NY State Senate Bill 2015-S5819A

Senate Bill S5819A

2015-2016 Legislative Session

Relates to the establishment of reduced residential rates for electric and natural gas service to low-income customers

download bill text pdf

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 14, 2016	print number 5819a
Jan 14, 2016	amend and recommit to energy and telecommunications
Jan 06, 2016	referred to energy and telecommunications
Jun 04, 2015	referred to energy and telecommunications

Bill Amendments

Original

A (Active)

2015-S5819 - Details

See Assembly Version of this Bill:: A9298
Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Service Law
Laws Affected:: Amd §65, add §66-o, Pub Serv L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S2878, A2694
2019-2020: S1621, A2613
2021-2022: S3298
2023-2024: S2711

2015-S5819 - Summary

Relates to the establishment of reduced residential rates for electric and natural gas service to low-income customers.

2015-S5819 - Sponsor Memo

                                BILL NUMBER:S5819

TITLE OF BILL:

An act to amend the public service law, in relation to the
establishment of reduced  residential rates for electric and natural
gas service to low-income customers

PURPOSE OF BILL:

The bill is designed to protect seniors, the disabled and other
persons who receive certain benefits and supports for needy families
from the inordinately high electric and gas rates in New York State
and to prevent vulnerable persons from having their utilities shut
off, causing health and economic hardship to such consumers.

SUMMARY OF PROVISIONS OF BILL:

Section one amends the Public Service Law by adding a new subdivision
16 to section 65.

Paragraph (a) provides for the state's electric and gas corporations
to establish and continue reduced rate schedules for low-income
customers of between 25% to 35% of applicable charges.

Paragraph (b) sets forth the eligibility criteria for such reduced

rates, to be established for any customer who receives benefits from
Supplemental Social Security for the Aged or Disabled, Temporary
Assistance to Needy Families, Safety Net Assistance, Supplemental
Nutrition Assistance (SNAP), medical assistance, Home Energy
Assistance (HEAP), telephone Lifeline Assistance and any additional
programs or higher income standards approved by the Public Service
Commission (PSC).

Paragraph (c) requires providers of electric and gas service to
cooperate with the PSC and local social service districts and other
agencies in the certification and recertification of eligible
customers.

Paragraph (d) sets forth criteria for application forms and the
provision of information regarding the availability of reduced rates.

Paragraph (e) directs the PSC to mitigate the impact of such reduced
residential rates to eligible customers through various mechanisms at
the disposal of the PSC within its regulatory and rate setting
authority.

Section 2 amends Article 4 of the Public Service Law by adding a new
section 66-0, under the General powers of commission in respect to gas
and electricity, to make conforming changes to the law. It also
requires that such reduced rates shall be effective no later than
January 1, 2016 and that the PSC shall file periodic reports, at least
annually, regarding the number of eligible customers receiving reduced
rates and utility efforts to provide such rates to eligible customers.

Section 3 of the bill is the effective date.


JUSTIFICATION:

Utility service is an absolute necessity of life, regardless of a
household's income level. Lives are threatened when people don't have
safe, reliable access to electricity, heating, and water supply.
Society pays dearly when terminations occur. These added costs are
reflected in higher emergency public assistance and medical care,
increased homelessness, the illness or death of vulnerable people, and
the cost of putting out fires due to the use of other means of light
and heat such as the use of candles.

New York electric utility rates for residential customers are 59%
higher than the national average. That is simply not affordable for
many customers.

Furthermore, in 2014, New York State's electric and gas utilities
issued 7.2 million shutoff notices and shut off service to 268,000
customers as a bill collection measure. The state's largest energy
utility, Con Edison, issued 2.8 million shutoff notices and shut off
service to 82,000 customers in 2014.

Shutoff notices place many customers with unaffordable bills in
jeopardy of losing essential utility services. In addition, threats of
utility shutoffs add extreme stress and compound many families' and
seniors' already precarious financial circumstances. Utility shutoff
threats and actual shutoffs often can spiral into crisis situations,
create dangerous conditions in homes and apartment building, which
could result in the loss of life or other serious harm to customers
and their neighbors.

Typically, shutoff notices and shutoffs surge in the months of April,
May, and June, otherwise known as "Shutoff Season." Consequently, it
becomes even more important that low-income customers, eligible
seniors and disabled persons and others who are eligible for
assistance receive some relief from New York's utility rates, which
are the highest in the nation.

In the light of these facts, in 2014 the draft State Energy Plan
recommended that New York institute a more robust low-income rate
program, similar to California's CARES program, which requires a 35%
rate reduction for low-income customers.

