Bill > A01028

This bill requires electric, gas, steam, and water utilities in New York to adopt a new standardized process for determining their rate of return on equity and common equity ratio, as established annually by the Public Service Commission (PSC). The bill aims to address high utility rates that burden New York residents by creating a more transparent and consumer-friendly method for setting utility rates. Under this legislation, the PSC will develop a "generic financing methodology" based on publicly available data to set a fair and reasonable common equity ratio and rate of return for all regulated utilities. Utilities can challenge these authorized rates through a public hearing process, but they must provide substantial evidence demonstrating that the proposed rates do not meet their capital or operating needs. If a utility successfully rebuts the authorized rates, the PSC will enter into settlement negotiations, considering factors such as reduced delivery rates, impacts on disadvantaged communities, and the lowest possible cost to ratepayers. The bill also requires the PSC to submit an annual report to the governor and legislature detailing the rate-setting process and findings, with the goal of making utility rate-setting more accessible and equitable for consumers. The legislation will take effect one year after becoming law.

Agriculture and Natural Resources

https://www.nysenate.gov/legislation/bills/2025/A1028