S T A T E O F N E W Y O R K
________________________________________________________________________
5251
2013-2014 Regular Sessions
I N A S S E M B L Y
February 21, 2013
___________
Introduced by M. of A. BRENNAN, CLARK, GOTTFRIED, ORTIZ, CASTRO, STEVEN-
SON, GIBSON -- Multi-Sponsored by -- M. of A. GLICK, JACOBS, MAISEL,
MILLMAN -- read once and referred to the Committee on Energy
AN ACT to amend the general business law and the public service law, in
relation to limiting rates identified and deposits required by elec-
tricity redistributors
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Legislative findings and declaration of purpose. The legis-
lature hereby finds and declares:
(a) There is a significant number of landlords in New York that redis-
tribute electricity purchased from a utility or other person to their
non-residential tenants. For example, in nineteen hundred eighty-eight
approximately twenty-six percent of commercial/industrial electricity
sales of Consolidated Edison Company of New York, Inc. were to landlords
who provided electricity to their non-residential tenants. The rates
charged by those landlords, or "electricity redistributors", to non-re-
sidential tenants and the manner in which such rates are charged are not
currently regulated by the public service commission. In the absence of
regulation, some landlords in New York resell electricity to their non-
residential tenants at an excessive profit, and fail to disclose
adequately the rate or the basis of the charge for electricity and the
terms under which such charge may be subject to change.
(b) Such practices, and the resulting perception of high or sharply
rising energy costs, discourage businesses from entering and remaining
in New York. Thus, there is a need to protect non-residential tenants
from such practices. This protection can best be accomplished by limit-
ing the rates identified and deposits required by electricity redistrib-
utors, and requiring electricity redistributors to disclose fully and
clearly to a non-residential tenant the tenant's charges and costs
relating to use of electricity in the tenant's premises.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09139-01-3
A. 5251 2
S 2. The general business law is amended by adding a new article 30-B
to read as follows:
ARTICLE 30-B
ELECTRICITY REDISTRIBUTORS
SECTION 641. DEFINITIONS.
642. LIMITATION ON RATES IDENTIFIED BY ELECTRICITY REDISTRIBU-
TORS.
643. DEPOSITS.
644. ACCESS TO AND RETENTION OF RECORDS.
645. NOTICE TO TENANT.
646. ARBITRATION.
647. DISCONTINUANCE OF IDENTIFICATION OF ELECTRICITY CHARGES.
648. LOCAL CONDITIONS ON BENEFITS.
649. VIOLATIONS AND PENALTIES.
649-A. RULES AND REGULATIONS.
S 641. DEFINITIONS. AS USED IN THIS ARTICLE:
1. "CHARGES FOR ACTUAL ELECTRICITY USED" MEANS DEMAND, ENERGY AND FUEL
ADJUSTMENT CHARGES, ANY TAXES AND TAX SURCHARGES THEREON, AND ANY OTHER
RELATED UTILITY CHARGES SPECIFICALLY AUTHORIZED TO BE TREATED AS CHARGES
FOR ACTUAL ELECTRICITY IN REGULATIONS PROMULGATED BY THE COMMISSION, BUT
SHALL NOT INCLUDE PENALTIES FOR LATE PAYMENT OR ASSESSMENTS OR CHARGES
FOR ANY DISTRIBUTION-RELATED FACILITIES;
2. "COMMISSION" MEANS THE PUBLIC SERVICE COMMISSION OF THE STATE OF
NEW YORK;
3. "DISTRIBUTION-RELATED FACILITIES" MEANS ANY AND ALL METERS, WIRES,
TRANSFORMERS AND OTHER EQUIPMENT LOCATED AT A BUILDING AND USED TO
SUPPLY ELECTRICITY WITHIN SUCH BUILDING;
4. "ELECTRICITY REDISTRIBUTOR" MEANS ANY LANDLORD OR TENANT OF A
BUILDING OR AGENT THEREOF WHO PURCHASES ELECTRICITY FROM A UTILITY OR
ANY OTHER PERSON, CORPORATION OR ENTITY, AND ON A METERED OR UNMETERED
BASIS RESELLS OR OTHERWISE REDISTRIBUTES SUCH ELECTRICITY TO ONE OR MORE
NON-RESIDENTIAL TENANTS IN SUCH BUILDING, AND IDENTIFIES TO SUCH TENANTS
CHARGES FOR SUCH ELECTRICITY; AND
5. "UTILITY" MEANS ANY ELECTRIC CORPORATION SUBJECT TO THE JURISDIC-
TION AND GENERAL SUPERVISION OF THE COMMISSION.
S 642. LIMITATION ON RATES IDENTIFIED BY ELECTRICITY REDISTRIBUTORS.