The legislation is necessary to assist New York families, seniors, the
disabled and other low-income persons and cushion them from New York's
inordinately high electric and gas rates, which will in turn protect
them and the State's finances from the hardships and costs that ensue
when people's utility service is not affordable.

LEGISLATIVE HISTORY:

This is a new bill.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None. Significant savings to consumers on a low- or fixed-income
through the creation of reduced rates for these eligible consumers. In
addition, the bill would reduce expenditures to the state and


localities for emergency utility assistance provided under Social
Services Law 131-s, by reducing the need for, and the amount of such
assistance. That program requires payment of up to four months bills
for applicants whose service is, or is about to be, shut off for
nonpayment. The low-income rates proposed in the bill should enable
many customers to avoid seeking assistance, and for those who do, the
amount of aid needed will be significantly less.

EFFECTIVE DATE:

This act shall take effect on the sixtieth day after enactment.

2015-S5819 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5819

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              June 4, 2015
                               ___________

Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
  printed to be committed to the Committee on  Energy  and  Telecommuni-
  cations

AN ACT to amend the public service law, in relation to the establishment
  of  reduced  residential rates for electric and natural gas service to
  low-income customers

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 65 of the public service law is amended by adding a
new subdivision 16 to read as follows:
  16.  REDUCED RESIDENTIAL RATES FOR ELECTRIC AND NATURAL GAS SERVICE TO
LOW-INCOME CUSTOMERS. (A) ELECTRIC AND GAS CORPORATIONS SHALL  ESTABLISH
AND  CONTINUE REDUCED RATE SCHEDULES FOR LOW-INCOME ELECTRIC AND NATURAL
GAS CUSTOMERS. THE AVERAGE EFFECTIVE RATE REDUCTION SHALL  NOT  BE  LESS
THAN  TWENTY-FIVE PERCENT OR MORE THAN THIRTY-FIVE PERCENT OF THE REVEN-
UES THAT WOULD HAVE BEEN PRODUCED FOR THE SAME  BILLED  USAGE  BY  OTHER
RESIDENTIAL  CUSTOMERS  RECEIVING  FULL SERVICE FROM THE UTILITY WHO ARE
NOT ELIGIBLE FOR THE REDUCED RATE.
  (B) REDUCED RESIDENTIAL RATES FOR ELECTRIC  AND  NATURAL  GAS  SERVICE
SHALL  BE  ESTABLISHED  FOR  ANY CUSTOMER WHO RECEIVES BENEFITS FROM THE
SUPPLEMENTAL SECURITY INCOME PROGRAM FOR THE AGED OR DISABLED  OR  OTHER
PERSONS,  THE TEMPORARY ASSISTANCE TO NEEDY FAMILIES PROGRAM, SAFETY NET
ASSISTANCE,  THE  SUPPLEMENTAL  NUTRITION  ASSISTANCE  PROGRAM,  MEDICAL
ASSISTANCE,  THE  HOME ENERGY ASSISTANCE PROGRAM, THE TELEPHONE LIFELINE
ASSISTANCE PROGRAM, AND  ANY  OTHER  ADDITIONAL  ASSISTANCE  PROGRAM  OR
INCOME STANDARD APPROVED BY THE COMMISSION.
  (C) PROVIDERS OF ELECTRIC AND NATURAL GAS SERVICE SHALL COOPERATE WITH
THE  COMMISSION  AND  SOCIAL  SERVICES  DISTRICTS  AND OTHER AGENCIES TO
CERTIFY AND RECERTIFY CUSTOMER  ELIGIBILITY  THROUGH  PRIVACY  PROTECTED
DATA  EXCHANGES  APPROVED BY THE COMMISSION TO ACHIEVE EFFICIENT ENROLL-
MENT OF ELIGIBLE CUSTOMERS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11486-02-5

