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A09706 Summary:

BILL NOA09706
 
SAME ASSAME AS S06278
 
SPONSORPaulin
 
COSPNSRColton, Otis
 
MLTSPNSR
 
Add §28, Pub Serv L; add §399-yyyy, Gen Bus L; amd §1020-cc, Pub Auth L
 
Requires utility service providers to disclose planned rate increases to consumers within thirty but no less than seven days before a planned price increase takes effect; requires utility providers to provide contact information and a mechanism to cancel service completely.
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A09706 Actions:

BILL NOA09706
 
03/28/2022referred to energy
05/11/2022reported referred to rules
05/17/2022reported
05/17/2022rules report cal.243
05/17/2022ordered to third reading rules cal.243
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A09706 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9706
 
SPONSOR: Paulin
  TITLE OF BILL: An act to amend the public service law, the general business law and the public authorities law, in relation to requiring utility service provid- ers to disclose planned rate increases to consumers within a certain amount of time   PURPOSE: This legislation would require utility service providers to disclose planned rate increases to consumers and to provide a mechanism to allow the consumer to cancel service when notified of such a rate increase.   SUMMARY OF PROVISIONS: Section 1 adds a new section 28 to the public service law to require any gas corporation, electric corporation, water corporation or munici- pality, steam corporation or telephone corporation to disclose to a consumer any planned rate increases for services within 30 but not more than seven days before such planned increase. This information shall be communicated in a clear and conspicuous manner. This notification shall be outside of any billing statement via phone, e-mail, letter, text or any combination thereof with the statement "This is a notification of a planned increase for the services currently being rendered". This commu- nication shall provide information on how a consumer can contact the service provider and shall include a mechanism to allow a consumer to cancel their service. Section 2 Amends the General Business Law to require any cable or internet service provider to disclose to a consumer any planned rate increases for services within 30 but not more than seven days before such planned increase. This information shall be communicated in a clear and conspicuous manner. This notification shall be outside of any billing statement via phone, email, letter, text or any combination thereof with the statement "This is a not ification of a planned increase for the services currently being rendered". This commu- nication shall provide information on how a consumer can contact the service provider and shall include a mechanism to allow for a consumer to cancel their service. Section 3 amends the public authorities law to require LIPA's service provider to follow the provisions of Section 28 of the Public Service Law. Section 4 is the effective date.   JUSTIFICATION: Every consumer has experienced the frustration when looking at a utility bill when an unexplained increase in cost occurs. Consumers are often left searching through their bill, or any other communication from the provider to see why this price increase happened. This legislation simply tries to inform consumers in a clear and conspicuous manner that a rate increase will be occurring. The goal of this legislation is to make it as easy as possible for consumers to know that their bill will be changing. Simply requiring a provider to send out a separate and clear communication of a rate increase is a simple means to achieve this important consumer protection.   LEGISLATIVE HISTORY: New Bill.   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: This act shall take effect in 180 days.
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A09706 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          9706
 
                   IN ASSEMBLY
 
                                     March 28, 2022
                                       ___________
 
        Introduced by M. of A. PAULIN -- read once and referred to the Committee
          on Energy
 
        AN ACT to amend the public service law, the general business law and the
          public  authorities  law,  in  relation  to  requiring utility service
          providers to disclose planned rate increases  to  consumers  within  a
          certain amount of time

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. The public service law is amended by adding a  new  section
     2  28 to read as follows:
     3    §  28. Notice of planned rate increase for services. 1. Any gas corpo-
     4  ration, electric corporation, water corporation or  municipality,  steam
     5  corporation  or telephone corporation shall be required to disclose to a
     6  consumer any planned rate increase for services being rendered  to  such
     7  consumer,  within thirty but no less than seven days before such planned
     8  rate increase takes effect.
     9    2. (a) Any notification of a planned rate increase  pursuant  to  this
    10  section shall be communicated to the consumer in a clear and conspicuous
    11  method which is sufficient to alert such consumer that such planned rate
    12  increase is occurring.
    13    (b)  A  consumer shall be notified in a separate communication outside
    14  of any billing  statement  via  phone,  electronic  mail,  letter,  text
    15  message or any combination thereof that includes the following statement
    16  "This  is  a  notification  of  a planned rate increase for the services
    17  currently being rendered".  Inclusion of such notification  as  part  of
    18  any billing statement shall not constitute compliance with this section.
    19    3.  Any  gas  corporation,  electric corporation, water corporation or
    20  municipality, steam corporation or telephone corporation  shall  provide
    21  with  any  notification  of a planned rate increase information on how a
    22  consumer can contact the service provider and shall also include a mech-
    23  anism to allow for a consumer to cancel their service altogether.
    24    § 2. The general business law is amended by adding a new section  399-
    25  yyyy to read as follows:
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07224-04-1

        A. 9706                             2
 
     1    §  399-yyyy.  Notice  of planned rate increases for cable and internet
     2  services. 1. Any cable television company or internet  service  provider
     3  shall  be  required  to disclose to a consumer any planned rate increase
     4  for services being rendered to such consumer, within thirty but no  less
     5  than seven days before such planned rate increase takes effect.
     6    2.  (a)  Any  notification of a planned rate increase pursuant to this
     7  section shall be communicated to the consumer in a clear and conspicuous
     8  method which is sufficient to alert such consumer that such planned rate
     9  increase is occurring.
    10    (b) A consumer shall be notified in a separate  communication  outside
    11  of  any  billing  statement  via  phone,  electronic  mail, letter, text
    12  message or any combination thereof that includes the following statement
    13  "This is a notification of a planned  rate  increase  for  the  services
    14  currently being rendered". Inclusion of such notification as part of any
    15  billing statement shall not constitute compliance with this section.
    16    3.  Any  cable  television  company or internet service provider shall
    17  provide with any notification of a planned rate increase information  on
    18  how a consumer can contact the service provider and shall also include a
    19  mechanism to allow for a consumer to cancel their service altogether.
    20    §  3.  Section  1020-cc  of  the  public authorities law is amended by
    21  adding a new subdivision 3 to read as follows:
    22    3. Service providers shall be subject to  the  provisions  of  section
    23  twenty-eight of the public service law.
    24    § 4. This act shall take effect on the one hundred eightieth day after
    25  it shall have become a law.
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