1. NO ELECTRICITY REDISTRIBUTOR SHALL BILL OR OTHERWISE CHARGE ANY NON-
RESIDENTIAL TENANT FOR ELECTRICITY FURNISHED, SUPPLIED OR OTHERWISE
REDISTRIBUTED TO SUCH TENANT'S PREMISES OR TO ANY OTHER TENANT PREMISES
AT A RATE WHICH EXCEEDS THE MAXIMUM ALLOWABLE RATE FOR ELECTRICITY AS
DETERMINED IN ACCORDANCE WITH PARAGRAPHS (A) AND (B) OF THIS SUBDIVI-
SION, PROVIDED, HOWEVER, THAT NOTHING IN THIS SECTION IS INTENDED TO
LIMIT OR OTHERWISE RESTRICT AMOUNTS THAT AN ELECTRICITY REDISTRIBUTOR
CAN CHARGE AS RENT TO NON-RESIDENTIAL TENANTS. FOR PURPOSES OF THIS
SUBDIVISION, "RENT" SHALL NOT INCLUDE CHARGES FOR ACTUAL ELECTRICITY
USED IN PREMISES LEASED OR OCCUPIED BY NON-RESIDENTIAL TENANTS.
(A) WHERE AN ELECTRICITY REDISTRIBUTOR FURNISHES ELECTRICITY TO A
NON-RESIDENTIAL TENANT IN A BUILDING ON A METERED BASIS, SUCH TENANT
SHALL BE CHARGED FOR ACTUAL ELECTRICITY USED IN THE PREMISES LEASED OR
OCCUPIED BY SUCH TENANT, AS MEASURED BY A PROPERLY INSTALLED AND OPERAT-
ING METER, AT A RATE NOT TO EXCEED THE RATE THAT IS CHARGED TO ELECTRIC-
ITY REDISTRIBUTORS BY THE UTILITY THAT IS PROVIDING ELECTRICITY SERVICE
IN THE SERVICE AREA WHERE SUCH BUILDING IS LOCATED, PLUS AN ADDITIONAL
AMOUNT NOT TO EXCEED TWELVE PERCENT OF CHARGES FOR ACTUAL ELECTRICITY
USED. WHERE THERE IS NO DEMAND METER TO MEASURE SUCH TENANT'S INDIVIDUAL
DEMAND, THE ELECTRICITY REDISTRIBUTOR SHALL CONVERT THE TOTAL DEMAND
A. 5251 3
CHARGE FOR THE BUILDING TO AN AVERAGE CHARGE PER KILOWATT HOUR, WHICH
AVERAGE CHARGE SHALL BE MULTIPLIED BY SUCH TENANT'S TOTAL KILOWATT HOUR
USAGE TO CALCULATE SUCH TENANT'S DEMAND CHARGE. IN ADDITION, WHERE THE
CHARGE TO SUCH ELECTRICITY REDISTRIBUTOR INCLUDES A RATE VARYING WITH
TIME OF USE AND THERE IS NO METER TO MEASURE SUCH TENANT'S DAILY PEAK
USAGE, THE ELECTRICITY REDISTRIBUTOR SHALL AGGREGATE THE PEAK AND
OFF-PEAK DEMAND AND ENERGY COSTS FOR THE BUILDING AND CHARGE ALL NON-RE-
SIDENTIAL TENANTS IN THE BUILDING AT A RATE EQUAL TO SUCH ELECTRICITY
REDISTRIBUTOR'S AVERAGE DEMAND AND ENERGY COSTS PER KILOWATT OR KILOWATT
HOUR, AS APPROPRIATE.
(B) (I) WHERE AN ELECTRICITY REDISTRIBUTOR FURNISHES ELECTRICITY TO A
NON-RESIDENTIAL TENANT ON AN UNMETERED BASIS, SUCH TENANT SHALL BE
CHARGED FOR ELECTRICITY USED IN THE PREMISES LEASED OR OCCUPIED BY SUCH
TENANT AN AMOUNT DETERMINED BY ONE OF THE FOLLOWING METHODS, AT THE
OPTION OF SUCH ELECTRICITY REDISTRIBUTOR:
(A) A CHARGE FOR ELECTRICITY BASED UPON A SURVEY CONDUCTED OR PAID FOR
BY SUCH ELECTRICITY REDISTRIBUTOR OF THE ESTIMATED ACTUAL ELECTRICITY
USED BY SUCH TENANT IN SUCH PREMISES, AT A RATE NOT TO EXCEED THE RATE
THAT IS CHARGED TO ELECTRICITY REDISTRIBUTORS BY THE UTILITY THAT IS
PROVIDING ELECTRICITY SERVICE IN THE SERVICE AREA WHERE SUCH BUILDING IS
LOCATED, PLUS AN ADDITIONAL AMOUNT NOT TO EXCEED TWELVE PERCENT OF SUCH
RATE. SUCH RATE SHALL ONLY INCLUDE CHARGES FOR ACTUAL ELECTRICITY USED.
