N.Y. Public Service Law § 66: General powers of commission in respect to gas and electricity

§ 66. General powers of commission in respect to gas and electricity.

The commission shall:

1. Have general supervision of all gas corporations and electric

corporations having authority under any general or special law or under

any charter or franchise to lay down, erect or maintain wires, pipes,

conduits, ducts or other fixtures in, over or under the streets,

highways and public places of any municipality for the purpose of

furnishing or distributing gas or of furnishing or transmitting

electricity for light, heat or power, or maintaining underground

conduits or ducts for electrical conductors, and all gas plants and

electric plants owned, leased or operated by any gas corporation or

electric corporation.

1-a. Review the annual capital expenditure of each combination gas and

electric corporation and may order such improvement in the manufacture,

conveying, transportation, distribution or supply of gas, in the

manufacture, transmission or supply of electricity, or in the methods

employed by such corporation as in the commission's judgment is

adequate, just and reasonable.

2. Investigate and ascertain, from time to time, the quality of gas

supplied by persons, corporations and municipalities; examine or

investigate the methods employed by such persons, corporations and

municipalities in manufacturing, distributing and supplying gas or

electricity for light, heat or power and in transmitting the same, and

have power to order such reasonable improvements as will best promote

the public interest, preserve the public health and protect those using

such gas or electricity and those employed in the manufacture and

distribution thereof, and have power to order reasonable improvements

and extensions of the works, wires, poles, lines, conduits, ducts and

other reasonable devices, apparatus and property of gas corporations,

electric corporations and municipalities; and have power after an

investigation and a hearing to order any corporation having authority

under any general or special law or under any charter or franchise, to

lay down, erect or maintain wires, pipes, conduits, ducts or other

fixtures in, over or under the streets, highways and public places of

any municipality for the purpose of supplying, selling or distributing

natural gas, to augment its supply of natural gas, whenever the

commission deems necessary and whenever artificial gas can be reasonably

obtained, by acquiring by purchase, manufacture or otherwise a supply

thereof to be mixed with such natural gas, in order to render adequate

service to the customers of such corporation or to maintain a proper and

uniform pressure; and have power after an investigation and a hearing to

order any corporation having authority under any general or special law

or under any charter or franchise, to lay down, erect or maintain wires,

pipes, conduits, ducts or other fixtures in, over or under the streets,

highways and public places of any municipality for the purpose of

supplying, selling or distributing artificial gas, to augment its supply

of artificial gas, whenever the commission deems necessary and whenever

natural gas can be reasonably obtained, by acquiring by purchase or

otherwise a supply thereof to be mixed with such artificial gas, in

order to render adequate service to the customers of such corporation or

to maintain a proper and uniform pressure; and to fix such rate for the

supplying of mixed gas as shall secure to such corporation a fair

return; and may order the curtailment or discontinuance of the use of

natural gas for manufacturing or industrial purposes, for periods

aggregating not to exceed four months in any calendar year, if it is

established to the satisfaction of the commission that the supply of

natural gas is not adequate to meet the reasonable demands of domestic

consumption and may prohibit the use of natural gas in wasteful devices

and practices.

2-a. Have power, after an investigation and hearing held on notice and

upon a finding that as a result of a shortage of gas a public emergency

exists, to determine whether any gas corporation has available, or may

be made available by the operation of its facilities, gas in excess of

an amount necessary to supply its consumers for purposes for which gas

may properly be used during such emergency. Upon the making of such a

determination it shall have power to order such a gas corporation to

transfer and make available to any other gas corporation where a

shortage of gas exists, for the duration of the emergency, any or all of

such excess gas for which the transferring company shall receive just

compensation. Such order may require the installation and operation of

all necessary connections and facilities at the expense of the

purchasing gas corporation and require the selling and purchasing gas

corporation to adopt appropriate regulations and practices to carry out

the transfer of gas as ordered.

3. Have power by order to fix and change from time to time standards

of the purity, illuminating power and heating power, and standards for

the measurement thereof, of gas to be manufactured, distributed or sold

by persons, corporations or municipalities for lighting, heating or

power purposes, notwithstanding that other standards of the purity,

illuminating power and heating power of gas and standards for the

measurement thereof, may have been fixed by general or special statute

and to prescribe from time to time the efficiency of the electric supply

system, of the current supplied and of the lamps furnished by the

persons, corporations or municipalities generating and selling electric

current, and by order to require the gas so manufactured, distributed or

sold to equal the standards so fixed by it, and to prescribe from time

to time the reasonable minimum and maximum pressure at which gas shall

be delivered by said persons, corporations or municipalities. For the

purpose of determining whether the gas manufactured, distributed or sold

by such persons, corporations or municipalities for lighting, heating or

power purposes conforms to the standards of illuminating power, heating

power, purity and pressure, and for the purpose of determining whether

the efficiency of the electric supply system, of the current supplied

and of the lamps furnished conforms to the orders issued by the

commission, the commission shall have power of its own motion, to

examine and investigate the plants and methods employed in

manufacturing, delivering and supplying gas or electricity, and shall

have access through its members or persons employed and authorized by it

to make such examinations and investigations to all parts of the

manufacturing plants owned, used or operated by the manufacture,

transmission or distribution of gas or electricity by any such person,

corporation or municipality.

4. Have power, in its discretion, to prescribe uniform methods of

keeping accounts, records and books, to be observed by gas corporations

and electric corporations and by municipalities engaged in the

manufacture, sale and distribution of gas and electricity for light,

heat or power. It may also in its discretion prescribe, by order, forms

of accounts, records and memoranda to be kept by such persons,

corporations and municipalities. Notice of alterations by the commission

in the required method or form of keeping a system of accounts shall be

given to such persons or corporations by the commission at least six

months before the same shall take effect. Any other and additional forms

of accounts, records and memoranda kept by such corporations shall be

subject to examination by the commission.

5. Examine all persons, corporations and municipalities under its

supervision and keep informed as to the methods, practices, regulations

and property employed by them in the transaction of their business.

Whenever the commission shall be of opinion, after a hearing had upon

its own motion or upon complaint, that the rates, charges or

classifications or the acts or regulations of any such person,

corporation or municipality are unjust, unreasonable, unjustly

discriminatory or unduly preferential or in anywise in violation of any

provision of law, the commission shall determine and prescribe in the

manner provided by and subject to the provisions of section seventy-two

of this chapter the just and reasonable rates, charges and

classifications thereafter to be in force for the service to be

furnished notwithstanding that a higher or lower rate or charge has

heretofore been prescribed by general or special statute, contract,

grant, franchise condition, consent or other agreement, and the just and

reasonable acts and regulations to be done and observed; and whenever

the commission shall be of opinion, after a hearing had upon its own

motion or upon complaint, that the property, equipment or appliances of

any such person, corporation or municipality are unsafe, inefficient or

inadequate, the commission shall determine and prescribe the safe,

efficient and adequate property, equipment and appliances thereafter to

be used, maintained and operated for the security and accommodation of

the public and in compliance with the provisions of law and of their

franchises and charters.

