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Bill

A 11578

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

2025 Regular Session

Reveals past 10-year dividends, investments, expenses, and program spending, plus a dividend forecast to help the PSC judge just and reasonable rate changes.

REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
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Bill Summary · A 11578

Overview

A11578 (2025-2026) from New York seeks to increase transparency in utility rate cases. It would require gas and electric (including combination gas-electric) corporations to disclose detailed historical performance and to provide a dividend forecast when applying for a major rate change. The bill sets out specific data to be included, adds a standardized format for certain expenditures, and gives the Public Service Commission (PSC) new factors to consider when reviewing such rate-change filings. The measure takes effect January 1, 2027 and applies to applications filed on or after that date.

Purpose and intent

  • Enhance accountability in major rate change proceedings by requiring more comprehensive information about a utility’s past financial and operational performance.
  • Provide the PSC with forward-looking and historical data to assess whether requested rate changes are just and reasonable, and whether dividend practices align with maintaining safety, reliability, and energy programs.

Key provisions

  1. Section added to Public Service Law (Subdivision 12, paragraphs (n) and (o)):
    • (n) Past performance disclosure to be included in each major-rate-change filing by a gas, electric, or combined gas-electric utility. Must cover:
      • (i) Dividends paid to shareholders in the previous 10 years (total amounts and payment dates).
      • (ii) Capital investments proposed in past major-rate-change filings versus those actually made in the past 10 years; explanations for deviations, abandonment, or unplanned investments.
      • (iii) Operating expenses for the previous 10 years; explanations for differences between estimated and actual operating expenses.
      • (iv) Programmatic and policy expenditures (state programs, income-based assistance programs, customer service initiatives, and related capital expenditures); explanations for any differences between estimated and actual expenditures. Must be organized in a separate, standardized section of the filing.
    • (o) Dividend forecast and evaluation:
      • (i) Require a dividend forecast covering the requested rate period. (ii) PSC must consider these disclosures when evaluating the file, including comparisons to previous submissions and evidence of patterns of deviation. (iii) If the disclosures show dividends were increased within the four years prior to the current filing, the utility must provide a detailed explanation of why dividends increased and whether energy affordability, safety, reliability, and related programs could have been maintained without reducing those dividends.
      • If the PSC finds dividend increases were excessive relative to the minimum needed for a just and reasonable return, and the utility remains financially stable, there is a rebuttable presumption that the utility can maintain similar operating, capital, and programmatic expenditures without exceeding the proposed budget.

Who is affected

  • Gas and electric corporations in New York, including those that operate as combination gas-and-electric utilities, filing major rate-change requests with the PSC.

Timelines and process

  • Effective date: January 1, 2027.
  • Application timing: Applies to major-rate-change applications filed on or after January 1, 2027.
  • Filing requirements: Each eligible rate-change filing must include the new past-performance disclosures (ten-year window) and a dividend forecast for the rate-change period, along with a standardized presentation for programmatic and policy expenditures.

Potential impacts

  • Greater transparency for ratepayers and the PSC regarding dividend practices, capital investments, and programmatic spending.
  • PSC guidance to weigh historical performance against requested rate changes, potentially influencing approved rates, required conditions, or modifications to filings.
  • Possible behavioral effects on utilities’ dividend policies and investment planning due to the explicit linkage between past performance and rate-change approval considerations.
  • Administrative burden increased for utilities due to additional disclosure requirements and the need to present standardized, formatted data.

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

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