WHERE SUCH SURVEY DOES NOT MEASURE SUCH TENANT'S INDIVIDUAL DEMAND, SUCH
ELECTRICITY REDISTRIBUTOR SHALL CONVERT THE TOTAL DEMAND CHARGE FOR THE
BUILDING TO AN AVERAGE CHARGE PER KILOWATT HOUR, WHICH AVERAGE CHARGE
SHALL BE MULTIPLIED BY SUCH TENANT'S ESTIMATED TOTAL KILOWATT HOUR USAGE
DERIVED FROM SUCH SURVEY, TO CALCULATE SUCH TENANT'S DEMAND CHARGE. IN
ADDITION, WHERE THE CHARGE TO SUCH ELECTRICITY REDISTRIBUTOR INCLUDES A
RATE VARYING WITH TIME OF USE AND SUCH SURVEY DOES NOT MEASURE SUCH
TENANT'S DAILY PEAK USAGE, SUCH ELECTRICITY REDISTRIBUTOR SHALL AGGRE-
GATE THE PEAK AND OFF-PEAK DEMAND AND ENERGY COSTS FOR THE BUILDING AND
CHARGE ALL NON-RESIDENTIAL TENANTS IN THE BUILDING AT A RATE EQUAL TO
SUCH ELECTRICITY REDISTRIBUTOR'S AVERAGE DEMAND AND ENERGY COSTS PER
KILOWATT OR KILOWATT HOUR, AS APPROPRIATE; OR
(B) A CHARGE FOR ELECTRICITY BASED UPON SUCH TENANT'S PROPORTIONATE
SHARE OF THE ACTUAL COST OF ELECTRICITY FOR THE ENTIRE BUILDING, PLUS AN
ADDITIONAL AMOUNT NOT TO EXCEED TWELVE PERCENT OF SUCH CHARGES. SUCH
COST SHALL ONLY INCLUDE CHARGES FOR ACTUAL ELECTRICITY USED. SUCH SHARE
SHALL BE DETERMINED BY A SURVEY CONDUCTED OR PAID FOR BY THE ELECTRICITY
REDISTRIBUTOR OF THE AREA LEASED OR OCCUPIED BY SUCH TENANT, WHICH AREA
SHALL BE MEASURED BY A REASONABLE STANDARD CONSISTENTLY APPLIED TO ALL
TENANTS IN THE ENTIRE BUILDING. SUCH SHARE SHALL BE A PROPORTION OF THE
TOTAL AREA IN THE ENTIRE BUILDING, WHICH TOTAL AREA SHALL INCLUDE
PUBLIC, COMMON AND SERVICE AREAS OF SUCH BUILDING BUT SHALL NOT INCLUDE
TENANT PREMISES WHICH ARE NOT LEASED OR OCCUPIED. NOTHING HEREIN SHALL
PREVENT AN ELECTRICITY REDISTRIBUTOR FROM CHARGING AS A PORTION OF RENT
AS DESCRIBED IN THIS SUBDIVISION ANY AMOUNT FOR ELECTRICITY USED IN
PUBLIC, COMMON OR SERVICE AREAS OR IN TENANT PREMISES THAT ARE NOT
LEASED OR OCCUPIED. UPON SIXTY DAYS' PRIOR WRITTEN NOTICE, SUCH TENANT,
AT ITS EXPENSE AND OPTION, SHALL BE ENTITLED TO A CHANGE FROM PRORATING
ELECTRICITY CHARGES IN ACCORDANCE WITH THIS ITEM TO DETERMINING SUCH
CHARGES IN ACCORDANCE WITH A SURVEY AS DESCRIBED IN CLAUSE (A) OF THIS
SUBPARAGRAPH.