S. 5819                             2

  (D) PROVIDERS OF ELECTRIC AND NATURAL  GAS  SERVICE  SHALL  STRIVE  TO
PROVIDE  REDUCED  RESIDENTIAL  RATES TO ALL CUSTOMERS ELIGIBLE FOR THEM,
AND SHALL PROVIDE  APPLICATION  FORMS  FOR  REDUCED  RATES  TO  ELIGIBLE
LOW-INCOME  CUSTOMERS  ON THEIR WEBSITES, AT THEIR OFFICES, AND BY OTHER
MEANS.  INFORMATION REGARDING THE AVAILABILITY AND ELIGIBILITY STANDARDS
FOR REDUCED RATES SHALL BE PROVIDED TO RESIDENTIAL CUSTOMERS AT THE TIME
OF  SERVICE  INITIATION, IN BILL INSERTS, IN COMMUNICATIONS TO CUSTOMERS
IN ARREARS, AND BY OTHER MEANS REQUIRED OR APPROVED BY THE COMMISSION.
  (E) THE INCREMENTAL REVENUE EFFECTS OF ENHANCEMENT TO LOW-INCOME  RATE
PROGRAMS UNDER THIS SECTION SHALL BE DEFERRED FOR SUBSEQUENT RATE MAKING
TREATMENT  AND  APPROVAL  BY  THE COMMISSION. THE REVENUE IMPACT OF SUCH
RATE REDUCTION SHALL BE MITIGATED BY (I) APPLYING ANY  EARNINGS  OF  THE
UTILITY  ABOVE  THE ALLOWED RETURN ON EQUITY SET IN THE MOST RECENT RATE
CASE, (II) DISALLOWING ANY PREMIUM ABOVE THE RATE OF RETURN ALLOWED  FOR
NOT  FILING  A RATE CASE OR FOR SHARING OF OVEREARNINGS, (III) UTILIZING
ANY UNCOMMITTED FUNDS AVAILABLE FROM CURRENT SURCHARGES ALLOWED  BY  THE
COMMISSION  AND  NOT  EXPRESSLY  AUTHORIZED BY STATUTE, (IV) DISALLOWING
RECOVERY FROM RATEPAYERS OF ANY COSTS OF EXECUTIVE COMPENSATION BONUSES.
AFTER SUCH MITIGATION MEASURES, AND OTHER MITIGATION MEASURES WHICH  THE
COMMISSION  MAY  APPROVE,  ANY  SHIFT OF REVENUE RESPONSIBILITY TO OTHER
CUSTOMERS DUE TO THE REVENUE EFFECTS OF LOW-INCOME RATES  SHALL  NOT  BE
BORNE SOLELY BY ANY SINGLE CLASS OF CUSTOMER.
  S 2. The public service law is amended by adding a new section 66-o to
read as follows:
  S 66-O. REDUCED RESIDENTIAL RATES FOR ELECTRIC AND NATURAL GAS SERVICE
TO  LOW-INCOME  CUSTOMERS.  1. THE COMMISSION SHALL REQUIRE ELECTRIC AND
NATURAL GAS CORPORATIONS TO ESTABLISH  AND  CONTINUE  PROGRAMS  OF  RATE
REDUCTION  AND  OTHER  ASSISTANCE TO LOW-INCOME RESIDENTIAL ELECTRIC AND
NATURAL GAS CUSTOMERS, THE REVENUE IMPACT OF WHICH SHALL  NOT  BE  BORNE
SOLELY  BY  ANY  SINGLE  CLASS  OF CUSTOMER. THE COMMISSION SHALL ENSURE
APPROPRIATE LEVELS OF RATE REDUCTION FOR LOW-INCOME ELECTRIC AND NATURAL
GAS CUSTOMERS TO MITIGATE HARDSHIP, WHICH SHALL NOT BE LESS  THAN  TWEN-
TY-FIVE  PERCENT  OR  MORE THAN THIRTY-FIVE PERCENT OF THE REVENUES THAT
WOULD HAVE BEEN PRODUCED FOR THE SAME BILLED USAGE BY OTHER  RESIDENTIAL
CUSTOMERS  RECEIVING  FULL SERVICE FROM THE UTILITY WHO ARE NOT ELIGIBLE
FOR  THE  REDUCED  RATE.  IN  ESTABLISHING  THE  APPROPRIATE  PERCENTAGE
REDUCTION  THE  COMMISSION  SHALL  ENSURE  TO  THE  EXTENT FEASIBLE THAT
LOW-INCOME RATEPAYERS ARE NOT JEOPARDIZED OR OVERBURDENED BY  RATES  FOR
ELECTRIC AND NATURAL GAS SERVICE.
  2.  THE  COMMISSION  SHALL  ESTABLISH  CUSTOMER INCOME AND CATEGORICAL
ELIGIBILITY STANDARDS FOR REDUCED RATES, WHICH  SHALL  INCLUDE,  WITHOUT
LIMITATION,  ANY  CUSTOMERS  WHO  RECEIVE BENEFITS FROM THE SUPPLEMENTAL
SECURITY INCOME PROGRAM FOR THE AGED OR DISABLED OR OTHER  PERSONS,  THE
TEMPORARY  ASSISTANCE  TO NEEDY FAMILIES PROGRAM, SAFETY NET ASSISTANCE,
THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM, MEDICAL  ASSISTANCE,  THE
HOME  ENERGY  ASSISTANCE  PROGRAM, AND THE TELEPHONE LIFELINE ASSISTANCE
PROGRAM.
  3. THE COMMISSION SHALL PROMOTE FULL PENETRATION OF THE  REDUCED  RATE
ASSISTANCE  TO  ALL  ELIGIBLE  CUSTOMERS  THROUGH PRIVACY PROTECTED DATA
EXCHANGES WITH AGENCIES PROVIDING ASSISTANCE TO  CATEGORICALLY  ELIGIBLE
CUSTOMERS  TO  ACHIEVE EFFICIENT ENROLLMENT, CERTIFICATION, AND PERIODIC
RECERTIFICATION OF ELIGIBILITY.
  4. THE COMMISSION SHALL REQUIRE PROVIDERS OF ELECTRIC AND NATURAL  GAS
SERVICE  TO  PROVIDE INFORMATION AND APPLICATION FORMS FOR REDUCED RATES
TO ELIGIBLE LOW-INCOME CUSTOMERS ON THEIR WEBSITES,  AT  THEIR  OFFICES,
AND BY OTHER MEANS, AND TO PROVIDE INFORMATION REGARDING THE AVAILABILI-

