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S 8908

Relates to civil penalties imposed by the public service commission upon certain utility corporations

2025 Regular Session Introduced by Leroy Comrie and 3 co-sponsors

The bill requires penalties recovered by the Public Service Commission from utility violations to be promptly credited back to ratepayers via direct bill credits within 90 days.

REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
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Bill Summary · S 8908

Summary of Bill S. 8908 (Session 2025-2026) — New York

Title

Relates to civil penalties imposed by the public service commission upon certain utility corporations

Purpose and Intent

  • The bill modifies how civil penalties and penalties/forfeitures recovered by the New York Public Service Commission (PSC) are handled and returned.
  • It aims to ensure that penalties recovered from utility violations are promptly returned to ratepayers rather than remaining with the state treasury.

Key Provisions

Section 1 — Amends § 24 of the Public Service Law (Action to Recover Penalties or Forfeitures)

  • Allows the PSC to sue for penalties or forfeitures in a court of competent jurisdiction in New York.
  • In such actions:
    • All penalties incurred up to the time the action is commenced may be recovered.
    • If the defendant is simultaneously pursuing a good-faith legal challenge to the PSC order/regulation, penalties incurred during the pendency of that challenge may be remitted by the court.
    • All money recovered, plus costs, must be returned to ratepayers via a direct bill credit as soon as practically feasible or no later than 90 days.
    • The PSC may compromise or discontinue an action with court approval.
    • The PSC may obtain judgment for the full amount or any lesser amount as justice requires.

Section 2 — Amends § 25-a (Subdivision 7) of the Public Service Law (Assessment Recoveries)

  • Provides that any money recovered from assessments under this section, along with costs, must be returned to ratepayers via direct bill credits within 90 days or as soon as feasible.
  • The language replacing prior wording emphasizes the direct return to ratepayers rather than remittance to the general fund or other beneficiaries.

Section 3 — Effective Date

  • The act takes effect 120 days after becoming law.
  • Immediate authority is granted to implement any rule or regulation necessary for the act’s implementation on or before its effective date.

Who/What Is Affected

  • Affected Parties: Public Service Commission actions against utility corporations for violations of PSC orders/regulations, and the ratepayers who will ultimately benefit from prompt bill credits.
  • Beneficiaries: Utility ratepayers who would receive direct bill credits from penalties recovered by the PSC.
  • Administrative Impacts: PSC and related state judiciary processes for enforcing penalties, with a streamlined process for returning funds to ratepayers.

Procedural and Timeline Aspects

  • The bill sets a procedural path for the PSC to sue for penalties and to recover those penalties through court actions.
  • Recovered funds must be credited to ratepayers within 90 days of recovery, or as soon as practically feasible.
  • The bill becomes law 120 days after enactment, with immediate authority to adopt implementing regulations as needed.
  • The Legislative history shows passage in the Senate and referral to the Assembly, with ongoing standard committee processes.

Potential Impact

  • Increased transparency and speed in returning penalties to ratepayers.
  • Stronger incentive for utility companies to comply with PSC orders due to the guaranteed addition of penalties back to ratepayers.
  • Administrative changes to ensure timely issuance of direct bill credits to customers.
  • Minor shift in public fund accounting by removing penalties from the state general fund and prioritizing ratepayer credits.

If you’d like, I can break down potential fiscal implications or compare this to existing NY PSC penalty practices in more detail.

Compiled from official sources — confirm details with the bill’s official record.

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