New York Assembly Bill A05402

New York 2025-2026 Regular Session

• Introduced: 2/13/25
• Refer: 2/13/25
• Report Pass: 5/20/25
• Refer: 5/20/25

Caption

Authorizes and directs the public service commission to establish rules to limit a utility's ability to recover its direct or indirect costs associated with its attendance in, participation in, preparation for, or appeal of any rate proceeding conducted before the commission.

Impact

The introduction of this bill seeks to bring clarity and limit the financial burden that utilities can pass on to consumers regarding costs linked to rate case activities. By controlling which expenses can be recouped, the legislation aims to foster fairer practices in the utility sector, ensuring that consumers do not bear excessive costs that may arise from extensive legal and consulting fees incurred by utilities while engaging in rate-setting processes.

Summary

Bill A05402 is proposed legislation aimed at amending the public service law to empower the public service commission to create regulations that will limit a utility's capability to recover certain operating expenses tied to its involvement in rate proceedings. The bill specifies that the commission must establish these rules by January 1, 2027, focusing on expenses directly or indirectly related to a utility's attendance, preparation, or appeals during such proceedings.

Contention

The central points of contention around Bill A05402 stem from the balance of interests between utility companies and consumers. Proponents argue that the bill will promote transparency and equity in how utilities handle operating costs that consumers ultimately fund. Conversely, some industry stakeholders may oppose these limitations, believing they could hinder utilities' ability to operate effectively and respond to regulatory demands, potentially leading to a negative impact on service delivery.