6. Require every person and corporation under its supervision and it

shall be the duty of every such person and corporation to file with the

commission an annual report, verified by the oath of the president,

vice-president, treasurer, secretary, general manager, or receiver, if

any, thereof, or by the person required to file the same. The

verification shall be made by said official holding office at the time

of the filing of said report, and if not made upon the knowledge of the

person verifying the same shall set forth the sources of his information

and the grounds of his belief as to any matters not stated to be

verified upon his knowledge. The report shall show in detail (a) the

amount of its authorized capital stock and the amount thereof issued and

outstanding; (b) the amount of its authorized bonded indebtedness and

the amount of its bonds and other forms of evidence of indebtedness

issued and outstanding; (c) its receipts and expenditures during the

preceding year; (d) the amount paid as dividends upon its stock and as

interest upon its bonds; (e) the names of its officers and the aggregate

amount paid as salaries to them and the amount paid as wages to its

employees; (f) the location of its plant or plants and system, with a

full description of its property and franchises, stating in detail how

each franchise stated to be owned was acquired; and (g) such other facts

pertaining to the operation and maintenance of the plant and system, and

the affairs of such person or corporation as may be required by the

commission. Such reports shall be in the form, cover the period and be

filed at the time prescribed by the commission. The commission may, from

time to time, make changes and additions in such forms. When any such

report is defective or believed to be erroneous, the commission shall

notify the person, corporation or municipality making such report to

amend the same within a time prescribed by the commission. Any such

person or corporation or municipality which shall neglect to make any

such report or which shall fail to correct any such report within the

time prescribed by the commission shall be liable to a penalty of one

hundred dollars and an additional penalty of one hundred dollars for

each day after the prescribed time for which it shall neglect to file or

correct the same, to be sued for in the name of the people of the state

of New York. The amount recovered in any such action shall be paid into

the state treasury and be credited to the general fund. The commission

may extend the time prescribed for cause shown.

7. Require each municipality engaged in operating any works or systems

for the manufacture and supplying of gas or electricity to make an

annual report to the commission, verified by the oath of the general

manager or superintendent thereof, showing in detail, (a) the amount of

its authorized bonded indebtedness and the amount of its bonds and other

forms of evidence of indebtedness issued and outstanding for lighting

purposes; (b) its receipts and expenditures during the preceding year;

(c) the amount paid as interest upon its bonds and upon other forms of

evidence of indebtedness; (d) the name of and the amount paid to each

person receiving a yearly or monthly salary, and the amount paid as

wages to employees; (e) the location of its plant and system with a full

description of the property; and (f) such other facts pertaining to the

operation and maintenance of the plant and system as may be required by

the commission. Such report shall be in the form, cover the period and

be filed at the time prescribed by the commission.

8. Have power, either through its members or inspectors or employees

duly authorized by it, to enter in or upon and to inspect the property,

buildings, plants, factories, power houses, ducts, conduits and offices

of any of such corporations, persons or municipalities.

9. Have power to examine the accounts, books, contracts, records,

documents and papers of any such corporation, person or municipality,

and have power, after hearing, to prescribe by order the accounts in

which particular outlays and receipts shall be entered, charged or

credited. At any such hearing the burden of proof shall be on the

person, corporation or municipality to establish the correctness of the

accounts in which such outlays and receipts have been entered, and the

commission may suspend a charge or credit pending submission of proof by

such person, corporation or municipality.

10. Have power to compel, by subpoena duces tecum, the production of

any accounts, books, contracts, records, documents, memoranda and

papers. In lieu of requiring production of originals by subpoena duces

tecum the commission or any commissioner may require sworn copies of any

such books, records, contracts, documents and papers, or parts thereof,

to be filed with it. The commission may require of all such

corporations, persons or municipalities, specific answers to questions

upon which the commission may need information, and may also require

such corporations, persons or municipalities to file periodic reports in

the form, covering the period and filed at the time prescribed by the

commission. If such corporation, person or municipality shall fail to

make specific answer to any question or shall fail to make a periodic

report when required by the commission as herein provided within the

time and in the form prescribed by the commission for the making and

filing of any such report or answer, such corporation, person or the

officer of the municipality shall forfeit to the state the sum of one

hundred dollars for each and every day it shall continue to be in

default with respect to such report or answer. Such forfeiture shall be

recovered in an action brought by the commission in the name of the

people of the state of New York. The amount recovered in any such action

shall be paid into the state treasury and be credited to the general

fund.

11. Have power in all parts of the state, either as a commission or

through its members, or through an officer or employee specially

authorized to conduct an investigation or hearing to subpoena witnesses,

take testimony and administer oaths to witnesses in any proceeding or

examination instituted before it, or conducted by it in reference to any

matter within its jurisdiction under this article.

12. (a) Have power to require every gas corporation, electric

corporation and municipality hereinafter in this subdivision called a

utility to file with the commission and to print and keep open to public

inspection schedules showing all rates and charges made, established or

enforced or to be charged or enforced, all forms of contract or

agreement and all rules and regulations relating to rates, charges or

service used or to be used, and all general privileges and facilities

granted or allowed by such utility; but this subdivision shall not apply

to state, municipal or federal contracts, except to the extent such

contracts relate to transportation of electricity.

(b) No change shall be made in any rate or charge, or in any form of

contract or agreement or any rule or regulation relating to any rate,

charge or service, or in any general privilege or facility, which shall

have been filed by a utility in compliance with an order of the

commission, except after thirty days' notice to the commission and to

each county, city, town and village served by such utility which had

filed with such utility, within the prior twelve months, a request for

such notice and which shall be affected by such change and publication

of a notice to the public of such proposed change once in each week for

four successive weeks in a newspaper having general circulation in each

county containing territory affected by the proposed change, which

notice shall plainly state the changes proposed and when the change will

go into effect. The commission for good cause shown may, except in the

case of major changes, allow changes to take effect prior to the end of

such thirty-day period and without publication of notice to the public

under such conditions as it may prescribe. The commission may delegate

to the secretary of the commission its authority to approve a change to

a schedule postponing the effective date of such schedule previously

filed with the commission and to allow for good cause shown the

postponement to take effect prior to the end of such thirty-day period

and without publication of notice to the public.

(c) For the purpose of this subdivision, "major changes" shall mean an

increase in the rates and charges which would increase the aggregate

revenues of the applicant more than the greater of three hundred

thousand dollars or two and one-half percent, but shall not include

changes in rates, charges or rentals (i) allowed to go into effect by

the commission or made by the utility pursuant to an order of the

commission after hearings held upon notice to the public, or (ii)

proposed by a municipality.

(d) No utility shall charge, demand, collect or receive a greater or

less or different compensation for any service rendered or to be

rendered than the rates and charges specified in its schedule filed and

in effect; nor shall any utility refund or remit in any manner or by any

device any portion of the rates or charges so specified, nor extend to

any person any form of contract or agreement, or any rule or regulation,

or any privilege or facility, except such as are regularly and uniformly

extended to all persons under like circumstances.

(e) The commission shall have power to prescribe the form of every

such schedule, and from time to time prescribe by order such changes in

the form thereof as may be deemed wise. The commission shall also have

power to establish such rules and regulations to carry into effect this

subdivision as it may deem necessary, and to modify or amend such rules

or regulations from time to time. Nothing in this chapter shall be taken

to prohibit a utility from establishing sliding scale upward rates,

beginning at a fixed price per unit for a small consumption and then

increasing the price per unit as the consumption is increased.

(f) (i) Whenever there shall be filed with the commission by any

utility any schedule stating a new rate or charge, or any change in any

form of contract or agreement or any rule or regulation relating to any

rate, charge or service, or in any general privilege or facility, the

commission may, at any time within sixty days from the date when such

schedule would or has become effective, either upon complaint or upon

its own initiative, and, if it so orders, without answer or other formal

pleading by the utility, but upon reasonable notice, hold a hearing

concerning the propriety of a change proposed by the filing. If such

change is a major change, the commission shall hold such a hearing.

