S6803B

The New York State Senate passed legislation Tuesday to protect utility customers from late fees, interest charges, and service termination during formal Public Service Commission investigations, advancing a consumer protection measure backed by Democrats amid complaints about utility rate hikes. Senate Print 6803B, sponsored by Sen. Gonzalez, passed 42-18 on a largely party-line vote. The bill shields residential customers of gas, electric, and steam utilities from additional charges and disconnection during investigations triggered by 25 or more customer complaints, municipal complaints, or Department of State referrals. Protections extend 120 days after the PSC issues findings. Sen. Hinchey, representing the Hudson Valley, cited Central Hudson's ongoing investigation for billing errors and the company's pending request for 16-19% rate increases, calling utility companies' conduct "unconscionable." She said the bill ensures companies are held accountable while protecting customers from "gouging." Opposition centered on concerns the bill's definition of "investigation" is overly broad. Sen. Palumbo argued it could encompass routine rate cases and create a multi-year moratorium on collections even for unfounded complaints, effectively allowing customers to avoid payment indefinitely. He noted the PSC already possesses authority to suspend fees and questioned why the bill mandates protections rather than leaving discretion to regulators. Palumbo warned the measure could bankrupt utilities and urged colleagues to vote against it. Sen. Gonzalez clarified the bill targets only credible investigations into potential utility malpractice, not routine regulatory proceedings, and that customers remain obligated to pay bills throughout investigations.