Requires utility service providers to disclose planned rate increases to consumers within thirty days before a planned price increase takes effect; requires utility providers to provide contact information and a mechanism to cancel service completely.
Impact
If enacted, this bill would amend existing public service law and general business law, providing a structured approach for utility corporations to communicate forthcoming rate changes to their consumers. This legislative change is projected to foster transparency and allow consumers to make informed decisions regarding their utility services, thus potentially reducing customer dissatisfaction and complaints regarding unexpected rate hikes.
Summary
Bill S04989, introduced in New York State, aims to enhance consumer protection by requiring utility service providers, including gas, electric, water, and telecommunications companies, to disclose any planned rate increases to consumers at least thirty days prior to their effective date. This legislation mandates that notifications about the rate increases must be clear and conspicuous, delivered through separate communications that specify the amount of the increase, its effective date, and contact information for further inquiries.
Contention
The discussions around S04989 indicate a recognition of the importance of transparent consumer communications; however, concerns were raised regarding compliance burdens on utility providers. Some stakeholders argued that while increased transparency is beneficial for consumers, it may lead to operational challenges for utility companies, necessitating adjustments in their customer notification processes. Moreover, the requirement for clear communication outside of billing statements has sparked debates about the effectiveness of various notification methods.
Voting_history
The bill was heard in the Senate Consumer Protection Committee, where it received a unanimous vote in favor, reflecting a strong bipartisan support towards consumer protection measures. The favorable committee vote indicates a broader recognition among legislators of the need to safeguard consumers from unforeseen financial impacts related to utility rate changes.
Requires utility service providers to disclose planned rate increases to consumers within thirty but no less than seven days before a planned price increase takes effect; requires utility providers to provide contact information and a mechanism to cancel service completely.
Provides a reimbursement to small businesses and residential consumers of certain utilities for failure to provide contracted services; requires the Long Island power authority to do the same.
Provides a reimbursement to small businesses and residential consumers of certain utilities for failure to provide contracted services; requires the Long Island power authority to do the same.
Requires the public service commission to conduct a review within fifteen days when a residential customer of a public utility company alleges that the public utility company has overcharged the customer for service and to refund the overcharge within thirty days; provides for penalties; requires the public service commission to promulgate rules and regulations.
Requires disclosure terms relating to pre-paid calling cards to be provided in languages other than English and increases fines for violations of disclosure requirements.