S. 5819                             3

TY  AND ELIGIBILITY STANDARDS FOR REDUCED RATES TO RESIDENTIAL CUSTOMERS
AT THE TIME OF SERVICE INITIATION, IN BILL  INSERTS,  IN  COMMUNICATIONS
WITH  CUSTOMERS  IN  ARREARS, AND BY OTHER MEANS REQUIRED OR APPROVED BY
THE COMMISSION.
  5.  THE COMMISSION SHALL REQUIRE ELECTRIC AND NATURAL GAS CORPORATIONS
TO ESTABLISH REDUCED RATES PURSUANT TO THIS SECTION TO BE  EFFECTIVE  NO
LATER  THAN  JANUARY  FIRST,  TWO THOUSAND SIXTEEN, AND TO FILE PERIODIC
REPORTS AT LEAST ANNUALLY REGARDING THE  NUMBER  OF  ELIGIBLE  CUSTOMERS
RECEIVING  REDUCED RATES, UTILITY EFFORTS TO PROVIDE REDUCED RESIDENTIAL
RATES TO ALL CUSTOMERS ELIGIBLE FOR THEM, AND OTHER  INFORMATION  DEEMED
NECESSARY  OR  APPROPRIATE  BY THE COMMISSION FOR THE EFFICIENT ADMINIS-
TRATION OF THE REDUCED RATES.
  6. THE COMMISSION SHALL REQUIRE THAT THE INCREMENTAL  REVENUE  EFFECTS
OF  ENHANCEMENT  TO  LOW-INCOME  RATE  PROGRAMS  UNDER  THIS  SECTION BE
DEFERRED FOR SUBSEQUENT RATE MAKING TREATMENT. THE  INCREMENTAL  REVENUE
IMPACT OF SUCH RATE REDUCTIONS SHALL BE MITIGATED BY:
  (A)  APPLYING  ANY EARNINGS OF THE UTILITY ABOVE THE ALLOWED RETURN ON
EQUITY SET IN THE MOST RECENT RATE CASE, PURSUANT TO SUBDIVISION  TWENTY
OF SECTION SIXTY-SIX OF THIS ARTICLE;
  (B)  DISALLOWING ANY RATE OF RETURN PREMIUM FOR NOT FILING A RATE CASE
OR FOR SHARING OF OVEREARNINGS AFTER RATES ARE SET;
  (C) UTILIZING ANY UNCOMMITTED REVENUES FROM SURCHARGES ALLOWED BY  THE
COMMISSION BUT NOT EXPRESSLY AUTHORIZED BY STATUTE; AND
  (D) DISALLOWING EXECUTIVE COMPENSATION OR BONUSES NOT ESSENTIAL TO THE
PROVISION OF SAFE AND ADEQUATE SERVICE.
  AFTER  APPLYING REVENUES FROM SUCH SOURCES, AND OTHER MITIGATION MEAS-
URES WHICH THE COMMISSION MAY APPROVE, ANY SHIFT OF REVENUE RESPONSIBIL-
ITY TO OTHER CUSTOMERS DUE TO THE REVENUE EFFECTS  OF  LOW-INCOME  RATES
SHALL NOT BE BORNE SOLELY BY ANY SINGLE CLASS OF CUSTOMER.
  S  3.  This  act  shall take effect on the sixtieth day after it shall
have become a law.

co-Sponsors

2015-S5819A (ACTIVE) - Details

See Assembly Version of this Bill:: A9298
Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Service Law
Laws Affected:: Amd §65, add §66-o, Pub Serv L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S2878, A2694
2019-2020: S1621, A2613
2021-2022: S3298
2023-2024: S2711

2015-S5819A (ACTIVE) - Summary

Relates to the establishment of reduced residential rates for electric and natural gas service to low-income customers.