Pending such hearing and decision thereon, the commission, upon filing

with such schedule and delivering to the utility, a statement in writing

of its reasons therefor, may suspend the operation of such schedule, but

not for a longer period than fourteen months beyond the time when it

would otherwise go into effect. After full hearing, whether completed

before or after the schedule goes into effect, the commission may make

such order in reference thereto as would be proper in a proceeding begun

after the rate, charge, form of contract or agreement, rule, regulation,

service, general privilege or facility had become effective.

(ii) The commission is authorized to approve, and any hearing

involving a major change in rates for a gas corporation, electric

corporation, or combination gas and electric corporation may consider,

whether as a result of litigation or settlement negotiations, multi-year

changes in rates or charges, in addition to the utility's filing. Any

such additional multi-year rates or charges which result from a

litigated process are authorized to be implemented in a similar manner

to those resulting from settlement negotiations. The commission shall,

in each order approving a major change in rates for such corporation,

explain how the information in the record that it received from such

corporation and the parties impacted its determination to approve a

major change in rates consistent with the public interest either as a

result of litigation or from a settlement, and include a written summary

of the commission's rationale.

(g) The commission shall review all filings to determine if they are

in compliance with section seventy-two-a of this article. The commission

shall have the power to hold public hearings concerning the propriety of

any increased rate or charge for fuel costs. At any hearing involving

such an increase, the burden of proof as to the correctness and

reasonableness of the charge shall be upon the utility.

(h) The commission may, as authorized by section seventy-two of this

article, establish temporary rates or charges for any period of

suspension under this section.

(i) At any hearing involving a rate, the burden of proof to show that

the change or proposed change if proposed by the utility, or that the

existing rate, if it is proposed to reduce the rate, is just and

reasonable shall be upon the utility; and the commission may give to the

hearing and decision of such questions preference over all other

questions pending before it.

(j) The schedule, rates, charges, form of contract or agreement, rule,

regulation, service, general privilege or facility in force when the new

schedule, rate, charge, form of contract, rule, regulation, service,

general privilege or facility was filed shall continue in force during

the period of the suspension unless the commission shall establish a

temporary rate or charge as authorized by section seventy-two of this

article. Provided, however, that whenever the commission shall deny a

request by a utility for a major change in rates or charges, the

schedule, rate, charge, form of contract or agreement, rule, regulation,

general privilege, facility, or service immediately in effect prior to

such request being filed shall remain in full force and effect until

such time as the commission approves a new schedule of rates or charges,

unless the commission established a temporary rate or charge as

authorized by section seventy-two of this article.

(k) In any case in which the commission determines that the whole or

any part of any increased rate or charge imposed by a utility pursuant

to any automatic adjustment, including but not limited to any fuel

adjustment, was not just and reasonable, because of a lack of reasonable

care on the part of the utility in providing gas or electric service,

the commission may order the utility to refund, with interest, any

moneys collected by the utility pursuant to such whole or part of such

increased rate or charge. In determining whether a utility exercised

reasonable care in providing gas or electric service, the commission

shall take into account the public health and safety consequences, and

the economic consequences to ratepayers, of the utility's actions.

(l) (i) The commission shall, within ten days of the commencement of

any matter involving a major change in a rate for electric or gas

service, publish, in a readily accessible location on the department's

website, a summary in plain language, not to exceed one page or five

hundred words, to the extent such information is available, containing

the following:

(A) the proposed rate term;

(B) the total proposed rate change, in both percentage change from

prior rate year and absolute requested tariff value, including yearly or

sliding scale breakdown if applicable;

(C) the average proposed rate change for a residential, commercial,

and industrial ratepayer, including yearly or sliding scale breakdown if

applicable;

(D) an explanation of why the rate changes are requested and a summary

of how the proposed revenue will be spent;

(E) the proposed return on equity in both percentage and absolute

value over the total rate term;

(F) an estimated timeline of relevant hearings, comment periods, and

deadlines;

(G) an explanation of how to submit public comment; and

(H) any other information the commission finds relevant.

(ii) The commission shall, within ten days of the issuance of an order

adopting a rate change for electric or gas service or a tariff relating

to a major change in a rate for electric or gas service, publish, in a

readily accessible location on the department's website, a summary, not

to exceed one page or five hundred words, containing the following:

(A) the rate term;

(B) the total rate change, in both percentage change from prior rate

year and absolute tariff value, including yearly or sliding scale

breakdown if applicable;

(C) a comparison of the initial proposed rate change and absolute

tariff value and the final approved rate and tariff value;

(D) the average rate change for a residential, commercial, and

industrial ratepayer, including yearly or sliding scale breakdown if

applicable;

(E) a summary of how the revenue will be spent;

(F) the authorized return on equity in both percentage and absolute

value over the total rate term;

(G) a summary of other proposals relevant to ratepayers such as

earnings adjustment mechanisms, excess revenue allocation, performance

metrics, affordability programs, and additional fees; and

(H) any other information the commission finds relevant.

(iii) In addition to the requirements of paragraph (b) of this

subdivision, the commission shall send such summaries to members of the

legislature who represent any portion of the territory impacted by the

proposed change as well as newspapers having general circulation in each

county containing the territory affected by the proposed change.

* (m) As a separate and distinct part of any filing by a utility

proposing a major change in rates, the utility must provide a

description of any proposed capital expenditure, on a per project basis,

including but not limited to, the: (i) purpose of and the need for each

of the proposed capital expenditures, (ii) total cost, (iii) expected

period of usefulness, (iv) location in the service territory, (v)

rationale for inclusion in the proceeding, and (vi) anticipated benefits

to ratepayers and the operation of the distribution system. Such

descriptions of capital expenditures, on a per project basis, shall be

posted on the commission's website. Pursuant to paragraph (i) of this

subdivision, the burden of proof to show that a change in rates related

to each capital expenditure is just and reasonable shall be on the

utility.

* NB Effective until January 1, 2027

* (m) As a separate and distinct part of any filing by a utility

proposing a major change in rates, the utility must provide a

description of any proposed capital expenditure, on a per project basis,

including but not limited to, the: (i) purpose of and the need for each

of the proposed capital expenditures, and if it advances state policy

objectives, (ii) total cost, (iii) expected period of usefulness, (iv)

location in the service territory, (v) rationale for inclusion in the

proceeding, (vi) if there was consideration of non-wire or non-pipe

alternatives prior to inclusion of traditional capital investments in

distribution infrastructure, and (vii) anticipated benefits to

ratepayers and the operation of the distribution system, including, but

not limited to, through avoided energy demand, transmission and

distribution upgrades, or energy efficiency measures. Such descriptions

of capital expenditures, on a per project basis, shall be posted on the

commission's website. When reviewing each capital expenditure the

commission shall consider whether the utility has satisfied the burden

of proof to show that a change in rates related to each capital

expenditure is just and reasonable.

* NB Effective January 1, 2027

* (n) (i) The commission shall require each filing for a major change

in rates made by a gas corporation, an electric corporation, or a

combination gas and electric corporation, to include an executive

compensation disclosure. Such executive compensation disclosure shall

include: (A) the median of the annual total compensation of all

employees of the gas corporation or electric corporation, except for

senior management positions; (B) the annual total compensation of the

chief executive officer; (C) the annual total compensation for each

other senior management position; and (D) the ratio of the amount

described in clause (A) of this subparagraph to the amount described in

clause (B) of this subparagraph.

