ALBANY – A bill that makes utility rate increase requests more transparent, co-sponsored by Assemblymember Jonathan Jacobson (D-104) and Senator Michelle Hinchey (D-41), has become law.
Governor Kathy Hochul has signed the bill () into law. According to the new legislation, any utility that makes a request for a rate increase must fully and publicly explain all capital expenditures included in the request. This would include the purpose and cost of the capital project, as well as any benefits to ratepayers.
“Since utilities receive a greater return on capital expenses than on other expenses, transparency is essential when they’re requesting a rate increase,” said Jacobson. “The public and the Public Service Commission (PSC), which determines such requests, deserve to know.”
“Our legislation requires transparent and public reporting on utility capital expenditures to prevent companies from inflating project costs to pad profits and increase rates,” Hinchey added. “New Yorkers deserve fair rates grounded in facts, and this new law gives us the leverage to push back against unchecked utility increases.”
This is the latest effort by Jacobson and Hinchey to reform utility practices. Their previous legislation (), which was passed into law last year, requires utilities to bill within three months of the end of a billing period, or they lose the ability to charge for that period.
The new bill will go into effect immediately.
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