No gas corporation or electric corporation shall sell or offer for

sale any list of names of its customers.

8. Inspection of transmission pipelines conveying natural gas. Every

gas corporation transmitting natural gas under permits or franchises

permitting the laying or maintaining of pipelines conveying natural gas

shall conduct a leak detection inspection using leak detection equipment

or employing a visual inspection of such transmission pipelines annually

or more frequently when ordered by the commission. A written report of

every such inspection shall be made available to the commission.

9. Buildings may be entered for the examination of meters, pipes,

fittings, wires and works. (a) Any officer or agent of any gas

corporation, electric corporation or municipality for that purpose duly

appointed and authorized by the corporation, upon exhibiting a

photo-identification badge and a written authority signed by the

president or vice-president and secretary or assistant secretary of the

corporation, or by the mayor or clerk of a municipal corporation or by

the chairman and secretary of a municipal board in control of a public

utility, may enter, at all reasonable times, any store, building, room

or place supplied with gas, electricity or water by such utility

corporation or municipality for the purpose of inspecting and examining

the meters, pipes, fittings, wires and works for supplying or regulating

the supply of gas or electricity and of ascertaining the quantity of gas

or electricity supplied.

(b) If any person, at any time, directly or indirectly, shall prevent

or hinder any such officer or agent from so entering any such premises,

or from making any such inspection or examination at any reasonable

time, he or she shall forfeit to the corporation or municipality one

hundred dollars for every such offense.

10. (a) Notwithstanding any other provision of law, in any case where

electric corporations are permitted incremental seasonal differentials

in rates or charges, such differentials shall not be imposed in any

month upon any residential customer for the first two hundred fifty

kilowatt hours used by such customer in such month; provided, however,

that the commission may promulgate rules to permit the imposition of

such seasonal differentials where a customer requests a special rate

that may include a seasonal differential or where service is to be

provided to a residential customer for a temporary period not to exceed

six months.

(b) In any case where an electric corporation is permitted incremental

seasonal differentials in rates or charges, such corporation shall, on

or before such differential rates commence, inform any customer subject

to such differential as to the commencement and termination dates of

such differential rates and permit such customer to read his own meter

on such dates and forward the readings thereon to the corporation.

11. Civil actions. (a) Every gas corporation, electric corporation or

municipality furnishing utility service may initiate a civil action to

collect a civil penalty against a user of non-residential service in

accordance with this subdivision. Upon a showing in such action that a

user of non-residential service has knowingly accepted or received the

use and benefit of gas or electric service which has been prevented from

being properly registered by a meter provided therefor, the utility may

be granted a civil penalty, in addition to the value of the unpaid

service, in an amount which the court in its discretion shall deem to be

just and reasonable, which in no event shall be more than three times

the retail value of the gas or electric service accepted or received. In

any action under this subdivision, proof that a meter has been

intentionally prevented from properly registering gas or electric

service shall be prima facie proof that the user of non-residential

service who accepts or receives the use and benefit of such service has

done so with knowledge of the condition so existing, if the gas

corporation, electric corporation or municipality shall first present

evidence that such person took possession of the benefitted premises and

used the gas or electric service prior to the creation of the condition.

(b) For the purposes of this subdivision, a user of non-residential

service shall be a person benefitting from such service who is in

possession of the premises to which the service is delivered.

(c) Any civil penalty recovered pursuant to this section in excess of

the actual damages sustained by the utility shall be taken into account

by the public service commission in establishing future utility rates.

12. An electric corporation shall send annually to each residence it

serves a form that may be used to notify the corporation that a person

living in the residence uses a life support system. For the purposes of

this subdivision, life support systems shall include, but not be limited

to, hemodialysis equipment, respirators and apnea monitors. An electric

corporation shall maintain a current list of customers who use such life

support systems and include the list in such electric corporation's

system emergency plans.

13. (a) Every gas corporation or electric corporation furnishing

utility services shall provide the following call center customer

assistance receiving inquiries by phone or in writing on: customer

financial responsibility; receiving requests to initiate or terminate

service; receiving requests for emergency services; shared metering;

determining deposit required or billing rate; receiving meter and

service orders and access to meter requests; explaining company rates,

regulations, policies, procedures, and common practices; initiating

trouble order forms and high bill investigations; inbound and/or

outbound handling of payment and other credit arrangements such as

obtaining deposits, financial statements and payment plans; collection

assistance inquiries and referring customers to social service agencies

and other assistance programs. This paragraph shall not apply to

communications between departments to resolve a customer inquiry. For

purposes of this section, "collection assistance inquiries" shall not

include calls or activities related to the collection of debts that are

referred to third-party collection agencies or those involving the

direct pursuit of financial recovery on delinquent accounts.

(b) No gas or electric corporation shall close a call center or other

facility providing the customer assistance set forth in paragraph (a) of

this subdivision or send such customer assistance outside such gas or

electric corporation's New York state service territory or outside of

New York state without notice, a hearing and approval before the

commission. Upon receipt of the notice required pursuant to this

paragraph, the commission shall provide notice of the proceeding to

interested parties and the public; and shall promptly fix a date for the

commencement of a public hearing thereon not less than sixty days after

such receipt. The testimony presented at such hearing may be presented

in writing or orally, provided that the commission may make rules

designed to exclude repetitive, redundant or irrelevant testimony while

giving all interested parties the opportunity to present their

documentary and/or testimonial evidence. The commission shall make a

record of all testimony in all contested hearings. For purposes of this

section "public hearing" means a public forum at a physical location,

attended by commission members or their designees, where oral testimony

is accepted and written testimony may be submitted for inclusion in the

record. Such forum shall be open to parties to the proceeding and the

general public for the presentation of comments that shall be limited to

relevant facts directly related to the proceeding in question. Such

hearing shall be commenced upon proper notice to the parties to the

proceeding and the public at least thirty days prior to the scheduled

date. It shall be permissible for a gas or electric corporation to send

customer assistance requests outside of such corporation's New York

state service territory or outside of New York state in the following

circumstances: (i) when a call center or customer assistance facility is

unable to adequately respond to customer assistance requests due to

natural disaster, cyber attack, temporary loss of internet or phone

connection or power, a state or local declared emergency that impacts

the ability of a call center to manage customer assistance requests, or

customer call volume that exceeds the capacity of the call center given

normal staffing levels; (ii) for the purpose of workforce training; or

(iii) to initiate work flexibility policies that allow call center

employees to work from an approved alternative worksite other than a

call center location provided, however, before a gas or electric

corporation can establish policies for any call center employees that

are represented by a bona fide labor organization through a collective

bargaining agreement, such policies must have been mutually agreed to by

the corporation and the labor organization. Such work flexibility

policies shall not be considered a violation of this section. Any

transfer of customer assistance requests outside of New York state or

outside of the corporation's New York state service territory pursuant

to subparagraph (i) of this paragraph shall be temporary and only for

the duration of the emergency situation. A corporation must notify the

commission of any transfers within ten business days following an

exemption claimed pursuant to subparagraph (i) of this paragraph. For

the purposes of this paragraph, "New York state service territory" shall

be understood to refer to the designated geographic area served by the

gas or electric corporation in accordance with its legal service

obligations. The relocation of customer assistance calls to any of the

corporation's call centers within New York state in existence prior to

the effective date of the chapter of the laws of two thousand

twenty-five that amended this paragraph, regardless of the specific

service territory, shall not be considered a violation of this

paragraph.

(c) This subdivision shall not apply to the collection of debt where

by utility company policy such debt is directed to a collection agency

or similar service companies.

(d) Every public utility under this subdivision shall provide the

commission an affidavit, annually, that no call centers or other

facilities providing customer assistance set forth in paragraph (a) of

this subdivision have been closed without notice and hearing before the

commission and that the utility has not relocated such customer

assistance to another area of New York state or outside of New York

state without notice and hearing before the commission. The affidavit

shall be submitted in such form and at such times and shall contain

information as the commission, by rule or regulation, may prescribe.

14. In conjunction with a management and operations audit undertaken

pursuant to subdivision nineteen of section sixty-six of this article or

upon its own motion, the commission shall review the capability,

including but not limited to, the capability to implement emergency

response plans and restoration, of each electric corporation to provide

safe, adequate, and reliable service. Upon good cause shown, and after a

hearing in accordance with the commission's rules and regulations, the

commission may direct such corporation to comply with additional and

more stringent terms and conditions of service than existed prior to the

commencement of the management and operations audit, and may, in

addition, assess the continued operation of such corporation as the

provider of electric service in its service territory and propose, and

act upon, such measures as are necessary to ensure safe and adequate

service; provided, however, that nothing in this subdivision limits the

commission's authority to undertake the actions set forth pursuant to

section twenty-four, twenty-five or twenty-five-a of this chapter.

15. The chief executive officer of each combination gas and electric

corporation shall certify to the commission on or before March fifteenth

of each year that such corporation has internal controls, policies and

procedures designed to ensure compliance with the requirements of this

chapter and any rules, regulations, orders and procedures adopted

thereto, including the obligation that such corporation provide safe and

adequate service.

16. Unauthorized changes in natural gas or electric service

prohibited. (a) No supplier of gas or electric service or any person,

firm or corporation acting as such supplier's agent or representative

shall on behalf of a customer make or direct any change in a supplier of

gas or electric service unless such supplier, agent or representative

complies with requirements to authorize and verify the change. The

commission shall have the authority to establish requirements for

obtaining the authorization of a customer to effect a change in the

customer's supplier of gas or electric service and for the verification

of such change. In construing and enforcing the provisions of this

subdivision, the act of any person, firm or corporation acting as an

agent or representative of a supplier of gas or electric service shall

be deemed to be the act of such supplier of gas or electric service. For

the purposes of this subdivision, "supplier of gas or electric service"

shall include any person, firm or corporation that offers, sells or

delivers all or part of natural gas or electric service, including, but

not limited to, a gas or electric distribution company, a gas or

electric corporation, a gas or electricity provider, marketer,

aggregator or broker.

(b) The failure to comply with the provisions in this subdivision

shall subject a supplier of gas or electric service to either the

judicial penalty authorized in section twenty-five of this chapter for

the failure or neglect to obey or comply with a provision of this

chapter or the administrative penalty established in this subdivision.

In seeking such judicial penalty or assessing such administrative

penalty, the commission shall take into account the nature,

circumstances, extent, gravity and number of the violations, and with

respect to the violator, the degree of culpability, any history of prior

offenses and repeated violations, and such other matters as may be

appropriate and relevant. The remedies provided by this subdivision

shall be in addition to any other remedies provided by law.

(c) The commission, after opportunity for a hearing, shall have the

authority to assess directly an administrative penalty against any

supplier of gas or electric service for each violation of this

subdivision or order of the commission implementing or enforcing the

provisions of this subdivision. Such penalty shall not exceed one

thousand dollars for each violation associated with each meter service

point. All moneys recovered from any administrative penalty shall be

paid into the state treasury to the credit of the general fund.

(d) Whenever the commission determines that any supplier of gas or

electric service is violating or about to violate any provision of this

subdivision or any regulation or order of the commission implementing or

enforcing the provisions of this subdivision, or has failed to pay any

penalty assessed pursuant to the provisions of this subdivision, the

commissioner shall have power to bring an action or enforcement

proceeding as provided by section twenty-six of this chapter.

Notification to social services officials. The commission

shall, to the extent not inconsistent with other requirements of law,

establish requirements relating to the notification of an appropriate

social services official by a gas corporation, electric corporation or

municipality that payment for utility services furnished a person

receiving public assistance, supplemental security income benefits or

additional state payments pursuant to the social services law has not

been made and such person is known by the corporation or municipality to

be a recipient of such assistance, benefits or payments. The commission

shall consult with the office of temporary and disability assistance in

fulfilling the objectives of this section.

Service to persons applying for or receiving public

assistance, supplemental security income benefits or additional state

payments. No gas corporation, electric corporation or municipality shall

refuse to supply or to continue to supply utility services to any person

who has applied for or is receiving public assistance, supplemental

security income benefits, or additional state payments pursuant to the

social services law, solely on the grounds that there may be money due

to the utility corporation or municipality for services previously

furnished to such person, if the utility corporation or municipality

receives, or is entitled to receive, a direct payment or receives a

guarantee of payment from a social services district.

General powers of commission in respect to gas and electricity.

The commission shall:

1. Have general supervision of all gas corporations and electric

corporations having authority under any general or special law or under

any charter or franchise to lay down, erect or maintain wires, pipes,

conduits, ducts or other fixtures in, over or under the streets,

highways and public places of any municipality for the purpose of

furnishing or distributing gas or of furnishing or transmitting

electricity for light, heat or power, or maintaining underground

conduits or ducts for electrical conductors, and all gas plants and

electric plants owned, leased or operated by any gas corporation or

electric corporation.

1-a. Review the annual capital expenditure of each combination gas and

electric corporation and may order such improvement in the manufacture,

conveying, transportation, distribution or supply of gas, in the

manufacture, transmission or supply of electricity, or in the methods

employed by such corporation as in the commission's judgment is

adequate, just and reasonable.

2. Investigate and ascertain, from time to time, the quality of gas

supplied by persons, corporations and municipalities; examine or

investigate the methods employed by such persons, corporations and

municipalities in manufacturing, distributing and supplying gas or

electricity for light, heat or power and in transmitting the same, and

have power to order such reasonable improvements as will best promote

the public interest, preserve the public health and protect those using

such gas or electricity and those employed in the manufacture and

distribution thereof, and have power to order reasonable improvements

and extensions of the works, wires, poles, lines, conduits, ducts and

other reasonable devices, apparatus and property of gas corporations,

electric corporations and municipalities; and have power after an

investigation and a hearing to order any corporation having authority

under any general or special law or under any charter or franchise, to

lay down, erect or maintain wires, pipes, conduits, ducts or other

fixtures in, over or under the streets, highways and public places of

any municipality for the purpose of supplying, selling or distributing

natural gas, to augment its supply of natural gas, whenever the

commission deems necessary and whenever artificial gas can be reasonably

obtained, by acquiring by purchase, manufacture or otherwise a supply

thereof to be mixed with such natural gas, in order to render adequate

service to the customers of such corporation or to maintain a proper and

uniform pressure; and have power after an investigation and a hearing to

order any corporation having authority under any general or special law

or under any charter or franchise, to lay down, erect or maintain wires,

pipes, conduits, ducts or other fixtures in, over or under the streets,

highways and public places of any municipality for the purpose of

supplying, selling or distributing artificial gas, to augment its supply

of artificial gas, whenever the commission deems necessary and whenever

natural gas can be reasonably obtained, by acquiring by purchase or

otherwise a supply thereof to be mixed with such artificial gas, in

order to render adequate service to the customers of such corporation or

to maintain a proper and uniform pressure; and to fix such rate for the

supplying of mixed gas as shall secure to such corporation a fair

return; and may order the curtailment or discontinuance of the use of

natural gas for manufacturing or industrial purposes, for periods

aggregating not to exceed four months in any calendar year, if it is

established to the satisfaction of the commission that the supply of

natural gas is not adequate to meet the reasonable demands of domestic

consumption and may prohibit the use of natural gas in wasteful devices

and practices.

2-a. Have power, after an investigation and hearing held on notice and

upon a finding that as a result of a shortage of gas a public emergency

exists, to determine whether any gas corporation has available, or may

be made available by the operation of its facilities, gas in excess of

an amount necessary to supply its consumers for purposes for which gas

may properly be used during such emergency. Upon the making of such a

determination it shall have power to order such a gas corporation to

transfer and make available to any other gas corporation where a

shortage of gas exists, for the duration of the emergency, any or all of

such excess gas for which the transferring company shall receive just

compensation. Such order may require the installation and operation of

all necessary connections and facilities at the expense of the

purchasing gas corporation and require the selling and purchasing gas

corporation to adopt appropriate regulations and practices to carry out

the transfer of gas as ordered.

3. Have power by order to fix and change from time to time standards

of the purity, illuminating power and heating power, and standards for

the measurement thereof, of gas to be manufactured, distributed or sold

by persons, corporations or municipalities for lighting, heating or

power purposes, notwithstanding that other standards of the purity,

illuminating power and heating power of gas and standards for the

measurement thereof, may have been fixed by general or special statute

and to prescribe from time to time the efficiency of the electric supply

system, of the current supplied and of the lamps furnished by the

persons, corporations or municipalities generating and selling electric

current, and by order to require the gas so manufactured, distributed or

sold to equal the standards so fixed by it, and to prescribe from time

to time the reasonable minimum and maximum pressure at which gas shall

be delivered by said persons, corporations or municipalities. For the

purpose of determining whether the gas manufactured, distributed or sold

by such persons, corporations or municipalities for lighting, heating or

power purposes conforms to the standards of illuminating power, heating

power, purity and pressure, and for the purpose of determining whether

the efficiency of the electric supply system, of the current supplied

and of the lamps furnished conforms to the orders issued by the

commission, the commission shall have power of its own motion, to

examine and investigate the plants and methods employed in

manufacturing, delivering and supplying gas or electricity, and shall

have access through its members or persons employed and authorized by it

to make such examinations and investigations to all parts of the

manufacturing plants owned, used or operated by the manufacture,

transmission or distribution of gas or electricity by any such person,

corporation or municipality.

4. Have power, in its discretion, to prescribe uniform methods of

keeping accounts, records and books, to be observed by gas corporations

and electric corporations and by municipalities engaged in the

manufacture, sale and distribution of gas and electricity for light,

heat or power. It may also in its discretion prescribe, by order, forms

of accounts, records and memoranda to be kept by such persons,

corporations and municipalities. Notice of alterations by the commission

in the required method or form of keeping a system of accounts shall be

given to such persons or corporations by the commission at least six

months before the same shall take effect. Any other and additional forms

of accounts, records and memoranda kept by such corporations shall be

subject to examination by the commission.

5. Examine all persons, corporations and municipalities under its

supervision and keep informed as to the methods, practices, regulations

and property employed by them in the transaction of their business.

Whenever the commission shall be of opinion, after a hearing had upon

its own motion or upon complaint, that the rates, charges or

classifications or the acts or regulations of any such person,

corporation or municipality are unjust, unreasonable, unjustly

discriminatory or unduly preferential or in anywise in violation of any

provision of law, the commission shall determine and prescribe in the

manner provided by and subject to the provisions of section seventy-two

of this chapter the just and reasonable rates, charges and

classifications thereafter to be in force for the service to be

furnished notwithstanding that a higher or lower rate or charge has

heretofore been prescribed by general or special statute, contract,

grant, franchise condition, consent or other agreement, and the just and

reasonable acts and regulations to be done and observed; and whenever

the commission shall be of opinion, after a hearing had upon its own

motion or upon complaint, that the property, equipment or appliances of

any such person, corporation or municipality are unsafe, inefficient or

inadequate, the commission shall determine and prescribe the safe,

efficient and adequate property, equipment and appliances thereafter to

be used, maintained and operated for the security and accommodation of

the public and in compliance with the provisions of law and of their

franchises and charters.

6. Require every person and corporation under its supervision and it

shall be the duty of every such person and corporation to file with the

commission an annual report, verified by the oath of the president,

vice-president, treasurer, secretary, general manager, or receiver, if

any, thereof, or by the person required to file the same. The

verification shall be made by said official holding office at the time

of the filing of said report, and if not made upon the knowledge of the

person verifying the same shall set forth the sources of his information

and the grounds of his belief as to any matters not stated to be

verified upon his knowledge. The report shall show in detail (a) the

amount of its authorized capital stock and the amount thereof issued and

outstanding; (b) the amount of its authorized bonded indebtedness and

the amount of its bonds and other forms of evidence of indebtedness

issued and outstanding; (c) its receipts and expenditures during the

preceding year; (d) the amount paid as dividends upon its stock and as

interest upon its bonds; (e) the names of its officers and the aggregate

amount paid as salaries to them and the amount paid as wages to its

employees; (f) the location of its plant or plants and system, with a

full description of its property and franchises, stating in detail how

each franchise stated to be owned was acquired; and (g) such other facts

pertaining to the operation and maintenance of the plant and system, and

the affairs of such person or corporation as may be required by the

commission. Such reports shall be in the form, cover the period and be

filed at the time prescribed by the commission. The commission may, from

time to time, make changes and additions in such forms. When any such

report is defective or believed to be erroneous, the commission shall

notify the person, corporation or municipality making such report to

amend the same within a time prescribed by the commission. Any such

person or corporation or municipality which shall neglect to make any

such report or which shall fail to correct any such report within the

time prescribed by the commission shall be liable to a penalty of one

hundred dollars and an additional penalty of one hundred dollars for

each day after the prescribed time for which it shall neglect to file or

correct the same, to be sued for in the name of the people of the state

of New York. The amount recovered in any such action shall be paid into

the state treasury and be credited to the general fund. The commission

may extend the time prescribed for cause shown.

7. Require each municipality engaged in operating any works or systems

for the manufacture and supplying of gas or electricity to make an

annual report to the commission, verified by the oath of the general

manager or superintendent thereof, showing in detail, (a) the amount of

its authorized bonded indebtedness and the amount of its bonds and other

forms of evidence of indebtedness issued and outstanding for lighting

purposes; (b) its receipts and expenditures during the preceding year;

(c) the amount paid as interest upon its bonds and upon other forms of

evidence of indebtedness; (d) the name of and the amount paid to each

person receiving a yearly or monthly salary, and the amount paid as

wages to employees; (e) the location of its plant and system with a full

description of the property; and (f) such other facts pertaining to the

operation and maintenance of the plant and system as may be required by

the commission. Such report shall be in the form, cover the period and

be filed at the time prescribed by the commission.

8. Have power, either through its members or inspectors or employees

duly authorized by it, to enter in or upon and to inspect the property,

buildings, plants, factories, power houses, ducts, conduits and offices

of any of such corporations, persons or municipalities.

9. Have power to examine the accounts, books, contracts, records,

documents and papers of any such corporation, person or municipality,

and have power, after hearing, to prescribe by order the accounts in

which particular outlays and receipts shall be entered, charged or

credited. At any such hearing the burden of proof shall be on the

person, corporation or municipality to establish the correctness of the

accounts in which such outlays and receipts have been entered, and the

commission may suspend a charge or credit pending submission of proof by

such person, corporation or municipality.

10. Have power to compel, by subpoena duces tecum, the production of

any accounts, books, contracts, records, documents, memoranda and

papers. In lieu of requiring production of originals by subpoena duces

tecum the commission or any commissioner may require sworn copies of any

such books, records, contracts, documents and papers, or parts thereof,

to be filed with it. The commission may require of all such

corporations, persons or municipalities, specific answers to questions

upon which the commission may need information, and may also require

such corporations, persons or municipalities to file periodic reports in

the form, covering the period and filed at the time prescribed by the

commission. If such corporation, person or municipality shall fail to

make specific answer to any question or shall fail to make a periodic

report when required by the commission as herein provided within the

time and in the form prescribed by the commission for the making and

filing of any such report or answer, such corporation, person or the

officer of the municipality shall forfeit to the state the sum of one

hundred dollars for each and every day it shall continue to be in

default with respect to such report or answer. Such forfeiture shall be

recovered in an action brought by the commission in the name of the

people of the state of New York. The amount recovered in any such action

shall be paid into the state treasury and be credited to the general

fund.

11. Have power in all parts of the state, either as a commission or

through its members, or through an officer or employee specially

authorized to conduct an investigation or hearing to subpoena witnesses,

take testimony and administer oaths to witnesses in any proceeding or

examination instituted before it, or conducted by it in reference to any

matter within its jurisdiction under this article.

12. (a) Have power to require every gas corporation, electric

corporation and municipality hereinafter in this subdivision called a

utility to file with the commission and to print and keep open to public

inspection schedules showing all rates and charges made, established or

enforced or to be charged or enforced, all forms of contract or

agreement and all rules and regulations relating to rates, charges or

service used or to be used, and all general privileges and facilities

granted or allowed by such utility; but this subdivision shall not apply

to state, municipal or federal contracts, except to the extent such

contracts relate to transportation of electricity.

(b) No change shall be made in any rate or charge, or in any form of

contract or agreement or any rule or regulation relating to any rate,

charge or service, or in any general privilege or facility, which shall

have been filed by a utility in compliance with an order of the

commission, except after thirty days' notice to the commission and to

each county, city, town and village served by such utility which had

filed with such utility, within the prior twelve months, a request for

such notice and which shall be affected by such change and publication

of a notice to the public of such proposed change once in each week for

four successive weeks in a newspaper having general circulation in each

county containing territory affected by the proposed change, which

notice shall plainly state the changes proposed and when the change will

go into effect. The commission for good cause shown may, except in the

case of major changes, allow changes to take effect prior to the end of

such thirty-day period and without publication of notice to the public

under such conditions as it may prescribe. The commission may delegate

to the secretary of the commission its authority to approve a change to

a schedule postponing the effective date of such schedule previously

filed with the commission and to allow for good cause shown the

postponement to take effect prior to the end of such thirty-day period

and without publication of notice to the public.

(c) For the purpose of this subdivision, "major changes" shall mean an

increase in the rates and charges which would increase the aggregate

revenues of the applicant more than the greater of three hundred

thousand dollars or two and one-half percent, but shall not include

changes in rates, charges or rentals (i) allowed to go into effect by

the commission or made by the utility pursuant to an order of the

commission after hearings held upon notice to the public, or (ii)

proposed by a municipality.

(d) No utility shall charge, demand, collect or receive a greater or

less or different compensation for any service rendered or to be

rendered than the rates and charges specified in its schedule filed and

in effect; nor shall any utility refund or remit in any manner or by any

device any portion of the rates or charges so specified, nor extend to

any person any form of contract or agreement, or any rule or regulation,

or any privilege or facility, except such as are regularly and uniformly

extended to all persons under like circumstances.