(II) WHERE AN ELECTRICITY REDISTRIBUTOR USES A SURVEY AS DESCRIBED IN
CLAUSE (A) OF SUBPARAGRAPH (I) OF THIS PARAGRAPH, EITHER SUCH ELECTRIC-
ITY REDISTRIBUTOR OR ANY NON-RESIDENTIAL TENANT MAY, UPON FORTY-FIVE
A. 5251 4
DAYS' PRIOR WRITTEN NOTICE, ELECT FOR ADDITIONAL SURVEYS TO BE CONDUCTED
BY OR AT THE EXPENSE OF SUCH ELECTRICITY REDISTRIBUTOR BECAUSE OF
CHANGED CONDITIONS RESULTING FROM THE ADDITION OR REMOVAL OF EQUIPMENT,
MACHINERY, OR OTHER ELECTRICAL DEVICES, PROVIDED THAT SUCH ELECTION MAY
ONLY BE MADE WHERE IT IS REASONABLY BELIEVED THAT SUCH CHANGED CONDI-
TIONS COULD RESULT IN A CHANGE IN ELECTRICITY USAGE OF GREATER THAN FIVE
PERCENT IN COMPARISON WITH RESULTS OF THE PRIOR SURVEY. WHERE AN ELEC-
TRICITY REDISTRIBUTOR USES A SURVEY AS DESCRIBED IN CLAUSE (A) OR (B) OF
SUBPARAGRAPH (I) OF THIS PARAGRAPH, EITHER SUCH ELECTRICITY REDISTRIBU-
TOR OR ANY NON-RESIDENTIAL TENANT MAY, UPON FORTY-FIVE DAYS' PRIOR WRIT-
TEN NOTICE, NOT MORE THAN ONCE IN ANY CALENDAR YEAR, ELECT FOR AN ADDI-
TIONAL SURVEY TO BE CONDUCTED BECAUSE OF A DISAGREEMENT WITH THE PRIOR
SURVEY; PROVIDED, HOWEVER, THAT IN ANY YEAR IN WHICH SUCH TENANT CHANGES
FROM PRORATING ELECTRICITY CHARGES IN ACCORDANCE WITH CLAUSE (B) OF SUCH
SUBPARAGRAPH TO DETERMINING SUCH CHARGES IN ACCORDANCE WITH CLAUSE (A)
OF SUCH SUBPARAGRAPH, SUCH ELECTRICITY REDISTRIBUTOR AND SUCH TENANT
SHALL EACH BE ENTITLED TO ELECT AN ADDITIONAL SURVEY PURSUANT TO THIS
SENTENCE AFTER SUCH CHANGE REGARDLESS OF WHETHER AN ADDITIONAL SURVEY
PURSUANT TO THIS SENTENCE WAS CONDUCTED BEFORE SUCH CHANGE. THE PERSON
ELECTING AN ADDITIONAL SURVEY SHALL CONDUCT SUCH SURVEY OR PAY THE COSTS
THEREOF. IF AN ELECTRICITY REDISTRIBUTOR AND A TENANT DO NOT AGREE ON
THE RESULTS OF ANY ADDITIONAL SURVEY CONDUCTED BECAUSE OF DISAGREEMENT
WITH A PRIOR SURVEY, THEN, WITHIN FIFTEEN DAYS AFTER THE RECEIPT OF THE
RESULTS OF SUCH ADDITIONAL SURVEY, THE REPRESENTATIVES OF SUCH ELECTRIC-
ITY REDISTRIBUTOR AND SUCH TENANT SHALL CHOOSE AN INDEPENDENT REPRESEN-
TATIVE, WHOSE COST SHALL BE SHARED EQUALLY BY SAID PARTIES, TO MAKE A
BINDING DETERMINATION, PROVIDED THAT IF THE REPRESENTATIVES OF SUCH
ELECTRICITY REDISTRIBUTOR AND SUCH TENANT CANNOT AGREE UPON AN INDEPEND-
ENT REPRESENTATIVE WITHIN SUCH FIFTEEN DAY PERIOD, THEN AN INDEPENDENT
REPRESENTATIVE SHALL BE APPOINTED IN ACCORDANCE WITH A PROCEDURE ESTAB-
LISHED IN REGULATIONS PROMULGATED BY THE COMMISSION.
2. AN ELECTRICITY REDISTRIBUTOR SHALL CLEARLY STATE IN WRITING CHARGES
TO A NON-RESIDENTIAL TENANT FOR USAGE OF ELECTRICITY AS DESCRIBED IN
SUBDIVISION ONE OF THIS SECTION AND SHALL INCLUDE IN SUCH STATEMENT THE
CHARGE PER KILOWATT HOUR AND THE CHARGE PER KILOWATT, IF APPLICABLE, AND
ANY INFORMATION NECESSARY FOR COMPUTATION OF SUCH CHARGES. SUCH ELEC-
TRICITY REDISTRIBUTOR SHALL ISSUE AT LEAST ONE BILL OR STATEMENT FOR
SUCH USAGE EVERY SIXTY DAYS.
3. AN ELECTRICITY REDISTRIBUTOR SHALL PROVIDE TO EACH NON-RESIDENTIAL
TENANT A COPY OF THE APPLICABLE RATE SCHEDULE IN THE TARIFF OF THE UTIL-
ITY THAT IS PROVIDING ELECTRICITY SERVICE FOR RESALE OR REDISTRIBUTION
IN THE SERVICE AREA WHERE SUCH BUILDING IS LOCATED WITHIN THIRTY DAYS OF
COMMENCEMENT, RENEWAL, OR EXTENSION BY SUCH TENANT OF A LEASE OR OCCU-
PANCY. SUCH ELECTRICITY REDISTRIBUTOR SHALL ALSO PROVIDE TO SUCH TENANTS
A COPY OF SUCH RATE SCHEDULE AFTER ANY CHANGES THEREIN, IN ACCORDANCE
WITH REGULATIONS PROMULGATED BY THE COMMISSION.