2015-S5819A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S5819A

 TITLE OF BILL :  An act to amend the public service law, in relation
to the establishment of reduced  residential rates for electric and
natural gas service to low-income customers

 PURPOSE OF BILL :

The bill is designed to protect seniors, the disabled and other
persons who receive certain benefits and supports for needy families
from the inordinately high electric and gas rates in New York State
and to prevent vulnerable persons from having their utilities shut
off, causing health and economic hardship to such consumers.

 SUMMARY OF PROVISIONS OF BILL :

Section one amends the Public Service Law by adding a new subdivision
16 to section 65.

Paragraph (a) provides for the state's electric and gas corporations
to establish and continue reduced rate schedules for low-income
customers of between 25% to 35% of applicable charges.

Paragraph (b) sets forth the eligibility criteria for such reduced
rates, to be established for any customer who receives benefits from
Supplemental Social Security for the Aged or Disabled, Temporary

Assistance to Needy Families, Safety Net Assistance, Supplemental
Nutrition Assistance (SNAP), medical assistance, Home Energy
Assistance (HEAP), telephone Lifeline Assistance and any additional
programs or higher income standards approved by the Public Service
Commission (PSC).

Paragraph (c) requires providers of electric and gas service to
cooperate with the PSC and local social service districts and other
agencies in the certification and recertification of eligible
customers.

Paragraph (d) sets forth criteria for application forms and the
provision of information regarding the availability of reduced rates.

Paragraph (e) directs the PSC to mitigate the impact of such reduced
residential rates to eligible customers through various mechanisms at
the disposal of the PSC within its regulatory and rate setting
authority.

Section 2 amends Article 4 of the Public Service Law by adding a new
section 66-0, under the General powers of commission in respect to gas
and electricity, to make conforming changes to the law. It also
requires that such reduced rates shall be effective no later than
January 1, 2016 and that the PSC shall file periodic reports, at least
annually, regarding the number of eligible customers receiving reduced
rates and utility efforts to provide such rates to eligible customers.

Section 3 of the bill is the effective date.

 JUSTIFICATION :

Utility service is an absolute necessity of life, regardless of a
household's income level. Lives are threatened when people don't have
safe, reliable access to electricity, heating, and water supply.
Society pays dearly when terminations occur. These added costs are
reflected in higher emergency public assistance and medical care,
increased homelessness, the illness or death of vulnerable people, and
the cost of putting out fires due to the use of other means of light
and heat such as the use of candles.

New York electric utility rates for residential customers are 59%
higher than the national average. That is simply not affordable for
many customers.

Furthermore, in 2014, New York State's electric and gas utilities
issued 7.2 million shutoff notices and shut off service to 268,000
customers as a bill collection measure. The state's largest energy
utility, Con Edison, issued 2.8 million shutoff notices and shut off
service to 82,000 customers in 2014.

Shutoff notices place many customers with unaffordable bills in
jeopardy of losing essential utility services. In addition, threats of
utility shutoffs add extreme stress and compound many families' and
seniors' already precarious financial circumstances. Utility shutoff
threats and actual shutoffs often can spiral into crisis situations,
create dangerous conditions in homes and apartment building, which
could result in the loss of life or other serious harm to customers
and their neighbors.

Typically, shutoff notices and shutoffs surge in the months of April,
May, and June, otherwise known as "Shutoff Season." Consequently, it
becomes even more important that low-income customers, eligible
seniors and disabled persons and others who are eligible for
assistance receive some relief from New York's utility rates, which
are the highest in the nation.

In the light of these facts, in 2014 the draft State Energy Plan
recommended that New York institute a more robust low-income rate
program, similar to California's CARES program, which requires a 35%
rate reduction for low-income customers.

The legislation is necessary to assist New York families, seniors, the
disabled and other low-income persons and cushion them from New York's
inordinately high electric and gas rates, which will in turn protect
them and the State's finances from the hardships and costs that ensue
when people's utility service is not affordable.