(e) The commission shall have power to prescribe the form of every

such schedule, and from time to time prescribe by order such changes in

the form thereof as may be deemed wise. The commission shall also have

power to establish such rules and regulations to carry into effect this

subdivision as it may deem necessary, and to modify or amend such rules

or regulations from time to time. Nothing in this chapter shall be taken

to prohibit a utility from establishing sliding scale upward rates,

beginning at a fixed price per unit for a small consumption and then

increasing the price per unit as the consumption is increased.

(f) (i) Whenever there shall be filed with the commission by any

utility any schedule stating a new rate or charge, or any change in any

form of contract or agreement or any rule or regulation relating to any

rate, charge or service, or in any general privilege or facility, the

commission may, at any time within sixty days from the date when such

schedule would or has become effective, either upon complaint or upon

its own initiative, and, if it so orders, without answer or other formal

pleading by the utility, but upon reasonable notice, hold a hearing

concerning the propriety of a change proposed by the filing. If such

change is a major change, the commission shall hold such a hearing.

Pending such hearing and decision thereon, the commission, upon filing

with such schedule and delivering to the utility, a statement in writing

of its reasons therefor, may suspend the operation of such schedule, but

not for a longer period than fourteen months beyond the time when it

would otherwise go into effect. After full hearing, whether completed

before or after the schedule goes into effect, the commission may make

such order in reference thereto as would be proper in a proceeding begun

after the rate, charge, form of contract or agreement, rule, regulation,

service, general privilege or facility had become effective.

(ii) The commission is authorized to approve, and any hearing

involving a major change in rates for a gas corporation, electric

corporation, or combination gas and electric corporation may consider,

whether as a result of litigation or settlement negotiations, multi-year

changes in rates or charges, in addition to the utility's filing. Any

such additional multi-year rates or charges which result from a

litigated process are authorized to be implemented in a similar manner

to those resulting from settlement negotiations. The commission shall,

in each order approving a major change in rates for such corporation,

explain how the information in the record that it received from such

corporation and the parties impacted its determination to approve a

major change in rates consistent with the public interest either as a

result of litigation or from a settlement, and include a written summary

of the commission's rationale.

(g) The commission shall review all filings to determine if they are

in compliance with section seventy-two-a of this article. The commission

shall have the power to hold public hearings concerning the propriety of

any increased rate or charge for fuel costs. At any hearing involving

such an increase, the burden of proof as to the correctness and

reasonableness of the charge shall be upon the utility.

(h) The commission may, as authorized by section seventy-two of this

article, establish temporary rates or charges for any period of

suspension under this section.

(i) At any hearing involving a rate, the burden of proof to show that

the change or proposed change if proposed by the utility, or that the

existing rate, if it is proposed to reduce the rate, is just and

reasonable shall be upon the utility; and the commission may give to the

hearing and decision of such questions preference over all other

questions pending before it.

(j) The schedule, rates, charges, form of contract or agreement, rule,

regulation, service, general privilege or facility in force when the new

schedule, rate, charge, form of contract, rule, regulation, service,

general privilege or facility was filed shall continue in force during

the period of the suspension unless the commission shall establish a

temporary rate or charge as authorized by section seventy-two of this

article. Provided, however, that whenever the commission shall deny a

request by a utility for a major change in rates or charges, the

schedule, rate, charge, form of contract or agreement, rule, regulation,

general privilege, facility, or service immediately in effect prior to

such request being filed shall remain in full force and effect until

such time as the commission approves a new schedule of rates or charges,

unless the commission established a temporary rate or charge as

authorized by section seventy-two of this article.

(k) In any case in which the commission determines that the whole or

any part of any increased rate or charge imposed by a utility pursuant

to any automatic adjustment, including but not limited to any fuel

adjustment, was not just and reasonable, because of a lack of reasonable

care on the part of the utility in providing gas or electric service,

the commission may order the utility to refund, with interest, any

moneys collected by the utility pursuant to such whole or part of such

increased rate or charge. In determining whether a utility exercised

reasonable care in providing gas or electric service, the commission

shall take into account the public health and safety consequences, and

the economic consequences to ratepayers, of the utility's actions.

(l) (i) The commission shall, within ten days of the commencement of

any matter involving a major change in a rate for electric or gas

service, publish, in a readily accessible location on the department's

website, a summary in plain language, not to exceed one page or five

hundred words, to the extent such information is available, containing

the following:

(A) the proposed rate term;

(B) the total proposed rate change, in both percentage change from

prior rate year and absolute requested tariff value, including yearly or

sliding scale breakdown if applicable;

(C) the average proposed rate change for a residential, commercial,

and industrial ratepayer, including yearly or sliding scale breakdown if

applicable;

(D) an explanation of why the rate changes are requested and a summary

of how the proposed revenue will be spent;

(E) the proposed return on equity in both percentage and absolute

value over the total rate term;

(F) an estimated timeline of relevant hearings, comment periods, and

deadlines;

(G) an explanation of how to submit public comment; and

(H) any other information the commission finds relevant.

(ii) The commission shall, within ten days of the issuance of an order

adopting a rate change for electric or gas service or a tariff relating

to a major change in a rate for electric or gas service, publish, in a

readily accessible location on the department's website, a summary, not

to exceed one page or five hundred words, containing the following:

(A) the rate term;

(B) the total rate change, in both percentage change from prior rate

year and absolute tariff value, including yearly or sliding scale

breakdown if applicable;

(C) a comparison of the initial proposed rate change and absolute

tariff value and the final approved rate and tariff value;

(D) the average rate change for a residential, commercial, and

industrial ratepayer, including yearly or sliding scale breakdown if

applicable;

(E) a summary of how the revenue will be spent;

(F) the authorized return on equity in both percentage and absolute

value over the total rate term;

(G) a summary of other proposals relevant to ratepayers such as

earnings adjustment mechanisms, excess revenue allocation, performance

metrics, affordability programs, and additional fees; and

(H) any other information the commission finds relevant.

(iii) In addition to the requirements of paragraph (b) of this

subdivision, the commission shall send such summaries to members of the

legislature who represent any portion of the territory impacted by the

proposed change as well as newspapers having general circulation in each

county containing the territory affected by the proposed change.

* (m) As a separate and distinct part of any filing by a utility

proposing a major change in rates, the utility must provide a

description of any proposed capital expenditure, on a per project basis,

including but not limited to, the: (i) purpose of and the need for each

of the proposed capital expenditures, (ii) total cost, (iii) expected

period of usefulness, (iv) location in the service territory, (v)

rationale for inclusion in the proceeding, and (vi) anticipated benefits

to ratepayers and the operation of the distribution system. Such

descriptions of capital expenditures, on a per project basis, shall be

posted on the commission's website. Pursuant to paragraph (i) of this

subdivision, the burden of proof to show that a change in rates related

to each capital expenditure is just and reasonable shall be on the

utility.

* NB Effective until January 1, 2027

* (m) As a separate and distinct part of any filing by a utility

proposing a major change in rates, the utility must provide a

description of any proposed capital expenditure, on a per project basis,

including but not limited to, the: (i) purpose of and the need for each

of the proposed capital expenditures, and if it advances state policy

objectives, (ii) total cost, (iii) expected period of usefulness, (iv)

location in the service territory, (v) rationale for inclusion in the

proceeding, (vi) if there was consideration of non-wire or non-pipe

alternatives prior to inclusion of traditional capital investments in

distribution infrastructure, and (vii) anticipated benefits to

ratepayers and the operation of the distribution system, including, but

not limited to, through avoided energy demand, transmission and

distribution upgrades, or energy efficiency measures. Such descriptions

of capital expenditures, on a per project basis, shall be posted on the

commission's website. When reviewing each capital expenditure the

commission shall consider whether the utility has satisfied the burden

of proof to show that a change in rates related to each capital

expenditure is just and reasonable.

* NB Effective January 1, 2027

* (n) (i) The commission shall require each filing for a major change

in rates made by a gas corporation, an electric corporation, or a

combination gas and electric corporation, to include an executive

compensation disclosure. Such executive compensation disclosure shall

include: (A) the median of the annual total compensation of all

employees of the gas corporation or electric corporation, except for

senior management positions; (B) the annual total compensation of the

chief executive officer; (C) the annual total compensation for each

other senior management position; and (D) the ratio of the amount

described in clause (A) of this subparagraph to the amount described in

clause (B) of this subparagraph.

(ii) The commission shall develop performance-based targets that tie

compensation for the chief executive officer and other senior management

positions and ratepayer-funded incentive compensation programs to the

energy affordability index developed pursuant to section sixty-six-x of

this article and shall consider adjustments to the corporation's return

on equity based on such metric. Such adjustments shall not be based on

factors which the corporation does not control, including, but not

limited to, commodity supply prices.

(iii) For purposes of this paragraph, "senior management positions"

shall include a chief executive officer, chief operations officer, chief

financial officer, chief information officer, chief information

technology officer, officer responsible for regulatory affairs, general

counsel, and any other positions considered to be senior management by

the corporation.

* NB Effective January 1, 2027

* (o) (i) The commission shall require each filing for a major change

in rates made by a gas corporation, electric corporation, or combination

gas and electric corporation, to include, in addition to the

corporation's recommended proposal, a budget constrained proposal that

separately addresses operating expenses, capital expenditures,

programmatic or policy expenditures, commodity supply costs, taxes, and

other costs not within the control of the corporation. Such budget

constrained proposal shall not increase the applicant's aggregate

revenues by more than the average of the annual consumer price index

increases over the prior three years.

(ii) In each filing for a major change in rates, the corporation shall

demonstrate how any increase in its aggregate revenues by more than the

increase set forth in the budget constrained proposal is necessary to

ensure safety, reliability, or the continuation of energy affordability

programs, energy efficiency programs, or cost-effective electrification

upgrades. If the commission finds that the corporation has made such a

demonstration, the commission must provide a detailed explanation as to

why an increase of more than the budget constrained proposal was

necessary in its order adopting the new schedule of rates and charges.

The commission, in making its determination, shall consider the

disclosures required pursuant to paragraph (n) of this subdivision, the

descriptions and considerations required by paragraph (m) of this

subdivision, and the affordability index provided by the applicant

pursuant to section sixty-six-x of this article.

(iii) The commission shall require the corporation to track

expenditures and outcomes and explain material deviations from the

approved schedule of rates and charges no less frequently than on an

annual basis.

* NB Effective January 1, 2027

* (p) (i) The commission is authorized and directed to, within two

hundred seventy days of the effective date of this paragraph, establish

rules to limit a utility's ability to recover its direct or indirect

costs associated with its attendance in, participation in, preparation

for, or appeal of any rate proceeding conducted before the commission.

Such costs may include, but need not be limited to, attorneys' fees,

fees to engage expert witnesses or consultants, the portion of employee

salaries associated with such attendance, participation, preparation or

appeal of a rate proceeding and related costs identified by the

commission.

(ii) In establishing such rules the commission may consider: (A)

setting an overall percentage of the utility's expenses in a rate case

that are not recoverable; (B) setting a baseline of the reasonable cost

of participation in a rate case; (C) establishing discovery parameters

and what information in a proceeding must be promptly and

comprehensively disclosed by the utility to interveners and to the

commission to reduce time and costs associated with a lengthy discovery

process; and (D) any other method that the commission determines will

accelerate the delivery of such utility information, reduce such costs,

and limit recovery of such costs to an amount that is reasonable and

prudent.

* NB Effective January 1, 2027

* (q) The commission shall require each filing involving a major

change in rates filed by a gas corporation, electric corporation, or

combination gas and electric corporation to include an affordability

index that shows the energy burden of such corporation's residential

customers at the time of the corporation's filing and what the energy

burden would be following the corporation's filed change in rates, as

calculated using the methodology adopted by the commission pursuant to

section sixty-six-x of this article.

(i) The corporation shall additionally include within such filing

potential solutions to assist energy burdened customers.

(ii) All information pertaining to the requirements set forth in this

paragraph shall be publicly available on the commission's website,

except in cases where such public availability and posting would result

in disclosure of confidential information, such confidential information

shall be excluded or anonymized.

* NB Effective January 1, 2027

12-a. Have power to fix and alter the format and informational

requirements of bills utilized by public and private gas corporations,

electric corporations and gas and electric corporations in levying

charges for service, to assure simplicity and clarity and to require

indication of any adjustment charges, including but not limited to fuel

adjustments, in monetary amounts. The commission shall further ensure

periodic explanation of applicable rates and rate schedules for the

purpose of assisting customers in making the most efficient use of

energy.

12-b. (a) In consultation with the commissioner of the department of

commerce have power 1. to designate as economic incentive areas specific

areas in which reduced economic activity, unemployment and

underutilization of utility facilities justifies the approval of reduced

incentive rates for utility services, and to promulgate criteria for

identifying such areas and customers eligible for such rates. Upon

application of a utility corporation the commission shall authorize

special economic incentive rates in such areas to such customers and for

such periods of time as the commission finds will best effectuate the

purposes of this subdivision. The commission may also provide for the

gradual elimination of the rate reduction authorized, and for the

elimination of such reduction, if any conditions imposed by the

commission are not met. 2. to designate or form classes of customers as

appropriate for special rates or tariffs, in order to prevent loss of

such customers, or to attract new customers where necessary to maintain

economic use of utility facilities.

Any such special rate or tariff shall be so designed as to recover the

incremental cost of providing service to such customers and to

contribute to the common costs which otherwise would be borne by other

customers.

(b) The commission may also authorize utility corporations to contract

with existing or prospective industrial and commercial customers to

wheel or deliver electricity or gas purchased directly by such

customers, provided that the commission finds that such arrangements are

in the overall best interest of the rate payers of the corporation, and

that the rates and fees for the services provided adequately compensate

the corporation for the use of its facilities.

12-c. Notwithstanding any other provision of law, upon application of

a gas or electric corporation, the commission shall authorize such

corporation to charge a special empire zone rate equal to the

incremental cost of providing service to customers certified as eligible

for such rate pursuant to article eighteen-B of the general municipal

law.

12-d. Notwithstanding any other provision of law, upon application of

a gas or electric corporation, the commission shall authorize such

corporation to charge a special excelsior jobs program rate equal to the

incremental cost of providing service to participants in the excelsior

jobs program as defined in article seventeen of the economic development

law.

13. In case any electric corporation or gas corporation is engaged in

carrying on any business other than owning, operating or managing a gas

plant or an electric plant, which other business is not otherwise

subject to the jurisdiction of the commission, and is so conducted that

its operations are to be substantially kept separate and apart from the

owning, operating, managing or controlling of such gas plant or electric

plant, said corporation in respect of such other business shall not be

subject to any of the provisions of this chapter and shall not be

required to procure the assent or authorization of the commission to any

act in such other business or to make any report in respect thereof. But

this subdivision shall not restrict or limit the powers of the

commission in respect to the owning, operating, managing or controlling

by such corporation of such gas plant or electric plant, and said powers

shall include also the right to inquire as to, and prescribe the

apportionment of, capitalization, earnings, debts and expenses fairly

and justly to be awarded to or borne by the ownership, operation,

management or control of such gas plant or electric plant as

distinguished from such other business. In any such case if the owning,

operating, managing or controlling of such gas plant or electric plant

by any such corporation is wholly subsidiary and incidental to the other

business carried on by it and is inconsiderable in amount and not

general in its character, the commission may by general rules exempt

such corporation from making full reports and from the keeping of

accounts as to such subsidiary and incidental business. Where the

permission granted such corporation pursuant to section sixty-eight is

to supply gas only to less than twenty customers specified by the

commission, the commission may, if the public interest permits, exempt

such corporation from compliance with all or any of the provisions of

this article except those affecting matters of public safety and the

provisions of sections sixty-five, sixty-eight and seventy-four.

14. The commission shall have power to require each gas corporation

and electric corporation to establish classifications of service based

upon the quantity used, the time when used, the purpose for which used,

the duration of use and upon any other reasonable consideration, and to

establish in connection therewith just and reasonable graduated rates

and charges; and it shall have power, either upon complaint or upon its

own motion, to require such changes in such classifications, rates and

charges as it shall determine to be just and reasonable. Neither the

scheduled rates nor the minimum charge for residential customers shall,

after July first, nineteen hundred thirty-seven, be based in any manner

on the number of outlets, number of rooms, cubic or square foot area or

other such standards.

15. Receive, and any gas corporation may at any time submit to the

commission for its approval, one or more contracts proposed to be made

by it for the purchase from the producer of by-product gas, to be used

in its service to its consumers, in which said proposed contract the

price of gas shall be based on the then market price of coal, and to

vary therewith whenever the market price of coal shall vary to the

extent of ten per centum for a period of not less than thirty days, and

which said contract shall state the efficiency of said gas, and upon the

approval of said contract by the commission, or said contract as the

same may be amended, altered or changed, and upon the application of

said gas corporation, the commission shall make an order fixing the rate

or rates to be charged to consumers for the service of such gas, which

said rate shall thereafter remain unchanged during the term of said

contract in so far as said rate shall be based on the cost of gas to

said corporation, except as such cost shall vary with the variations in

the price of coal as in said contract provided. The commission shall

have like powers and duties with reference to existing contracts made

prior to January first, nineteen hundred and twenty-two, by a gas

corporation for a supply of by-product gas where the price of gas varies

as the price of coal varies. By-product, as used in this section, is

defined to mean one of the several products obtained by treatment of

coal by some process other than the customary distillation in retorts.

16. The commission shall have power after a hearing on its own motion,

upon complaint or upon the application of a gas corporation or electric

corporation to prescribe rates and charges for gas, electricity or other

service rendered or to be rendered, embodying the automatic adjustment

of such rates and charges, over a fixed period not exceeding four years,

based on the relation between the net income from such rates and charges

available for return and the fair value of the property of the

corporation used and useful in said service; but nothing in this

subdivision shall operate to prevent the commission after the expiration

of such fixed period from fixing proper, just and reasonable rates and

charges to be made for gas, electricity or service as authorized in this

article.

17. Notwithstanding the provisions of this article, any gas

corporation which transports natural gas through the state of New York

but which does not deliver, sell or furnish any such gas to any person

or corporation within the state of New York, shall be subject to

regulation by the commission only insofar as the construction and

operation of such facilities shall affect matters of public safety.

19. (a) The commission shall have power to provide for management and

operations audits of gas corporations and electric corporations. Such

audits shall be performed at least once every five years for combination

gas and electric corporations, as well as for straight gas corporations

having annual gross revenues in excess of two hundred million dollars.

The audit shall include, but not be limited to, an investigation of the

company's construction program planning in relation to the needs of its

customers for reliable service, an evaluation of the efficiency of the

company's operations, an evaluation of customer privacy protections,

including but not limited to customer electrical and gas consumption

data, and protection of critical energy infrastructure as defined in

subdivision fourteen of section 1-103 of the energy law, recommendations

with respect to same, and the timing with respect to the implementation

of such recommendations. The commission shall have discretion to have

such audits performed by its staff, or by independent auditors.

In every case in which the commission chooses to have the audit

provided for in this subdivision or pursuant to subdivision fourteen of

section sixty-five of this article performed by independent auditors, it

shall have authority to select the auditors, and to require the company

being audited to enter into a contract with the auditors providing for

their payment by the company. Such contract shall provide further that

the auditors shall work for and under the direction of the commission

according to such terms as the commission may determine are necessary

and reasonable.

(b) Each corporation subject to an audit under this subdivision shall

file a report with the commission within thirty days after issuance of

such audit detailing its plan to implement the recommendations made in

the audit. After review of such plan, the commission may require each

combined electric and gas corporation amend its plan in a particular

manner. Such plan shall thereafter become enforceable upon approval by

the commission. The commission shall have power to commence a proceeding

to examine any such corporation's compliance with the recommendations of

such audit.

(c) Upon the application of a gas or electric corporation for a major

change in rates as defined in subdivision twelve of this section, the

commission shall review that corporation's compliance with the

directions and recommendations made previously by the commission, as a

result of the most recently completed management and operations audit.

The commission shall incorporate the findings of such review in its

opinion or order, and such findings shall be enforceable by the

commission.

(d) The commission shall have the power to provide for an annual audit

of gas corporations and electric corporations relating to the adequacy

of cyber-security policies, protocols, procedures and protections

including, but not limited to, as such policies, protocols, procedures

and protections relate to critical energy infrastructure as defined in

subdivision fourteen of section 1-103 of the energy law and customer

privacy including but not limited to customer electric and gas

consumption data. The commission shall have the discretion to have such

audits performed by its staff or by an independent third party.

* 20. Notwithstanding any general or special law, rule or regulation,

the commission shall have the power to provide for the refund of any

revenues received by any gas or electric corporation which cause the

corporation to have revenues in the aggregate in excess of its

authorized rate of return for a period of twelve months. The commission

may initiate a proceeding with respect to such a refund after the

conclusion of any such twelve month period.

* NB Effective until January 1, 2027

* 20. (a) Notwithstanding any general or special law, rule or

regulation to the contrary, the commission shall have the power to

provide for the refund of any revenues received by any gas corporation,

electric corporation, or combination gas and electric corporation, which

cause the corporation to have revenues in the aggregate in excess of its

authorized rate of return for a period of twelve months.

(b) Such corporations shall be required to return all revenues derived

from their actual return on equity in excess of their authorized rate of

return on equity to ratepayers, less an amount not to exceed the amount

of revenue that would be derived from a rate of return on equity equal

to one quarter of one percent, as determined by the commission, and upon

a determination by the commission that such revenues in excess of a

corporation's authorized rate of return on equity provide benefits to

ratepayers through cost savings or efficiency gains which exceed the

benefits of refunds pursuant to paragraph (c) of this subdivision.

Provided, however, in no event shall ratepayers, in aggregate, receive

less in returns than the corporation retains in excess revenues.

(c) The commission shall direct the corporation to return such excess

revenues in the form of a bill credit; provided, however, that if the

commission determines that the amount of the bill credit would be de

minimis, the commission may set aside such excess revenues for customer

benefit in a following rate case. Any bill credit shall be provided to

ratepayers in a timely manner, following an accounting review by the

department of the corporation's calculation of their excess revenue, and

shall be clearly labeled on the ratepayer's bill. Any such bill credit

shall be returned in its entirety on a single bill, unless the credit is

in excess of the amount due on the bill so as to require the remaining

portion of the bill credit to appear on a subsequent bill or bills. The

commission may initiate a proceeding with respect to such a refund after

the conclusion of any such twelve-month period. In such a proceeding the

commission shall determine the bill credit amount due to ratepayers, may

examine how credits could be distributed among various customer

classifications of service, and shall issue an order requiring the

disbursement of the bill credits.

(d) Such corporations shall be required to report annually to the

department any excess revenues and the amount returned to ratepayers.

(e) For purposes of this subdivision, "authorized rate of return on

equity" shall mean the return on the equity portion of the rate base

that an electric corporation, gas corporation, or combination gas and

electric corporation is authorized to collect in rates pursuant to the

schedule of rates and charges on file with the commission or otherwise

adopted by an order of the commission.

* NB Effective January 1, 2027

21. (a) Each electric corporation subject to section twenty-five-a of

this chapter shall annually, on or before December fifteenth, submit to

the commission an emergency response plan for review and approval. The

emergency response plan shall be designed for the reasonably prompt

restoration of service in the case of an emergency event, defined for

purposes of this subdivision as an event where widespread outages have

occurred in the service territory of the company due to storms, cyber

attack, or other causes beyond the control of the company. The emergency

response plan shall include, but need not be limited to, the following:

(i) the identification of management staff responsible for company

operations during an emergency; (ii) a communications system with

customers during an emergency that extends beyond normal business hours

and business conditions; (iii) identification of and outreach plans to

customers who had documented their need for essential electricity for

medical needs, which shall include but not be limited to, apnea monitors

for infants, cuirass respirators, hemodialysis machines, IV feeding

machines, IV medical infusion machines, oxygen concentrators, positive

pressure respirators, respirator/ventilators, rocking bed respirators,

suction machines, and tank type respirators; (iv) identification of and

outreach plans to customers who had documented their need for essential

electricity to provide critical telecommunications, critical

transportation, critical fuel distribution services or other large-load

customers identified by the commission; (v) designation of company staff

to communicate with local officials and appropriate regulatory agencies;

(vi) provisions regarding how the company will assure the safety of its

employees and contractors; (vii) procedures for deploying company and

mutual aid crews to work assignment areas; (viii) identification of

additional supplies and equipment needed during an emergency; (ix) the

means of obtaining additional supplies and equipment; (x) procedures to

practice the emergency response plan; (xi) appropriate safety

precautions regarding electrical hazards, including plans to promptly

secure downed wires within thirty-six hours of notification of the

location of such downed wires from a municipal emergency official; (xii)

plans to prioritize the securing of downed wires over routine

maintenance or other work unrelated to a response to an emergency event

after notification by an individual of the location of such downed wires

and where such notification includes information indicating wire

burning, arcing/sparking, or the restriction of ingress and egress from

a building or vehicle, or other immediate hazards. Such plans shall, at

minimum, include procedures to identify, locate, and assess the reported

wire no later than seventy-two hours after the response to an emergency

event ends; (xiii) plans setting forth how the communication and

coordination of efforts between the electric corporation, electric

corporation employees, electric corporation company crews, mutual aid

crews, other utilities, local governments and any other entity

performing services to assist such electric corporation shall occur; and

(xiv) such other additional information as the commission may require.

Each such corporation shall, on an annual basis, undertake drills

implementing procedures to practice its emergency management plan. The

commission may adopt additional requirements consistent with ensuring

the reasonably prompt restoration of service in the case of an emergency

event.

(b) After review of a corporation's emergency response plan, the

commission may require such corporation to amend the plan. The

commission may also open an investigation of the corporation's plan to

determine its sufficiency to respond adequately to an emergency event.

If, after hearings, the commission finds a material deficiency in the

plan, it may order the company to make such modifications that it deems

reasonably necessary to remedy the deficiency.

