S1896

The New York State Senate passed legislation to reform how utility companies' return on equity is calculated under Public Service Law, advancing a key component of the Majority's utility rate reform package. Senate Print 1896, sponsored by Sen. Mayer, passed 53-9 on a roll call vote. The bill modifies a rate-setting process that has remained unchanged for four decades, addressing what supporters characterized as utility companies receiving returns on equity four times greater than inflation rates. Sen. Mayer argued the reform would prioritize ratepayers over shareholders, while Sen. Harckham noted that utilities are the only sector guaranteed both monopoly status and double-digit returns on equity, citing Con Edison's $2 billion in profits over two years. Opponents, led by Sen. Tedisco, argued the bill addresses symptoms rather than root causes of rising utility costs, which he attributed to state policies like the Climate Leadership and Community Protection Act. Tedisco called instead for legislation requiring Senate ratification of PSC rate increases. Nine senators voted against the measure: Ashby, Borrello, O'Mara, Ortt, Palumbo, Stec, Tedisco, Walczyk, and Weik.

The New York State Senate passed legislation to amend the Public Service Law and reform how utility rates are set, with a 52-8 vote on Calendar Number 147, Senate Print 1896. The bill, sponsored by Sen. Mayer, would change the Public Service Commission's rate-setting methodology for utilities including Con Edison, which holds a monopoly in New York State. Mayer argued the current system is backwards, with utilities proposing rates that the PSC then negotiates downward, resulting in what she called exorbitant delivery charges that have doubled usage fees and left constituents unable to afford heating their homes. Under the bill's approach, the PSC would set a preferred rate with a rebuttable presumption, allowing utilities a reasonable return while protecting consumers from unsustainable charges. Mayer noted the Senate passed the bill in the prior year and urged the Assembly and Governor to act. Eight senators voted against the measure: Ashby, Borrello, O'Mara, Ortt, Palumbo, Stec, Tedisco, and Weik. The bill takes effect one year after becoming law.