 LEGISLATIVE HISTORY :

This is a new bill.

 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS :

None. Significant savings to consumers on a low- or fixed-income
through the creation of reduced rates for these eligible consumers.
In addition, the bill would reduce expenditures to the state and
localities for emergency utility assistance provided under Social
Services Law 131-s, by reducing the need for, and the amount of such
assistance. That program requires payment of up to four months bills
for applicants whose service is, or is about to be, shut off for
nonpayment. The low-income rates proposed in the bill should enable
many customers to avoid seeking assistance, and for those who do, the
amount of aid needed will be significantly less.

 EFFECTIVE DATE :
This act shall take effect on the sixtieth day after enactment.

2015-S5819A (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5819--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              June 4, 2015
                               ___________

Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
  printed to be committed to the Committee on  Energy  and  Telecommuni-
  cations  --  recommitted  to  the Committee on Energy and Telecommuni-
  cations in  accordance  with  Senate  Rule  6,  sec.  8  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN ACT to amend the public service law, in relation to the establishment
  of  reduced  residential rates for electric and natural gas service to
  low-income customers

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 65 of the public service law is amended by adding a
new subdivision 16 to read as follows:
  16.  REDUCED RESIDENTIAL RATES FOR ELECTRIC AND NATURAL GAS SERVICE TO
LOW-INCOME CUSTOMERS. (A) ELECTRIC AND GAS CORPORATIONS SHALL  ESTABLISH
AND  CONTINUE REDUCED RATE SCHEDULES FOR LOW-INCOME ELECTRIC AND NATURAL
GAS CUSTOMERS. THE AVERAGE EFFECTIVE RATE REDUCTION SHALL  NOT  BE  LESS
THAN  TWENTY-FIVE PERCENT OR MORE THAN THIRTY-FIVE PERCENT OF THE REVEN-
UES THAT WOULD HAVE BEEN PRODUCED FOR THE SAME  BILLED  USAGE  BY  OTHER
RESIDENTIAL  CUSTOMERS  RECEIVING  FULL SERVICE FROM THE UTILITY WHO ARE
NOT ELIGIBLE FOR THE REDUCED RATE.
  (B) REDUCED RESIDENTIAL RATES FOR ELECTRIC  AND  NATURAL  GAS  SERVICE
SHALL  BE  ESTABLISHED  FOR  ANY CUSTOMER WHO RECEIVES BENEFITS FROM THE
SUPPLEMENTAL SECURITY INCOME PROGRAM FOR THE AGED OR DISABLED  OR  OTHER
PERSONS,  THE TEMPORARY ASSISTANCE TO NEEDY FAMILIES PROGRAM, SAFETY NET
ASSISTANCE,  THE  SUPPLEMENTAL  NUTRITION  ASSISTANCE  PROGRAM,  MEDICAL
ASSISTANCE,  THE  HOME ENERGY ASSISTANCE PROGRAM, THE TELEPHONE LIFELINE
ASSISTANCE PROGRAM, AND  ANY  OTHER  ADDITIONAL  ASSISTANCE  PROGRAM  OR
INCOME STANDARD APPROVED BY THE COMMISSION.
  (C) PROVIDERS OF ELECTRIC AND NATURAL GAS SERVICE SHALL COOPERATE WITH
THE  COMMISSION  AND  SOCIAL  SERVICES  DISTRICTS  AND OTHER AGENCIES TO