(c) The commission is authorized to open an investigation to review

the performance of any corporation in restoring service or otherwise

meeting the requirements of the emergency response plan during an

emergency event. If, after evidentiary hearings or other investigatory

proceedings, the commission finds that the corporation failed to

reasonably implement its emergency response plan or the length of such

corporation's outages were materially longer than they would have been,

because of such corporation's failure to reasonably implement its

emergency response plan, the commission may deny the recovery of any

part of the service restoration costs caused by such failure,

commensurate with the degree and impact of the service outage; provided,

however, that nothing herein limits the commission's authority to

otherwise commence a proceeding pursuant to sections twenty-four,

twenty-five and twenty-five-a of this chapter.

(d) The commission shall certify to the department of homeland

security and emergency services that each such corporation's emergency

response plan is sufficient to ensure to the greatest extent feasible

the timely and safe restoration of energy services after an emergency in

compliance with the requirements of this chapter.

(e) The filing of each emergency response plan required under

paragraph (a) of this subdivision shall also include a copy of all

written mutual assistance agreements among utilities.

(f) Each electric corporation shall file with the county executive or

the chief elected official of a county for each county within its

service territory the most recent approved copy of the emergency

response plan required pursuant to this section. For the purposes of an

electric corporation operating within the city of New York, such

corporation shall file the most recent approved emergency response plan

with the emergency management office of the city of New York.

(g) The commission shall provide access to such emergency response

plan pursuant to article six of the public officers law.

22. The commission shall permit the recovery through rates established

pursuant to this section of all payments made by electric corporations

pursuant to section twenty-nine-c of the executive law.

23. Require every gas corporation or electric corporation having

equipment containing five hundred parts per million or greater of

polychlorinated biphenyls (PCBs), including but not limited to,

capacitors and transformers, to submit a report to the commission. The

report shall contain (1) a list of such equipment that is in service,

each unit's location, size and service age, (2) a list of such equipment

that is retired from service after the effective date of this

subdivision, the date each unit was retired from service, and the

location of the facility where the unit and/or PCBs are processed or

stored, (3) the date for shipment of PCBs within or out of New York

state, and (4) a description of the New York state portion of the

shipping route. The commission shall require the report to be updated

and distributed semiannually. In addition, such corporation shall submit

to each county and city located in the service territory of the

corporation a report containing the information listed above for such

equipment and PCBs located in or transported through the county or city

receiving the report.

For the purposes of this subdivision, capacitors, transformers, and

equipment designed to use the PCB-free mineral oil dielectric fluids

shall be presumed to contain concentrations below five hundred parts per

million of PCBs, unless the unit has been serviced with fluid which

contains five hundred parts per million or greater of PCBs, or there is

any other reason to believe that the unit contains or was ever mixed

with fluid with a concentration level of five hundred parts per million

or greater or unless testing has specifically shown otherwise.

24. (a) If a nuclear power plant which is not commercially used and

useful in the actual generation of electricity on the effective date of

this subdivision and which is owned by a single utility on or after the

effective date of this subdivision fails to commence or continue

commercial operation after the effective date of this subdivision, the

commission shall thereafter remove and exclude from the utility

corporation's revenue requirement all amounts, costs, charges,

adjustments, or extraordinary cost of capital allowances theretofore

made, granted or provided which are attributable, directly or

indirectly, to such nuclear power plant or to such plant's failure to

commence commercial operation.

(b) The commission shall not thereafter, unless and until such plant

commences or recommences commercial operation, include in such utility's

revenue requirement any amounts, costs, charges, adjustments or

extraordinary cost of capital allowances attributable, directly or

indirectly, to such plant or to such plant's failure to commence

commerical operation.

(c) Nothing in this subdivision shall be deemed to require a refund of

the charges paid by or billed to a customer of such utility prior to a

failure to commence or continue commercial operation of such plant.

(d) For the purposes of this subdivision, the failure to commence or

continue commercial operation shall mean the abandonment of such plant

after the effective date of this subdivision; the denial, including any

denial pursuant to or as a result of any administrative or judicial

review, of a commercial operating license or other regulatory approval

necessary for the plant to become commercially used and useful in the

actual generation of electricity; the failure of the plant to become

commercially used and useful in the actual generation of electricity

within forty-two months of the issuance of the low power testing license

for such plant; or the occurrence of any event or the existence of any

circumstances (other than customary inspection and maintenance and

related repairs or refueling requirements) after the plant becomes

commercially used and useful in the actual generation of electricity

which renders the plant not commercially used and useful in the actual

generation of electricity.

25. Notwithstanding any other provision of law to the contrary,

whenever a city having a population of one million or more provides for

a deduction from gross receipts of a gas corporation or electric

corporation, pursuant to a local law authorized by the provisions of

subdivision (k) of section twelve hundred one of the tax law, the rate

or charge imposed by any such corporation within such city upon

non-residential users of electricity or gas eligible to receive a rebate

in accordance with a local law or laws adopted pursuant to article two-G

of the general city law shall be set by the commission so as to reflect

fully the decrease in tax liability attributable to such deduction.

26. Notwithstanding any other provision of law to the contrary,

whenever the gas facility costs of a gas corporation are paid or

reimbursed by the city of New York as provided in the gas facility cost

allocation act, the rates and charges of such gas corporation within

such city shall be set by the commission so as to reflect fully the

amount of such payments and reimbursements made by such city. The amount

of such payments and reimbursements shall not be reflected directly or

indirectly in any rate or charge imposed by such corporation outside

such city.

27. (a) Each electric corporation with annual gross revenues in excess

of two hundred million dollars shall offer the option of paying charges

on the basis of time of use rates for service to its residential

customers and to posts and halls owned by a not-for-profit corporation

that is a veterans' organization. Such electric corporation shall

periodically send a notice explaining the rates and informing such

customers and organizations that the rates are available.

(b) Any electric corporation which offers its customers time of use

rates shall notify those customers who elect or receive such rate

regarding the following:

(1) the hours for which such rates are available for both standard and

daylight savings time;

(2) the procedure such customers shall follow in order to have their

meter clocks reset following an interruption of service if such

resetting is necessary to restore the effective hours of the time of use

rates; and

(3) when the utility has knowledge of an outage, a statement within

sixty days of such outage that the time of use rates may not be applied

at the previously stated times until the meter clock is reset, if such

resetting is necessary.

28. No revenues foregone by an electric corporation, as a result of

subjecting certain veterans' organizations with rates or charges

applicable to domestic consumers pursuant to section seventy-six of this

article, shall be recovered from the customers of such corporation.

29. (a) Each electric corporation subject to section twenty-five-a of

this chapter shall prepare and submit a climate change vulnerability

study to the commission within eighteen months of the effective date of

this act. The commission shall provide such study to the governor and

the legislature. The climate change vulnerability study shall evaluate

the electric corporation's infrastructure, design specifications, and

procedures to better understand the corporation's vulnerability to

climate-driven risks, and shall include, but not be limited to,

adaptation measures to address vulnerabilities and any other information

deemed necessary by the commission.

(b) Within sixty days from submission of a climate change

vulnerability study to the commission, each electric corporation subject

to section twenty-five-a of this chapter shall submit a climate

resilience plan to the commission for review and approval. Each plan

shall: (i) propose storm hardening and resiliency measures for the next

ten years and twenty years, and shall explain the systematic approach

the corporation will follow to achieve the objectives of mitigating the

impacts of climate change to utility infrastructure, reducing

restoration costs and outage times associated with extreme weather

events, and enhancing reliability, as well as such other additional

objectives the commission may require consistent with ensuring increased

resiliency of utility infrastructure and overall reliability during

extreme weather events; (ii) detail how the corporation will incorporate

climate change into its planning, design, operations, and emergency

response; (iii) incorporate climate change into existing processes and

practices, manage climate change risks and build resilience; (iv)

propose adjustments, as necessary, to how the corporation plans and

designs infrastructure for the increasing impacts from climate change;

and (v) address each of the elements specified in paragraph (d) of this

subdivision and any additional elements specified by the commission. The

commission shall adopt rules to specify any additional elements that

must be included in a corporation's filing for review of climate

resilience plans.

(c) Each subject electric corporation shall contemporaneously serve

the climate resilience plan on the parties from its last rate case filed

pursuant to subdivision twelve of this section.

(d) In its review of each climate resilience plan filed pursuant to

this subdivision, which shall be separate from a corporation's rate

proceeding, the commission shall, at minimum, consider:

(i) the extent to which the plan is expected to mitigate the impacts

of climate change, reduce restoration costs and outage times associated

with extreme weather events, and enhance reliability, including whether

the plan examines areas of lower reliability performance;

(ii) the extent to which storm protection and hardening of

transmission and distribution infrastructure is feasible, reasonable, or

practical in certain areas of the corporation's service territory,

including, but not limited to, coastal areas, flood zones, and rural

areas;

(iii) the estimated costs and benefits to the corporation and its

customers of making the improvements proposed in the plan, including

considerations of equity in the plan as applied across the entire

service territory, with particular attention paid to the costs and

benefits in undergrounding transmission and distribution lines;

(iv) a schedule for implementing each of the storm hardening and

resiliency measures included in the plan;

(v) whether the plan includes major performance benchmarks that

measure the effectiveness of the implementation of the plan;

(vi) the estimated annual rate impact resulting from implementation of

the plan during the first five years addressed in the plan;

(vii) the extent to which the plan considers a multi-pronged strategy

appropriately tailored to addressing the impacts of climate change,

reducing restoration costs and outage times and enhancing infrastructure

reliability, including, but not limited to, vegetation management,

improvements to system management practices, undergrounding of

distribution and transmission lines, replacement of obsolete cables,

wires and poles, automation and circuit reconfiguration, investing in

infrastructure that supports the development of technologies that would

improve response to extreme weather events and reduce restoration costs,

and system resiliency through the deployment of distributed energy

resources, and fortifying critical facilities;

(viii) the extent to which the plan identifies opportunities for

coordination with municipalities, customer advocate groups, the

independent system operator, the energy research and development

authority, and other utility or telecommunication service providers;

and,

(ix) the recommendations from the utility climate resilience working

group established pursuant to paragraph (h) of this subdivision.

(e) No later than eleven months after a corporation files a climate

resilience plan that contains all of the elements required by this

subdivision, and after a public hearing on the plan, which shall include

a public forum at a physical location, attended by commission members or

their designees to take in written or oral comment, the commission shall

determine whether it is in the public interest to approve or modify the

plan.

(f) At least every five years after approval of a corporation's

climate resilience plan, or more frequently upon a schedule determined

to be appropriate by the commission, each corporation must file, for

commission review, an updated plan that addresses each element specified

in paragraph (b) of this subdivision. The commission shall approve,

modify, or deny each updated plan pursuant to the criteria used to

review the initial plan.

(g) The commission shall authorize each electric corporation to fully

recover in the context of rate proceedings the costs associated with

each project included in such corporation's climate resilience plan that

is approved or modified by the commission, so long as such costs were

prudently incurred. Each corporation may begin implementation of the

climate and resilience measures in accordance with the schedule

specified in its climate resilience plan once such plan is approved or

modified by the commission. For capital projects that are placed into

service and additional unrecovered expenses incurred prior to the base

rates being reset in the first rate proceeding commenced by such

corporation subsequent to the commission's approval or modification of

the climate resilience plan, the company shall recover such costs

through a "climate resiliency cost recovery" surcharge. The costs to be

recovered through such a surcharge shall be detailed in a filing to the

commission, and each corporation shall propose a method of allocating

costs to customer classes in said filing. Such costs for capital

projects in service may include an annual depreciation cost, calculated

at the corporation's approved depreciation rates and a return on the

undepreciated balance of the plant in service calculated at the

corporation's approved weighted average cost of capital. In addition,

all unrecovered expense balances, net of taxes, shall also earn carrying

charges at the corporation's approved weighted average cost of capital.

The commission may roll any unrecovered costs associated with such

surcharge into base rates when the corporation's base rates are reset.

The commission shall identify in any order approving or modifying a

corporation's rate plan the resiliency and storm hardening component of

the revenue requirement on a cost and/or percentage basis.

(h) Each corporation shall establish a utility climate resilience

working group no later than one year after the effective date of this

subdivision. Such working group shall advise and make recommendations to

the corporation and the commission on the development and implementation

of the corporation's climate resilience plan. The corporation shall, in

consultation with the department, include in the working group

representatives from municipalities, customer advocacy groups, and

energy and environmental advocacy organizations. The working group shall

meet at least twice annually.

(i) Each corporation shall provide to the county executive or the

chief elected official of a county for each county within its service

territory the most recent approved copy of the climate resilience plan

required pursuant to this subdivision. For the purposes of an electric

corporation operating within the city of New York, such corporation

shall provide the most recent approved climate resilience plan with both

the mayor's office and emergency management office of the city of New

York.

(j) The commission shall provide access to such climate resilience

plans pursuant to article six of the public officers law.

(k) Beginning December first of the year after the second full year of

implementation of a climate resilience plan and biennially thereafter,

the corporation shall file with the commission a report on the status of

its activities to comply with the plan, which report the commission

shall, after review, submit to the governor and the legislature. The

report shall include, but is not limited to, identification of all storm

protection and resiliency activities completed or planned for

completion, the actual costs and rate impacts associated with completed

activities as compared to the estimated costs and rate impacts for those

activities, the estimated costs and rate impacts associated with

activities planned for completion, and the governance, planning, and

operational activities undertaken by the corporation in furtherance of

the climate resilience plan.

(l) The commission shall promulgate any necessary rules and

regulations to implement and administer the provisions of this

subdivision.

30. Promulgate rules and regulations to direct electric or gas

corporations to develop and implement tools to monitor: (a) operational

control networks giving the electric or gas corporation the ability to

undertake the detection of unauthorized network behavior related to such

corporation's industrial control systems, as defined in subdivision

fifteen of section 1-103 of the energy law; and (b) monitor and protect

customer privacy, including but not limited to customer electric and gas

consumption data from unauthorized disclosure. On or before December

thirty-first, two thousand twenty-three and not later than five years

after such date, and every five years thereafter, the commission shall

provide a report to the governor, the temporary president of the senate,

the speaker of the assembly, the chairperson of the assembly standing

committee on energy, and the chairperson of the senate standing

committee on energy and telecommunications reviewing electric or gas

corporation compliance with this section, including, as necessary,

recommendations to the legislature if the commission determines that

additional measures are required to ensure the effective protection of

electric or gas corporation critical infrastructure.

31. Promulgate rules and regulations to direct electric or gas

corporations to require the installation of advanced metering

infrastructure that connects to the electric or gas distribution network

operated by such electric or gas corporation be permitted only so long

as access to the advanced meter infrastructure enables two-way

communication between utilities and meters through the optimal

communications network option, such as a wireless network, that is

shared by at least two meter providers operating within the United

States of America, if the commission determines that it is cost

effective and technically feasible to do so.

32. Customer electric and gas consumption data shall be considered

confidential. The commission shall have the authority to promulgate

rules and regulations to require gas or electric corporations to take

necessary measures to protect such data from unauthorized or unconsented

disclosure.

* 33. (a) Following any commission decision that establishes a change

in rates that results in an energy burden greater than three percent for

residential electric service or greater than three percent for

residential gas service, or greater than six percent for residential

combination electric and gas service, the commission shall have the

power to install an independent affordability monitor inside such gas

corporation, electric corporation, or combination gas and electric

corporation for a time period determined by the commission but for no

less than one year and which shall not continue beyond any commission

decision establishing a new schedule of rates or charges which

constitutes a major change, pursuant to subdivision twelve of this

section other than to complete its responsibilities pursuant to

paragraph (c) of this subdivision relevant to the filing for which it

was installed.

(b) In every case in which the commission installs an affordability

monitor, it shall have authority to select the monitor, who shall not be

affiliated with, or have a financial interest in such corporation or be

an existing employee of the department, to enter into a contract with

the monitor, and ensure the monitor's services are paid for. Such

contract shall provide further that the monitor shall work for and under

the direction of the commission according to such terms as the

commission may determine are necessary and reasonable.

(c) (i) Such affordability monitor shall have power to examine

records, including but not limited to, the accounts, books, contracts,

property, assets, procurement history, taxes, accounting, operations,

maintenance, past and present customer billing systems and related

documents, customer complaints, as well as financial documents, reports,

and papers of the corporation and shall have full access to management

meetings and related records in order to review the corporation's

operations and expenditures, and the corporation shall provide such

materials and such access to the affordability monitor.

(ii) The affordability monitor shall report to the commission at least

biannually the primary cost drivers that caused the energy burden to

rise more than three percent for residential electric service or greater

than three percent for residential gas service, or greater than six

percent for residential combination gas and electric service,

opportunities for cost savings and residential rate reduction,

recommended changes in corporation operations, incentives, practices, or

policies to achieve savings, and other information the affordability

monitor determines relevant. Such report shall be publicly available and

posted prominently on the commission's website.

(iii) The commission upon receiving a report from the affordability

monitor shall review the primary cost drivers and identified

opportunities for savings.

(iv) The commission in its review shall make a determination of

whether the opportunities for savings detailed by the energy

affordability monitor merit implementation. If the commission determines

that any of the identified opportunities for savings are not efficient,

just and reasonable, or would impact safety or reliability, or otherwise

do not merit implementation, the commission shall explain the basis for

that determination. If the commission determines an opportunity for

savings merits implementation, it shall issue an order within 180 days

to implement such opportunity.

(d) Any gas corporation, electric corporation, or combination electric

and gas corporation shall promptly and comprehensively comply with any

investigation or investigation request.

(e) (i) If the energy affordability monitor discovers evidence of

widespread errors, including but not limited to errors in billing,

rates, charges, and compensation for employees or third-party

contractors, miscategorization of expenses, fraud, or wrongdoing, and

the department, after reviewing the evidence from the monitor,

determines such evidence constitutes a credible and actionable

allegation of a violation of the law, the department shall initiate an

investigation or enforcement action.

(ii) The commission shall determine whether the corporation was at

fault and shall take any corrective action it deems appropriate. Any

settlement, interest, fees, penalties or disgorged profits collected by

the commission as a result of investigations pursuant to this

subdivision shall be returned to impacted residential and small

non-residential ratepayers in the form of on-bill credits.

* NB Effective January 1, 2027

Conservation of gas, declaration of policy, delegation of

power. 1. It is hereby declared to be the policy of this state that

when there develops in any area a situation under which a gas

corporation supplying gas to such area is unable to meet the reasonable

needs of its consumers and of persons or corporations applying for new

or additional gas service, the available supply of gas shall be

allocated among the customers of such gas corporation, in such manner as

may be necessary to protect public health and safety and to avoid undue

hardship, pursuant to rules and regulations as may be adopted by the

commission, and that to carry out this declared policy the jurisdiction

of the public service commission should be clarified.

2. Notwithstanding the provisions of any statute or any franchise held

by a gas corporation, the commission shall have power, upon the finding

that there exists such a shortage of gas in any area in the state, that

the gas corporation supplying such area is unable and will be unable to

secure or produce sufficient gas to meet the reasonable needs of its

customers and of persons or corporations applying for new or additional

gas service, to require such corporation to immediately discontinue the

supplying of gas to additional customers or of supplying additional

service to present customers, for such purpose or purposes as may be

designated by the commission, or to customers using gas for a purpose

prohibited by the commission pursuant to this act, and that upon the

finding that the supply of gas available is and will be insufficient to

supply the demands of all consumers receiving service, to require such

gas corporation to curtail or discontinue service to any or all classes

of customers of such gas corporation. In imposing such a direction or

requirement, the commission shall give consideration first to existing

domestic uses and uses deemed to be necessary by the commission to

protect public health and safety and to avoid undue hardship and shall

be limited to the period of the emergency provided that the gas

corporation affected shall make such restriction, curtailing or

discontinuance applicable to all customers or applicants for service in

a like class. If the commission determines that good cause exists for

supplying service to additional customers or for supplying additional

service to some existing customers, notwithstanding the curtailment or

discontinuance of service to other existing customers, it shall, to the

extent feasible, allocate gas with equal priority to new or additional

domestic uses of gas and commercial or industrial processes which

require gas because there is no practical substitute for it in such

proportion as the commission determines to be reasonable. Provided that

the commission shall be permitted, after public hearing, to authorize

any natural gas produced from lands under the waters of Lake Erie to be

used for process or feedstock requirements. The commission is authorized

to adopt such rules, regulations and orders as are necessary or

appropriate to carry out these delegated powers.

3. In carrying out the delegated powers provided for in this section,

the commission shall, to the extent practicable, determine and establish

gas conservation measures or standards. The commission may require

compliance with such measures or standards as a condition of receiving

service.

Continuation of gas service. 1. Notwithstanding the provisions

of section sixty-six-a of this chapter, no gas customer shall be denied

a continuation of gas service following the demolition and

reconstruction of any structure or structures owned by any such

customer, provided that any such reconstructed structure or structures

are on the same parcel of real property, reconstruction commences within

one year of demolition and the new structure or structures do not

materially increase the customer's gas usage.

Conservation of energy. 1. It is hereby declared to be the

policy of this state that it is in the public interest to encourage, at

rates just and reasonable to electric and steam corporation ratepayers,

the development of alternate energy production facilities, co-generation

facilities and small hydro facilities in order to conserve our finite

and expensive energy resources and to provide for their most efficient

utilization when such facilities are needed to fulfill the energy,

capacity or other electric system needs of this state, as determined by

the most recent state energy plan. In furtherance of this declared

policy, the commission shall encourage the participation of utilities in

co-generation, small hydro and alternate energy production facilities

either directly or through subsidiaries formed pursuant to the

provisions of subdivisions three and four of this section. In addition,

the commission shall require any electric corporation or steam

corporation (a) to enter into long-term contracts to purchase or wheel

electricity or useful thermal energy from any alternate energy

production, small hydro or co-generation facility, with an electric

generating capacity of up to eighty megawatts, under such rates, terms

and conditions as the commission shall find just and economically

reasonable to the corporation's ratepayers, non-discriminatory to

co-generators, small hydro producers and alternate energy producers and

further the public policy set forth herein; and (b) to provide

supplemental or back-up power to any alternate energy production, small

hydro or co-generation facility on a non-discriminatory basis and at

just and reasonable rates; provided, however, that nothing contained in

this section shall require any such electric or steam corporation to

construct any additional facilities for such purposes unless such

facilities are paid for in full by the owner or operator of the

co-generation, small hydro or alternate energy production facility.

2. Notwithstanding any other provision of law, the minimum sales price

for purchased electricity from any alternate energy production facility,

co-generation facility or small hydro facility of six cents per

kilowatt hour for each utility, as established by chapter eight hundred

forty-three of the laws of nineteen hundred eighty-one, shall remain in

full force and effect (a) for any contract fully executed by the parties

and filed with the commission on or before June twenty-sixth, nineteen

hundred ninety-two and (i) providing for the purchase of electricity at

such minimum sales price, or (ii) providing for the purchase of

electricity at a utility tariff rate referencing a statutory minimum

sales price, or (iii) providing for the reconciliation or recalculation

of such contract's purchase price by comparison to such statutory

minimum sales price or tariff rate, for the duration of any such

contract and subject to the terms and conditions of such contract and

performance thereunder, provided, however, that such minimum sales price

shall be implemented in accordance with the policies and conditions

established by the commission, and (b) for any such facility concerning

which a final and unappealable judgment of a court of New York state,

rendered prior to January first, nineteen hundred eighty-seven,

determined that such facility was entitled to receive such minimum sales

price, provided that such minimum sales price shall be applicable to all

purchased electricity from such facility irrespective of any

modifications or additions to such facility that may be necessary to

enable such facility to achieve the electric power production capacity

of such facility as set forth in an order of the Federal Energy

Regulatory Commission issued prior to January first, nineteen hundred

eighty-seven granting an application for certification of such facility

as a qualifying facility, and (c) for any such facility which has been

producing electricity in addition to the electricity which is the

subject of a contract previously entered into with an electric

corporation for such facility, which contract provides for the purchase

of electricity in accordance with subdivision (a) of this section;

provided, however, that the minimum sales price shall only be paid for

electricity that does not exceed the maximum annual amount of

electricity produced by such facility as of the effective date of this

subdivision and does not exceed the amount of electricity provided for

in the contract by more than ten percent, and provided, however, that

such minimum sale price shall be implemented for the duration of the

contract in accordance with policies and conditions established by the

commission.

3. Notwithstanding any other provision of law, any gas, electric or

steam corporation shall, upon application to the commission and the

commission's approval thereof, be authorized to establish, and to

finance out of retained earnings, a subsidiary corporation, which

corporation shall have as its sole purpose, except as provided in

subdivision five of this section, the ownership and/or operation, in

whole or in part, of one or more co-generation, small hydro or alternate

energy production facilities. Within a reasonable time after its receipt

of a complete application to establish such subsidiary or to finance

such subsidiary out of retained earnings, the commission shall approve

such application unless it shall find that the proposed subsidiary or

financing may affect the corporation's ability to meet its obligation to

provide safe and adequate service at just and reasonable charges to its

own customers. Any such subsidiary corporation shall be exempt from any

regulation by the commission under this chapter and the commission shall

have no authority to regulate any rates, charges, service terms or

service practices relating to any electricity, gas or steam produced by

any such subsidiary corporation at any such facility except as

specifically provided in subdivision one of this section.

4. (a) Any subsidiary corporation established by an electric, gas or

steam corporation pursuant to the authorization of subdivision three of

this section shall comply with the following criteria:

(1) If any such subsidiary shall obtain the use of transmission

facilities or any services necessary for the sale or purchase of the

energy generated from its co-generation, small hydro or alternate energy

production facilities from any affiliated gas, electric or steam

corporation, it shall do so only pursuant to a tariff filed with the

commission by such gas, electric or steam corporation;

(2) Any such subsidiary corporation shall operate independently from

any affiliated gas, electric or steam corporation in the establishment

and operation of co-generation, small hydro or alternate energy

production facilities and in the sale of energy produced from such

facilities. It shall maintain its own books of account, have separate

officers, utilize separate operating, marketing, installation, and

maintenance personnel, and utilize separate computer facilities;

(3) Any such subsidiary corporation shall deal with any affiliated

gas, electric or steam corporation only on an arm's length basis;

(4) All transactions between such a subsidiary corporation and an

affiliated gas, electric or steam corporation which involve the

transfer, either directly or by accounting or other record entries, of

money, personnel, resources, other assets or anything of value, shall be

reduced to writing. A copy of any contract, agreement, or other

arrangement entered into between such entities shall be filed by the

affiliated gas, electric or steam corporation with the commission within

thirty days after the contract, agreement, or other arrangement is made.