S 643. DEPOSITS. AN ELECTRICITY REDISTRIBUTOR MAY REQUIRE ANY NON-RE-
SIDENTIAL TENANT TO WHOM SUCH ELECTRICITY REDISTRIBUTOR SHALL SUPPLY
ELECTRICITY SERVICES TO DEPOSIT A REASONABLE SUM OF MONEY ACCORDING TO
THE ESTIMATED QUANTITY OF SUCH SERVICES NECESSARY TO SUPPLY ELECTRICITY
FOR TWO CALENDAR MONTHS, AT RATES AND CHARGES ESTIMATED IN ACCORDANCE
WITH THE PROVISIONS OF THIS ARTICLE, TO SECURE PAYMENT FOR SUCH SERVICES
ACTUALLY RENDERED, AND SHALL ALLOW TO EVERY DEPOSITOR INTEREST AT A RATE
PER ANNUM EQUAL TO THAT PAID BY UTILITIES TO THEIR CUSTOMERS AS
PRESCRIBED FROM TIME TO TIME BY THE COMMISSION, PAYABLE UPON THE RETURN
OF THE DEPOSIT OR AT EARLIER INTERVALS AS HEREINAFTER PRESCRIBED. WHEN-
A. 5251 5
EVER SUCH DEPOSIT HAS BEEN HELD FOR A PERIOD OF ONE YEAR, THE INTEREST
ACCRUED ON SUCH DEPOSIT SHALL BE CREDITED TO THE DEPOSITOR ON THE FIRST
BILLING FOR ELECTRICITY SERVICE RENDERED AFTER THE NEXT SUCCEEDING FIRST
DAY OF OCTOBER. IF THE DEPOSITOR WAS NOT DELINQUENT IN THE PAYMENT OF
ANY BILL IN SUCH ONE YEAR PERIOD, THE DEPOSIT SHALL BE REFUNDED PROMPTLY
AT THE END THEREOF, BUT WITHOUT PREJUDICE TO THE RIGHT TO REQUIRE A
DEPOSIT THEREAFTER IN THE EVENT OF A DELINQUENCY OR WHERE IT CAN BE
SHOWN THAT THE FINANCIAL CONDITION OF A NON-RESIDENTIAL TENANT IS SUCH
THAT IT IS LIKELY THAT THE TENANT MAY DEFAULT IN THE FUTURE, AND TO
RETAIN SUCH DEPOSIT FOR A PRUDENT PERIOD; EXCEPT THAT SUBJECT TO SUCH
REGULATIONS AS THE COMMISSION MAY ESTABLISH, THE DEPOSIT MAY BE RETAINED
FOR A PRUDENT PERIOD BEYOND SUCH A ONE YEAR PERIOD.
S 644. ACCESS TO AND RETENTION OF RECORDS. 1. NOT MORE THAN ONCE IN
ANY CALENDAR YEAR AND UPON TWENTY DAYS' WRITTEN NOTICE, A NON-RESIDEN-
TIAL TENANT MAY INSPECT AN ELECTRICITY REDISTRIBUTOR'S RECORDS WITH
RESPECT TO THE ELECTRICITY CHARGES FOR THE PRECEDING THREE YEARS BY ANY
UTILITY, OR OTHER PERSON, CORPORATION OR ENTITY TO SUCH ELECTRICITY
REDISTRIBUTOR THAT INCLUDE THE RATES OR CHARGES FOR THE PREMISES OCCU-
PIED BY SUCH TENANT OR THAT ARE NECESSARY FOR DETERMINATION OF THE RATE
OR CHARGE PERMISSIBLE UNDER SECTION SIX HUNDRED FORTY-TWO OF THIS ARTI-
CLE. THE PROVISIONS OF THIS ARTICLE SHALL NOT ENTITLE SUCH TENANT TO
INSPECT ANY SUCH RECORDS FOR ANY MONTH PRIOR TO THE EFFECTIVE DATE OF
THIS ARTICLE OR ANY MONTH FOR WHICH SUCH TENANT MADE PAYMENTS FOR ELEC-
TRICITY USAGE OR CONSUMPTION PURSUANT TO THE PROVISIONS OF A LEASE OR
AGREEMENT NOT SUBJECT TO THE PROVISIONS OF THIS ARTICLE.