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11486-03-6

S. 5819--A                          2

CERTIFY AND RECERTIFY CUSTOMER  ELIGIBILITY  THROUGH  PRIVACY  PROTECTED
DATA  EXCHANGES  APPROVED BY THE COMMISSION TO ACHIEVE EFFICIENT ENROLL-
MENT OF ELIGIBLE CUSTOMERS.
  (D)  PROVIDERS  OF  ELECTRIC  AND  NATURAL GAS SERVICE SHALL STRIVE TO
PROVIDE REDUCED RESIDENTIAL RATES TO ALL CUSTOMERS  ELIGIBLE  FOR  THEM,
AND  SHALL  PROVIDE  APPLICATION  FORMS  FOR  REDUCED  RATES TO ELIGIBLE
LOW-INCOME CUSTOMERS ON THEIR WEBSITES, AT THEIR OFFICES, AND  BY  OTHER
MEANS.  INFORMATION REGARDING THE AVAILABILITY AND ELIGIBILITY STANDARDS
FOR REDUCED RATES SHALL BE PROVIDED TO RESIDENTIAL CUSTOMERS AT THE TIME
OF  SERVICE  INITIATION, IN BILL INSERTS, IN COMMUNICATIONS TO CUSTOMERS
IN ARREARS, AND BY OTHER MEANS REQUIRED OR APPROVED BY THE COMMISSION.
  (E) THE INCREMENTAL REVENUE EFFECTS OF ENHANCEMENT TO LOW-INCOME  RATE
PROGRAMS UNDER THIS SECTION SHALL BE DEFERRED FOR SUBSEQUENT RATE MAKING
TREATMENT  AND  APPROVAL  BY  THE COMMISSION. THE REVENUE IMPACT OF SUCH
RATE REDUCTION SHALL BE MITIGATED BY (I) APPLYING ANY  EARNINGS  OF  THE
UTILITY  ABOVE  THE ALLOWED RETURN ON EQUITY SET IN THE MOST RECENT RATE
CASE, (II) DISALLOWING ANY PREMIUM ABOVE THE RATE OF RETURN ALLOWED  FOR
NOT  FILING  A RATE CASE OR FOR SHARING OF OVEREARNINGS, (III) UTILIZING
ANY UNCOMMITTED FUNDS AVAILABLE FROM CURRENT SURCHARGES ALLOWED  BY  THE
COMMISSION  AND  NOT  EXPRESSLY  AUTHORIZED BY STATUTE, (IV) DISALLOWING
RECOVERY FROM RATEPAYERS OF ANY COSTS OF EXECUTIVE COMPENSATION BONUSES.
AFTER SUCH MITIGATION MEASURES, AND OTHER MITIGATION MEASURES WHICH  THE
COMMISSION  MAY  APPROVE,  ANY  SHIFT OF REVENUE RESPONSIBILITY TO OTHER
CUSTOMERS DUE TO THE REVENUE EFFECTS OF LOW-INCOME RATES  SHALL  NOT  BE
BORNE SOLELY BY ANY SINGLE CLASS OF CUSTOMER.
  S 2. The public service law is amended by adding a new section 66-o to
read as follows:
  S 66-O. REDUCED RESIDENTIAL RATES FOR ELECTRIC AND NATURAL GAS SERVICE
TO  LOW-INCOME  CUSTOMERS.  1. THE COMMISSION SHALL REQUIRE ELECTRIC AND
NATURAL GAS CORPORATIONS TO ESTABLISH  AND  CONTINUE  PROGRAMS  OF  RATE
REDUCTION  AND  OTHER  ASSISTANCE TO LOW-INCOME RESIDENTIAL ELECTRIC AND
NATURAL GAS CUSTOMERS, THE REVENUE IMPACT OF WHICH SHALL  NOT  BE  BORNE
SOLELY  BY  ANY  SINGLE  CLASS  OF CUSTOMER. THE COMMISSION SHALL ENSURE
APPROPRIATE LEVELS OF RATE REDUCTION FOR LOW-INCOME ELECTRIC AND NATURAL
GAS CUSTOMERS TO MITIGATE HARDSHIP, WHICH SHALL NOT BE LESS  THAN  TWEN-
TY-FIVE  PERCENT  OR  MORE THAN THIRTY-FIVE PERCENT OF THE REVENUES THAT
WOULD HAVE BEEN PRODUCED FOR THE SAME BILLED USAGE BY OTHER  RESIDENTIAL
CUSTOMERS  RECEIVING  FULL SERVICE FROM THE UTILITY WHO ARE NOT ELIGIBLE
FOR  THE  REDUCED  RATE.  IN  ESTABLISHING  THE  APPROPRIATE  PERCENTAGE
REDUCTION  THE  COMMISSION  SHALL  ENSURE  TO  THE  EXTENT FEASIBLE THAT
LOW-INCOME RATEPAYERS ARE NOT JEOPARDIZED OR OVERBURDENED BY  RATES  FOR
ELECTRIC AND NATURAL GAS SERVICE.
  2.  THE  COMMISSION  SHALL  ESTABLISH  CUSTOMER INCOME AND CATEGORICAL
ELIGIBILITY STANDARDS FOR REDUCED RATES, WHICH  SHALL  INCLUDE,  WITHOUT
LIMITATION,  ANY  CUSTOMERS  WHO  RECEIVE BENEFITS FROM THE SUPPLEMENTAL
SECURITY INCOME PROGRAM FOR THE AGED OR DISABLED OR OTHER  PERSONS,  THE
TEMPORARY  ASSISTANCE  TO NEEDY FAMILIES PROGRAM, SAFETY NET ASSISTANCE,
THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM, MEDICAL  ASSISTANCE,  THE
HOME  ENERGY  ASSISTANCE  PROGRAM, AND THE TELEPHONE LIFELINE ASSISTANCE
PROGRAM.
  3. THE COMMISSION SHALL PROMOTE FULL PENETRATION OF THE  REDUCED  RATE
ASSISTANCE  TO  ALL  ELIGIBLE  CUSTOMERS  THROUGH PRIVACY PROTECTED DATA
EXCHANGES WITH AGENCIES PROVIDING ASSISTANCE TO  CATEGORICALLY  ELIGIBLE
CUSTOMERS  TO  ACHIEVE EFFICIENT ENROLLMENT, CERTIFICATION, AND PERIODIC
RECERTIFICATION OF ELIGIBILITY.