This provision shall not apply to any transaction governed by the

provision of any existing state or federal law, regulation or tariff.

(b) Any gas, electric or steam corporation affiliated with such a

subsidiary corporation shall:

(1) not engage in promoting the sale of energy from the subsidiary's

co-generation, small hydro or alternate energy production facilities;

and

(2) not provide to any such subsidiary corporation any customer

proprietary information, unless such information is made available to

any member of the public upon request on the same terms and conditions

under which such information is made available to the subsidiary.

(c) The rate of return for any gas, electric or steam corporation

affiliated with any such subsidiary corporation shall not be based in

whole or in part on the capitalization of such subsidiary nor shall the

revenue requirements for any such gas, electric or steam corporation be

based on any transactions between the gas, electric or steam corporation

and its subsidiary which are not in compliance with paragraph a of this

subdivision.

5. A subsidiary corporation established pursuant to the authorization

of subdivision three of this section may have as an additional purpose

the ownership and/or operation, in whole or in part, of one or more

facilities located outside this state for the production of electric

power and/or thermal energy, together with any land, work, system,

building, improvement, instrumentality or thing necessary or convenient

to the construction, completion or operation of any such facility,

including also such transmission or distribution facilities located

outside this state as may be necessary to conduct electricity or useful

thermal energy to users located at or near a project site. Except as

expressly provided herein, nothing in this subdivision shall be

construed to modify, alter, limit, restrict, abrogate or enlarge the

application of any other provision of this section. For the purposes of

this subdivision, the term "facilities located outside this state for

the production of electrical power and/or thermal energy" shall mean and

include each of the following:

(i) Any "small hydro facility" as defined in subdivision two-c of

section two of this chapter;

(ii) Any solar, wind turbine, waste management resource recovery,

refuse-derived fuel or wood-burning facility which produces electricity,

gas or useful thermal energy;

(iii) Any facility which is fueled by coal, gas, wood, alcohol, solid

waste refuse-derived fuel, water or oil to the extent oil is used as a

backup fuel for such facility, and which simultaneously or sequentially

produces either electrical or shaft horsepower and useful thermal energy

which is used solely for industrial and/or commercial purposes; and

(iv) Any facility which is fueled by coal, gas, wood, alcohol, solid

waste refuse-derived fuel, water or oil, and which produces electrical

power, shaft horsepower or thermal energy which is used solely for

industrial and/or commercial purposes.

Contract carrier authorization. 1. For purposes of this

section the term natural gas shall mean natural gas produced within the

state or transported within the state no matter where produced for

consumption in the state.

2. The commission, upon its own initiative or upon application by a

natural gas producer or a consumer of natural gas in any year and after

notice and hearing shall, upon such terms and subject to such conditions

as the commission considers just and reasonable, have the authority to

order any gas corporation to transport or contract with others to

transport gas under contract for sale by such producer or owned by such

consumer provided that, the commission finds that the gas corporation

has available capacity, that no undue burden shall be placed upon the

gas corporation or its ratepayers and that the ability of the gas

corporation to render adequate service to its customers is not impaired.

Monitoring of natural gas procurement. 1. The commission shall

continue to monitor natural gas procurement contracts and practices of

gas corporations and determine whether any of such practices or

provisions of any such contracts are anti-competitive in force or effect

or otherwise contrary to the public interest. Such monitoring shall

include an examination of the prevailing market prices in the state for

gas supplies including domestic producer prices for natural gas.

2. In any application for a rate increase, a gas corporation shall

show all sources of its gas supply and anticipated changes thereof and

demonstrate that other dependable and adequate lower priced supplies are

not available. Where any of such sources is an affiliated company, the

applicant shall have the burden to prove all related natural gas

purchase or transportation prices and conditions are fair and

reasonable.

3. The commission shall, upon complaint or upon its own motion,

investigate the circumstances under which existing gas procurement

contracts were made. Where the commission concludes that a gas

corporation was imprudent in the making or administration of such

contract, the commission shall exercise its authority to limit the rates

charged by such gas corporation to amounts no higher than those which

would have been justified had such corporation acted in a prudent

manner.

Purchase and procurement of natural gas at lowest available

price. 1. The commission shall have the authority to direct any gas

corporation subject to the jurisdiction of the commission to purchase or

procure natural gas at the lowest available price as determined by the

commission.

2. A gas corporation shall be required to purchase supplies of natural

gas whenever a natural gas producer provides the gas corporation with at

least six months prior notice of the availability of such gas, and the

delivered cost of such gas is equal to or less than the highest

delivered cost of natural gas produced outside the state which the gas

corporation would otherwise purchase or acquire, adjusted to reflect

substantive differences, if any, in the terms and conditions applicable

to the sale of such gas over the period of availability of the natural

gas; provided, however, that no gas corporation shall be required to

purchase natural gas where it can demonstrate such purchase would have

an adverse impact upon its ratepayers, which cannot be reasonably

mitigated.

3. A gas corporation shall respond to a notice of availability of

supplies of natural gas at a specified delivered cost provided by a

producer of such gas within one month of the receipt of such notice,

and, if it indicates its intent not to purchase such supplies, shall

provide in detail its reasons therefor. A natural gas producer may

petition the public service commission, within fifteen days of the

receipt of a gas corporation's response, to order such gas corporation

to comply with subdivision one of this section. Such petition shall

contain sufficient information to demonstrate the petitioner's ability

to provide the supplies of natural gas offered for sale to the gas

corporation. A copy of such petition shall also be served upon such gas

corporation. Within twenty-one days of the receipt of such a petition, a

gas corporation shall file such information as is necessary to

demonstrate that the purchase of natural gas during the period of

availability at the specified delivered cost of such gas would have an

adverse impact upon its ratepayers. The petitioner and others shall have

the opportunity to comment upon the filing by the gas corporation within

twenty-one days of such filing. The commission shall take final action

on any such petition within forty days after the date upon which the

petitioner's comments are due. The commission may require a gas

corporation to purchase all or a portion of the supplies of natural gas

offered by the petitioner during the period of availability at the

specified delivered cost, or at such other cost as will not result in an

adverse impact upon such gas corporation's ratepayers. Nothing in this

section shall require a producer of natural gas to sell such gas to a

gas corporation at a cost other than that specified in its notice of

availability.

Sale of indigenous natural gas for generation of electricity.

1. The commission shall require an electric corporation to enter into

long-term contracts to purchase or wheel electricity produced from

indigenous natural gas supplies at the well site under such terms and

conditions as the commission shall find just and economically reasonable

to such corporation's customers, non-discriminatory to the producers of

electricity from indigenous natural gas supplies, and furthers the

public policy of this section and state energy policy; provided,

however, the minimum sales price shall be no lower than the electric

corporation's avoided cost. For the purpose of this section indigenous

natural gas shall mean natural gas produced from wells located within

the state.

2. Nothing contained in this section shall require an electric or gas

corporation to construct any additional facilities to satisfy its

obligations hereunder, unless such facilities are paid for in full by

the producer or producers of indigenous natural gas.

3. Notwithstanding any other provision of law, a producer of

indigenous natural gas whose natural gas activities are limited to the

production, sale and/or transportation of indigenous natural gas to a

gas corporation or a gas pipeline, the production, sale and/or

transportation of indigenous natural gas to the facilities of less than

twenty industrial or commercial users, the production, sale and/or

transportation of natural gas to a co-generation or electrical

generating facility, the production of electricity from indigenous

natural gas at the well site for sale to an electric corporation, or any

combination thereof, shall not be subject to the jurisdiction of the

commission except (a) with respect to the safety of the construction,

operation or maintenance of its gas plant and the certification of major

utility transmission facilities under article VII of this chapter and

(b) that such producer of indigenous natural gas that does not retain or

transport such gas for his own use but rather sells or transports such

gas to industrial or commercial users shall maintain a record of the

volumes of such gas sold or transported to such users. Such producer

shall submit these records annually to the commission on or before the

thirty-first day of March.

Certain electric corporations; payment equivalent to tax. The

commission shall require each electric corporation that purchases

electricity from an energy business as defined in subdivision (c) of

section three hundred one-i of the tax law (1) that is a co-generation

facility, as such term is defined in subdivision two-a of section two of

this chapter, or (2) that is a qualifying facility, as such term is

defined by section two hundred one of the Public Utility Regulatory

Policies Act of 1978 (Public Law 95-617) that is a co-generation

facility, or (3) that has executed or will execute a contract for the

sale of electricity through negotiation with an electric corporation or

an auction conducted by an electric corporation pursuant to a

competitive bidding plan approved by the commission, to pay, in addition

to payments made for such purchased electricity under a contract with

such electric corporation, (i) an amount equal to the tax imposed under

article thirteen-A of the tax law with respect to each Mcf of natural

gas used to generate such electricity and (ii) with respect to contracts

for the sale of electricity and/or steam executed prior to January

first, two thousand, any sales and compensating use taxes imposed on

natural gas used in the production of electricity and/or steam by or

pursuant to the authority of section eleven hundred seven or subdivision

(a) of section twelve hundred ten of the tax law, unless such sales and

compensating use taxes imposed are otherwise accounted for in the

payments the electric corporation makes under that contract; provided,

however, that any such amount paid by such electric corporation shall be

recovered through a fuel adjustment mechanism authorized by the

commission; provided, further, that such amount shall not be recovered

from charges for residential use provided by such electric corporation.

Net energy metering for residential solar, farm waste,

non-residential solar electric generating systems, micro-combined heat

and power generating equipment, fuel cell electric generating equipment,

fuel-flexible linear generator electric generating equipment, and

micro-hydroelectric generating equipment. 1. Definitions. As used in

this section, the following terms shall have the following meanings:

(a) "Customer-generator" means: (i) a residential customer of an

electric corporation, who owns or operates solar electric generating

equipment located and used at his or her residence; (ii) a customer of

an electric corporation, who owns or operates farm waste electric

generating equipment located and used at his or her "farm operation," as

such term is defined in subdivision eleven of section three hundred one

of the agriculture and markets law; (iii) a non-residential customer of

an electric corporation which owns or operates solar electric generating

equipment located and used at its premises; (iv) a residential customer

of an electric corporation who owns, leases or operates micro-combined

heat and power generating equipment located on the customer's premises;

(v) a residential customer of an electric corporation who owns, leases

or operates fuel cell generating equipment or fuel-flexible linear

generator electric generating equipment located on the customer's

premises; and (vi) a non-residential customer of an electric corporation

who owns, leases or operates fuel cell generating equipment or

fuel-flexible linear generator electric generating equipment located and

used at the customer's premises; (vii) a residential customer of an

electric corporation, who owns or operates micro-hydroelectric

generating equipment located and used at his or her residence; (viii) a

non-residential customer of an electric corporation which owns or

operates micro-hydroelectric generating equipment located and used at

its premises; and (ix) a non-residential customer of an electric

corporation which owns or operates farm waste electric generating

equipment located and used at its premises.

(b) "Net energy meter" means a meter that measures the reverse flow of

electricity to register the difference between the electricity supplied

by an electric corporation to the customer-generator and the electricity

provided to the corporation by that customer-generator.

(c) "Net energy metering" means the use of a net energy meter to

measure, during the billing period applicable to a customer-generator,

the net amount of electricity supplied by an electric corporation and

provided to the corporation by a customer-generator.

(d) "Solar electric generating equipment" means a photovoltaic system

(i) (A) in the case of a residential customer (other than a farm

utilizing a residential meter), with a rated capacity of not more than

twenty-five kilowatts; (B) in the case of a customer who owns or

operates a farm operation as such term is defined in subdivision eleven

of section three hundred one of the agriculture and markets law

utilizing a residential meter with a rated capacity of not more than one

hundred kilowatts; and (C) in the case of a non-residential customer,

with a rated capacity of not more than two thousand kilowatts; and (ii)

that is manufactured, installed, and operated in accordance with

applicable government and industry standards, that is connected to the

electric system and operated in conjunction with an electric

corporation's transmission and distribution facilities, and that is

operated in compliance with any standards and requirements established

under this section.

(e) "Farm waste electric generating equipment" means equipment that

generates electric energy from biogas produced by the anaerobic

digestion of agricultural waste, such as livestock manure, farming

wastes and food processing wastes with a rated capacity of not more than

two thousand kilowatts, that is:

(i) manufactured, installed, and operated in accordance with

applicable government and industry standards;

(ii) connected to the electric system and operated in conjunction with

an electric corporation's transmission and distribution facilities;

(iii) operated in compliance with any standards and requirements

established under this section;

(iv) fueled at a minimum of ninety percent on an annual basis by

biogas produced from the anaerobic digestion of agricultural waste such

as livestock manure materials, crop residues, and food processing waste;

and

(v) fueled by biogas generated by anaerobic digestion with at least

fifty percent by weight of its feedstock being livestock manure

materials on an annual basis.

(f) "Micro-combined heat and power generating equipment" means an

integrated, cogenerating building heating and electrical power

generation system, operating on any fuel and of any applicable engine,

fuel cell, fuel-flexible linear generator, or other technology, with a

rated capacity of at least one kilowatt and not more than ten kilowatts

electric and any thermal output that at full load has a design total

fuel use efficiency in the production of heat and electricity of not

less than eighty percent, and annually produces at least two thousand

kilowatt hours of useful energy in the form of electricity that may work

in combination with supplemental or parallel conventional heating

systems, that is manufactured, installed and operated in accordance with

applicable government and industry standards, that is connected to the

electric system and operated in conjunction with an electric

corporation's transmission and distribution facilities.

(g) "Fuel cell electric generating equipment" means:

(i)(A) in the case of a residential customer, a solid oxide, molten

carbonate, proton exchange membrane or phosphoric acid fuel cell with a

combined rated capacity of not more than ten kilowatts; and (B) in the

case of a non-residential customer, a solid oxide, molten carbonate,

proton exchange membrane or phosphoric acid fuel cell with a combined

rated capacity of not more than two thousand kilowatts; and

(ii) that is manufactured, installed and operated in accordance with

applicable government and industry standards, that is connected to the

electric system and operated in parallel with an electric corporation's

transmission and distribution facilities, and that is operated in

compliance with any standards and requirements established under this

section.

(h) "Micro-hydroelectric generating equipment" means a hydroelectric

system (i) (A) in the case of a residential customer, with a rated

capacity of not more than twenty-five kilowatts; and (B) in the case of

a non-residential customer, with a rated capacity of not more than two

thousand kilowatts; and (ii) that is manufactured, installed, and

operated in accordance with applicable government and industry

standards, that is connected to the electric system and operated in

conjunction with an electric corporation's transmission and distribution

facilities, and that is operated in compliance with any standards and

requirements established under this section.

(i) "Fuel-flexible linear generator electric generating equipment" or

"fuel-flexible linear generator" means an integrated system consisting

of oscillators, cylinders, electricity conversion equipment and

associated balance of plant components that directly convert the linear

motion of the oscillators into electricity and which has a combined

rated capacity of not more than two thousand kilowatts.

(j) "Flexible interconnection" means the use of smart-grid technology

to monitor and actively manage distributed energy resources.

2. Interconnection and net energy metering. An electric corporation

shall provide for the interconnection of solar and farm waste electric

generating equipment, micro-combined heat and power generating

equipment, fuel cell electric generating equipment, fuel-flexible linear

generator electric generating equipment and micro-hydroelectric

generating equipment owned or operated by a customer-generator and for

net energy metering, provided that the customer-generator enters into a

net energy metering contract with the corporation or complies with the

corporation's net energy metering schedule and complies with standards

and requirements established under this section.

2-a. Flexible interconnection. (a) The commission shall direct

electric corporations to develop proposals for a flexible

interconnection program to be established in the state. Such proposals

shall demonstrate how to implement flexible interconnection without

increasing costs to ratepayers of distributed renewable energy resources

or increasing the cost of maintaining and operating the distribution

system. The commission shall solicit public comments on the electric

corporation proposals.

(b) Upon review of the proposals and comments received, if the

commission determines there is a viable proposal that would not

meaningfully increase costs to ratepayers or the cost of maintaining and

operating the distribution system, the commission shall commence a

proceeding to develop such a proposal and establish guidelines and

timelines for the implementation of flexible interconnection procedures.

3. Conditions of service. (a) (i) On or before three months after the

effective date of this section, each electric corporation shall develop

a model contract and file a schedule that establishes consistent and

reasonable rates, terms and conditions for net energy metering to

customer-generators, according to the requirements of this section. The

commission shall render a decision within three months from the date on

which the schedule is filed.

(ii) On or before three months after the effective date of this

subparagraph, each electric corporation shall develop a model contract

and file a schedule that establishes consistent and reasonable rates,

terms and conditions for net energy metering to non-residential customer

generators, according to the requirements of this section. The

commission shall render a decision within three months of the date on

which the schedule is filed.

(iii) Each electric corporation shall make such contract and schedule

available to customer-generators on a first come, first served basis,

until the total rated generating capacity for solar and farm waste

electric generating equipment, micro-combined heat and power generating

equipment, fuel cell electric generating equipment, fuel-flexible linear

generator electric generating equipment and micro-hydroelectric

generating equipment owned, leased or operated by customer-generators in

the corporation's service area is equivalent to one percent of the

corporation's electric demand for the year two thousand five, as

determined by the department.

(b) Nothing in this subdivision shall prohibit a corporation from

providing net energy metering to additional customer-generators. The

commission shall have the authority, after January first, two thousand

twelve, to increase the percent limits if it determines that additional

net energy metering is in the public interest.

(c) In the event that the electric corporation determines that it is

necessary to install a dedicated transformer or transformers, or other

equipment to protect the safety and adequacy of electric service

provided to other customers, a customer-generator shall pay the electric

corporation's actual costs of installing the transformer or

transformers, or other equipment:

(i) In the case of a customer-generator who owns or operates solar

electric generating equipment, micro-combined heat and power generating

equipment, fuel cell electric generating equipment, fuel-flexible linear

generator electric generating equipment or micro-hydroelectric

generating equipment located and used at his or her residence, or a

non-residential customer-generator who owns or operates solar electric

generating equipment with a rated capacity of not more than twenty-five

kilowatts, up to a maximum amount of three hundred fifty dollars;

(ii) In the case of a customer-generator who owns or operates farm

waste electric generating equipment located and used at his or her "farm

operation," up to a total amount of five thousand dollars per "farm

operation"; and

(iii) In the case of a non-residential customer-generator who owns or

operates solar electric generating equipment or fuel cell electric

generating equipment or fuel-flexible linear generator electric

generating equipment or micro-hydroelectric generating equipment or farm

waste generating equipment as described in subparagraph (ix) of

paragraph (a) of subdivision one of this section, with a rated capacity

of more than twenty-five kilowatts located and used at its premises,

such cost shall be as determined by the electric corporation subject to

review, upon the request of such customer-generator, by the department.

(d) An electric corporation shall impose no other charge or fee,

including back-up, stand by and demand charges, for the provision of net

energy metering to a customer-generator, except as provided in paragraph

(d) of subdivision four of this section.

(e) A customer who owns or operates a farm operation as such term is

defined in subdivision eleven of section three hundred one of the

agriculture and markets law, or a non-residential customer-generator as

defined by subparagraph (iii) of paragraph (a) of subdivision one of

this section that locates solar electric generating equipment or farm

waste electric generating equipment with a net energy meter on property

owned or leased by such customer-generator may designate all or a

portion of the net metering credits generated by such equipment to

meters at any property owned or leased by such customer-generator within

the service territory of the same electric corporation to which the

customer-generator's net energy meters are interconnected and being

within the same load zone as determined by the location based marginal

price as of the date of initial request by the customer-generator to

conduct net metering. The electric corporation will credit the accounts

of the customer by applying any credits to the highest use meter first,

then subsequent highest use meters until all such credits are attributed

to the customer. Any excess credits shall be carried over to the

following month.

(f) A customer who owns or operates a farm operation as such term is

defined in subdivision eleven of section three hundred one of the

agriculture and markets law, or a non-residential customer-generator as

defined by subparagraph (viii) of paragraph (a) of subdivision one of

this section that locates micro-hydroelectric generating equipment with

a net energy meter on property owned or leased by such

customer-generator may designate all or a portion of the net metering

credits generated by such equipment to meters at any property owned or

leased by such customer-generator within the service territory of the

same electric corporation to which the customer-generator's net energy

meters are interconnected and being within the same load zone as

determined by the location based marginal price as of the date of

initial request by the customer-generator to conduct net metering. The

electric corporation will credit the accounts of the customer by

applying any credits to the highest use meter first, then subsequent

highest use meters until all such credits are attributed to the

customer. Any excess credits shall be carried over to the following

month.

(g) A customer who owns or operates a farm operation as such term is

defined in subdivision eleven of section three hundred one of the

agriculture and markets law, or a non-residential customer-generator as

defined by subparagraph (viii) of paragraph (a) of subdivision one of

this section that locates fuel cell electric generating equipment or

fuel-flexible linear generator electric generating equipment with a net

energy meter on property owned or leased by such customer-generator may

designate all or a portion of the net metering credits generated by such

equipment to meters at any property owned or leased by such

customer-generator within the service territory of the same electric

corporation to which the customer-generator's net energy meters are

interconnected and being within the same load zone as determined by the

location based marginal price as of the date of initial request by the

customer-generator to conduct net metering. The electric corporation

will credit the accounts of the customer by applying any credits to the

highest use meter first, then subsequent highest use meters until all

such credits are attributed to the customer. Any excess credits shall be

carried over to the following month.

(h) A non-residential customer-generator as defined by subparagraph

(ix) of paragraph (a) of subdivision one of this section that locates

farm waste generating equipment with a net meter on property owned or

leased by such customer-generator may designate all or a portion of the

net metering credits generated by such equipment to meters at any

property owned or leased by such customer-generator within the service

territory of the same electric corporation to which the

customer-generator's net energy meters are interconnected and being

within the same load zone as determined by the location based marginal

price as of the date of initial request by the customer-generator to

conduct net metering. The electric corporation will credit the accounts

of the customer by applying any credits to the highest use meter first,

then subsequent highest use meters until all such credits are attributed

to the customer. Any excess credits shall be carried over to the

following month.

4. Rates. An electric corporation shall use net energy metering to

measure and charge for the net electricity supplied by the corporation

and provided to the corporation by a customer-generator, according to

these requirements:

(a) In the event that the amount of electricity supplied by the

corporation during the billing period exceeds the amount of electricity

provided by a customer-generator, the corporation shall charge the

customer-generator for the net electricity supplied at the same rate per

kilowatt hour applicable to service provided to other customers in the

same service class which do not generate electricity onsite.

(b) In the event that the amount of electricity produced by a

customer-generator during the billing period exceeds the amount of

electricity used by the customer-generator, the corporation shall apply

a credit to the next bill for service to the customer-generator for the

net electricity provided at the same rate per kilowatt hour applicable

to service provided to other customers in the same service class which

do not generate electricity onsite, except for micro-combined heat and

power or fuel cell or fuel-flexible linear generator customer-generators

or farm waste generating equipment customer-generators as described in

subparagraph (ix) of paragraph (a) of subdivision one of this section,

who will be credited at the corporation's avoided costs. The avoided

cost credit provided to micro-combined heat and power or fuel cell or

fuel-flexible linear generator customer-generators or farm waste

generating equipment customer-generators as described in subparagraph

(ix) of paragraph (a) of subdivision one of this section shall be

treated for ratemaking purposes as a purchase of electricity in the

market that is includable in commodity costs.

(c) At the end of the year or annualized over the period that service

is supplied by means of net energy metering, the corporation shall

promptly issue payment at its avoided cost to the customer-generator, as

defined in subparagraph (i), (ii) or (ix) of paragraph (a) of

subdivision one of this section, for the value of any remaining credit

for the excess electricity produced during the year or over the

annualized period by the customer-generator.

(d) In the event that the corporation imposes charges based on

kilowatt demand on customers who are in the same service class as the

customer-generator but which do not generate electricity on site, the

corporation may impose the same charges at the same rates to the

customer-generator, provided, however, that the kilowatt demand for such

demand charges is determined by the maximum measured kilowatt demand

actually supplied by the corporation to the customer-generator during

the billing period.

5. Safety standards. (a) On or before three months after the effective

date of this section, each electric corporation shall establish

standards that are necessary for net energy metering and the

interconnection of residential solar or farm waste electric generating

equipment, micro-combined heat and power generating equipment and fuel

cell electric generating equipment, fuel-flexible linear generator

electric generating equipment and micro-hydroelectric generating

equipment to its system and that the commission shall determine are

necessary for safe and adequate service and further the public policy

set forth in this section. Such standards may include but shall not be

limited to:

(i) equipment necessary to isolate automatically the residential

solar, farm waste, micro-combined heat and power and fuel cell electric

generating system and fuel-flexible linear generator electric generating

equipment and micro-hydroelectric generating equipment from the utility

system for voltage and frequency deviations; and

(ii) a manual lockable disconnect switch provided by the

customer-generator which shall be located on the outside of the

customer's premises and externally accessible for the purpose of

isolating the residential solar and farm waste electric generating

equipment and micro-hydroelectric generating equipment.

(b) Upon its own motion or upon a complaint, the commission, or its

designated representative, may investigate and make a determination as

to the reasonableness and necessity of the standards or responsibility

for compliance with the standards.

(i) In the case of a customer-generator who owns or operates solar

electric generating equipment located and used at his or her residence;

an electric corporation may not require a customer-generator to comply

with additional safety or performance standards, perform or pay for

additional tests, or purchase additional liability insurance provided

that the residential solar or farm waste electric generating equipment,

micro-combined heat and power generating equipment, fuel cell electric

generating equipment, fuel-flexible linear generator electric generating

equipment or micro-hydroelectric generating equipment meets the safety

standards established pursuant to this paragraph.

