Bill > S01896

This bill requires electric, gas, steam, and water utility corporations to adopt a common equity ratio and rate of return on equity as determined annually by the Public Service Commission (PSC), with a mechanism for utilities to challenge these rates if they cannot meet their financial needs. The legislation aims to address high utility rates that burden New York residents by establishing a more transparent and consumer-friendly rate-setting process. Specifically, the bill mandates that the PSC create a "generic financing methodology" using publicly available data to set a standardized rate of return and equity ratio for all regulated utilities. Utilities can request a public hearing to demonstrate why the authorized rates are insufficient, but they bear the burden of proof and must provide detailed evidence about their capital and operating needs. If a utility successfully rebuts the PSC's rates, settlement negotiations will occur, considering factors like consumer impact, equity for disadvantaged communities, and a fair return for the utility. The PSC must submit an annual report to the governor and legislature detailing the rate-setting process, and all calculations and reports will be made publicly available. The bill's ultimate goal is to balance the financial interests of utilities with protecting ratepayers from excessive charges, with a particular focus on making utility services more affordable and equitable.

Agriculture and Natural Resources, Transportation and Infrastructure

https://www.nysenate.gov/legislation/bills/2025/S1896