Utility rate changes to become more transparent, accessible in NY. How it will help you

Emily Barnes, Rochester Democrat and Chronicle

When utilities want to raise their rates, it usually involves confusing terminology, which those who would be most affected by the changes — consumers — have difficulty understanding. A new law aims to alleviate some of those barriers.

Gov. Kathy Hochul signed legislation Wednesday to enhance transparency and accessibility when it comes to rate changes. The Public Service Commission (PSC) is now required to publish information such as the potential financial impacts on ratepayers before major rate changes by public gas or electric utilities occur.

“Consumers have for far too long been left in the dark when it comes to utility rate increases, with providers offering little explanation or accountability," Senator Leroy Comrie, who sponsored the bill, said. "With the cost of energy delivery and development constantly rising, these bills will bring greater transparency, protections from unjustified rate hikes, and add a financial deterrent to would-be bad actors."

Here's what to know.

How the new law will help you

The Public Service Commission will now have to publish certain information when public gas or electric utilities in New York seek major rate changes. to help enhance transparency and accessibility.
The Public Service Commission will now have to publish certain information when public gas or electric utilities in New York seek major rate changes. to help enhance transparency and accessibility.

A one-page summary of major rate cases needs to be made available by the PSC both within 10 days of initiation and again upon conclusion and should include the following:

  • Proposed rate term

  • Total proposed rate change

  • Average proposed rate change for residential, commercial and industrial ratepayers

  • Why the rate changes are required

  • How the proposed revenue will be spent

  • Proposed return on equity

  • Estimated timeline of relevant hearings, comment periods and deadlines

  • How to submit public comment

It would then have to be published on the PSC's website and shared with news outlets and legislators. Now that Hochul has signed it into the law, the legislation goes into effect in 60 days.

What's next? Anger over rates, overcharges fuels push for public takeover of NY utilities

What other law did Hochul sign?

Utilities that make false statements about a rate proceeding will also now face penalties up to $250,000, as a result of new legislation signed into law by Hochul Wednesday.

"Any utility corporation and its officers, agents or employees that knowingly make a false material statement, representation or certification to the Public Service Commission in any rate proceeding (will receive the civil penalty)," according to Hochul.

Emily Barnes reports on consumer-related issues for the USA TODAY Network’s NY-Connect Team, focusing on scam and recall-related topics. Follow her on Twitter and Instagram @byemilybarnes. Get in touch at ebarnes@gannett.com.

This article originally appeared on Rochester Democrat and Chronicle: Utility rate changes to become more transparent, accessible in NY

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