S. 5819--A                          3

  4. THE COMMISSION SHALL REQUIRE PROVIDERS OF ELECTRIC AND NATURAL  GAS
SERVICE  TO  PROVIDE INFORMATION AND APPLICATION FORMS FOR REDUCED RATES
TO ELIGIBLE LOW-INCOME CUSTOMERS ON THEIR WEBSITES,  AT  THEIR  OFFICES,
AND BY OTHER MEANS, AND TO PROVIDE INFORMATION REGARDING THE AVAILABILI-
TY  AND ELIGIBILITY STANDARDS FOR REDUCED RATES TO RESIDENTIAL CUSTOMERS
AT THE TIME OF SERVICE INITIATION, IN BILL  INSERTS,  IN  COMMUNICATIONS
WITH  CUSTOMERS  IN  ARREARS, AND BY OTHER MEANS REQUIRED OR APPROVED BY
THE COMMISSION.
  5. THE COMMISSION SHALL REQUIRE ELECTRIC AND NATURAL GAS  CORPORATIONS
TO  ESTABLISH  REDUCED RATES PURSUANT TO THIS SECTION TO BE EFFECTIVE NO
LATER THAN JANUARY FIRST, TWO THOUSAND SEVENTEEN, AND TO  FILE  PERIODIC
REPORTS  AT  LEAST  ANNUALLY  REGARDING THE NUMBER OF ELIGIBLE CUSTOMERS
RECEIVING REDUCED RATES, UTILITY EFFORTS TO PROVIDE REDUCED  RESIDENTIAL
RATES  TO  ALL CUSTOMERS ELIGIBLE FOR THEM, AND OTHER INFORMATION DEEMED
NECESSARY OR APPROPRIATE BY THE COMMISSION FOR  THE  EFFICIENT  ADMINIS-
TRATION OF THE REDUCED RATES.
  6.  THE  COMMISSION SHALL REQUIRE THAT THE INCREMENTAL REVENUE EFFECTS
OF ENHANCEMENT  TO  LOW-INCOME  RATE  PROGRAMS  UNDER  THIS  SECTION  BE
DEFERRED  FOR  SUBSEQUENT RATE MAKING TREATMENT. THE INCREMENTAL REVENUE
IMPACT OF SUCH RATE REDUCTIONS SHALL BE MITIGATED BY:
  (A) APPLYING ANY EARNINGS OF THE UTILITY ABOVE THE ALLOWED  RETURN  ON
EQUITY  SET IN THE MOST RECENT RATE CASE, PURSUANT TO SUBDIVISION TWENTY
OF SECTION SIXTY-SIX OF THIS ARTICLE;
  (B) DISALLOWING ANY RATE OF RETURN PREMIUM FOR NOT FILING A RATE  CASE
OR FOR SHARING OF OVEREARNINGS AFTER RATES ARE SET;
  (C)  UTILIZING ANY UNCOMMITTED REVENUES FROM SURCHARGES ALLOWED BY THE
COMMISSION BUT NOT EXPRESSLY AUTHORIZED BY STATUTE; AND
  (D) DISALLOWING EXECUTIVE COMPENSATION OR BONUSES NOT ESSENTIAL TO THE
PROVISION OF SAFE AND ADEQUATE SERVICE.
  AFTER APPLYING REVENUES FROM SUCH SOURCES, AND OTHER MITIGATION  MEAS-
URES WHICH THE COMMISSION MAY APPROVE, ANY SHIFT OF REVENUE RESPONSIBIL-
ITY  TO  OTHER  CUSTOMERS DUE TO THE REVENUE EFFECTS OF LOW-INCOME RATES
SHALL NOT BE BORNE SOLELY BY ANY SINGLE CLASS OF CUSTOMER.
  S 3. This act shall take effect on the sixtieth  day  after  it  shall
have become a law.

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