(ii) The commission shall develop performance-based targets that tie

compensation for the chief executive officer and other senior management

positions and ratepayer-funded incentive compensation programs to the

energy affordability index developed pursuant to section sixty-six-x of

this article and shall consider adjustments to the corporation's return

on equity based on such metric. Such adjustments shall not be based on

factors which the corporation does not control, including, but not

limited to, commodity supply prices.

(iii) For purposes of this paragraph, "senior management positions"

shall include a chief executive officer, chief operations officer, chief

financial officer, chief information officer, chief information

technology officer, officer responsible for regulatory affairs, general

counsel, and any other positions considered to be senior management by

the corporation.

* NB Effective January 1, 2027

* (o) (i) The commission shall require each filing for a major change

in rates made by a gas corporation, electric corporation, or combination

gas and electric corporation, to include, in addition to the

corporation's recommended proposal, a budget constrained proposal that

separately addresses operating expenses, capital expenditures,

programmatic or policy expenditures, commodity supply costs, taxes, and

other costs not within the control of the corporation. Such budget

constrained proposal shall not increase the applicant's aggregate

revenues by more than the average of the annual consumer price index

increases over the prior three years.

(ii) In each filing for a major change in rates, the corporation shall

demonstrate how any increase in its aggregate revenues by more than the

increase set forth in the budget constrained proposal is necessary to

ensure safety, reliability, or the continuation of energy affordability

programs, energy efficiency programs, or cost-effective electrification

upgrades. If the commission finds that the corporation has made such a

demonstration, the commission must provide a detailed explanation as to

why an increase of more than the budget constrained proposal was

necessary in its order adopting the new schedule of rates and charges.

The commission, in making its determination, shall consider the

disclosures required pursuant to paragraph (n) of this subdivision, the

descriptions and considerations required by paragraph (m) of this

subdivision, and the affordability index provided by the applicant

pursuant to section sixty-six-x of this article.

(iii) The commission shall require the corporation to track

expenditures and outcomes and explain material deviations from the

approved schedule of rates and charges no less frequently than on an

annual basis.

* NB Effective January 1, 2027

* (p) (i) The commission is authorized and directed to, within two

hundred seventy days of the effective date of this paragraph, establish

rules to limit a utility's ability to recover its direct or indirect

costs associated with its attendance in, participation in, preparation

for, or appeal of any rate proceeding conducted before the commission.

Such costs may include, but need not be limited to, attorneys' fees,

fees to engage expert witnesses or consultants, the portion of employee

salaries associated with such attendance, participation, preparation or

appeal of a rate proceeding and related costs identified by the

commission.

(ii) In establishing such rules the commission may consider: (A)

setting an overall percentage of the utility's expenses in a rate case

that are not recoverable; (B) setting a baseline of the reasonable cost

of participation in a rate case; (C) establishing discovery parameters

and what information in a proceeding must be promptly and

comprehensively disclosed by the utility to interveners and to the

commission to reduce time and costs associated with a lengthy discovery

process; and (D) any other method that the commission determines will

accelerate the delivery of such utility information, reduce such costs,

and limit recovery of such costs to an amount that is reasonable and

prudent.

* NB Effective January 1, 2027

* (q) The commission shall require each filing involving a major

change in rates filed by a gas corporation, electric corporation, or

combination gas and electric corporation to include an affordability

index that shows the energy burden of such corporation's residential

customers at the time of the corporation's filing and what the energy

burden would be following the corporation's filed change in rates, as

calculated using the methodology adopted by the commission pursuant to

section sixty-six-x of this article.

(i) The corporation shall additionally include within such filing

potential solutions to assist energy burdened customers.

(ii) All information pertaining to the requirements set forth in this

paragraph shall be publicly available on the commission's website,

except in cases where such public availability and posting would result

in disclosure of confidential information, such confidential information

shall be excluded or anonymized.

* NB Effective January 1, 2027

12-a. Have power to fix and alter the format and informational

requirements of bills utilized by public and private gas corporations,

electric corporations and gas and electric corporations in levying

charges for service, to assure simplicity and clarity and to require

indication of any adjustment charges, including but not limited to fuel

adjustments, in monetary amounts. The commission shall further ensure

periodic explanation of applicable rates and rate schedules for the

purpose of assisting customers in making the most efficient use of

energy.

12-b. (a) In consultation with the commissioner of the department of

commerce have power 1. to designate as economic incentive areas specific

areas in which reduced economic activity, unemployment and

underutilization of utility facilities justifies the approval of reduced

incentive rates for utility services, and to promulgate criteria for

identifying such areas and customers eligible for such rates. Upon

application of a utility corporation the commission shall authorize

special economic incentive rates in such areas to such customers and for

such periods of time as the commission finds will best effectuate the

purposes of this subdivision. The commission may also provide for the

gradual elimination of the rate reduction authorized, and for the

elimination of such reduction, if any conditions imposed by the

commission are not met. 2. to designate or form classes of customers as

appropriate for special rates or tariffs, in order to prevent loss of

such customers, or to attract new customers where necessary to maintain

economic use of utility facilities.

Any such special rate or tariff shall be so designed as to recover the

incremental cost of providing service to such customers and to

contribute to the common costs which otherwise would be borne by other

customers.

(b) The commission may also authorize utility corporations to contract

with existing or prospective industrial and commercial customers to

wheel or deliver electricity or gas purchased directly by such

customers, provided that the commission finds that such arrangements are

in the overall best interest of the rate payers of the corporation, and

that the rates and fees for the services provided adequately compensate

the corporation for the use of its facilities.

12-c. Notwithstanding any other provision of law, upon application of

a gas or electric corporation, the commission shall authorize such

corporation to charge a special empire zone rate equal to the

incremental cost of providing service to customers certified as eligible

for such rate pursuant to article eighteen-B of the general municipal

law.

12-d. Notwithstanding any other provision of law, upon application of

a gas or electric corporation, the commission shall authorize such

corporation to charge a special excelsior jobs program rate equal to the

incremental cost of providing service to participants in the excelsior

jobs program as defined in article seventeen of the economic development

law.

13. In case any electric corporation or gas corporation is engaged in

carrying on any business other than owning, operating or managing a gas

plant or an electric plant, which other business is not otherwise

subject to the jurisdiction of the commission, and is so conducted that

its operations are to be substantially kept separate and apart from the

owning, operating, managing or controlling of such gas plant or electric

plant, said corporation in respect of such other business shall not be

subject to any of the provisions of this chapter and shall not be

required to procure the assent or authorization of the commission to any

act in such other business or to make any report in respect thereof. But

this subdivision shall not restrict or limit the powers of the

commission in respect to the owning, operating, managing or controlling

by such corporation of such gas plant or electric plant, and said powers

shall include also the right to inquire as to, and prescribe the

apportionment of, capitalization, earnings, debts and expenses fairly

and justly to be awarded to or borne by the ownership, operation,

management or control of such gas plant or electric plant as

distinguished from such other business. In any such case if the owning,

operating, managing or controlling of such gas plant or electric plant

by any such corporation is wholly subsidiary and incidental to the other

business carried on by it and is inconsiderable in amount and not

general in its character, the commission may by general rules exempt

such corporation from making full reports and from the keeping of

accounts as to such subsidiary and incidental business. Where the

permission granted such corporation pursuant to section sixty-eight is

to supply gas only to less than twenty customers specified by the

commission, the commission may, if the public interest permits, exempt

such corporation from compliance with all or any of the provisions of

this article except those affecting matters of public safety and the

provisions of sections sixty-five, sixty-eight and seventy-four.

