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Bill

S 9433

Relates to requiring gas and electric corporations to disclose certain information with an application for a major rate change

2025 Regular Session Introduced by Kevin Parker and 1 co-sponsor

The bill requires major rate-change filings to disclose a decade of dividends, investments, expenses, and programmatic costs to help the PSC judge if proposed rates match past perf

REFERRED TO ENERGY
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Bill Summary · S 9433

Summary of Bill S. 9433-B (2025-2026 Session, New York)

Main purpose and intent

  • The bill amends the Public Service Law to require gas, electric, and combination gas-electric corporations to disclose additional information in filings for major rate changes.
  • The overarching goal is to enhance transparency and enable the New York Public Service Commission (PSC) to assess whether requested rate changes are consistent with historical performance, capital investments, expenses, and policy expenditures, including the impact on energy affordability and program funding.

Key provisions and changes

  1. Past performance disclosure (new Subdivision 12, paragraphs n)

    • For every major rate change application, the PSC must require:
      • (i) Dividends: detailed information on all dividends paid to shareholders in the previous ten years, including total amounts and payment dates.
      • (ii) Capital investments: capital investments the applicant indicated it would make in prior major rate filings versus what was actually invested, with explanations for any deviations (planned investments not made or abandoned, and unplanned investments made).
      • (iii) Operating expenses: operating expenses for the previous ten years, with explanations for differences between estimated and actual expenses in prior filings.
      • (iv) Programmatic and policy expenditures: details on required state programs, income-based assistance programs identified by the PSC, customer service initiatives, and related capital expenditures for the previous ten years, including explanations for any differences between estimated and actual programmatic/policy expenses.
    • The applicant must present programmatic and policy expenditures in a separate, clearly formatted part of the filing using a standardized format prescribed by the PSC.

  2. Dividend forecast and impact analysis (new Subdivision 12, paragraph o)

    • (i) Applicants must include a dividend forecast covering the requested rate period.
    • (ii) The PSC will consider the disclosures in evaluating the rate filing, including:
      • Whether performance information is comparable to prior submissions.
      • Whether there is a pattern of deviation from investments, expenses, and other spending alleged in prior applications.
    • (iii) If the disclosures show that dividends were increased within the four years prior to the current application, the applicant must provide a detailed explanation of the reasons for the increase and whether energy safety, reliability, affordability programs, energy efficiency programs, and cost-effective electrification upgrades could have continued at prior dividend levels.
      • The PSC must determine whether the dividend increase exceeded the minimum amount necessary to support a just and reasonable rate of return.
      • If the PSC finds the dividend increase was excessive and the applicant remains financially stable at a level similar to or better than when the dividend increase occurred, there is a rebuttable presumption that the applicant can maintain operating expenses, capital expenditures, and programmatic/policy expenditures without increasing beyond the budget-constrained proposal and without compromising safety, reliability, or affordability programs.

Who is affected

  • Gas corporations, electric corporations, and combination gas-electric corporations subject to major rate change proceedings in New York.
  • The PSC staff and potential ratepayers who rely on the transparency of rate-change filings to evaluate proposed rates and associated spending.

Timing and procedural aspects

  • Effective date: January 1, 2027.
  • Application scope: Applies to all major rate change filings submitted on or after the effective date.
  • Legislative status: Passed the Senate on June 3, 2026; currently referred to the Assembly and assigned to the Energy Committee (as of the action history provided).

Practical impact and implications

  • Increases transparency: Filings must include a decade-long view of dividends, past investments, operating costs, and programmatic expenditures, plus a standardized section for programmatic/policy spending.
  • More rigorous scrutiny: The PSC will use these disclosures to assess whether rate requests align with historical performance and whether dividend policies have affected the company’s ability to fund safety, reliability, and affordability programs.
  • Potential rate and policy considerations: If dividend increases are deemed excessive or not adequately justified, the PSC could influence the approved rate changes or impose conditions to preserve essential programs.

This summary presents the bill’s core structure and anticipated effects based on the text provided.

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

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