2. AN ELECTRICITY REDISTRIBUTOR SHALL RETAIN ANY AND ALL ACCOUNTS,
BOOKS, CONTRACTS, DOCUMENTS AND PAPERS RELATING TO ANY PURCHASE OF ELEC-
TRICITY BY SUCH ELECTRICITY REDISTRIBUTOR AND REDISTRIBUTION OF SUCH
ELECTRICITY TO NON-RESIDENTIAL TENANTS IN A BUILDING WHERE SUCH ELEC-
TRICITY IS REDISTRIBUTED TO ONE OR MORE NON-RESIDENTIAL TENANTS IN SUCH
BUILDING PURSUANT TO A LEASE OR AGREEMENT THAT IS SUBJECT TO THE
PROVISIONS OF THIS ARTICLE, FOR A PERIOD OF THREE YEARS.
S 645. NOTICE TO TENANT. AN ELECTRICITY REDISTRIBUTOR SHALL INCLUDE IN
ANY LEASE OR OTHER AGREEMENT FOR THE USE AND OCCUPANCY BY A NON-RESIDEN-
TIAL TENANT OF PREMISES IN A BUILDING OWNED OR LEASED BY SUCH ELECTRIC-
ITY REDISTRIBUTOR WRITTEN NOTICE INFORMING SUCH TENANT OF THE PROVISIONS
OF THIS ARTICLE. SUCH NOTICE SHALL INCLUDE THE FOLLOWING STATEMENT:
"THE MAXIMUM AMOUNT THAT YOU MAY BE CHARGED FOR ELECTRICITY USED IN YOUR
PREMISES IS REGULATED BY ARTICLE THIRTY-B OF THE GENERAL BUSINESS LAW
AND REGULATIONS PROMULGATED THEREUNDER." SUCH NOTICE SHALL ALSO INFORM
SUCH NON-RESIDENTIAL TENANT THAT AN ARBITRATOR OR ARBITRATION FIRM SHALL
BE USED FOR RESOLUTION OF DISPUTES OR COMPLAINTS PURSUANT TO SECTION SIX
HUNDRED FORTY-SIX OF THIS ARTICLE. THE COMMISSION MAY ALSO BY REGULATION
PRESCRIBE ADDITIONAL NOTICE REQUIREMENTS PURSUANT TO THIS SECTION.
S 646. ARBITRATION. 1. NON-RESIDENTIAL TENANTS AND ELECTRICITY REDIS-
TRIBUTORS SHALL SUBMIT DISPUTES OR COMPLAINTS ARISING UNDER THIS ARTICLE
TO AN ARBITRATOR OR ARBITRATION FIRM, UPON PAYMENT OF A PRESCRIBED
FILING FEE, IN ACCORDANCE WITH REGULATIONS PROMULGATED BY THE COMMIS-
SION. SUCH ARBITRATOR OR ARBITRATION FIRM SHALL BE APPOINTED IN ACCORD-
ANCE WITH SUCH REGULATIONS. WHERE THE AMOUNT OF THE ARBITRATOR'S OR
ARBITRATION FIRM'S AWARD IS TEN THOUSAND DOLLARS OR GREATER, EXCLUSIVE
OF INTEREST AND FEES, THE PARTY REQUIRED TO PAY SUCH AWARD MAY INSTITUTE
A COURT ACTION TO ADJUDICATE THE DISPUTE OR COMPLAINT DE NOVO. ARTICLE
SEVENTY-FIVE OF THE CIVIL PRACTICE LAW AND RULES SHALL APPLY TO ANY
ARBITRATION TO THIS SECTION, EXCEPT WHERE SUCH ARTICLE IS INCONSISTENT
WITH THIS ARTICLE. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO AFFECT
A. 5251 6
ANY CONTRACTUAL, STATUTORY OR CONSTITUTIONAL RIGHTS OR REMEDIES PROVIDED
TO ANY PERSON BY LAW, OTHER THAN THE RIGHTS AND REMEDIES DESCRIBED BY
THIS ARTICLE.
2. THE ARBITRATOR SHALL HAVE THE AUTHORITY TO RESOLVE DISPUTES ARISING
UNDER THIS ARTICLE BY AWARDING APPROPRIATE RELIEF, WHICH MAY INCLUDE
ORDERING A REFUND OF ANY AMOUNT PAID BY A NON-RESIDENTIAL TENANT IN
EXCESS OF THE CHARGES AUTHORIZED BY THIS ARTICLE, ORDERING THAT FUTURE
CHARGES FOR ELECTRICITY BE IN ACCORDANCE WITH THE PROVISIONS OF THIS
ARTICLE, AND ORDERING THAT THE ARBITRATOR'S EXPENSES AND FEES, TOGETHER
WITH OTHER EXPENSES, INCLUDING ATTORNEY'S FEES, INCURRED IN THE CONDUCT
OF THE ARBITRATION, SHALL BE PAID AS PROVIDED IN THE AWARD.