(ii) In the case of a customer-generator who owns or operates farm

waste electric generating equipment located and used at his or her "farm

operation," an electric corporation may not require a customer-generator

to comply with additional safety or performance standards, perform or

pay for additional tests, or purchase additional liability insurance

provided that:

1. the electric generating equipment meets the safety standards

established pursuant to this paragraph; and

2. the total rated generating capacity (measured in kW) of farm waste

electric generating equipment that provides electricity to the electric

corporation through the same local feeder line, does not exceed twenty

percent of the rated capacity of that local feeder line.

(iii) In the event that the total rated generating capacity of farm

waste electric generating equipment that provides electricity to the

electric corporation through the same local feeder line exceeds twenty

percent of the rated capacity of the local feeder line, the electric

corporation may require the customer-generator to comply with reasonable

measures to ensure safety of that local feeder line.

5-a. Safety standards; non-residential solar electric generating

equipment and micro-hydroelectric generating equipment. (a) On or before

three months after the effective date of this subdivision, each electric

corporation shall establish standards that are necessary for net energy

metering and the interconnection of non-residential solar electric

generating equipment or micro-hydroelectric generating equipment to its

system and that the commission shall determine are necessary for safe

and adequate service and further the public policy set forth in this

section. Such standards may include but shall not be limited to:

(i) equipment necessary to isolate automatically the solar generating

system or micro-hydroelectric generating equipment from the utility

system for voltage and frequency deviations; and

(ii) a manual lockable disconnect switch provided by the

customer-generator which shall be located on the outside of the

customer-generator's premises and externally accessible for the purpose

of isolating the solar electric generating equipment or

micro-hydroelectric generating equipment.

(b) In the event that the total rated generating capacity of solar

electric generating equipment or micro-hydroelectric generating

equipment that provides electricity to the electric corporation through

the same local feeder line exceeds twenty percent of the rated capacity

of the local feeder line, the electric corporation may require the

customer-generator to comply with reasonable measures to ensure safety

of the local feeder line.

(c) Unless otherwise determined to be necessary by the commission, an

electric corporation may not require a customer-generator to comply with

additional safety or performance standards, perform or pay for

additional tests, or purchase additional liability insurance provided

that the solar electric generating equipment or micro-hydroelectric

generating equipment meets the safety standards established pursuant to

this subdivision.

(d) Upon its own motion or upon a complaint, the commission, or its

designated representative, may investigate and make a determination as

to the reasonableness and necessity of the standards or responsibility

for compliance with the standards.

6. Electric restructuring. Notwithstanding the provisions of this

section, including, but not limited to paragraph (b) of subdivision

three of this section, a customer-generator shall comply with any

applicable determinations of the commission relating to restructuring of

the electric industry.

6-a. Distributed energy resource capacity expansion. The commission

shall consider opportunities for proactive distribution upgrades that

create distributed energy resource hosting capacity as part of its

energy system planning. The commission shall take into account

affordability, grid reliability, customer service goals, and costs.

7. Severability of provisions. The provisions of this section shall be

severable and if the application of any clause, sentence, paragraph,

subdivision, section, or part thereof to any person or circumstance

shall be adjudged by any court of competent jurisdiction to be invalid,

such judgment shall not necessarily affect, impair, or invalidate the

application of any such clause, sentence, paragraph, subdivision,

section, part or remainder thereof, as the case may be, to any other

person, circumstance, but shall be confined in its operation to the

clause, sentence, paragraph, subdivision, section or part thereof

directly involved in the controversy in which such judgment shall have

been rendered.

Allowance credit trading or sales. 1. Definitions. For

purposes of this section, the following terms shall have the following

meanings:

(a) "SO2" shall mean sulfur dioxide.

(b) "SO2 allowance credit" shall mean any SO2 credit issued to a

generating source within the United States pursuant to the provisions of

title four of the Federal Clean Air Act Amendments of 1990.

(c) "select SO2 allowance credits" shall mean any SO2 allowance credit

issued to generating sources located within the boundaries of the state

of New York.

(d) "acid precipitation source states" shall mean the following

states: New Jersey, Pennsylvania, Maryland, Delaware, Virginia, North

Carolina, Tennessee, West Virginia, Ohio, Michigan, Illinois, Kentucky,

Indiana and Wisconsin.

2. Air pollution mitigation offset. (a) The commission shall assess an

air pollution mitigation offset equal to any sum received by any utility

corporation, person or entity entering into contracts or engaging in the

sale or trade of select SO2 allowance credits for use in operations,

permits or for maintaining compliance with SO2 emission requirements in

acid precipitation source states, where such select SO2 allowance

credits are found to have been transferred to the allowance deductions

reserve account by a generating source located in an acid rain source

state.

(b) Any utility corporation, person or entity entering into contracts

or engaging in the sale or trade of any select SO2 allowance credits

shall provide the commission with written notice of any select SO2

allowance transaction with five business days of such transaction. Such

notice shall include the purchase price, and shall provide the

commission a copy of the Allowance Transfer Form of the United States

Environmental Protection Agency upon the issuance and/or signing of said

form relating to the sale, exchange or trade by the utility corporation,

person or entity, its subsidiaries, agents, employees, successors and

assigns of select SO2 allowance credits.

(c) The commission will annually review information contained in the

SO2 allowance tracking database operated by the United States

Environmental Protection Agency for select SO2 allowances as identified

by their unique serial number.

(d) Any moneys collected as an air pollution mitigation offset

pursuant to this subdivision shall be deposited in the air pollution

mitigation fund established pursuant to section ninety-nine-g of the

state finance law and administered by the New York state energy research

and development authority pursuant to subdivision ten-a of section

eighteen hundred fifty-four of the public authorities law.

3. Exemptions. (a) The commission, in consultation with the department

of environmental conservation, shall produce by rule or order a model

restrictive covenant for use by any utility corporation, person or

entity entering into contracts or engaging in the sale or trade of

select SO2 allowance credits. The model restrictive covenant will be a

self-enforcing contract that shall include at a minimum, the requirement

to give notice to the commission of any SO2 allowance transaction

covered by the restrictive covenant; the requirement that any subsequent

holders of the SO2 allowance covered by the restrictive covenant include

an identical restrictive covenant in any document relating to the sale

or purchase of the covered SO2 allowances; provisions restricting usage

in acid precipitation source states; and provisions for the enforcement

of the terms of the restrictive covenant by the state of New York.

(b) Any utility corporation, person or entity entering into contracts

or engaging in the sale or trade of select SO2 allowance credits may

attach a restrictive covenant as a standard provision in any document

relating to the sale or trade by the utility corporation, person or

entity, its subsidiaries, agents, employees, successors and assigns, of

select SO2 allowance credits. Such restrictive covenant must conform

with the required provisions of the model restrictive covenant produced

by the commission pursuant to this subdivision.

(c) Any utility corporation, person or entity acting in conformance

with the provisions of this subdivision shall be exempt from the

assessment of an air pollution mitigation offset.

4. Nothing contained in this section shall restrict a utility

corporation from use or transfer of SO2 allowances at New York

facilities owned, controlled or operated now or in the future by the

utility corporation, its successors, assigns or purchasers that come to

own, control or operate such facilities.

5. Nothing in this section shall discourage or prohibit allowance

trades (such as for retirement purposes) that will have a beneficial

impact on sensitive receptor areas in the state of New York.

6. Nothing within this section will invalidate or subvert any prior

contractual commitments and/or obligations made by a utility

corporation, person or entity identified in subdivision two of this

section prior to the effective date of this section.

Net energy metering for residential, farm service and

non-residential wind electric generating systems. 1. Definitions. As

used in this section, the following terms shall have the following

meanings:

(a) "Customer-generator" means a residential customer, farm service

customer or non-residential customer of an electric corporation, who

owns or operates wind electric generating equipment.

(b) "Residential customer-generator" means a customer who owns or

operates wind electric generating equipment located and used at his or

her primary residence.

(c) "Farm service customer-generator" means a customer of an electric

corporation who owns and operates wind electric generating equipment

located and used on land used in agricultural production as defined in

subdivision four of section three hundred one of the agriculture and

markets law, and which is also the location of the customer's primary

residence.

(c-1) "Non-residential customer-generator" means a customer of an

electric corporation which owns or operates wind electric generating

equipment located and used at its premises.

(d) "Net energy meter" means a meter that measures the reverse flow of

electricity to register the difference between the electricity supplied

by an electric corporation to the customer-generator and the electricity

provided to the corporation by that customer-generator.

(e) "Net energy metering" means the use of a net energy meter to

measure, during the billing period applicable to a customer-generator,

the net amount of electricity supplied by an electric corporation or

provided to the corporation by a customer-generator.

(f) "Wind electric generating equipment" means one or more wind

generators with a combined rated capacity of not more than twenty-five

kilowatts for a residential customer-generator, and not more than five

hundred kilowatts for a farm service customer-generator, and not more

than two thousand kilowatts for a non-residential customer-generator;

that is manufactured, installed, and operated in accordance with

applicable government and industry standards, that is connected to the

electric system and operated in parallel with an electric corporation's

transmission and distribution facilities, and that is operated in

compliance with any standards and requirements established under this

section.

2. Interconnection and net energy metering. An electric corporation

shall provide for the interconnection and net energy metering of wind

electric generating equipment owned or operated by a customer-generator;

provided that the customer-generator enters into a net energy metering

contract with the corporation or complies with the corporation's net

energy metering schedule and complies with standards and requirements

established under this section. The customer-generator shall be

responsible for payment of one-half of the expense of such

interconnection for wind electric generating equipment with a rated

capacity of more than twenty-five kilowatts.

3. Conditions of service. (a) (i) On or before three months after the

effective date of this section, each electric corporation shall develop

a model contract and file a schedule that establishes consistent and

reasonable rates, terms and conditions for net energy metering to

customer-generators, according to the requirements of this section. The

commission shall render a decision within three months from the date on

which the schedule is filed.

(ii) On or before three months after the effective date of this

subparagraph, each electric corporation shall develop a model contract

and file a schedule that establishes consistent and reasonable rates,

terms and conditions for net energy metering to non-residential

customer-generators, according to the requirements of this section. The

commission shall render a decision within three months from the date on

which the schedule is filed.

(iii) Each electric corporation shall make such contract and schedule

available to customer-generators on a first come, first served basis,

until the total rated generating capacity for wind electric generating

equipment owned or operated by customer-generators in the corporation's

service area is equivalent to three-tenths percent of the corporation's

electric demand for the year two thousand five, as determined by the

department.

(b) Nothing in this subdivision shall prohibit a corporation from

providing net energy metering to additional customer-generators. The

commission shall have the authority, after January first, two thousand

twelve, to increase the percent limits if it determines that additional

net energy metering is in the public interest.

(c) In the event that the electric corporation determines that it is

necessary to install one or more dedicated transformers or other

equipment to protect the safety and adequacy of electric service

provided to its other customers, a customer-generator shall pay the

electric corporation's actual costs of installing the transformer or

transformers or other equipment:

(i) in the case of a residential, farm service or non-residential

customer-generator with a combined rated capacity of not more than

twenty-five kilowatts, up to a maximum amount of seven hundred fifty

dollars; and

(ii) in the case of a farm service customer-generator with a combined

rated capacity of not more than five hundred kilowatts, up to a maximum

of five thousand dollars; and

(iii) in the case of a non-residential customer-generator with a

combined rated capacity of more than twenty-five kilowatts, such cost

shall be as determined by the electric corporation subject to review,

upon the request of such customer-generator, by the department.

(d) An electric corporation shall impose no other charge or fee,

including, but not limited to, back up, stand by or demand charges, for

the provision of net metering to a customer-generator.

(e) A customer who owns or operates land used in agricultural

production as defined in subdivision four of section three hundred one

of the agriculture and markets law, or a non-residential

customer-generator as defined by paragraph (c-1) of subdivision one of

this section that locates wind electric generating equipment with a net

energy meter on property owned or leased by such customer-generator may

designate all or a portion of the net metering credits generated by such

equipment to meters, at any property owned or leased by such

customer-generator within the service territory of the same electric

corporation to which the customer-generator's net energy meters are

interconnected and being within the same load zone as determined by the

location based marginal price as of the date of initial request by the

customer-generator to conduct net metering. The electric corporation

will credit the accounts of the customer by applying any credits to the

highest use meter first, then subsequent highest use meters until all

such credits are attributed to the customer. Any excess credits shall be

carried over to the following month.

4. Rates. An electric corporation shall use net energy metering to

measure and charge for the net electricity supplied by the corporation

and provided to the corporation by a customer-generator, according to

the following requirements:

(a) In the event that the amount of electricity supplied by the

corporation during the billing period exceeds the amount of electricity

provided by a customer-generator, the corporation shall charge the

customer-generator for the net electricity supplied at the same rate per

kilowatt hour applicable to service provided to other customers in the

same service class which do not generate electricity on site.

(b) In the event that the amount of electricity produced by a

customer-generator during the billing period exceeds the amount of

electricity used by the customer-generator, the corporation shall apply

a credit to the next bill for service to the customer-generator for the

net electricity provided at the same rate per kilowatt hour applicable

to service provided to other customers in the same service class which

do not generate electricity on site.

(c) At the end of the year or annualized over the period that service

is supplied by means of net energy metering, the corporation shall

promptly issue payment at its avoided cost to a residential or farm

service customer-generator for the value of any remaining credit for the

excess electricity produced during the year or over the annualized

period by such customer-generator.

(d) In the event that the corporation imposes charges based on

kilowatt demand on customers who are in the same service class as the

customer-generator but which do not generate electricity on site, the

corporation may impose the same charges at the same rates to the

customer-generator, provided, however, that the kilowatt demand for such

demand charges is determined by the maximum measured kilowatt demand

actually supplied by the corporation to the customer-generator during

the billing period.

5. Safety standards. (a) Each electric corporation shall establish and

maintain standards necessary for net energy metering and the

interconnection of wind electric generating equipment to its system and

that the commission shall determine are necessary for safe and adequate

service and further the public policy set forth in this section. Such

standards may include, but shall not be limited to:

(i) equipment necessary to isolate automatically a wind electric

generating system from the utility system for voltage and frequency

deviations; and

(ii) a manual lockable disconnect switch provided by the

customer-generator which shall be located on the outside of the

customer's premises and/or farm and externally accessible for the

purpose of isolating the wind electric generating equipment.

(b) Upon its own motion or upon a complaint, the commission, or its

designated representative, may investigate and make a determination as

to the reasonableness and necessity of the standards or responsibility

for compliance with the standards.

(c) Unless otherwise determined to be necessary by the commission, an

electric corporation may not require a customer-generator to comply with

additional safety or performance standards, or perform or pay for

additional tests, or purchase additional liability insurance, provided

that:

(i) the electric generating equipment meets the safety standards

established pursuant to this paragraph; and

(ii) the total rated capacity (measured in kilowatts) of wind electric

generating equipment that provides electricity to the electric

corporation through the same local feeder line, does not exceed twenty

percent of the rated capacity of that local feeder line.

In the event that the total rated generating capacity of wind electric

generating equipment that provides electricity to the electric

corporation through the same local feeder line exceeds twenty percent of

the rated capacity of the local feeder line, the electric corporation

may require the customer-generator to comply with reasonable measures to

ensure safety of that local feeder line.

6. Electric restructuring. Notwithstanding the provisions of this

section, including, but not limited to paragraph (c) of subdivision

three of this section, a customer-generator shall comply with any

applicable determinations of the commission relating to restructuring of

the electric industry.

7. Severability of provisions. The provisions of this section shall be

severable and if the application of any clause, sentence, paragraph,

subdivision, section, or part thereof to any person or circumstance

shall be adjudged by any court of competent jurisdiction to be invalid,

such judgment shall not necessarily affect, impair, or invalidate the

application of any such clause, sentence, paragraph, subdivision,

section, part or remainder thereof, as the case may be, to any other

person or circumstance, but shall be confined in its operation to the

clause, sentence, paragraph, subdivision, section or part thereof

directly involved in the controversy in which such judgment shall be

rendered.

Green jobs-green New York on-bill recovery. 1.(a) The

commission shall, within forty-five days of the effective date of this

section, commence a proceeding to investigate the implementation by each

combination electric and gas corporation having annual revenues in

excess of two hundred million dollars of a billing and collection

service for on-bill recovery charges in payment of obligations of its

customers to the green jobs-green New York revolving loan fund

established pursuant to title nine-A of article eight of the public

authorities law and, within one hundred fifty days of the effective date

of this section, the commission shall make a determination establishing

the billing and collection procedures for such on-bill recovery charges.

The department shall consult with the New York state energy research and

development authority in the preparation of its recommendations to the

commission for such determination. The commission shall require such

electric and gas corporations to offer billing and collection services

for green jobs-green New York on-bill recovery charges for eligible

customers within three hundred days of the effective date of this

section. To the extent practicable, such electric and gas corporations

shall utilize existing electronic data interchange infrastructure or

other existing billing infrastructure to implement their billing and

collection responsibilities under this section, and shall utilize

funding available from the New York state energy research and

development authority to defray any costs associated with electronic

data interchange improvements or other costs of initiating and

implementing this program.

(b) To ensure proper program design and implementation, each electric

and gas corporation shall initially limit the number of customers who

pay a green jobs-green New York on-bill recovery charge at any given

time to no more than one half of one percent of its total customers, on

a first come, first served basis. Prior to reaching such limit, the New

York state energy research and development authority shall petition the

commission to review said limit, and the commission shall increase such

limit provided that the commission finds that the program has not caused

significant harm to the electric or gas company or its ratepayers.

(c) The commission may suspend such an electric and gas corporation's

offering of the on-bill recovery charge provided that the commission,

after conducting a hearing as provided in section twenty of this

chapter, makes a finding that there is a significant increase in arrears

or utility service disconnections that the commission determines is

directly related to the on-bill recovery charge, or a finding of other

good cause.

(d) The on-bill recovery charge shall be collected on the bill from

the customer's electric corporation unless the qualified energy

efficiency services at that customer's premises result in more projected

energy savings on the customer's gas bill than the electric bill, in

which case such charge shall be collected on the customer's gas

corporation bill.

(e) The commission shall determine an appropriate percentage, up to

fifteen percent, of the energy savings from qualified energy efficiency

services, financed with a loan pursuant to section eighteen hundred

ninety-six of the public authorities law that is subject to an on-bill

recovery charge, to be credited to the combination electric and gas

corporation that is issuing the bill for such charge, for purposes of

meeting such corporation's targets under energy efficiency programs

established by the commission.

2. Schedules for the collection and billing of on-bill recovery

charges shall provide:

(a) that billing and collection services shall be available to all

customers who have met the standards established by the New York state

energy research and development authority for participation in the

on-bill recovery mechanism under the green jobs-green New York program

and have executed an agreement for the performance of qualified energy

efficiency services under such program; provided, however, that for

residential properties any such customer must hold primary ownership or

represent the primary owner or owners of the premises and hold primary

meter account responsibility or represent the primary holder or holders

of meter account responsibility for all meters to which such on-bill

recovery charges will apply;

(b) that the responsibilities of such electric and gas corporation are

limited to providing billing and collection services for on-bill

recovery charges as directed by the authority;

(c) that the rights and responsibilities of residential customers

paying on-bill recovery charges shall be governed by the provisions of

article two of this chapter;

(d) unless fully satisfied prior to sale or transfer, that (i) the

on-bill recovery charges for any services provided at the customer's

premises shall survive changes in ownership, tenancy or meter account

responsibility, and (ii) that arrears in on-bill recovery charges at the

time of account closure or meter transfer shall remain the

responsibility of the incurring customer, unless expressly assumed by a

subsequent purchaser of the property subject to such charges;

(e) not less than forty-five days after closure of an account that is

subject to an on-bill recovery charge, and provided that the customer

does not re-establish service with such electric and gas corporation, it

shall be the responsibility of the New York state energy research and

development authority and not the electric and gas corporation to

collect any arrears that are due and owing;

(f) a customer remitting less than the total amount due for electric

and/or gas services and on-bill recovery charges shall have such partial

payment first applied as payment for electric and/or gas services and

any remaining amount will be applied to the on-bill recovery charge;

(g) billing and collection services shall be available without regard

to whether the energy or fuel delivered by the utility is the customer's

primary energy source;

(h) unless otherwise precluded by law, participation in the green

jobs-green New York program shall not affect a customer's eligibility

for any rebate or incentive offered by a utility; and

(i) any other provisions necessary to provide for the billing and

collection of on-bill recovery charges.

3. The commission shall not approve any application for the conversion

to submetering of any master meter which is subject to any on-bill

recovery charges.

Net metering study. The commission shall conduct a study to

analyze the economic and environmental benefits from and the economic

cost burden, if any, of the net energy metering program and to analyze

the extent to which ratepayers receiving service under the net energy

metering program are paying the full cost of services provided to them

by combined electric and gas corporations and gas corporations, and the

extent to which their customers pay a share of costs of public purpose

programs through assessments on their electric and/or gas bills. In

analyzing program costs and benefits for the purposes of this study, the

commission shall consider all electricity generated by renewable

electric generating systems eligible for net metering under sections

sixty-six-j and sixty-six-l of this article, including the electricity

used onsite to reduce the customer's consumption of electricity that

would otherwise be supplied through the electrical grid, as well as

electrical output that is being fed back to the electrical grid for

which the customer receives credit or net surplus electricity

compensation under net energy metering. As it relates to the

environmental benefits, the study shall quantify the approximate avoided

level of harmful emissions including, but not limited to, information

concerning: nitrogen dioxide, sulfur dioxide and carbon dioxide, as well

as other air pollutants deemed necessary and appropriate for study by

the commission. The study shall also quantify the economic costs and

benefits of net energy metering to participants and non-participants and

shall further disaggregate the results by utility. The study shall also

gather and present data on the income distribution of residential net

metering participants that is publicly available and aggregated by zip

code and county. In order to assess the economic costs and benefits at

various levels of net metering implementation, the study shall be

conducted using multiple net energy metering penetration scenarios.

The commission shall publish a report from its findings. The report

must be published within three hundred sixty-five days of the effective

date of this section. A copy of the report must be furnished to the

temporary president of the Senate, the speaker of the Assembly, the

chair of the Senate energy and telecommunications committee and the

chair of the Assembly energy committee.

Electric vehicle charging tariff. 1. Definitions. For purposes

of this section, the term "eligible vehicle" shall mean and include a

motor vehicle that:

(a) has four wheels;

(b) was manufactured for use primarily on public streets, roads and

highways;

(c) the powertrain of which has not been modified from the original

manufacturer's specifications;

(d) is rated at not more than eight thousand five hundred pounds gross

vehicle weight;

(e) has a maximum speed capability of at least fifty-five miles per

hour; and

(f) is propelled at least in part by an electric motor and associated

power electronics which provide acceleration torque to the drive wheels

sometime during normal vehicle operations, and that draws electricity

from a hydrogen fuel cell or from a battery that:

(i) has a capacity of not less than four kilowatt hours; and

(ii) is capable of being recharged from an external source of

electricity.

2. No later than April first, two thousand eighteen each combination

gas and electric corporation shall file an application with the

commission to establish a residential tariff for eligible vehicles for

the purpose of recharging an eligible vehicle or vehicles.

3. The commission shall, after notice and opportunity for public

comment, approve, modify, or reject the tariff.

4. Within sixty days of commission approval of a combination gas and

electric corporation's tariff filed under this section, such combination

gas and electric corporation shall make the tariff available to

customers.

5. The combination gas and electric corporation may at any time

propose revisions to a tariff filed under this section based on changing

costs or conditions.

6. Each combination gas and electric corporation providing a tariff

under this section shall periodically report to the commission, as

established by the commission and on a form prescribed by the

commission, the following information:

(a) the number of customers who have arranged to have electricity

delivered under the tariff;

(b) the total amount of electricity delivered under the tariff; and

(c) other data required by the commission.

Establishment of a renewable energy program. 1. As used in

this section:

(a) "jurisdictional load serving entity" means any entity subject to

the jurisdiction of the commission that secures energy to serve the

electrical energy requirements of end-use customers in New York state.

(b) "renewable energy systems" means systems that generate electricity

or thermal energy through use of the following technologies: solar

thermal, photovoltaics, on land and offshore wind, hydroelectric,

geothermal electric, geothermal ground source heat, tidal energy, wave

energy, ocean thermal, and fuel cells which do not utilize a fossil fuel

resource in the process of generating electricity.

(c) "bill credit" shall have the same meaning as in subparagraph (i)

of paragraph (a) of subdivision twenty-seven-b of section one thousand

five of the public authorities law.

(d) "disadvantaged community" means a community defined as a

disadvantaged community under article seventy-five of the environmental

conservation law.

(e) "renewable energy" means electrical energy produced by a renewable

energy system.

(f) "low-income or moderate-income end-use consumer" shall mean

end-use customers of electric corporations and combination gas and

electric corporations regulated by the public service commission whose

income is found to be below the state median income based on household

size.

2. No later than June thirtieth, two thousand twenty-one, the

commission shall establish a program to require that: (a) a minimum of

seventy percent of the state wide electric generation secured by

jurisdictional load serving entities to meet the electrical energy

requirements of all end-use customers in New York state in two thousand

thirty shall be generated by renewable energy systems; and (b) that by

the year two thousand forty (collectively, the "targets") the statewide

electrical demand system will be zero emissions. In establishing such

program, the commission shall consider and where applicable formulate

the program to address impacts of the program on safe and adequate

electric service in the state under reasonably foreseeable conditions.

The commission may, in designing the program, modify the obligations of

jurisdictional load serving entities and/or the targets upon

consideration of the factors described in this subdivision.