14. The commission shall have power to require each gas corporation

and electric corporation to establish classifications of service based

upon the quantity used, the time when used, the purpose for which used,

the duration of use and upon any other reasonable consideration, and to

establish in connection therewith just and reasonable graduated rates

and charges; and it shall have power, either upon complaint or upon its

own motion, to require such changes in such classifications, rates and

charges as it shall determine to be just and reasonable. Neither the

scheduled rates nor the minimum charge for residential customers shall,

after July first, nineteen hundred thirty-seven, be based in any manner

on the number of outlets, number of rooms, cubic or square foot area or

other such standards.

15. Receive, and any gas corporation may at any time submit to the

commission for its approval, one or more contracts proposed to be made

by it for the purchase from the producer of by-product gas, to be used

in its service to its consumers, in which said proposed contract the

price of gas shall be based on the then market price of coal, and to

vary therewith whenever the market price of coal shall vary to the

extent of ten per centum for a period of not less than thirty days, and

which said contract shall state the efficiency of said gas, and upon the

approval of said contract by the commission, or said contract as the

same may be amended, altered or changed, and upon the application of

said gas corporation, the commission shall make an order fixing the rate

or rates to be charged to consumers for the service of such gas, which

said rate shall thereafter remain unchanged during the term of said

contract in so far as said rate shall be based on the cost of gas to

said corporation, except as such cost shall vary with the variations in

the price of coal as in said contract provided. The commission shall

have like powers and duties with reference to existing contracts made

prior to January first, nineteen hundred and twenty-two, by a gas

corporation for a supply of by-product gas where the price of gas varies

as the price of coal varies. By-product, as used in this section, is

defined to mean one of the several products obtained by treatment of

coal by some process other than the customary distillation in retorts.

16. The commission shall have power after a hearing on its own motion,

upon complaint or upon the application of a gas corporation or electric

corporation to prescribe rates and charges for gas, electricity or other

service rendered or to be rendered, embodying the automatic adjustment

of such rates and charges, over a fixed period not exceeding four years,

based on the relation between the net income from such rates and charges

available for return and the fair value of the property of the

corporation used and useful in said service; but nothing in this

subdivision shall operate to prevent the commission after the expiration

of such fixed period from fixing proper, just and reasonable rates and

charges to be made for gas, electricity or service as authorized in this

article.

17. Notwithstanding the provisions of this article, any gas

corporation which transports natural gas through the state of New York

but which does not deliver, sell or furnish any such gas to any person

or corporation within the state of New York, shall be subject to

regulation by the commission only insofar as the construction and

operation of such facilities shall affect matters of public safety.

19. (a) The commission shall have power to provide for management and

operations audits of gas corporations and electric corporations. Such

audits shall be performed at least once every five years for combination

gas and electric corporations, as well as for straight gas corporations

having annual gross revenues in excess of two hundred million dollars.

The audit shall include, but not be limited to, an investigation of the

company's construction program planning in relation to the needs of its

customers for reliable service, an evaluation of the efficiency of the

company's operations, an evaluation of customer privacy protections,

including but not limited to customer electrical and gas consumption

data, and protection of critical energy infrastructure as defined in

subdivision fourteen of section 1-103 of the energy law, recommendations

with respect to same, and the timing with respect to the implementation

of such recommendations. The commission shall have discretion to have

such audits performed by its staff, or by independent auditors.

In every case in which the commission chooses to have the audit

provided for in this subdivision or pursuant to subdivision fourteen of

section sixty-five of this article performed by independent auditors, it

shall have authority to select the auditors, and to require the company

being audited to enter into a contract with the auditors providing for

their payment by the company. Such contract shall provide further that

the auditors shall work for and under the direction of the commission

according to such terms as the commission may determine are necessary

and reasonable.

(b) Each corporation subject to an audit under this subdivision shall

file a report with the commission within thirty days after issuance of

such audit detailing its plan to implement the recommendations made in

the audit. After review of such plan, the commission may require each

combined electric and gas corporation amend its plan in a particular

manner. Such plan shall thereafter become enforceable upon approval by

the commission. The commission shall have power to commence a proceeding

to examine any such corporation's compliance with the recommendations of

such audit.

(c) Upon the application of a gas or electric corporation for a major

change in rates as defined in subdivision twelve of this section, the

commission shall review that corporation's compliance with the

directions and recommendations made previously by the commission, as a

result of the most recently completed management and operations audit.

The commission shall incorporate the findings of such review in its

opinion or order, and such findings shall be enforceable by the

commission.

(d) The commission shall have the power to provide for an annual audit

of gas corporations and electric corporations relating to the adequacy

of cyber-security policies, protocols, procedures and protections

including, but not limited to, as such policies, protocols, procedures

and protections relate to critical energy infrastructure as defined in

subdivision fourteen of section 1-103 of the energy law and customer

privacy including but not limited to customer electric and gas

consumption data. The commission shall have the discretion to have such

audits performed by its staff or by an independent third party.

* 20. Notwithstanding any general or special law, rule or regulation,

the commission shall have the power to provide for the refund of any

revenues received by any gas or electric corporation which cause the

corporation to have revenues in the aggregate in excess of its

authorized rate of return for a period of twelve months. The commission

may initiate a proceeding with respect to such a refund after the

conclusion of any such twelve month period.

* NB Effective until January 1, 2027

* 20. (a) Notwithstanding any general or special law, rule or

regulation to the contrary, the commission shall have the power to

provide for the refund of any revenues received by any gas corporation,

electric corporation, or combination gas and electric corporation, which

cause the corporation to have revenues in the aggregate in excess of its

authorized rate of return for a period of twelve months.

(b) Such corporations shall be required to return all revenues derived

from their actual return on equity in excess of their authorized rate of

return on equity to ratepayers, less an amount not to exceed the amount

of revenue that would be derived from a rate of return on equity equal

to one quarter of one percent, as determined by the commission, and upon

a determination by the commission that such revenues in excess of a

corporation's authorized rate of return on equity provide benefits to

ratepayers through cost savings or efficiency gains which exceed the

benefits of refunds pursuant to paragraph (c) of this subdivision.

Provided, however, in no event shall ratepayers, in aggregate, receive

less in returns than the corporation retains in excess revenues.

(c) The commission shall direct the corporation to return such excess

revenues in the form of a bill credit; provided, however, that if the

commission determines that the amount of the bill credit would be de

minimis, the commission may set aside such excess revenues for customer

benefit in a following rate case. Any bill credit shall be provided to

ratepayers in a timely manner, following an accounting review by the

department of the corporation's calculation of their excess revenue, and

shall be clearly labeled on the ratepayer's bill. Any such bill credit

shall be returned in its entirety on a single bill, unless the credit is

in excess of the amount due on the bill so as to require the remaining

portion of the bill credit to appear on a subsequent bill or bills. The

commission may initiate a proceeding with respect to such a refund after

the conclusion of any such twelve-month period. In such a proceeding the

commission shall determine the bill credit amount due to ratepayers, may

examine how credits could be distributed among various customer

classifications of service, and shall issue an order requiring the

disbursement of the bill credits.

