Provides that gas, electric, or combination gas and electric corporations shall not be permitted to retain revenues derived from their actual return on equity in excess of authorized rates of return on equity.
The proposed bill mandates that utilities must provide a 'surcredit' to ratepayers for any excess revenue collected. This credit must be applied to their bills within 30 days after the end of each revenue period and be clearly indicated. Additionally, it stipulates that utility corporations cannot retain revenues exceeding the stated authorized rate, thus preventing them from profiting unduly at the expense of consumers. The legislation is expected to have a significant impact on the financial operations of these utilities, compelling them to be more cognizant of their earnings in relation to the rates they charge.
Bill A08150 aims to amend the public service law concerning how gas, electric, or combination gas and electric corporations manage revenues that exceed their authorized rates of return on equity. The primary focus of the legislation is to ensure that any excess revenue generated by these corporations is returned to ratepayers, thus enhancing consumer protections and ensuring fair billing practices. This change is crucial in fostering transparency and accountability within regulated utility companies.
While the bill is designed to protect consumers and promote transparency, it is anticipated that there may be some resistance from utility corporations. These companies may argue that the constraints on retaining excess revenues could hinder their ability to reinvest in infrastructure or cover unforeseen expenses. Discussions may arise regarding the regulatory framework and the potential implications of this legislation on the financial health and operational flexibility of utility providers in New York.