3. No later than July first, two thousand twenty-four and every two

years thereafter, the commission shall, after notice and provision for

the opportunity to comment, issue a comprehensive review of the program

established pursuant to this section. The commission shall determine,

among other matters: (a) progress in meeting the overall targets for

deployment of renewable energy systems and zero emission sources,

including factors that will or are likely to frustrate progress toward

the targets; (b) distribution of systems by size and load zone; and (c)

annual funding commitments and expenditures.

4. The commission may temporarily suspend or modify the obligations

under such program provided that the commission, after conducting a

hearing as provided in section twenty of this chapter, makes a finding

that the program impedes the provision of safe and adequate electric

service; the program is likely to impair existing obligations and

agreements; and/or that there is a significant increase in arrears or

service disconnections that the commission determines is related to the

program.

5. No later than July first, two thousand twenty-four, the commission

shall establish programs to require the procurement by the state's load

serving entities of at least nine gigawatts of offshore wind electricity

generation by two thousand thirty-five and six gigawatts of photovoltaic

solar generation by two thousand twenty-five, and to support three

gigawatts of statewide energy storage capacity by two thousand thirty.

6. In any proceeding commenced by the commission with a goal of

achieving one hundred eighty-five trillion British thermal units of

end-use energy savings below the two thousand twenty-five energy-use

forecast, the commission will include mechanisms to ensure that, where

practicable, at least twenty percent of investments in residential

energy efficiency, including multi-family housing, can be invested in a

manner which will benefit disadvantaged communities, as defined in

article seventy-five of the environmental conservation law, including

low to moderate income consumers.

7. In the implementation of this section, the commission shall design

programs in a manner to provide substantial benefits for disadvantaged

communities, as defined in article seventy-five of the environmental

conservation law, including low to moderate income consumers, at a

reasonable cost while ensuring safe and reliable electric service.

Specifically, the commission shall:

(a) To the extent practicable, specify that a minimum percentage of

energy storage projects should deliver clean energy benefits into NYISO

zones that serve disadvantaged communities, as defined in article

seventy-five of the environmental conservation law, including low to

moderate income consumers, and that energy storage projects be deployed

to reduce the usage of combustion-powered peaking facilities located in

or near disadvantaged communities;

(b) In pursuing the state's solar deployment goals, the New York state

energy research and development authority shall consider enhanced

incentive payments for solar and community distributed generation

projects, focusing in particular but not limited to those serving

disadvantaged communities, as defined in article seventy-five of the

environmental conservation law, which result in energy cost savings or

demonstrate community ownership models; and,

(c) In the allocation of ratepayer funds for clean energy, direct the

New York state energy research and development authority and investor

owned utilities to develop and report metrics for energy savings and

clean energy market penetration in the low and moderate income market

and in disadvantaged communities, as defined in article seventy-five of

the environmental conservation law, and post such information on the

authority's website.

8. The power authority of the state of New York shall, no later than

twelve months after the effective date of this subdivision, file a

petition to commence, and the commission shall commence, necessary

proceedings to enable the power authority of the state of New York to

provide bill credits from renewable energy generating projects under the

renewable energy access and community help program, or "REACH",

established pursuant to subdivision twenty-seven-b of section one

thousand five of the public authorities law, to low-income or

moderate-income end-use electricity consumers in disadvantaged

communities for renewable energy produced by renewable energy generating

projects developed, constructed, owned, or contracted for by the power

authority of the state of New York pursuant to subdivision

twenty-seven-a of section one thousand five of the public authorities

law. Such bill credits shall be in addition to any other renewable

energy program or any other program or benefit that low-income or

moderate-income end-use electricity consumers in disadvantaged

communities receive, and any other incentives made available by the

power authority of the state of New York. For purposes of this

subdivision, a renewable energy system developed, constructed, owned, or

contracted for by the authority shall be:

(a) sized up to and including five megawatts alternating current and

interconnected to the distribution system or transmission system in the

service territory of the electric utility that serves the low-income or

moderate-income end-use consumers that receive bill credits; or

(b) sized above five megawatts alternating current and interconnected

to the distribution or transmission system at one or more points

anywhere in New York state. The commission shall, after public notice

and comment, establish such programs implementing REACH which:

(i) provide that jurisdictional load serving entities shall enter into

agreements with the power authority of the state of New York to carry

out REACH;

(ii) provide that jurisdictional load serving entities shall file

tariffs and other solutions determined by the commission to implement

REACH at a reasonable cost while ensuring safe and reliable electric

service;

(iii) provide that, unless they opt out, low-income or moderate-income

end-use electricity consumers in disadvantaged communities, including

such end-use electricity customers who have or who reside in buildings

that have on-site net-metered generation or who participate in a

community choice aggregation or community distributed generation

project, shall receive bill credits for renewable energy produced by a

renewable energy system developed, constructed, owned, or contracted for

by the power authority of the state of New York pursuant to subdivision

twenty-seven-a of section one thousand five of the public authorities

law;

(iv) consider enhanced incentive payments in bill credits to

low-income or moderate-income end-use electricity consumers in

disadvantaged communities for renewable energy systems including solar

and community distributed generation projects as provided for in

paragraph (b) of subdivision seven of this section;

(v) to the extent practicable include energy storage in renewable

energy systems to deliver clean energy benefits to low-income or

moderate-income end-use electricity consumers in disadvantaged

communities as provided for in paragraphs (a) and (b) of subdivision

seven of this section; and

(vi) address recovery by jurisdictional load serving entities of their

prudently incurred costs of administering REACH in electric service

delivery rates of the utility in whose service territory low-income or

moderate-income end-use electricity consumers in a disadvantaged

community participate in REACH.

Gas and electric billing information for residential rental

premises. Every gas corporation, electric corporation and municipality

shall make available to any landlord or lessor of residential rental

premises, within ten days of receipt of a written request therefor from

any prospective tenant or lessee thereof, prior to the commencement of

tenancy or execution of a lease, information consisting of the charges

incurred at such premises for gas or electric service or both for the

life of the dwelling unit or the preceding two year period, whichever is

shorter. Such information shall be identified solely by the address of

the dwelling unit, and no other information identifying the owner,

lessee, or other occupant of the dwelling unit shall be utilized for, or

made available in connection with, the furnishing of billing information

pursuant to this section. Such information shall be furnished to both

the landlord or lessor and to the prospective tenant or lessee without

the imposition of any charge or fee therefor by any party to any party.

Requirements for certain renewable energy systems. 1. For the

purposes of this section, a "covered renewable energy system" means a

renewable energy system, as such term is defined in section sixty-six-p

of this article, with a capacity of greater than five megawatts

alternating current and which involves the procurement of renewable

energy credits by a public entity, or a third party acting on behalf and

for the benefit of a public entity.

1-a. For the purposes of this section, an "other covered project"

means: (a) any "thermal energy network" as defined by subdivision

twenty-nine of section two of this chapter; (b) any offshore wind supply

chain project, including but not limited to port infrastructure, primary

component manufacturing, finished component manufacturing, subassembly

manufacturing, subcomponent manufacturing, or raw material producers, or

a combination thereof receiving direct funding from the New York state

energy research and development authority pursuant to an award under a

New York state energy research and development authority solicitation;

or (c) a "major utility transmission facility" as such term is defined

by section one hundred twenty of this chapter or "major electric

transmission facility" as defined by article VIII of this chapter.

2. For purposes of this section, "public entity" shall include, but

shall not be limited to, the state, a local development corporation as

defined in subdivision eight of section eighteen hundred one of the

public authorities law or section fourteen hundred eleven of the

not-for-profit corporation law, a municipal corporation as defined in

section one hundred nineteen-n of the general municipal law, an

industrial development agency formed pursuant to article eighteen-A of

the general municipal law or industrial development authorities formed

pursuant to article eight of the public authorities law, and any state,

local or interstate or international authorities as defined in section

two of the public authorities law; and shall include any trust created

by any such entities.

3. The commission shall require that the owner of the covered

renewable energy system or other covered project, or a third party

acting on the owner's behalf, as an ongoing condition of any renewable

energy credits agreement with a public entity, shall stipulate to the

fiscal officer that it will enter into labor peace agreements with any

bona fide labor organizations that either are actively representing

employees providing necessary operations and maintenance services for

the renewable energy system at the time of such agreement or provides

notice that it is attempting to represent any employees in any titles

who provide, or who will provide, necessary operations and maintenance

services for the renewable energy system employed in the state;

provided, however, this subdivision shall not apply to any covered

projects defined in paragraph (c) of subdivision one-a of this section.

The maintenance of such a labor peace agreement, or agreements, which

cover all classes of operations and maintenance employees, shall be an

ongoing material condition of any continuation of payments under a

renewable energy credits agreement. For purposes of this section "labor

peace agreement" means an agreement between an entity and labor

organization that, at a minimum, protects the state's proprietary

interests by prohibiting labor organizations and members from engaging

in picketing, work stoppages, boycotts, and any other economic

interference with the relevant renewable energy system. "Renewable

energy credits agreement" shall mean any public entity contract that

provides production-based payments to a renewable energy project as

defined in this section.

4. (a) Any public entity, in each contract for construction,

reconstruction, alteration, repair, improvement or maintenance of a

covered renewable energy system which involves the procurement of a

renewable energy credits agreement by a public entity, or a third party

acting on behalf and for the benefit of a public entity, the "public

work" for the purposes of this subdivision, shall ensure that such

contract shall contain a provision that the iron and steel used or

supplied in the performance of the contract or any subcontract thereto

shall be produced or made in whole or substantial part in the United

States, its territories or possessions. In the case of an iron or steel

product all manufacturing must take place in the United States, from the

initial melting stage through the application of coatings, except

metallurgical processes involving the refinement of steel additives.

(b) The provisions of paragraph (a) of this subdivision shall not

apply if the head of the department or agency constructing the public

works, in his or her sole discretion, determines that the provisions

would not be in the public interest, would result in unreasonable costs,

or that obtaining such steel or iron in the United States would increase

the cost of the contract by an unreasonable amount, or such iron or

steel, including without limitation structural iron and structural steel

cannot be produced or made in the United States in sufficient and

reasonably available quantities and of satisfactory quality. The head of

the department or agency constructing the public works shall include

this determination in an advertisement or solicitation of a request for

proposal, invitation for bid, or solicitation of proposal, or any other

method provided for by law or regulation for soliciting a response from

offerors intending to result in a contract pursuant to this subdivision.

The provisions of paragraph (a) of this subdivision shall not apply for

equipment purchased by a covered renewable energy system prior to the

effective date of this chapter.

(c) The head of the department or agency constructing the public works

may, at his or her sole discretion, provide for a solicitation of a

request for proposal, invitation for bid, or solicitation of proposal,

or any other method provided for by law or regulation for soliciting a

response from offerors intending to result in a contract pursuant to

this paragraph involving a competitive process in which the evaluation

of competing bids gives significant consideration in the evaluation

process to the procurement of equipment and supplies from businesses

located in New York state.

5. Whenever changes are proposed to any public procurement process

involving the program described in subdivision two of this section, the

commission shall make simultaneous recommendations to the temporary

president of the senate and speaker of the assembly, regarding necessary

changes to this section, if any, in meeting the goals outlined in the

legislative findings and intent of the chapter by which this section was

enacted.

Electric vehicle charging; commercial tariff. 1. Definitions.

For purposes of this section, the term "electric vehicles" shall mean

and include a motor vehicle that:

(a) was manufactured for use primarily on public streets, roads and

highways;

(b) the powertrain of which has not been modified from the original

manufacturer's specifications;

(c) has a maximum speed capability of at least fifty-five miles per

hour; and

(d) is propelled at least in part by an electric motor and associated

power electronics which provide acceleration torque to the drive wheels

sometime during normal vehicle operations, and that draws electricity

from a hydrogen fuel cell or from a battery that:

(i) has a capacity of not less than four kilowatt hours; and

(ii) is capable of being recharged from an external source of

electricity.

2. The commission shall commence a proceeding to establish a

commercial tariff utilizing alternatives to traditional demand-based

rate structures, other operating cost relief mechanisms, or a

combination thereof (collectively, "solutions") to facilitate faster

charging for eligible light duty, heavy duty, and fleet electric

vehicles. The commission shall evaluate the relative costs and benefits

of proposed solutions, and such solutions must include, at a minimum:

(a) technology-agnostic solutions so long as such solutions would not

have the effect of discouraging innovation; (b) mechanisms to enable

customers with fast electric vehicle charging for eligible light duty,

heavy duty, and fleet electric as their largest source of energy demand

to opt into solutions without unreasonable delay; (c) solutions for both

existing and new customers; (d) mechanisms that would provide cost

relief for customers during each combination gas and electric

corporation monthly billing period; and (e) combination gas and electric

corporation service territory-specific solutions.

3. The commission shall, no later than one year after the effective

date of this section, after notice and public comment, including input

from diverse stakeholders, regarding a proposal made by the department,

issue an order approving or modifying such proposal.

4. The commission shall, no sooner than eighteen months of the date of

such order, and periodically thereafter, review tariffs and other

solutions implemented in accordance with this section, for the purpose

of determining whether additional or other relief should be afforded to

customers, or other changes to any tariffs or other solutions are

necessary.

5. Each combination gas and electric corporation shall, within sixty

days of the order issued pursuant to subdivision three of this section,

file an application with the commission to provide a tariff or implement

other solutions pursuant to the order under this section and shall

periodically report to the commission, on a form prescribed by the

commission, the following information:

(a) the number of customers who have arranged to have electricity

delivered under the tariff or other solutions;

(b) the total amount of electricity delivered under the tariff or

other solutions; and

(c) such other information as the commission shall require.

6. Within sixty days of commission approval of a combination gas and

electric corporation's application filed under this section, such

combination gas and electric corporation shall make any tariff or other

operating cost relief mechanisms available to customers.

* § 66-t. Thermal energy network development. 1. The public service

commission shall initiate a proceeding within three months of the

effective date of this section to support the development of thermal

energy networks for the purpose of meeting the greenhouse gas emissions

and equity goals of the climate leadership and community protection act.

The matters the commission shall consider in such proceeding shall

include, but shall not be limited to, the appropriate ownership, market,

and rate structures for thermal energy networks and whether the

provision of thermal energy services by gas and/or electric utilities is

in the public interest. The commission shall promulgate rules and

regulations within two years to: (a) create fair market access rules for

utility-owned thermal energy networks to accept thermal energy that

aligns with the climate justice and greenhouse gas emissions reductions

requirements of the climate leadership and community protection act and

that does not increase greenhouse gas emissions or co-pollutants; (b)

exempt small-scale thermal energy networks not owned by utilities from

commission regulation; (c) promote the training and transition of

utility workers impacted by this act; and (d) encourage third party

participation and competition where it will maximize benefits to

customers.

2. Within three months of the effective date of this section, each of

the seven largest gas, electric, or combination gas and electric

corporations shall submit to the commission for review and approval at

least one and as many as five proposed pilot thermal energy network

projects. In developing the pilot project proposals, at least one pilot

project in each utility territory shall be proposed in a disadvantaged

community as defined in subdivision five of section 75-0101 of the

environmental conservation law, and if a utility proposes four or more

pilot projects, at least two shall be proposed in disadvantaged

communities. Each utility shall coordinate with other utility

participants, the New York state energy research and development

authority, and consultants with expertise on successful pilot projects

to ensure that the pilot projects are diverse and designed to inform the

commission's decisions in the proceeding on the various ownership,

market, and rate structures for thermal energy networks. The pilot

project proposals shall include specific customer protection plans and

shall be made publicly available on the commission's website and shall

be subject to a public comment period of no less than thirty days.

Within six months of the effective date of this section, the commission

shall determine whether it is in the public interest to approve or

modify such pilot thermal energy network projects and shall issue an

order directing each gas, electric or combination gas and electric

corporation to implement such proposed or modified pilot thermal energy

network projects. In considering whether pilot thermal energy network

projects are in the public interest, the commission shall consider

whether the pilot project will develop information useful for the

commission's promulgation of regulations governing thermal energy

networks, whether the pilot project furthers the climate justice and/or

emissions reduction mandates of the climate leadership and community

protection act, whether the pilot project advances financial and

technical approaches to equitable and affordable building

electrification, and whether the pilot project creates benefits to

customers and society at large, including but not limited to public

health benefits in areas with disproportionate environmental or public

health burdens, job retention/creation, reliability, and increased

affordability of renewable thermal energy options.

3. Each gas, electric, or combination gas and utility corporation

shall report to the commission, on a quarterly basis, and until

completion of the pilot thermal energy network project as determined by

the commission, the status of each pilot thermal energy network project.

The commission shall post and make publicly available such reports on

its website. The report shall include, but not be limited to, the: (a)

stage of development of each pilot project; (b) barriers to development;

(c) number of customers served; (d) costs of the pilot project; (e)

number of jobs retained or created by the pilot project; and (f) any

other such information the commission deems to be in the public

interest.

4. Any thermal energy network created under this section shall

demonstrate that the gas or electric corporation has entered into a

labor peace agreement with a bona fide labor organization of

jurisdiction that is actively engaged in representing gas and electric

corporation employees. The labor peace agreement shall apply to the

employees necessary for the maintenance and operation of such thermal

energy network. The labor peace agreement shall be an ongoing material

condition of authorization to maintain and operate such thermal energy

networks. The employees eligible for these positions shall first be

selected from and offered to a pool of transitioning utility workers who

have lost, or are at risk of losing, their employment with a utility

downsizing its gas transmission and distribution system. Such list of

potential employees shall be provided by affected unions and provided to

the department of labor. The department of labor shall update and

provide such list to the gas or electric corporation ninety days prior

to purchase, acquisition, and/or construction of any thermal energy

network created under this section.

* NB There are 2 § 66-t's

Gas safety reports. 1. On or before April thirtieth of each

year, each gas corporation shall file with the department a gas safety

report. The department shall review the reports to monitor each gas

corporation's pipeline replacement projects and all other activities

related to providing safe and reliable gas service in order to determine

whether the projects or activities are being carried out in a manner

consistent with this chapter, the commission's rules, regulations and

orders, and any practice the department has deemed necessary for the

provision of safe and reliable service, and to track how each gas

corporation is spending any funds allocated for pipeline replacement

projects and all other activities related to providing safe and reliable

gas service.

2. The gas safety report provided for in subdivision one of this

section shall include a thorough description and explanation of the

strategic planning and decision-making methodology used to determine and

prioritize pipeline replacement projects, a description of the

corporation's operation and maintenance activities related to gas

safety, a description of the corporation's inspections of its intrastate

transmission and distribution lines, leak repair information, and any

other information the department may require. If there has been no

substantial change in a gas corporation's safety report since the gas

safety report most recently filed with the department, the corporation,

with consent of the department, may file an updated version of such

report.

2-a. A gas corporation shall also include with its gas safety report a

list of pipeline replacement projects completed by a gas corporation

within the last year.

3. The commission may take any action to address and/or prevent a

deficiency in a gas corporation's prioritization or administration of

its pipeline replacement projects or operation and maintenance

activities related to gas safety, including ordering reasonable

improvements that will best promote the public interest, preserve the

public health and protect those using gas pursuant to those powers

provided to the commission as provided in this chapter, including but

not limited to those in section sixty-six of this article.

Requirements for certain climate risk-related and energy

transition projects. 1. Each contract using funds from the New York

climate action fund climate investment account established pursuant to

section ninety-nine-qq of the state finance law for a covered climate

risk-related and energy transition project shall contain a provision

that the iron and steel used or supplied in the performance of the

contract or any subcontract thereto and that is permanently incorporated

into the project, shall be produced or made in whole or substantial part

in the United States, its territories or possessions. In the case of an

iron or steel product, all manufacturing must take place in the United

States, its territories or possessions, from the initial melting stage

through the application of coatings, except metallurgical processes

involving the refinement of steel additives. For the purposes of this

subdivision, "permanently incorporated" shall mean an iron or steel

product that is required to remain in place at the end of the project

contract, in a fixed location, affixed to the project to which it was

incorporated. Iron and steel products that are capable of being moved

from one location to another shall not be considered permanently

incorporated.

2. The provisions of subdivision one of this section shall not apply

if the head of the public entity providing funds, in his or her sole

discretion, determines that the provisions would not be in the public

interest, would result in unreasonable costs, or that obtaining such

steel or iron in the United States, its territories or possessions would

increase the cost of the contract by an unreasonable amount, or such

iron or steel, including without limitation iron and steel, cannot be

produced or made in the United States its territories or possessions in

sufficient and reasonably available quantities and of satisfactory

quality.

3. The head of the public entity providing funds generated from the

New York climate action fund climate investment account established

pursuant to section ninety-nine-qq of the state finance law may, in his

or her sole discretion, provide for in a request for proposal,

invitation for bid, or solicitation of proposal, or any other method

provided for by law or regulation for soliciting a response from

offerors intending to result in a contract in support of a project, a

competitive process in which the evaluation of competing bids gives

significant consideration in the evaluation process to the procurement

of equipment and supplies from businesses located in New York state.

Finality of charges; small non-residential customers.

Notwithstanding any other provision of law if a utility corporation or

municipality does not render a small non-residential customer for gas or

electric service, with the exception of a seasonal or short-term

customer as defined by rule of the commission, a monthly bill for gas

and/or electric services used by such customer during that monthly

period, or, in the case of bi-monthly meter reads, during that month and

the prior month, within three months from the end date of such monthly

billing period, then, such small non-residential customer shall not be

charged for such gas and electric services which were not billed to the

customer as provided herein, unless the failure of the corporation or

municipality to bill sooner was not due to the neglect of the

corporation or municipality or was due to the culpable conduct of the

customer. The commission shall promulgate regulations necessary to

effectuate the purposes of this section. For the purposes of this

section, "small non-residential customer" means non-residential electric

customers that are non-demand billed customers and non-residential gas

customers that use less than or equal to 750 dekatherms per year. Such

term shall not include street lighting accounts.

* § 66-x. Energy affordability index. 1. (a) Beginning January first,

two thousand twenty-seven, the commission shall require each gas

corporation, electric corporation, or combination gas and electric

corporation to submit an annual affordability index showing the energy

burden of such corporation's residential customers.

(b) The commission shall promulgate rules and regulations adopting a

methodology for gas corporations, electric corporations and combination

gas and electric corporations to calculate an affordability index. The

methodology may include the consideration of a variety of factors

including differentiated income tiers, sources of energy burden, energy

cost drivers in the relevant service territory, and such other factors

as the commission may determine, and shall to the maximum extent

practicable, use publicly available data.

2. On or before July first, two thousand twenty-seven, and annually

thereafter, the commission shall issue a report on energy affordability

that includes a comparison of the affordability of residential utility

service provided by each gas corporation, electric corporation, and

combination gas and electric corporation in New York state to

affordability data from other states as reported by the United States

energy information administration.

3. The commission may refer to such report, including information

obtained from the filings of affordability indices in accordance with

subdivision one of this section and paragraph (q) of subdivision twelve

of section sixty-six of this article, and information obtained from

reports of affordability monitors and investigations of gas

corporations, electric corporations, and combination gas and electric

corporations pursuant to subdivision thirty-three of section sixty-six

of this article when reviewing filings for major changes in rates, and

shall further consider the ratepayer affordability of such filing, with

a focus on cumulative rate impacts, the interest of low- and

middle-income utility customers, and minimizing residential energy

burden. The commission shall, in each order approving a major change in

rates for a gas corporation, electric corporation, or combination gas

and electric corporation explain how such information impacted its

determination, and include a written summary of the specific actions

taken by the commission or department during the hearing to promote

ratepayer affordability.

* NB Effective January 1, 2027

Interconnection reforms. 1. (a) Within ninety days of the

effective date of this section the commission shall commence a

proceeding requiring every electric corporation to file a report with

the commission which shall include broken down costs of completed

upgrades to the electric distribution system required in order to

interconnect new distributed energy resources in the prior calendar year

categorized by upgrade type and equipment type annually by March

thirty-first of each year. Such reports shall be accompanied by

sufficiently detailed supporting documentation as determined by the

commission. Costs included in such reports shall be intergrated into

electric corporations' efforts to develop distribution upgrade cost

estimates.

(b) Electric corporations shall track actual costs of all distribution

upgrades they perform and disclose such costs to the department and to

the distributed energy resource company that paid for the upgrade.

2. The commission shall consider proposals to create greater

cost-certainty for distribution upgrades in order to limit the risk of

cost overruns, and the commission shall commence a proceeding to

determine whether any such proposal would increase cost certainty for

distribution upgrades, would not negatively impact the operation of the

distribution system, and would not increase costs to ratepayers. If the

commission so determines, and in response to evidence of cost overruns,

it shall issue an order with respect thereto to increase distribution

upgrade cost-certainty.

Inspection of gas and electric meters. 1. The commission shall

appoint inspectors of electric and gas meters whose duty it shall be,

when required by the commission, to inspect, examine and ascertain the

accuracy of any and all electric and gas meters used or intended to be

used for measuring and ascertaining the quantity of electric current or

gas furnished for light, heat or power by any person, corporation or

municipality to or for the use of any person or corporation, and to

inspect, examine and ascertain the accuracy of all apparatus for testing

and proving the accuracy of electric and gas meters, and when found to

be or made to be correct the inspector shall stamp or mark all such

meters and apparatus with some suitable device, which device shall be

recorded in the office of the secretary of state. No corporation,

person or municipality shall furnish, set or put in use any electric or

gas meter the type of which shall not have been approved by the

commission.

2. Every gas corporation, electric corporation and municipality shall

provide, repair and maintain such suitable premises and apparatus and

facilities as may be required and approved by the commission for testing

and proving the accuracy of gas and electric meters furnished for use by

it, and by which apparatus every meter may be tested.

3. If any consumer to whom a meter has been furnished shall request

the commission in writing to inspect such meter, the commission shall

have the same inspected and tested; provided, however, that repeated

inspections and tests shall not be mandatory.

4. The commission shall prescribe such rules and regulations to carry

into effect the provisions of this section as it may deem necessary.