S 647. DISCONTINUANCE OF IDENTIFICATION OF ELECTRICITY CHARGES. 1.
WHERE ON OR AFTER THE EFFECTIVE DATE OF THIS SECTION AN ELECTRICITY
REDISTRIBUTOR IDENTIFIES TO NON-RESIDENTIAL TENANTS IN PREMISES OF A
BUILDING CHARGES FOR ELECTRICITY THAT IS PURCHASED BY SUCH ELECTRICITY
REDISTRIBUTOR FROM A UTILITY OR ANY OTHER PERSON, CORPORATION OR ENTITY,
SUCH ELECTRICITY REDISTRIBUTOR MAY NOT, WHETHER UNILATERALLY OR PURSUANT
TO A LEASE OR OTHER AGREEMENT, AT ANY TIME AFTER SUCH EFFECTIVE DATE IN
WHICH SUCH ELECTRICITY REDISTRIBUTOR ENGAGES IN REDISTRIBUTION OF ELEC-
TRICITY IN SUCH BUILDING, FAIL TO IDENTIFY SUCH CHARGES FOR SUCH PREM-
ISES DURING ANY PERIOD OF TIME IN WHICH SUCH PREMISES ARE OCCUPIED BY
NON-RESIDENTIAL TENANTS; PROVIDED THAT A LANDLORD OR TENANT OF A BUILD-
ING OR AGENT THEREOF WHO IS AN ELECTRICITY REDISTRIBUTOR AS DEFINED IN
SECTION SIX HUNDRED FORTY-ONE OF THIS ARTICLE MAY, NOTWITHSTANDING ANY
OTHER PROVISION OF THIS ARTICLE, ENTER INTO A LEASE OR AGREEMENT WITH A
NON-RESIDENTIAL TENANT PURSUANT TO WHICH SUCH IDENTIFICATION OF CHARGES
IS NOT REQUIRED IF SO AUTHORIZED BY THE MAYOR OF A CITY HAVING A POPU-
LATION OF ONE MILLION OR MORE, OR BY THE GOVERNING BODY OF A COUNTY NOT
WHOLLY INCLUDED WITHIN SUCH CITY, IN WHICH SUCH BUILDING IS LOCATED.
SUCH AUTHORIZATION MAY BE ISSUED UPON A SHOWING THAT SUCH IDENTIFICATION
IS NO LONGER EITHER PHYSICALLY OR FINANCIALLY PRACTICAL.
2. WHERE ON OR AFTER THE EFFECTIVE DATE OF THIS SECTION AN ELECTRICITY
REDISTRIBUTOR HAS IDENTIFIED TO NON-RESIDENTIAL TENANTS IN A BUILDING
CHARGES FOR ELECTRICITY, A NEW ELECTRICITY REDISTRIBUTOR WHO ACQUIRES OR
LEASES SUCH BUILDING SHALL BE SUBJECT TO SUBDIVISION ONE OF THIS SECTION
AS IF SUCH NEW ELECTRICITY REDISTRIBUTOR WERE THE PRIOR ELECTRICITY
REDISTRIBUTOR FOR SUCH BUILDING.
S 648. LOCAL CONDITIONS ON BENEFITS. NOTHING IN THIS ARTICLE SHALL BE
CONSTRUED TO PREVENT A CITY HAVING A POPULATION OF ONE MILLION OR MORE
FROM IMPOSING CONDITIONS UPON RECEIPT OF ANY BENEFITS PROVIDED TO ELEC-
TRICITY REDISTRIBUTORS, INCLUDING REDUCTIONS IN TAX LIABILITY, PROVIDED
THAT SUCH CONDITIONS SHALL NOT BE LESS RESTRICTIVE UPON ELECTRICITY
REDISTRIBUTORS THAN THE TERMS OF THIS ARTICLE.
S 649. VIOLATIONS AND PENALTIES. 1. ANY PERSON VIOLATING ANY PROVISION
OF THIS ARTICLE SHALL BE SUBJECT TO A CIVIL PENALTY NOT TO EXCEED EITHER
ONE THOUSAND DOLLARS, OR UP TO TWO TIMES ANY OVERCHARGE ASSESSED OR PAID
AS A RESULT OF SUCH VIOLATION FOR THE FIRST VIOLATION COMMITTED IN ANY
FIVE-YEAR PERIOD, AND NOT TO EXCEED EITHER FIVE THOUSAND DOLLARS OR UP
TO THREE TIMES THE AMOUNT OF SUCH OVERCHARGE FOR EACH SUBSEQUENT
VIOLATION COMMITTED WITHIN SUCH PERIOD. FOR PURPOSES OF THIS SECTION,
ALL OVERCHARGES TO A TENANT IN A SIXTY-DAY PERIOD SHALL CONSTITUTE A
SINGLE VIOLATION.