(d) Such corporations shall be required to report annually to the

department any excess revenues and the amount returned to ratepayers.

(e) For purposes of this subdivision, "authorized rate of return on

equity" shall mean the return on the equity portion of the rate base

that an electric corporation, gas corporation, or combination gas and

electric corporation is authorized to collect in rates pursuant to the

schedule of rates and charges on file with the commission or otherwise

adopted by an order of the commission.

* NB Effective January 1, 2027

21. (a) Each electric corporation subject to section twenty-five-a of

this chapter shall annually, on or before December fifteenth, submit to

the commission an emergency response plan for review and approval. The

emergency response plan shall be designed for the reasonably prompt

restoration of service in the case of an emergency event, defined for

purposes of this subdivision as an event where widespread outages have

occurred in the service territory of the company due to storms, cyber

attack, or other causes beyond the control of the company. The emergency

response plan shall include, but need not be limited to, the following:

(i) the identification of management staff responsible for company

operations during an emergency; (ii) a communications system with

customers during an emergency that extends beyond normal business hours

and business conditions; (iii) identification of and outreach plans to

customers who had documented their need for essential electricity for

medical needs, which shall include but not be limited to, apnea monitors

for infants, cuirass respirators, hemodialysis machines, IV feeding

machines, IV medical infusion machines, oxygen concentrators, positive

pressure respirators, respirator/ventilators, rocking bed respirators,

suction machines, and tank type respirators; (iv) identification of and

outreach plans to customers who had documented their need for essential

electricity to provide critical telecommunications, critical

transportation, critical fuel distribution services or other large-load

customers identified by the commission; (v) designation of company staff

to communicate with local officials and appropriate regulatory agencies;

(vi) provisions regarding how the company will assure the safety of its

employees and contractors; (vii) procedures for deploying company and

mutual aid crews to work assignment areas; (viii) identification of

additional supplies and equipment needed during an emergency; (ix) the

means of obtaining additional supplies and equipment; (x) procedures to

practice the emergency response plan; (xi) appropriate safety

precautions regarding electrical hazards, including plans to promptly

secure downed wires within thirty-six hours of notification of the

location of such downed wires from a municipal emergency official; (xii)

plans to prioritize the securing of downed wires over routine

maintenance or other work unrelated to a response to an emergency event

after notification by an individual of the location of such downed wires

and where such notification includes information indicating wire

burning, arcing/sparking, or the restriction of ingress and egress from

a building or vehicle, or other immediate hazards. Such plans shall, at

minimum, include procedures to identify, locate, and assess the reported

wire no later than seventy-two hours after the response to an emergency

event ends; (xiii) plans setting forth how the communication and

coordination of efforts between the electric corporation, electric

corporation employees, electric corporation company crews, mutual aid

crews, other utilities, local governments and any other entity

performing services to assist such electric corporation shall occur; and

(xiv) such other additional information as the commission may require.

Each such corporation shall, on an annual basis, undertake drills

implementing procedures to practice its emergency management plan. The

commission may adopt additional requirements consistent with ensuring

the reasonably prompt restoration of service in the case of an emergency

event.

(b) After review of a corporation's emergency response plan, the

commission may require such corporation to amend the plan. The

commission may also open an investigation of the corporation's plan to

determine its sufficiency to respond adequately to an emergency event.

If, after hearings, the commission finds a material deficiency in the

plan, it may order the company to make such modifications that it deems

reasonably necessary to remedy the deficiency.

(c) The commission is authorized to open an investigation to review

the performance of any corporation in restoring service or otherwise

meeting the requirements of the emergency response plan during an

emergency event. If, after evidentiary hearings or other investigatory

proceedings, the commission finds that the corporation failed to

reasonably implement its emergency response plan or the length of such

corporation's outages were materially longer than they would have been,

because of such corporation's failure to reasonably implement its

emergency response plan, the commission may deny the recovery of any

part of the service restoration costs caused by such failure,

commensurate with the degree and impact of the service outage; provided,

however, that nothing herein limits the commission's authority to

otherwise commence a proceeding pursuant to sections twenty-four,

twenty-five and twenty-five-a of this chapter.

(d) The commission shall certify to the department of homeland

security and emergency services that each such corporation's emergency

response plan is sufficient to ensure to the greatest extent feasible

the timely and safe restoration of energy services after an emergency in

compliance with the requirements of this chapter.

(e) The filing of each emergency response plan required under

paragraph (a) of this subdivision shall also include a copy of all

written mutual assistance agreements among utilities.

(f) Each electric corporation shall file with the county executive or

the chief elected official of a county for each county within its

service territory the most recent approved copy of the emergency

response plan required pursuant to this section. For the purposes of an

electric corporation operating within the city of New York, such

corporation shall file the most recent approved emergency response plan

with the emergency management office of the city of New York.

(g) The commission shall provide access to such emergency response

plan pursuant to article six of the public officers law.

22. The commission shall permit the recovery through rates established

pursuant to this section of all payments made by electric corporations

pursuant to section twenty-nine-c of the executive law.

23. Require every gas corporation or electric corporation having

equipment containing five hundred parts per million or greater of

polychlorinated biphenyls (PCBs), including but not limited to,

capacitors and transformers, to submit a report to the commission. The

report shall contain (1) a list of such equipment that is in service,

each unit's location, size and service age, (2) a list of such equipment

that is retired from service after the effective date of this

subdivision, the date each unit was retired from service, and the

location of the facility where the unit and/or PCBs are processed or

stored, (3) the date for shipment of PCBs within or out of New York

state, and (4) a description of the New York state portion of the

shipping route. The commission shall require the report to be updated

and distributed semiannually. In addition, such corporation shall submit

to each county and city located in the service territory of the

corporation a report containing the information listed above for such

equipment and PCBs located in or transported through the county or city

receiving the report.

For the purposes of this subdivision, capacitors, transformers, and

equipment designed to use the PCB-free mineral oil dielectric fluids

shall be presumed to contain concentrations below five hundred parts per

million of PCBs, unless the unit has been serviced with fluid which

contains five hundred parts per million or greater of PCBs, or there is

any other reason to believe that the unit contains or was ever mixed

with fluid with a concentration level of five hundred parts per million

or greater or unless testing has specifically shown otherwise.

24. (a) If a nuclear power plant which is not commercially used and

useful in the actual generation of electricity on the effective date of

this subdivision and which is owned by a single utility on or after the

effective date of this subdivision fails to commence or continue

commercial operation after the effective date of this subdivision, the

commission shall thereafter remove and exclude from the utility

corporation's revenue requirement all amounts, costs, charges,

adjustments, or extraordinary cost of capital allowances theretofore

made, granted or provided which are attributable, directly or

indirectly, to such nuclear power plant or to such plant's failure to

commence commercial operation.

(b) The commission shall not thereafter, unless and until such plant

commences or recommences commercial operation, include in such utility's

revenue requirement any amounts, costs, charges, adjustments or

extraordinary cost of capital allowances attributable, directly or

indirectly, to such plant or to such plant's failure to commence

commerical operation.

(c) Nothing in this subdivision shall be deemed to require a refund of

the charges paid by or billed to a customer of such utility prior to a

failure to commence or continue commercial operation of such plant.