Charges for past services. 1. A gas or electric corporation

shall inspect and assure the accuracy of a metering device upon the

request of any new commercial customer.

2. No gas corporation or electric corporation shall charge its new

commercial customer for past services received if the failure to charge

for such services resulted from the faulty operation or inoperation of a

metering device which the gas or electric corporation failed to inspect

as provided in subdivision one of this section.

3. The provisions of this section shall not apply in the case of a

meter which is faulty or inoperable due to the culpable conduct of the

customer or one of his agents.

Excelsior power program. 1. As used in this section, the

following terms shall have the following meanings:

(a) "Customer" means a residential recipient of retail electric or gas

service from an electric corporation, gas corporation, or combination

gas and electric corporation.

(b) "Smart thermostat" means an electronic device that has the

capability to be accessed and controlled remotely and also directly

regulates heating and/or cooling appliances located within a dwelling to

maintain a thermostatic range.

(c) "Utility" means an electric corporation, a gas corporation, or

combination electric and gas corporation as such terms are defined in

section two of this chapter and shall not include municipalities.

(d) "Program" means the Excelsior power program designed to reduce

peak energy demand established by this section.

(e) "Customer information" means the personal information and data of

customers.

2. (a) The commission shall establish a program, developed and

administered by the department, to reduce peak energy demand through the

remote operation of voluntarily customer enrolled smart thermostats or

other smart devices that reduce peak energy demand.

(b) Following the establishment of the program, the department shall,

subject to appropriation, disburse available funds to utilities

participating in the program for the purpose of providing bill credits

to customers that have enrolled in the program.

(c) One year after the establishment of the program and annually

thereafter, for as long as the program remains active, the department

shall prepare a public report on the functioning, efficiency and

usefulness of the program in reducing peak energy demand, which shall

include enrollment information, information on curtailment events, and

potential recommendations to improve the program.

(d) The department shall require that the program include:

(i) a mechanism for customers to override the smart thermostat during

extreme heat or cold events. No assessment of a fee, charge, or penalty

to a customer or their account may be levied for overriding the smart

thermostat during these or other demand response events, except that,

any bill credits that are associated with a customer's involvement in

the program, may be discounted in a manner to be determined by the

commission that reflects the customer's limited involvement in the

program; and

(ii) criteria pertaining to the length of temperature adjustments,

including taking account of the limited nature of demand response

events.

(e) The utility or the commission may authorize a review, analysis, or

audit of a utility's implementation of the program.

3. (a) Customer participation in the program shall be voluntary.

Customer enrollment in the program shall occur through the utility from

which the customer receives service.

(b) No utility shall enroll a customer in the program without the

customer's affirmative consent, which shall be confirmed via written

consent that shall be maintained by the utility for seven years

following the customer's disenrollment in the program. Customer

enrollment shall occur only via an opt-in process, and the utility shall

inform customers of their rights and protections under the program.

(c) A customer may disenroll from the program in a manner prescribed

by the commission, provided that customers shall be offered a method of

disenrollment no less convenient than the method of enrollment. No

assessment of a fee, charge, or penalty to the customer or their account

may be levied for disenrollment, except that, upon such disenrollment,

any potential bill credits that may have been associated with a

customer's enrollment in the program, shall cease, provided that any

credits earned but not yet applied to the customer's bill as of the date

of disenrollment shall be applied to the customer's next bill.

4. (a) Customer information related to the program shall be treated as

confidential information.

(b) Utilities shall only collect customer information to the extent

necessary to effectively administer the program. Utilities shall take

all reasonable steps to maintain the confidentiality of customer

information related to the program. Utilities shall not sell, lend,

lease, share, exchange or provide such customer information to third

parties, except pursuant to a lawful subpoena or warrant or as otherwise

required by law. Utilities shall safely store and safely encrypt

customer information related to the program to protect against

unauthorized use or access. Utilities shall also dispose of, destroy, or

delete customer information at the end of the provision of services and

upon disenrollment, except as necessary to comply with this section, any

applicable New York state or federal law or rule or regulation.

(c) Utilities shall take all reasonable steps to protect against

unauthorized use or access of customers' smart thermostats or other

malicious acts by third parties.

(d) The department shall consider additional cybersecurity

protections, and shall establish such protections if the department

deems them necessary or appropriate to safeguard customer information

and customer smart thermostats.

(e) Utilities shall make available customer information to the

department upon request, provided such customer information continues to

be treated as confidential information in a manner no less protective

than as required by this subdivision, and such customer information is

only requested and used for purposes of implementing and enforcing the

program.

5. In the development of the program, the commission shall require

inclusion of:

(a) customer education requirements, such as examples of when a

utility may modify the settings of an enrolled smart thermostat, the

minimum and maximum range of temperature adjustments, and the

availability of other energy efficiency and affordability programs; and

(b) residential customer outreach efforts, methods to provide advance

notice to enrolled customers of potential curtailment events such as

forecasted high energy demand events or extreme weather events,

identification of smart thermostats eligible to participate in the

program, and actions to engage non-residential, commercial, or

industrial customers in energy demand reduction efforts before adjusting

participating residential customers' energy load.

Certificate of public convenience and necessity. 1. Certificate

required. No gas corporation or electric corporation shall begin

construction of a gas plant or electric plant without first having

obtained the permission and approval of the commission. No such

corporation shall exercise any right or privilege under any franchise

hereafter granted, or under any franchise heretofore granted but not

heretofore actually exercised, or the exercise of which shall have been

suspended for more than one year, without first having obtained a

certificate of public convenience and necessity issued by the

commission. Before such certificate shall be issued a certified copy of

the charter of such corporation shall be filed in the office of the

commission, together with a verified statement of the president and

secretary of the corporation, showing that it has received the required

consent of the proper municipal authorities. The commission shall have

power to grant the permission and approval herein specified whenever it

shall after due hearing determine that such construction or such

exercise of the right, privilege or franchise is convenient and

necessary for the public service. In making such a determination, the

commission shall consider the economic feasibility of the corporation,

the corporation's ability to finance improvements of a gas plant or

electric plant, render safe, adequate and reliable service, and provide

just and reasonable rates, and whether issuance of a certificate is in

the public interest. Except as provided in article fourteen-A of the

general municipal law, no municipality shall build, maintain and operate

for other than municipal purposes any works or systems for the

manufacture and supplying of gas or electricity for lighting purposes

without a certificate of authority granted by the commission. If the

certificate of authority is refused, no further proceedings shall be

taken by such municipality before the commission, but a new application

may be made therefor after one year from the date of such refusal.

2. Revocation or modification of certificate. The commission may

commence a proceeding, conducted in accordance with the commission's

rules and regulations, to revoke or modify a combined electric and gas

corporation's certificate as it relates to such corporation's service

territory or any portion thereof based on findings of repeated

violations of this chapter or rules or regulations adopted thereto that

demonstrate a failure of such corporation to continue to provide safe

and adequate service. Whenever the commission has reason to believe that

such corporation's certificate may be subject to revocation or

modification, it shall notify such corporation of the facts and nature

of each act or failure to act allegedly warranting such revocation or

modification, and the statute, regulation or order allegedly violated,

and otherwise consider the following factors:

(a) the factors identified in subdivision one of this section for

issuance of a certificate of public convenience and necessity;

(b) whether another person, firm or corporation is qualified,

available, and prepared to provide alternative service that is adequate

to serve the public convenience and necessity, and that the transition

to such alternative person, firm or corporation is in the public

interest; and

(c) upon any other standards and procedures deemed necessary by the

commission to ensure continuity of safe and adequate service, and due

process.

Statements of nature and extent of interests to be filed upon

request. Whenever any person or corporation signs or certifies any

estimate, appraisal, report, or other statement, to be submitted to the

public service commission in relation to any public utility company, in

which such person or corporation is or has been financially interested,

directly or indirectly, or is or has been employed in any manner or

capacity, or of which such person is or has been an officer or employee,

the commission in its discretion, may require that such signature or

certification shall be accompanied by a specific statement setting forth

the nature and extent of such interest or engagement.

Approval of issues of stock, bonds and other forms of

indebtedness; approval of mergers or consolidations. A gas corporation

or electric corporation organized or existing, or hereafter

incorporated, under or by virtue of the laws of the state of New York,

may issue stocks, bonds, notes or other evidences of indebtedness

payable at periods of more than twelve months after the date thereof, or

a receiver of such a corporation, if duly authorized by law, may issue

receiver's certificates, when necessary for the acquisition of property,

including the stock or bonds of any other corporation incorporated for,

or engaged in, the same or a similar business, in this state or any

other state, or proposing to operate or operating under a franchise from

the same or any other municipality, for the construction, completion,

extension or improvement of its plant or distributing system, or for the

improvement or maintenance of its service or for the discharge or lawful

refunding of its obligations or for the reimbursement of moneys actually

expended from income or from any other moneys in the treasury of the

corporation not secured or obtained from the issue of stocks, bonds,

notes or other evidences of indebtedness of such corporation, within

five years next prior to the filing of an application with the

commission for the required authorization, for any of the aforesaid

purposes except maintenance of service and except replacements in cases

where the applicant shall have kept its accounts and vouchers of such

expenditure in such manner as to enable the commission to ascertain the

amount of moneys so expended and the purposes for which such expenditure

was made; provided and not otherwise that there shall have been secured

from the commission an order authorizing such issue, and the amount

thereof, and stating the purposes to which the issue or proceeds thereof

are to be applied, and that, in the opinion of the commission, the

money, property or labor to be procured or paid for by the issue of such

stock, bonds, notes or other evidences of indebtedness is or has been

reasonably required for the purposes specified in the order, and that

except as otherwise permitted in the order in the case of bonds, notes

and other evidences of indebtedness, such purposes are not in whole or

in part reasonably chargeable to operating expenses or to income. Stock

may be issued to stockholders as a stock dividend provided that there

shall have been secured from the commission an order authorizing such

issue and a transfer of surplus to capital in an amount equal to the par

or stated value of the stock so authorized and stating that a sum equal

to the amount to be so transferred was expended for the purposes

enumerated in this section. Stock may be issued to an employee or

director of a gas corporation or electric corporation under a stock

option plan pursuant to which such corporation grants options to its

employees or directors to purchase shares of stock, such options to be

exercisable for a stated period of time to purchase shares of stock at

the market value of the stock at the time of issuance of the option,

provided that there shall have been secured from the commission an order

authorizing such issue and that the proceeds from the exercise of the

stock options are needed for one of the purposes enumerated in this

section. The issue of stocks, bonds or other evidences of indebtedness,

within the meaning of this section, shall include the sale by any such

corporation of any such securities previously issued in compliance with

the provisions of this section and subsequently reacquired by such

corporation, provided, however, for good cause shown the commission may

exempt from the restriction hereof, stocks, bonds or other evidences of

indebtedness. For the purpose of enabling it to determine whether it

should issue such an order, the commission shall make such inquiry or

investigation, hold such hearings and examine such witnesses, books,

papers, documents or contracts as it may deem of importance in enabling

it to reach a determination. Such corporation shall not without the

consent of the commission apply said issue or any proceeds thereof to

any purpose not specified in such order. Such gas corporation or

electric corporation may issue notes, for proper corporate purposes and

not in violation of any provision of this or of any other act, payable

at periods of not more than twelve months without such consent; but no

such notes shall, in whole or in part, directly or indirectly be

refunded by any issue of stock or bonds or by any evidences of

indebtedness running for more than twelve months without the consent of

the commission. The commission shall have power to require every such

corporation to file with the commission after the issuance of stocks,

bonds, notes or other evidences of indebtedness issued with or without

the approval of the commission as herein provided, a notice of such

transaction in such form as the commission may prescribe. Provided,

however, that the commission shall have no power to authorize the

capitalization of any franchise to be a corporation nor to authorize the

capitalization of any franchise or the right to own, operate or enjoy

any franchise whatsoever in excess of the amount (exclusive of any tax

or annual charge) actually paid to the state or to any political

subdivision thereof as the consideration for the grant of such franchise

or right, nor to authorize the issuance of any stocks or other

securities for any purposes other than those enumerated in this section.

Nor shall the capital stock of a corporation formed by the merger or

consolidation of two or more other corporations, exceed the sum of the

capital stock of the corporations, so consolidated, at the par value

thereof, or such sum and any additional sum actually paid in cash; nor

shall any contract for consolidation or lease be capitalized in the

stock of any corporation whatever; nor shall any corporation hereafter

issue any bonds against or as a lien upon any contract for consolidation

or merger.

A permission or approval by the public service commission of a merger

or consolidation shall not be deemed to be an approval of the value of

any property or accounts of any company involved in the merger at the

time of the merger, nor shall any such permission or approval be

construed to be a certification by the public service commission that

the bonds and/or capital stock of any such merged, merging or

consolidating corporations are represented in value by commensurate

physical assets of such corporations, nor shall such approval be

evidence as to the value of any such property or account in subsequent

rate proceedings or before any court or public body.

Reorganizations. 1. Reorganizations of gas corporations and

electric corporations pursuant to sections ninety-six and ninety-seven

of the stock corporation law and such other statutes as may be enacted

from time to time shall be subject to the supervision and control of the

commission, and no such reorganization shall be had without the

authorization of such commission.

2. Upon all such reorganizations the amount of capitalization,

including therein all stocks and bonds and other evidence of

indebtedness, shall be such as is authorized by the commission, which,

in making its determination shall not exceed the fair value of the

property involved, taking into consideration its original cost of

construction, duplication cost, present condition, earning power at

reasonable rates and all other relevant matters and any additional sum

or sums as shall be actually paid in cash, provided, however, that the

commission may make due allowance for discount of bonds. Any

reorganization agreement before it becomes effective shall be amended so

that the amount of capitalization shall conform to the amount authorized

by the commission.

Transfer of franchises or stocks. 1. No gas corporation or

electric corporation shall transfer or lease its franchise, works or

system or any part of such franchise, works or system to any other

person or corporation or contract for the operation of its works and

system, without the written consent of the commission. Notwithstanding

the foregoing, any transfer or lease with an original cost of (a) less

than one hundred thousand dollars proposed by a gas or electric

corporation having annual gross revenues in excess of two hundred

million dollars or (b) less than twenty-five thousand dollars proposed

by a gas or electric corporation having annual gross revenues of less

than two hundred million dollars shall be effective without the

commission's written consent within ninety days after such corporation

notifies the commission that it plans to complete the transfer or lease

and submits a description of the transfer or lease; provided, however,

that the commission may determine within such ninety days after such

notification and submission that the public interest requires its review

and written consent.

2. The permission and approval of the commission, to the exercise of a

franchise under section sixty-eight of this article, or to the

assignment, transfer or lease of a franchise under this section shall

not be construed to revive or validate any lapsed or invalid franchise

or to enlarge or add to the powers and privileges contained in the grant

of any franchise or to waive any forfeiture.

3. No gas corporation or electric corporation shall directly or

indirectly acquire the stock or bonds of any other corporation

incorporated for, or engaged in, the same or a similar business, in this

state or any other state, or proposing to operate or operating under a

franchise from the same or any other municipality, neither shall any

street railroad corporation acquire the stock or bonds of any electric

corporation, unless authorized so to do by the commission.

4. Save where stock shall be transferred or held for the purpose of

collateral security only with the consent of the commission empowered by

this chapter to give such consent, no stock corporation of any

description, domestic or foreign, company, including, but not limited

to, a limited liability company, association, including a joint stock

association, partnership, including a limited liability partnership, or

person, other than a gas corporation or electric corporation or street

railroad corporation, shall purchase or acquire, take or hold, more than

ten per centum of the voting capital stock issued by any gas corporation

or electric corporation organized or existing under or by virtue of the

laws of this state, except that a corporation now lawfully holding a

majority of the voting capital stock of any gas corporation or electric

corporation may with the consent of the commission acquire and hold the

remainder of the voting capital stock of such gas corporation or

electric corporation or any portion thereof. Provided, that with the

consent of such commission and upon and subject to such terms and

conditions as such commission may fix and impose, any such stock

corporation, company, association, partnership or person may acquire,

take and hold more than ten per centum of the voting capital stock of

any gas corporation or electric corporation, organized or existing under

or by virtue of the laws of this state.

5. No consent shall be given by the commission to the acquisition of

any stock in accordance with this section unless it shall have been

shown that such acquisition is in the public interest. Nothing herein

contained shall be construed to prevent the holding of any stock

heretofore lawfully acquired, nor to prevent, upon the surrender or

exchange of such stock pursuant to a reorganization plan, the purchase,

acquisition, taking or holding of a proportionate amount of stock of any

new corporation organized to take over, at foreclosure or other sale,

the property of any corporation whose stock has been thus surrendered or

exchanged; but the proportion of the voting capital stock of the new

corporation held by a stock corporation, company, association,

partnership or person and acquired by it by any such surrender or

exchange of stock shall not without the consent of the commission exceed

the proportion of the voting capital stock held by it in the former

corporation.

6. Every contract, assignment, transfer or agreement for transfer of

any stock by or through any person or corporation to any corporation,

company, association, partnership or person in violation of any

provision of this chapter shall be void and of no effect, and no such

transfer or assignment shall be made upon the books of any such gas

corporation, or electric corporation, or shall be recognized as

effective for any purpose.

7. No consent, permission or approval otherwise required under this

section shall be necessary for the sale of the franchise, works, system,

stocks or bonds by a gas or electric corporation to a duly constituted

authority of the state.

Street lights. 1. Any municipality or other government entity

proposing to acquire title to and transfer ownership of the complete

system of street light luminaires or fixtures, all supporting

infrastructure, and associated electric circuitry may file an

application with the commission to determine if there is public interest

for the commission to commence a proceeding to facilitate an ownership

transfer agreement between the owner of the street lights and the

petitioning municipality.

2. The municipality shall file an application with the commission

identifying or providing:

(a) an inventory form with pole numbers, location, light size, light

type and other relevant descriptive information; upon request an

electric corporation shall provide such information required based on

the actual cost, if any, to prepare the same;

(b) a statement explaining the need for the change in ownership

including the anticipated financial impacts to the municipality;

(c) a statement explaining the municipality's plans to retrofit the

fixtures to be acquired with energy efficient lighting; and

(d) such other information as the applicant may consider relevant or

as the commission may require.

3. Any such application filed with the commission shall be accompanied

by proof of service, and shall be served on the owner or owners of the

street light equipment and supporting infrastructure which are subject

to such proceeding. The applicant shall serve a copy of such application

on such other persons or entities as the chair may deem appropriate. The

applicant, the commission and those served shall constitute the parties

to a proceeding pursuant to this section.

4. The commission shall require any utility named as a party to a

proceeding pursuant to this section to have an effective tariff which

establishes the process to facilitate the transfer of ownership of

street light equipment, including light emitting diodes, supporting

infrastructure, any required street lighting attachment provisions, and

the rates and charges related to the foregoing.

5. The commission shall require that any agreement between the

municipality and the owner of the street lighting system provide that

any personnel that work on such street lighting system will be

electrically qualified to accommodate the environment within which the

street light equipment shall exist and/or be in compliance with

established standards associated with work in close proximity to

electrical equipment and further provide that any required make-ready

work must be performed by the utility or qualified contractor.

6. The commission shall work with the New York state energy research

and development authority to identify energy efficiency or of the

funding which would be available for municipalities for the purposes of

the section.

Complaints as to quality and price of gas and electricity;

investigation by commission; forms of complaints. Upon the complaint in

writing of the mayor of a city, the trustees of a village, the town

board of a town or the chief executive officer or the legislative body

of a county in which a person or corporation is authorized to

manufacture, convey, transport, sell or supply gas or electricity for

heat, light or power, or upon the complaint in writing of not less than

twenty-five customers or purchasers of such gas or electricity, or upon

the complaint in writing of the department of state, or upon a complaint

of a gas corporation or electrical corporation supplying or transmitting

said gas or electricity, as to the illuminating or heating power, purity

or pressure or the rates, charges or classifications of service of gas,

the efficiency of the electric incandescent lamp supply, the voltage of

the current supplied for light, heat or power, or the rates charged or

classification of service of electricity sold and delivered in such

municipality, or as to the extent or duration of a disruption in gas or

electricity service, the commission shall investigate as to the cause

for such complaint. When such complaint is made, the commission may, by

its agents, examiners and inspectors, inspect the works, system, plant,

devices, appliances and methods used by such person or corporation in

manufacturing, transmitting and supplying such gas or electricity, and

may examine or cause to be examined the books and papers of such person,

or corporation pertaining to the manufacture, sale, transmitting and

supplying of such gas or electricity. The form and contents of

complaints made as provided in this section shall be prescribed by the

commission. Such complaints shall be signed by the officers, or by the

customers, purchasers or subscribers making them, who must add to their

signatures their places of residence, by street and number, if any. The

commission shall publish the form and instructions for completing the

form on the commission's website.

Notice and hearing; order fixing price of gas or electricity or

requiring improvement. Before proceeding under a complaint presented as

provided in section seventy-one, the commission shall cause notice of

such complaint, and the purpose thereof, to be served upon the person or

corporation affected thereby. Such person or corporation shall have an

opportunity to be heard in respect to the matters complained of at a

time and place to be specified in such notice. An investigation may be

instituted by the commission of its own motion as to any matter of which

complaint may be made, as provided in section seventy-one of this

chapter, or to enable it to ascertain the facts requisite to the

exercise of any power conferred upon it. After a hearing and after such

an investigation as shall have been made by the commission or its

officers, agents, examiners or inspectors, the commission may, by order,

fix just and reasonable prices, rates and charges for gas or electricity

to be charged by such corporation or person, for the service to be

furnished notwithstanding that a higher or lower price has been

theretofore prescribed by general or special statute, contract, grant,

franchise condition, consent or other agreement, and may order such

improvement in the manufacture, conveying, transportation, distribution

or supply of gas, in the manufacture, transmission or supply of

electricity, or in the methods employed by such person or corporation,

as will in its judgment be adequate, just and reasonable. Any such

change in price shall be upon such terms, conditions or safeguards as

the commission may prescribe. If it shall be made to appear to the

satisfaction of the commission that the public interest requires a

change in the price of gas or electricity charged by any such person or

corporation, or that such change is necessary for the purpose of

providing adequate and efficient service, or for the preservation of the

property, the commission, upon such terms, conditions or safeguards as

it deems proper, may authorize an immediate, reasonable, temporary

increase or decrease in such price pending a final determination of the

price to be thereafter charged by such person or corporation. The terms,

conditions or safeguards prescribed may include provisions for the

purposes for which the additional revenue derived from any such

temporary increase may be expended and for the impounding thereof until

the same shall be applied to the purposes so specified. The price fixed

by the commission under this section or under subdivision five of

section sixty-six shall be the maximum price to be charged by such

person, corporation or municipality for gas or electricity for the

service to be furnished within the territory and for a period to be

fixed by the commission in the order, not exceeding three years except

in the case of a sliding scale, and thereafter until the commission

shall, upon its own motion or upon the complaint of any corporation,

person or municipality interested, fix a higher or lower maximum price

of gas or electricity to be thereafter charged. In determining the price

to be charged for gas or electricity the commission may consider all

facts which in its judgment have any bearing upon a proper determination

of the question although not set forth in the complaint and not within

the allegations contained therein, with due regard among other things to

a reasonable average return upon capital actually expended and to the

necessity of making reservations out of income for surplus and

contingencies. At any hearing involving a rate, the burden of proof to

show that the change in rate or price if proposed by the person,

corporation or municipality operating such utility, or that the existing

rate or price, if on motion of the commission or in a complaint filed

with the commission it is proposed to reduce the rate or price, is just

and reasonable shall be upon the person, corporation or municipality

operating such utility; and the commission may give to the hearing and

decision of such questions preference over all other questions pending

before it and decide the same as speedily as possible. Nothing in this

chapter contained shall be deemed to prohibit the commission from fixing

a sliding scale upward rate for natural gas, beginning at a fixed price

per unit for a small consumption and then increasing the price per unit

as the consumption is increased.

Increased fuel costs. Every gas and electric corporation

subject to the jurisdiction of the commission shall file with the

commission, on a monthly basis, the following information regarding

increased fuel costs:

(a) what services are affected by the fuel increase;

(b) base cost of the fuel;

(c) name and address of supplier;

(d) point of delivery of all fuel purchased;

(e) present average cost of fuel to said corporation;

(f) dates used to determine average;

(g) amount per unit of consumption affected; and

(h) amount of fuel in storage at the end of each monthly period.

(i) and such other relevant information as the commission may require.

Compensation to customers experiencing widespread prolonged

outages. 1. Notwithstanding any other provision of law, in the event

that a residential utility customer or a small business customer

experiences a widespread prolonged outage lasting at least seventy-two

consecutive hours or more without having been resolved by the utility

company, the utility company shall:

(a) Provide a credit of twenty-five dollars on the balance of such

residential utility customer's account for each subsequent twenty-four

hour period of service outage that occurs for such customers for more

than seventy-two consecutive hours after the occurrence of such

widespread prolonged outage.

(b) Provide reimbursement of any food spoiled due to lack of

refrigeration. Residential utility customers shall provide the utility

company an itemized list of all food spoiled or proof of loss of food

spoiled within fourteen days of the outage. The utility company shall

reimburse the customer within thirty days of the receipt of the itemized

list or proof of loss, provided, however, that if the utility company

has applied for a waiver pursuant to subdivision three of this section,

such utility company shall reimburse the customer within a time period

to be determined by the commission after the commission renders a

decision on the waiver request. The amount of the reimbursement shall

not exceed a total of two hundred thirty-five dollars for customers who

provide an itemized list. The amount of the reimbursement for customers

who provide proof of loss shall not exceed five hundred forty dollars.

(c) Provide reimbursement of prescription medication spoiled due to

lack of refrigeration. Residential utility customers shall provide the

utility company with an itemized list and proof of loss of prescription

medication due to lack of refrigeration within fourteen days of the

outage. The utility company shall reimburse the customer within thirty

days of the receipt of the itemized list and proof of loss of

prescription medication, provided, however, that if the utility company

has applied for a waiver pursuant to subdivision three of this section,

such utility company shall reimburse the customer within a time period

to be determined by the commission after the commission renders a

decision on the waiver request. The amount of the reimbursement shall

total no more than the actual loss of perishable prescription medicine.

