S 10667: Establishes a presumption that certain refunds received by public utility companies shall be passed on to ratepayers through bill credits, direct refunds, reductions in future rates, or other methods that provide a direct and equitable benefit to affected ratepayers.

  
  STATE OF NEW YORK ________________________________________________________________________ 10667--A  IN SENATE July 24, 2026 ___________ Introduced by Sen. COONEY -- read twice and ordered printed, and when printed to be committed to the Committee on Rules -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the public service law, in relation to establishing a presumption that certain refunds received by public utility companies shall be passed on to ratepayers The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision 2 of section 113 of the public service law, as 2 added by chapter 530 of the laws of 1977, is amended to read as follows: 3 2. (a) Whenever any public utility company [or municipality], whose 4 rates are subject to the jurisdiction of the commission, shall receive 5 any refund of amounts charged and collected from it by any source, the 6 commission shall have power after a hearing, upon its own motion, upon 7 complaint or upon the application of such public utility company [or 8 municipality], to determine [whether or not such refund should be passed 9 on, in whole or in part, to the consumers of such public utility company 10 or municipality and to order such public utility company or municipality 11 to pass such refunds on to its consumers, in the manner and to the 12 extent determined just and reasonable by the commission] the portion of 13 such refund attributable to costs, taxes, fees, charges, or other 14 amounts previously recovered from ratepayers through rates, charges, or 15 other cost recovery mechanisms authorized or approved by the commission, 16 and to determine the just and reasonable disposition of any remaining 17 portion of such refund. 18 (b) There shall be a rebuttable presumption that the portion of a 19 refund determined pursuant to paragraph (a) of this subdivision to be 20 attributable to amounts previously recovered from ratepayers shall be 21 passed on to such ratepayers, less any costs permitted by the commission 22 pursuant to paragraph (f) of this subdivision. 23 (c) The commission shall order such public utility companies to pass 24 such portion of the refund on, to the extent practicable, to the rate- 25 payers who bore the costs giving rise to the refund. Where distribution EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD16213-02-6 
 S. 10667--A 2 1 to such ratepayers is impracticable, the commission shall direct such 2 portion to the appropriate class or classes of ratepayers through a just 3 and reasonable method of distribution. Such method may include bill 4 credits, direct refunds, reductions in future rates, or another method 5 that provides a direct and equitable benefit to affected ratepayers. 6 (d) The presumption established pursuant to paragraph (b) of this 7 subdivision may be rebutted only upon a demonstration by the public 8 utility company, and a finding by the commission, that: 9 (i) direct distribution to affected ratepayers is impracticable and 10 such alternative disposition will provide such ratepayers with a reason- 11 ably equivalent or greater benefit; or 12 (ii) an alternative disposition is necessary to prevent imminent and 13 material impairment of the provision of safe and adequate utility 14 service. Any alternative disposition authorized pursuant to this subpar- 15 agraph shall be limited to the amount necessary to prevent such impair- 16 ment and shall be used solely for that purpose. 17 (e) No portion of a refund attributable to amounts previously recov- 18 ered from ratepayers shall be retained as earnings or profit or other- 19 wise used for the direct or indirect benefit of shareholders. 20 (f) Costs incurred by a public utility company to identify, pursue, or 21 obtain a refund shall not reduce the amount passed on to ratepayers 22 unless the public utility company demonstrates, and the commission 23 finds, that such costs were reasonable, documented, prudently incurred, 24 and directly necessary to obtain the refund. The commission shall not 25 permit the deduction of costs attributable to a failure by the public 26 utility company to maintain adequate internal controls, exercise reason- 27 able care, or comply with applicable legal, accounting, or regulatory 28 requirements. 29 (g) Any order authorizing an alternative disposition pursuant to para- 30 graph (d) of this subdivision or permitting the deduction of costs 31 pursuant to paragraph (f) of this subdivision shall set forth specific 32 findings identifying the amount and source of the refund, the portion 33 attributable to amounts previously recovered from ratepayers, any costs 34 permitted to be deducted, the method by which affected ratepayers will 35 receive the benefit of the refund, and the reasons for any departure 36 from the presumption established pursuant to paragraph (b) of this 37 subdivision. 38 (h) Where a municipality or county is required to make payment of a 39 refund subject to this subdivision, the commission may, upon application 40 by the municipality or county and upon a finding that immediate payment 41 would impose an undue fiscal hardship or require an unbudgeted expendi- 42 ture that would materially impair the municipality's or county's fiscal 43 stability or ability to provide essential governmental services, author- 44 ize such municipality or county to satisfy its refund obligation pursu- 45 ant to a payment schedule not to exceed two years. In approving any such 46 payment schedule, the commission shall consider the interests of 47 affected ratepayers, the municipality's or county's financial condition, 48 and the need to ensure timely payment of the refund. Any order issued 49 pursuant to this paragraph shall establish the amount and timing of 50 installment payments and may include such terms and conditions as the 51 commission deems just and reasonable. 52 (i) Notwithstanding any payment schedule authorized pursuant to para- 53 graph (h) of this subdivision, the department of taxation and finance 54 shall make payment of the refund to the public utility company imme- 55 diately upon such refund becoming due. A municipality or county subject 56 to such refund shall remain responsible for reimbursing the department 
 S. 10667--A 3 1 of taxation and finance for the full amount of such payment in accord- 2 ance with any payment schedule authorized pursuant to paragraph (h) of 3 this subdivision. 4 § 2. This act shall take effect immediately.