(d) For the purposes of this subdivision, the failure to commence or

continue commercial operation shall mean the abandonment of such plant

after the effective date of this subdivision; the denial, including any

denial pursuant to or as a result of any administrative or judicial

review, of a commercial operating license or other regulatory approval

necessary for the plant to become commercially used and useful in the

actual generation of electricity; the failure of the plant to become

commercially used and useful in the actual generation of electricity

within forty-two months of the issuance of the low power testing license

for such plant; or the occurrence of any event or the existence of any

circumstances (other than customary inspection and maintenance and

related repairs or refueling requirements) after the plant becomes

commercially used and useful in the actual generation of electricity

which renders the plant not commercially used and useful in the actual

generation of electricity.

25. Notwithstanding any other provision of law to the contrary,

whenever a city having a population of one million or more provides for

a deduction from gross receipts of a gas corporation or electric

corporation, pursuant to a local law authorized by the provisions of

subdivision (k) of section twelve hundred one of the tax law, the rate

or charge imposed by any such corporation within such city upon

non-residential users of electricity or gas eligible to receive a rebate

in accordance with a local law or laws adopted pursuant to article two-G

of the general city law shall be set by the commission so as to reflect

fully the decrease in tax liability attributable to such deduction.

26. Notwithstanding any other provision of law to the contrary,

whenever the gas facility costs of a gas corporation are paid or

reimbursed by the city of New York as provided in the gas facility cost

allocation act, the rates and charges of such gas corporation within

such city shall be set by the commission so as to reflect fully the

amount of such payments and reimbursements made by such city. The amount

of such payments and reimbursements shall not be reflected directly or

indirectly in any rate or charge imposed by such corporation outside

such city.

27. (a) Each electric corporation with annual gross revenues in excess

of two hundred million dollars shall offer the option of paying charges

on the basis of time of use rates for service to its residential

customers and to posts and halls owned by a not-for-profit corporation

that is a veterans' organization. Such electric corporation shall

periodically send a notice explaining the rates and informing such

customers and organizations that the rates are available.

(b) Any electric corporation which offers its customers time of use

rates shall notify those customers who elect or receive such rate

regarding the following:

(1) the hours for which such rates are available for both standard and

daylight savings time;

(2) the procedure such customers shall follow in order to have their

meter clocks reset following an interruption of service if such

resetting is necessary to restore the effective hours of the time of use

rates; and

(3) when the utility has knowledge of an outage, a statement within

sixty days of such outage that the time of use rates may not be applied

at the previously stated times until the meter clock is reset, if such

resetting is necessary.

28. No revenues foregone by an electric corporation, as a result of

subjecting certain veterans' organizations with rates or charges

applicable to domestic consumers pursuant to section seventy-six of this

article, shall be recovered from the customers of such corporation.

29. (a) Each electric corporation subject to section twenty-five-a of

this chapter shall prepare and submit a climate change vulnerability

study to the commission within eighteen months of the effective date of

this act. The commission shall provide such study to the governor and

the legislature. The climate change vulnerability study shall evaluate

the electric corporation's infrastructure, design specifications, and

procedures to better understand the corporation's vulnerability to

climate-driven risks, and shall include, but not be limited to,

adaptation measures to address vulnerabilities and any other information

deemed necessary by the commission.

(b) Within sixty days from submission of a climate change

vulnerability study to the commission, each electric corporation subject

to section twenty-five-a of this chapter shall submit a climate

resilience plan to the commission for review and approval. Each plan

shall: (i) propose storm hardening and resiliency measures for the next

ten years and twenty years, and shall explain the systematic approach

the corporation will follow to achieve the objectives of mitigating the

impacts of climate change to utility infrastructure, reducing

restoration costs and outage times associated with extreme weather

events, and enhancing reliability, as well as such other additional

objectives the commission may require consistent with ensuring increased

resiliency of utility infrastructure and overall reliability during

extreme weather events; (ii) detail how the corporation will incorporate

climate change into its planning, design, operations, and emergency

response; (iii) incorporate climate change into existing processes and

practices, manage climate change risks and build resilience; (iv)

propose adjustments, as necessary, to how the corporation plans and

designs infrastructure for the increasing impacts from climate change;

and (v) address each of the elements specified in paragraph (d) of this

subdivision and any additional elements specified by the commission. The

commission shall adopt rules to specify any additional elements that

must be included in a corporation's filing for review of climate

resilience plans.

(c) Each subject electric corporation shall contemporaneously serve

the climate resilience plan on the parties from its last rate case filed

pursuant to subdivision twelve of this section.

(d) In its review of each climate resilience plan filed pursuant to

this subdivision, which shall be separate from a corporation's rate

proceeding, the commission shall, at minimum, consider:

(i) the extent to which the plan is expected to mitigate the impacts

of climate change, reduce restoration costs and outage times associated

with extreme weather events, and enhance reliability, including whether

the plan examines areas of lower reliability performance;

(ii) the extent to which storm protection and hardening of

transmission and distribution infrastructure is feasible, reasonable, or

practical in certain areas of the corporation's service territory,

including, but not limited to, coastal areas, flood zones, and rural

areas;

(iii) the estimated costs and benefits to the corporation and its

customers of making the improvements proposed in the plan, including

considerations of equity in the plan as applied across the entire

service territory, with particular attention paid to the costs and

benefits in undergrounding transmission and distribution lines;

(iv) a schedule for implementing each of the storm hardening and

resiliency measures included in the plan;

(v) whether the plan includes major performance benchmarks that

measure the effectiveness of the implementation of the plan;

(vi) the estimated annual rate impact resulting from implementation of

the plan during the first five years addressed in the plan;

(vii) the extent to which the plan considers a multi-pronged strategy

appropriately tailored to addressing the impacts of climate change,

reducing restoration costs and outage times and enhancing infrastructure

reliability, including, but not limited to, vegetation management,

improvements to system management practices, undergrounding of

distribution and transmission lines, replacement of obsolete cables,

wires and poles, automation and circuit reconfiguration, investing in

infrastructure that supports the development of technologies that would

improve response to extreme weather events and reduce restoration costs,

and system resiliency through the deployment of distributed energy

resources, and fortifying critical facilities;

(viii) the extent to which the plan identifies opportunities for

coordination with municipalities, customer advocate groups, the

independent system operator, the energy research and development

authority, and other utility or telecommunication service providers;

and,

(ix) the recommendations from the utility climate resilience working

group established pursuant to paragraph (h) of this subdivision.

(e) No later than eleven months after a corporation files a climate

resilience plan that contains all of the elements required by this

subdivision, and after a public hearing on the plan, which shall include

a public forum at a physical location, attended by commission members or

their designees to take in written or oral comment, the commission shall

determine whether it is in the public interest to approve or modify the

plan.

(f) At least every five years after approval of a corporation's

climate resilience plan, or more frequently upon a schedule determined

to be appropriate by the commission, each corporation must file, for

commission review, an updated plan that addresses each element specified

in paragraph (b) of this subdivision. The commission shall approve,

modify, or deny each updated plan pursuant to the criteria used to

review the initial plan.

