New York Regulator Opens Statewide Review of Estimated Utility Billing

The New York State Public Service Commission initiated a statewide proceeding to evaluate how electric, natural gas, steam, and water utilities calculate and issue estimated customer bills, signaling a broader effort to improve billing accuracy, transparency, and consumer protections. The review follows Governor Kathy Hochul’s December 2025 directive to examine whether current estimation practices remain appropriate as smart meter deployment expands across utility service territories.

The commission emphasized that billing based on actual meter readings serves the public interest because it more accurately reflects customer consumption. At the same time, it acknowledged that utilities may occasionally face legitimate obstacles to obtaining meter readings, including severe weather, inaccessible meters, or other operational challenges. When estimates are unavoidable, the regulator indicated that utilities should rely on transparent and data-driven methodologies that produce reasonable and accurate usage estimates while limiting the frequency and duration of estimated billing.

The review also reflects the growing role of advanced metering technology in utility operations. As utilities continue deploying smart meters capable of automatically transmitting consumption data, the commission will examine whether these investments have meaningfully reduced the need for estimated bills and identify circumstances where utilities continue to rely on estimation despite wider meter modernization. The proceeding will also evaluate how utilities document failed meter-reading attempts and whether existing estimation methodologies remain appropriate across different service territories.

Within 30 days, utilities and municipal providers must submit detailed information on their approved billing methodologies, meter-reading procedures, historical use of estimated bills over the past decade, and deployment of advanced metering technology. Following those filings, Department of Public Service staff will prepare a comprehensive report within 180 days evaluating current practices and recommending potential improvements.

The report is expected to examine barriers to obtaining actual meter readings, assess the root causes behind estimated billing, review the adequacy of existing estimation methods, and determine whether additional consumer protections, enforcement measures, refunds, penalties, or other regulatory actions should be considered.