(d) Provide reimbursement to small business customers for any food

spoiled due to lack of refrigeration. Small business customers shall

provide the utility company with an itemized list for all food spoiled

and proof of loss within fourteen days of the outage. The utility

company shall reimburse the small business customer within thirty days

of the receipt of the itemized list and proof of loss, provided,

however, that if the utility company has applied for a waiver pursuant

to subdivision three of this section, such utility company shall

reimburse the small business customer within a time period to be

determined by the commission after the commission renders a decision on

the waiver request. The amount of their imbursement shall not exceed

five hundred forty dollars.

2. Any costs incurred by a utility company pursuant to this section

shall not be recoverable from ratepayers.

3. Not later than fourteen calendar days after the occurrence of a

widespread prolonged outage, a utility company may petition the

commission for a waiver of the requirements of this section. The company

shall have the burden of demonstrating that granting the waiver is fair,

reasonable and in the public interest. In determining whether to grant

such waiver, the commission shall consider: (a) whether the company

complied with their submitted emergency response plan pursuant to the

provisions of subdivision twenty-one of section sixty-six of this

article; (b) whether any actions or omissions of the company contributed

to the prolonging of the widespread prolonged outage; (c) the hardships

endured by said company's customers due to the widespread prolonged

outage; (d) the severity of the widespread prolonged outage; (e)

conditions on the ground during the widespread prolonged outage and the

subsequent restoration; (f) balancing of the equities; and (g) any other

criteria the commission deems in the public interest to consider. The

commission shall issue a final decision regarding the grant of the

requested waiver no later than forty-five days after submission of the

petition.

4. The commission shall promulgate procedures, standards,

methodologies and rules necessary to implement the provisions of this

section. Such rules and regulations shall define the terms "widespread

prolonged outage", "small business customer" and "proof of loss".

Prioritization of emergency services. 1. If, during a

widespread prolonged outage that affects at least twenty thousand

customers in the service territory of an electric corporation, and such

corporation is not able to restore electric power services within

twenty-four hours to any affected police department, fire department,

ambulance service or advanced life support first response service

facility that is prewired with an appropriate transfer switch for using

an alternate generated power source, such electric corporation shall

notify the village, town or city in which such facility is located.

2. Towns, cities, and villages shall provide to counties, and counties

shall, to the extent practicable, provide the electric corporations and

the division of homeland security and emergency services with a list of

such police departments, fire departments, ambulance services and

advanced life support first response services located within such

municipality's territorial boundaries within one year of the effective

date of this section, and periodically thereafter as necessary to update

such list.

3. For the purposes of this section, "alternate generated power

source" shall mean electric generating equipment that is of the capacity

that is capable of providing adequate electricity to operate all life

safety systems and the basic operations of a police department, fire

department, ambulance service or advanced life support first response

service.

Energy storage deployment policy. 1. As used in this section

"qualified energy storage system" shall mean commercially available

technology that is capable of absorbing energy, storing it for a period

of time, and thereafter dispatching the energy using mechanical,

chemical, or thermal processes to store energy that was generated at one

time for use at a later time.

2. By December thirty-first, two thousand eighteen, the commission

shall, in consultation with the New York state energy research and

development authority, the Long Island power authority, and the

federally designated electric bulk system operator for New York state,

after a hearing held on notice, establish by order, rules and

regulations, both a two thousand thirty energy storage goal for the

state and a deployment policy to support that goal. The energy storage

deployment policy shall assist with and take the following into

consideration:

(a) avoided or deferred costs associated with transmission,

distribution, and/or generation capacity;

(b) minimization of peak load in constrained areas;

(c) systems that are connected to customer facilities and systems that

are directly connected to transmission and distribution facilities;

(d) cost-effectiveness;

(e) the integration of variable-output energy resources;

(f) reducing emissions of greenhouse gases;

(g) reducing demand for peak electrical generation;

(h) improving the reliable operation of the electrical transmission or

distribution systems; and

(i) such other issues deemed appropriate by the commission.

3. To the extent that the energy storage deployment policy directs the

procurement of qualified energy storage systems to encourage their

deployment, such procurements shall be awarded through a competitive

process.

4. Annual reports on the achievements and effectiveness of the policy

shall be submitted to the governor, the temporary president of the

senate, and the speaker of the assembly.

Westchester county renewable energy and energy efficiency

resources program. 1. Within ninety days of the effective date of this

section, the commission shall, in consultation with the New York state

energy research and development authority, after a hearing held on

notice, establish by order, rules, and regulations, a program to

encourage the installation of renewable energy resources and energy

efficiencies in the county of Westchester.

2. For the purposes of this section, renewable energy resources and

energy efficiency shall have the same meaning as defined by the

commission and consistent with the most recent state energy plan

pursuant to article six of the energy law.

Long Island community choice aggregation programs. 1. For the

purposes of this section:

(a) a "Long Island community choice aggregation program" or "CCA"

means a program serving the interests of its residents and appropriately

protecting consumer data, in which an eligible municipality either alone

or jointly, after a public hearing held following public notice,

exercises its municipal home rule law authority by enacting a local law

giving itself the requisite legal authority to enter into

competitively-procured contracts with one or more energy service

companies in order to act as an aggregator and broker for the sale of

electric supply, gas supply, or both, to residents of that municipality

wherein all customers, including residential and non-residential, are

eligible to participate in the program and shall have the option to

opt-out of either, individually. CCA programs may aggregate or otherwise

integrate energy efficiency and distributed energy resources into their

programs.

(b) "Eligible municipality" means a city, town, or village within the

service territory of the Long Island power authority.

(c) "Service provider" means the entity under contract with the Long

Island power authority to provide management and operation services

associated with the authority's electric transmission and distribution

system and any subsidiary of such entity that provides such services

under contract.

2. No later than January first two thousand twenty-two, the commission

shall, in consultation with the New York State energy research and

development authority and the Long Island power authority, establish by

order, rules, and regulations a Long Island community choice aggregation

program that includes the following:

(a) the extent to which eligible municipalities may collaborate in the

operation of joint CCA programs and any geographic or service area

limitations that may exist;

(b) the ability of eligible municipalities to seek the assistance of a

non-profit, to work with a consultant, or to otherwise designate a

third-party as an administrator of a CCA program;

(c) the development of a data security agreement to be adopted by

participating eligible municipalities, energy service companies, the

Long Island power authority, and Long Island power authority service

providers;

(d) an enrollment process for eligible customers with opt-out

provisions for those customers who do not wish to participate;

(e) requirements by which participating eligible municipalities will

report on the status of their CCA program to the Long Island power

authority; and

(f) such other issues deemed appropriate by the commission.

3. Annual reports on the status of the Long Island community choice

aggregation program shall be prepared by the Long Island power authority

and shall be submitted to the governor, the temporary president of the

senate, and the speaker of the assembly by March thirty-one of each year

and must cover the previous calendar year. Annual reports will include,

at a minimum: number of customers served; number of customers cancelling

during the year; number of complaints received by CCA administrators;

commodity prices paid; value-added services provided during the year;

and administrative costs collected, if any.

Defense in case of excessive charges for gas or electricity. If

it be alleged and established in an action brought in any court for the

collection of any charge for gas or electricity, that a price has been

demanded in excess of that fixed by the commission or by statute in the

municipality wherein the action arose, no recovery shall be had therein,

but the fact that such excessive charges have been made shall be a

complete defense to such action.

Rates charged veteran organizations, religious bodies and

community residences. No gas corporation, electric corporation or

municipality shall, directly or indirectly, charge, demand, collect or

receive from any post or hall owned or leased by a not-for-profit

corporation that is a veterans' organization, or corporation or

association organized and conducted in good faith for religious

purposes, including the operation by such corporation or association of

a school, notwithstanding that secular subjects are taught at such

school, or from a community residence as defined in subdivision

twenty-eight, twenty-eight-a or twenty-eight-b of section 1.03 of the

mental hygiene law, provided, however, that such residence shall be

operated by a not-for-profit corporation and if supervisory staff is on

site on a twenty-four hour per day basis, that the residence provides

living accommodations for fourteen or fewer residents, a rate,

regardless of the type of service offered, for any gas or electric

service utilized exclusively in connection with such veteran

organization or for such religious purposes or utilized exclusively at

such community residence greater than the rates or charges charged,

demanded, collected or received by such gas corporation, electric

corporation or municipality from domestic consumers receiving

single-phase service within the same village, town or municipality.

Powers of local officers. If in any city of the first or second

class there now exists or shall hereafter be created a board, body or

officer having jurisdiction of matters pertaining to gas or electric

service, such board, body or officer shall have and may exercise such

power, jurisdiction and authority in enforcing the laws of the state and

the orders, rules and regulations of the commission as may be prescribed

by statute or by the commission.

Application of article. This article shall apply to the

manufacture, holding, distributing and furnishing of steam for heat or

power.

Adequate service; just and reasonable charges; unjust

discrimination and unreasonable preference. 1. Every steam corporation

shall furnish and provide such service, instrumentalities and facilities

as shall be safe and adequate and in all respects just and reasonable.

All charges made or demanded by any such corporation for such service

rendered or to be rendered shall be just and reasonable and not more

than allowed by order of the commission. Every unjust or unreasonable

charge made or demanded for such service, or in connection therewith or

in excess of that allowed by law or by the commission is prohibited.

2. No such corporation shall directly or indirectly by any special

rate, rebate, drawback or other device or method, charge, demand,

collect or receive from any person or corporation a greater or less

compensation for such service rendered or to be rendered or in

connection therewith, except as authorized in this chapter, than it

charges, demands, collects or receives from any other person or

corporation for doing a like and contemporaneous service with respect

thereto under the same or substantially similar circumstances or

conditions.

3. No such corporation shall make or grant any undue or unreasonable

preference or advantage to any person, corporation or locality, or to

any particular description of service in any respect whatsoever, or

subject any particular person, corporation or locality or any particular

description of service to any undue or unreasonable prejudice or

disadvantage in any respect whatsoever.

4. Nothing in this chapter shall be taken to prohibit any such

corporation from establishing a sliding scale for a fixed period for the

automatic adjustment of charges for such service or any service rendered

or to be rendered and the dividends to be paid to stockholders of such

corporation, provided that the sliding scale shall first have been filed

with and approved by the commission; but nothing in this subdivision

shall operate to prevent the commission after the expiration of such

fixed period from fixing proper, just and reasonable rates and charges

to be made for services as authorized in this article.

5. (a) Every steam corporation furnishing service may initiate a civil

action to collect a civil penalty against a user of non-residential

service in accordance with this subdivision. Upon a showing in such

action that a user of non-residential service has knowingly accepted or

received the use and benefit of such service which has been prevented

from being properly registered by a meter provided therefor, the

corporation may be granted a civil penalty, in addition to the value of

the unpaid service, in an amount which the court in its discretion shall

deem to be just and reasonable, which in no event shall be more than

three times the retail value of the steam service accepted or received.

In any action under this subdivision, proof that a meter has been

intentionally prevented from properly registering steam service shall be

prima facie proof that the user of non-residential service who accepts

or receives the use and benefit of such service has done so with

knowledge of the condition so existing, if the steam corporation shall

first present evidence that such person took possession of the

benefitted premises and used the service prior to the creation of the

condition.

(b) For the purposes of this subdivision, a user of non-residential

service shall be a person benefitting from such service who is in

possession of the premises to which the service is delivered.

(c) Any civil penalty recovered pursuant to this section in excess of

the actual damages sustained by the corporation shall be taken into

account by the public service commission in establishing future steam

rates.

General powers of commission in respect to steam heating. The

commission shall: 1. Have general supervision of all steam corporations

having authority under any general or special law or under any charter

or franchise to lay down, regulate or maintain pipes, conduits, ducts or

other fixtures in, over or under the streets, highways and public places

of any municipality, for the purpose of furnishing or transmitting steam

for heat or power, and all plants leased or operated by any such

corporation.

2. Investigate and ascertain, from time to time, the methods employed

by such persons and corporations in manufacturing, distributing and

supplying steam for heat or power and have power to order such

reasonable improvements as will best promote the public interest,

preserve the public health and protecting those using such steam and

those employed in the manufacture and distribution thereof, and have

power to order reasonable improvements and extensions of the pipes,

lines, conduits, ducts and other reasonable devices, apparatus and

property of such corporation.

3. Have power, in its discretion, to prescribe uniform methods of

keeping account, records and books, to be observed by such corporation

in the manufacture, sale and distribution of steam. It may also in its

discretion prescribe, by order, forms of accounts, records and memoranda

to be kept by such persons and corporations. Notice of alterations by

the commission in the required method or form of keeping a system of

accounts shall be given to such persons or corporations by the

commission at least six months before the same shall take effect. Any

other and additional forms of accounts, records and memoranda kept by

such corporation shall be subject to examination by the commission.

4. Examine all persons and corporations under its supervision and keep

informed as to the methods, practices, regulations and property employed

by them in the transaction of their business. The commission shall have

power of its own motion to examine and investigate the plants and

methods employed in manufacturing, delivering and supplying steam and

shall have access through its members or persons employed and authorized

by it to make such examinations and investigations to all parts of the

manufacturing plants owned, used or operated for the manufacture,

transmission, distribution, furnishing or sale of steam for heat or

power by any such person or corporation. Whenever the commission shall

be of the opinion, after hearing had upon its own motion or upon

complaint, that the rates or charges or the acts or regulations of any

such person or corporation, are unjust, unreasonable, unjustly

discriminatory or unduly preferential or in any wise in violation of any

provision of law, the commission shall determine and prescribe in the

manner provided by and subject to the provisions of section eighty-five

of this chapter the just and reasonable rates and charges thereafter to

be enforced for the service to be furnished, and the just and reasonable

acts and regulations to be done and observed; and whenever the

commission shall be of opinion, after hearing had upon its own motion or

upon complaint, that the property, equipment or appliances of any such

person or corporation are unsafe, inefficient or inadequate, the

commission shall determine and prescribe the safe, efficient and

adequate property, equipment and appliances thereafter to be used,

maintained and operated for the security and accommodation of the public

and in compliance with the provisions of law and of their franchises and

charters.

5. Require every person and corporation under its supervision and it

shall be the duty of every such person and corporation to file with the

commission an annual report, verified by the oath of the president,

vice-president, treasurer, secretary, general manager or receiver, if

any, thereof, or by the person required to file the same. The

verification shall be made by said officials holding office at the time

of the filing of said report, and if not made upon the knowledge of the

person verifying the same shall set forth the sources of his information

and the grounds of his belief as to any matters not stated to be

verified upon his knowledge. The report shall show in detail:

(a) The amount of its authorized capital stock and the amount thereof

issued and outstanding; (b) the amount of its authorized bonded

indebtedness and the amount of its bonds and other forms of evidence of

indebtedness issued and outstanding; (c) its receipts and expenditures

during the preceding year; (d) the amount paid as dividends upon its

stock and as interest upon its bonds; (e) the name of its officers and

the aggregate amount paid as salaries to them and the amount paid as

wages to its employees; (f) the location of its plant or plants and

system, with a full description of its property and franchises, stating

in detail how each franchise stated to be owned was acquired; (g) such

other facts pertaining to the operation and maintenance of the plant and

system, and the affairs of such person or corporation as may be required

by the commission. Such report shall be in the form, cover the period

and be filed at the time prescribed by the commission. The commission

may from time to time make changes and additions in such forms. When any

such report is defective or believed to be erroneous, the commission

shall notify the person or corporation making such report to amend the

same within a time prescribed by the commission. Any such person or

corporation which shall neglect to make any such report or which shall

fail to correct any such report within the time prescribed by the

commission shall be liable to a penalty of one hundred dollars and an

additional penalty of one hundred dollars for each day after the

prescribed time for which it shall neglect to file and correct the same,

to be sued for in the name of the people of the state of New York. The

amount recovered in any such action shall be paid into the state

treasury and be credited to the general fund. The commission may extend

the time prescribed for cause shown.

6. Have power, either through its members or inspectors or employees

duly authorized by it, to enter in or upon and to inspect the property,

buildings, plants, power houses, ducts, conduits and offices of any such

corporation or person.

7. Have power to examine all accounts, books, contracts, records,

documents and papers of any such person or corporation, and have power,

after a hearing, to prescribe by order all accounts in which particular

outlays and receipts shall be entered, charged or credited. At any such

hearing the burden of proof shall be on the person, corporation or

municipality to establish the correctness of the accounts in which such

outlays and receipts have been entered, and the commission may suspend a

charge or credit pending submission of proof by such person, corporation

or municipality.

8. Have power to compel, by subpoena duces tecum, the production of

any accounts, books, contracts, records, documents, memoranda and

papers. In lieu of requiring production of originals by subpoena duces

tecum the commission or any commissioner may require sworn copies of any

such books, records, contracts, documents and papers, or parts thereof,

to be filed with it. The commission may require of all such

corporations, persons or municipalities, specific answers to questions

upon which the commission may need information, and may also require

such corporations, persons or municipalities to file periodic reports in

the form, covering the period and filed at the time prescribed by the

commission. If such corporation, person or municipality shall fail to

make specific answer to any question or shall fail to make a periodic

report when required by the commission as herein provided within the

time and in the form prescribed by the commission for the making and

filing of any such report or answer, such corporation, person or the

officer of the municipality shall forfeit to the state the sum of one

hundred dollars for each and every day it shall continue to be in

default with respect to such report or answer. Such forfeiture shall be

recovered in an action brought by the commission in the name of the

people of the state of New York. The amount recovered in any such action

shall be paid into the state treasury and be credited to the general

fund.

9. Have power in all parts of the state, either as a commission or

through its members or through an officer or employee specially

authorized to conduct an investigation or hearing, to subpoena

witnesses, take testimony and administer oaths to witnesses in any

proceeding or examination instituted before it, or conducted by it in

reference to any matter within its jurisdiction under this article.

10. (a) Have power to require every steam corporation, person or

municipality, hereinafter in this subdivision called a utility, to file

with the commission and to print and keep open to public inspection

schedules showing all rates and charges made, established or enforced or

to be charged or enforced, all forms of contract or agreement and all

rules and regulations relating to rates, charges or service used or to

be used, and all general privileges and facilities granted or allowed by

such utility; but this subdivision shall not apply to state, municipal

or federal contracts.

(b) No change shall be made in any rate or charge, or in any form of

contract or agreement or any rule or regulation relating to any rate,

charge or service, or in any general privilege or facility, which shall

have been filed or published by a utility in compliance with an order of

the commission, except after thirty days' notice to the commission and

to each county, city, town and village served by such utility, which had

filed with such utility, within the prior twelve months, a request for

such notice and which shall be affected by such change and the

publication for thirty days as required by order of the commission,

which shall plainly state the changes proposed to be made and when the

change will go into effect. The commission for good cause shown may,

except in the case of major changes, allow changes to take effect prior

to the end of such thirty-day period and without publication of notice

to the public under such conditions as it may prescribe. The commission

may delegate to the secretary of the commission its authority to approve

a change to a schedule postponing the effective date of such schedule

previously filed with the commission and to allow for good cause shown

the postponement to take effect prior to the end of such thirty-day

period and without publication of notice to the public.

(c) For the purpose of this subdivision, "major changes" shall mean an

increase in the rates and charges which would increase the aggregate

revenues of the applicant more than the greater of three hundred

thousand dollars or two and one-half percent, but shall not include

changes in rates, charges or rentals allowed to go into effect by the

commission or made by the utility pursuant to an order of the commission

after hearings held upon notice to the public.

(d) No utility shall charge, demand, collect or receive a greater or

less or different compensation for any service rendered or to be

rendered than the rates and charges specified in its schedule filed and

in effect; nor shall any utility refund or remit in any manner or by any

device any portion of the rates or charges so specified, nor extend to

any person any form of contract or agreement, or any rule or regulation,

or any privilege or facility, except such as are regularly and uniformly

extended to all persons under like circumstances.

(e) The commission shall have power to prescribe the form of every

such schedule, and from time to time prescribe by order such changes in

the form thereof as may be deemed wise. The commission shall also have

power to establish such rules and regulations to carry into effect this

subdivision as it may deem necessary, and to modify or amend such rules

or regulations from time to time.

(f) (i) Whenever there shall be filed with the commission by any

utility any schedule stating a new rate or charge, or any change in any

form of contract or agreement or any rule or regulation relating to any

rate, charge or service, or in any general privilege or facility, the

commission may, at any time within sixty days from the date when such

schedule would or has become effective, either upon complaint or upon

its own initiative, and, if it so orders, without answer or other formal

pleading by the utility, but upon reasonable notice, hold a hearing

concerning the propriety of a change proposed by the filing. If such

change is a major change, the commission shall hold such a hearing.

Pending such hearing and decision thereon the commission, upon filing

with such schedule and delivering to the utility, a statement in writing

of its reasons therefor, may suspend the operation of such schedule, but

not for a longer period than fourteen months beyond the time when it

would otherwise go into effect. After full hearing, whether completed

before or after the schedule goes into effect, the commission may make

such order in reference thereto as would be proper in a proceeding begun

after the rate, charge, form of contract or agreement, rule, regulation,

service, general privilege or facility had become effective.

(ii) The commission is authorized to approve, and any hearing

involving a major change in rates for a steam corporation may consider,

whether as a result of litigation or settlement negotiations, multi-year

changes in rates or charges, in addition to the utility's filing. Any

such additional multi-year rates or charges which result from a

litigated process are authorized to be implemented in a similar manner

to those resulting from settlement negotiations. The commission shall,

in each order approving a major change in rates for a steam corporation,

explain how the information in the record that it received from such

corporation and the parties impacted its determination to approve a

major change in rates consistent with the public interest either as a

result of litigation or from a settlement, and include a written summary

of the commission's rationale.

(g) The commission may, as authorized by section eighty-five of this

article, establish temporary rates or charges for any period of

suspension under this section. At any hearing involving a rate or

charge, the burden of proof to show that the change in rate or charge,

or proposed change in rate or charge if proposed by the utility, or that

the existing rate or charge, if it is proposed to reduce the rate or

charge, is just and reasonable shall be upon the utility; and the

commission may give to the hearing and decision of such questions

preference over all other questions pending before it. The schedule,

rates, charges, form of contract or agreement, rule, regulation,

service, general privilege or facility in force when the new schedule,

rate, charge, form of contract, rule, regulation, service, general

privilege or facility was filed shall continue in force during the

period of the suspension unless the commission shall establish a

temporary rate or charge as authorized by section eighty-five of this

article. Provided, however, that whenever the commission shall deny a

request by a utility for a major change in rates or charges, the

schedule, rate, charge, form of contract or agreement, rule, regulation,

general privilege, facility, or service immediately in effect prior to

such request being filed shall remain in full force and effect until

such time as the commission approves a new schedule of rates or charges,

unless the commission established a temporary rate or charge as

authorized by section eighty-five of this article.

* (h) (i) The commission shall require each filing for a major change

in rates made by a steam corporation to include an executive

compensation disclosure. Such executive compensation disclosure shall

include: (A) the median of the annual total compensation of all

employees of the steam corporation, except for senior management

positions; (B) the annual total compensation of the chief executive

officer; (C) the annual total compensation for each other senior

management position; and (D) the ratio of the amount described in clause

(A) of this subparagraph to the amount described in clause (B) of this

subparagraph.

(ii) For purposes of this paragraph, "senior management positions"

shall include a chief executive officer, chief operations officer, chief

financial officer, chief information officer, chief information

technology officer, officer responsible for regulatory affairs, general

counsel, and any other positions considered to be senior management by

the corporation.

* NB Effective January 1, 2027

* (i) (i) The commission shall require each filing for a major change

in rates made by a steam corporation to include, in addition to the

corporation's recommended proposal, a budget constrained proposal that

separately addresses operating expenses, capital expenditures,

programmatic or policy expenditures, commodity supply costs, taxes, and

other costs not within the control of the corporation. Such budget

constrained proposal shall not increase the applicant's aggregate

revenues by more than the average of the annual consumer price index

increases over the prior three years.

(ii) In each filing for a major change in rates, the corporation shall

demonstrate how any increase in the applicant's aggregate revenues by

more than the increase set forth in the budget constrained proposal is

necessary to ensure safety, reliability, or the continuation of

affordability programs.

(iii) The commission shall require the corporation to track

expenditures and outcomes and explain all material deviations from the

approved rate plan no less frequently than on an annual basis.

* NB Effective January 1, 2027

11. In case any steam corporation is engaged in carrying on any

business other than owning, operating or managing a steam plant, which

other business is not otherwise subject to the jurisdiction of the

commission, and is so conducted that its operations are to be

substantially kept separate and apart from the owning, operating,

managing or controlling of such steam plant, said corporation in respect

of such other business shall not be subject to any of the provisions of

this chapter and shall not be required to procure the assent or

authorization of the commission to any act in such other business or to

make any report in respect thereof. But this subdivision shall not

restrict or limit the powers of the commission in respect to the owning,

operating, managing or controlling by such corporation of such steam

plant, and said powers shall include also the right to inquire as to,

and prescribe the apportionment of, capitalization, earnings, debts and

expenses fairly and justly to be awarded to or borne by the ownership,

operation, management or control of such steam plant as distinguished

from such other business. In any such case if the owning, operating,

managing or controlling of such steam plant by any such corporation is

wholly subsidiary and incidental to the other business carried on by it

and is inconsiderable in amount and not general in its character, the

commission may by general rules exempt such corporation from making full

reports and from the keeping of accounts as to such subsidiary and

incidental business.

12. Notwithstanding any other provision of law to the contrary,

whenever a city having a population of one million or more provides for

a deduction from gross receipts of a steam corporation, pursuant to a

local law authorized by the provisions of subdivision (k) of section

twelve hundred one of the tax law, the rate or charge imposed by any