(g) The commission shall authorize each electric corporation to fully

recover in the context of rate proceedings the costs associated with

each project included in such corporation's climate resilience plan that

is approved or modified by the commission, so long as such costs were

prudently incurred. Each corporation may begin implementation of the

climate and resilience measures in accordance with the schedule

specified in its climate resilience plan once such plan is approved or

modified by the commission. For capital projects that are placed into

service and additional unrecovered expenses incurred prior to the base

rates being reset in the first rate proceeding commenced by such

corporation subsequent to the commission's approval or modification of

the climate resilience plan, the company shall recover such costs

through a "climate resiliency cost recovery" surcharge. The costs to be

recovered through such a surcharge shall be detailed in a filing to the

commission, and each corporation shall propose a method of allocating

costs to customer classes in said filing. Such costs for capital

projects in service may include an annual depreciation cost, calculated

at the corporation's approved depreciation rates and a return on the

undepreciated balance of the plant in service calculated at the

corporation's approved weighted average cost of capital. In addition,

all unrecovered expense balances, net of taxes, shall also earn carrying

charges at the corporation's approved weighted average cost of capital.

The commission may roll any unrecovered costs associated with such

surcharge into base rates when the corporation's base rates are reset.

The commission shall identify in any order approving or modifying a

corporation's rate plan the resiliency and storm hardening component of

the revenue requirement on a cost and/or percentage basis.

(h) Each corporation shall establish a utility climate resilience

working group no later than one year after the effective date of this

subdivision. Such working group shall advise and make recommendations to

the corporation and the commission on the development and implementation

of the corporation's climate resilience plan. The corporation shall, in

consultation with the department, include in the working group

representatives from municipalities, customer advocacy groups, and

energy and environmental advocacy organizations. The working group shall

meet at least twice annually.

(i) Each corporation shall provide to the county executive or the

chief elected official of a county for each county within its service

territory the most recent approved copy of the climate resilience plan

required pursuant to this subdivision. For the purposes of an electric

corporation operating within the city of New York, such corporation

shall provide the most recent approved climate resilience plan with both

the mayor's office and emergency management office of the city of New

York.

(j) The commission shall provide access to such climate resilience

plans pursuant to article six of the public officers law.

(k) Beginning December first of the year after the second full year of

implementation of a climate resilience plan and biennially thereafter,

the corporation shall file with the commission a report on the status of

its activities to comply with the plan, which report the commission

shall, after review, submit to the governor and the legislature. The

report shall include, but is not limited to, identification of all storm

protection and resiliency activities completed or planned for

completion, the actual costs and rate impacts associated with completed

activities as compared to the estimated costs and rate impacts for those

activities, the estimated costs and rate impacts associated with

activities planned for completion, and the governance, planning, and

operational activities undertaken by the corporation in furtherance of

the climate resilience plan.

(l) The commission shall promulgate any necessary rules and

regulations to implement and administer the provisions of this

subdivision.

30. Promulgate rules and regulations to direct electric or gas

corporations to develop and implement tools to monitor: (a) operational

control networks giving the electric or gas corporation the ability to

undertake the detection of unauthorized network behavior related to such

corporation's industrial control systems, as defined in subdivision

fifteen of section 1-103 of the energy law; and (b) monitor and protect

customer privacy, including but not limited to customer electric and gas

consumption data from unauthorized disclosure. On or before December

thirty-first, two thousand twenty-three and not later than five years

after such date, and every five years thereafter, the commission shall

provide a report to the governor, the temporary president of the senate,

the speaker of the assembly, the chairperson of the assembly standing

committee on energy, and the chairperson of the senate standing

committee on energy and telecommunications reviewing electric or gas

corporation compliance with this section, including, as necessary,

recommendations to the legislature if the commission determines that

additional measures are required to ensure the effective protection of

electric or gas corporation critical infrastructure.

31. Promulgate rules and regulations to direct electric or gas

corporations to require the installation of advanced metering

infrastructure that connects to the electric or gas distribution network

operated by such electric or gas corporation be permitted only so long

as access to the advanced meter infrastructure enables two-way

communication between utilities and meters through the optimal

communications network option, such as a wireless network, that is

shared by at least two meter providers operating within the United

States of America, if the commission determines that it is cost

effective and technically feasible to do so.

32. Customer electric and gas consumption data shall be considered

confidential. The commission shall have the authority to promulgate

rules and regulations to require gas or electric corporations to take

necessary measures to protect such data from unauthorized or unconsented

disclosure.

* 33. (a) Following any commission decision that establishes a change

in rates that results in an energy burden greater than three percent for

residential electric service or greater than three percent for

residential gas service, or greater than six percent for residential

combination electric and gas service, the commission shall have the

power to install an independent affordability monitor inside such gas

corporation, electric corporation, or combination gas and electric

corporation for a time period determined by the commission but for no

less than one year and which shall not continue beyond any commission

decision establishing a new schedule of rates or charges which

constitutes a major change, pursuant to subdivision twelve of this

section other than to complete its responsibilities pursuant to

paragraph (c) of this subdivision relevant to the filing for which it

was installed.

(b) In every case in which the commission installs an affordability

monitor, it shall have authority to select the monitor, who shall not be

affiliated with, or have a financial interest in such corporation or be

an existing employee of the department, to enter into a contract with

the monitor, and ensure the monitor's services are paid for. Such

contract shall provide further that the monitor shall work for and under

the direction of the commission according to such terms as the

commission may determine are necessary and reasonable.

(c) (i) Such affordability monitor shall have power to examine

records, including but not limited to, the accounts, books, contracts,

property, assets, procurement history, taxes, accounting, operations,

maintenance, past and present customer billing systems and related

documents, customer complaints, as well as financial documents, reports,

and papers of the corporation and shall have full access to management

meetings and related records in order to review the corporation's

operations and expenditures, and the corporation shall provide such

materials and such access to the affordability monitor.

(ii) The affordability monitor shall report to the commission at least

biannually the primary cost drivers that caused the energy burden to

rise more than three percent for residential electric service or greater

than three percent for residential gas service, or greater than six

percent for residential combination gas and electric service,

opportunities for cost savings and residential rate reduction,

recommended changes in corporation operations, incentives, practices, or

policies to achieve savings, and other information the affordability

monitor determines relevant. Such report shall be publicly available and

posted prominently on the commission's website.

(iii) The commission upon receiving a report from the affordability

monitor shall review the primary cost drivers and identified

opportunities for savings.

(iv) The commission in its review shall make a determination of

whether the opportunities for savings detailed by the energy

affordability monitor merit implementation. If the commission determines

that any of the identified opportunities for savings are not efficient,

just and reasonable, or would impact safety or reliability, or otherwise

do not merit implementation, the commission shall explain the basis for

that determination. If the commission determines an opportunity for

savings merits implementation, it shall issue an order within 180 days

to implement such opportunity.

(d) Any gas corporation, electric corporation, or combination electric

and gas corporation shall promptly and comprehensively comply with any

investigation or investigation request.

(e) (i) If the energy affordability monitor discovers evidence of

widespread errors, including but not limited to errors in billing,

rates, charges, and compensation for employees or third-party

contractors, miscategorization of expenses, fraud, or wrongdoing, and

the department, after reviewing the evidence from the monitor,

determines such evidence constitutes a credible and actionable

allegation of a violation of the law, the department shall initiate an

investigation or enforcement action.

(ii) The commission shall determine whether the corporation was at

fault and shall take any corrective action it deems appropriate. Any

settlement, interest, fees, penalties or disgorged profits collected by

the commission as a result of investigations pursuant to this

subdivision shall be returned to impacted residential and small

non-residential ratepayers in the form of on-bill credits.

* NB Effective January 1, 2027