New York Enacts Legislation to Enhance Transparency in Utility Rate Changes

New York Governor Kathy Hochul on Sep. 26 signed two bills aimed to improve transparency and accountability in rate changes requested by public utilities. The first one requires the Public Service Commission to publish financial information before major rate changes by public utilities and the second imposes penalties for false statements made during rate proceedings.

Under the first bill, the commission is required to release supporting financial details before a major change is introduced by an electric or gas utility. The objective is to inform consumers on the reasons for the rate adjustment and how the utility proposes to spend the revenue. The measure will enhance public awareness of the rate-setting process with minimal additional cost, promoting greater transparency and accessibility.

The second piece of legislation establishes a monetary penalty for public utilities that make false statements during rate proceedings, imposing a penalty of up to $250,000 for knowingly providing false information. If the utility discovers inaccurate or false information was previously provided to the commission regarding a rate proceeding, the company must disclose this discovery to the commission within three business days.

Current rate cases under review by the commission include National Grid’s proposal, which, if approved, would lead to a 15 percent increase in monthly electricity bills and a 20 percent increase in monthly gas bills by 2025.

In addition to new laws to protect consumers from rising utility bills, New York has also provided significant financial relief. Earlier this year, Governor Hochul announced $200 million toward discounted utility bills for eight million residents in New York. For 2024, the state has allocated $1.4 billion toward programs that help consumers with rising utility costs.