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 legislation is set to have significant implications for state regulation of utility companies. By enforcing a requirement for refunds on excess revenues, the bill promotes greater transparency and accountability among utilities. It further strengthens the position of ratepayers, providing them with financial returns when corporations do not adhere to the stipulated rate of return. Additionally, the commission is prohibited from approving any rate plans that allow these corporations to retain excess revenues, thereby enhancing oversight over rate-setting processes.
Bill S07693 aims to amend the public service law concerning the retention of revenues by gas, electric, or combination gas and electric corporations. The bill stipulates that these corporations shall not retain revenues that exceed the authorized rate of return on equity. Instead, they are required to return any excess revenues to ratepayers in the form of surcredits on their bills. This refund must be issued within thirty days after the conclusion of each rate period and clearly indicated on the ratepayer's bill. The intention is to ensure fair treatment of consumers and prevent utility companies from profiting unduly from over-collecting revenue.
Discussion around Bill S07693 may reveal contention among stakeholders, particularly between utility companies and consumer advocacy groups. While proponents argue that the bill protects consumers and promotes fairness in pricing, utility companies may push back against such regulations, claiming it could lead to reduced investment in infrastructure improvements. There are concerns that limiting retained revenues might affect the financial viability of these companies, which play a critical role in energy transmission and distribution within the state.
The bill's effectiveness will depend on how effectively the New York Public Service Commission can enforce the proposed refund mechanisms and report requirements. The bill does not apply retroactively to existing rate plans, which means that the impacts and adjustments will primarily hinge on future rate resets. As discussions progress, it will be essential to monitor the perspectives of utility companies and ratepayer advocates to gauge any electoral or regulatory reactions to the proposed changes.