S T A T E   O F   N E W   Y O R K
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                                  9298

                          I N  A S S E M B L Y

                            February 16, 2016
                               ___________

Introduced  by  M.  of  A.  DINOWITZ,  GOTTFRIED, COLTON, BLAKE, MILLER,
  SIMON, ROBINSON -- Multi-Sponsored by -- M. of A. COOK, DAVILA,  MAGEE
  -- read once and referred to the Committee on Energy

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.
  (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

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

                                                           LBD11486-04-6

A. 9298                             2

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-
TY  AND ELIGIBILITY STANDARDS FOR REDUCED RATES TO RESIDENTIAL CUSTOMERS
AT THE TIME OF SERVICE INITIATION, IN BILL  INSERTS,  IN  COMMUNICATIONS

A. 9298                             3

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.