2. THE ATTORNEY GENERAL OR ANY CITY, TOWN, VILLAGE OR COUNTY, OTHER
THAN A COUNTY WHOLLY INCLUDED WITHIN A CITY, IN THE NAME OF ITS CITI-
ZENS, MAY BRING AN ACTION TO RECOVER THE CIVIL PENALTIES SET FORTH IN
SUBDIVISION ONE OF THIS SECTION, TO RESTRAIN FURTHER VIOLATIONS OF THIS
A. 5251 7
ARTICLE AND TO OBTAIN SUCH OTHER RELIEF AS A COURT WITH PROPER JURISDIC-
TION MAY DEEM APPROPRIATE. IN ANY SUCH ACTION BROUGHT BY THE ATTORNEY
GENERAL, THE ATTORNEY GENERAL SHALL BE AUTHORIZED TO RECOVER THE COSTS
OF SUCH ACTION, WHICH SHALL BE PAID, ALONG WITH ANY CIVIL PENALTIES
AWARDED, INTO THE STATE TREASURY TO THE CREDIT OF THE GENERAL FUND. IN
ANY SUCH ACTION BROUGHT BY A CITY, TOWN, VILLAGE OR COUNTY, THE CITY,
TOWN, VILLAGE OR COUNTY SHALL BE AUTHORIZED TO RECOVER THE COSTS OF SUCH
ACTION; WHICH SHALL BE PAID, ALONG WITH ANY CIVIL PENALTIES AWARDED, TO
ITS GENERAL FUND.
3. THE ATTORNEY GENERAL OR THE CHIEF LEGAL OFFICER OF A CITY, TOWN,
VILLAGE OR COUNTY AUTHORIZED TO BRING AN ACTION UNDER THIS SECTION,
SHALL HAVE THE POWER TO INSPECT ANY WRITTEN MATERIALS RETAINED BY AN
ELECTRICITY REDISTRIBUTOR PURSUANT TO SUBDIVISION TWO OF SECTION SIX
HUNDRED FORTY-FOUR OF THIS ARTICLE, AND SUCH ELECTRICITY REDISTRIBUTOR
SHALL PROVIDE ACCESS THERETO, FOR THE PURPOSE OF ENSURING COMPLIANCE
WITH THE PROVISIONS OF THIS ARTICLE.
4. NOTHING CONTAINED IN THIS ARTICLE SHALL BE CONSTRUED TO PREVENT THE
CORPORATION COUNSEL OF ANY CITY HAVING A POPULATION OF ONE MILLION OR
MORE FROM MAINTAINING AN ACTION TO RECOVER AN AMOUNT EQUAL TO ANY BENE-
FITS PROVIDED UNDER THE PROVISIONS OF ANY LOCAL LAW OR LAWS ADOPTED
PURSUANT TO ARTICLE TWO-G OF THE GENERAL CITY LAW WHICH ARE IMPROPERLY
OBTAINED.
S 649-A. RULES AND REGULATIONS. THE COMMISSION SHALL ADOPT SUCH RULES
AND REGULATIONS AS IT DEEMS NECESSARY AND PROPER FOR IMPLEMENTATION OF
THIS ARTICLE.
S 3. The public service law is amended by adding a new section 5-a to
read as follows:
S 5-A. ELECTRICITY REDISTRIBUTORS. THE COMMISSION SHALL ADOPT SUCH
RULES AND REGULATIONS AS IT DEEMS NECESSARY AND PROPER FOR IMPLEMENTA-
TION OF ARTICLE THIRTY-B OF THE GENERAL BUSINESS LAW. SUCH RULES AND
REGULATIONS SHALL BE ENFORCEABLE AS PROVIDED IN SUCH ARTICLE.
S 4. This act shall take effect on the one hundred eightieth day after
it shall have become a law but shall not be applicable to leases and
other agreements that represent occupancies commencing before such
effective date, provided that this act shall apply to any renewals or
extensions of such leases and agreements; provided further, however,
that sections 647 and 649 of article 30-B of the general business law,
as added by section two of this act, shall take effect immediately and
apply to all occupancies commencing or continuing as of the date of
enactment of this act, and provided further that the public service
commission of the state of New York shall promulgate within 180 days of
the date of enactment of this act into law, rules or regulations neces-
sary for the implementation of the provisions of article 30-B of the
general business law, as added by section two of this act, and on or
after such date of enactment the public service commission may take any
other actions necessary for the timely implementation of this act.