S T A T E   O F   N E W   Y O R K
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                                  8686

                          I N  A S S E M B L Y

                            January 12, 2016
                               ___________

Introduced  by  M. of A. THIELE, TITONE, ZEBROWSKI -- Multi-Sponsored by
  -- M. of A.  GALEF, ROSENTHAL -- read once and referred to the Commit-
  tee on Energy

AN ACT to amend the public service law, in relation to energy  conserva-
  tion and lost revenues

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

  Section 1. Section 72 of the public service law, as amended by chapter
212 of the laws of 1934, is amended to read as follows:
  S 72.  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 OF THIS ARTICLE,  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  corpo-
ration  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] ARTICLE, 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 commis-
sion  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, distrib-
ution 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

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

                                                           LBD10678-01-5

A. 8686                             2

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 provid-
ing adequate and efficient service, or for the preservation of the prop-
erty,  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, condi-
tions 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  OF  THIS  ARTICLE 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  determi-
nation  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, corpo-
ration 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 operat-
ing such utility; and the commission may give to the hearing  and  deci-
sion  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. HOWEVER, AT NO TIME WILL THE COMMISSION
AUTHORIZE A RATE INCREASE TO OFFSET REVENUE LOSS DUE TO ENERGY CONSERVA-
TION EFFORTS BY CONSUMERS.
  S 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law.