N.Y. Public Service Law § 80: General powers of commission in respect to steam heating

§ 80. General powers of commission in respect to steam heating. The

commission shall: 1. Have general supervision of all steam corporations

having authority under any general or special law or under any charter

or franchise to lay down, regulate or maintain 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 transmitting steam

for heat or power, and all plants leased or operated by any such

corporation.

2. Investigate and ascertain, from time to time, the methods employed

by such persons and corporations in manufacturing, distributing and

supplying steam for heat or power and have power to order such

reasonable improvements as will best promote the public interest,

preserve the public health and protecting those using such steam and

those employed in the manufacture and distribution thereof, and have

power to order reasonable improvements and extensions of the pipes,

lines, conduits, ducts and other reasonable devices, apparatus and

property of such corporation.

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

keeping account, records and books, to be observed by such corporation

in the manufacture, sale and distribution of steam. It may also in its

discretion prescribe, by order, forms of accounts, records and memoranda

to be kept by such persons and corporations. 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 corporation shall be subject to examination by the commission.

4. Examine all persons and corporations under its supervision and keep

informed as to the methods, practices, regulations and property employed

by them in the transaction of their business. The commission shall have

power of its own motion to examine and investigate the plants and

methods employed in manufacturing, delivering and supplying steam 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 for the manufacture,

transmission, distribution, furnishing or sale of steam for heat or

power by any such person or corporation. Whenever the commission shall

be of the opinion, after hearing had upon its own motion or upon

complaint, that the rates or charges or the acts or regulations of any

such person or corporation, are unjust, unreasonable, unjustly

discriminatory or unduly preferential or in any wise 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 eighty-five

of this chapter the just and reasonable rates and charges thereafter to

be enforced for the service to be furnished, and the just and reasonable

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

commission shall be of opinion, after hearing had upon its own motion or

upon complaint, that the property, equipment or appliances of any such

person or corporation 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.

5. 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 officials 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 name 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; (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 report 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 or corporation making such report to amend the

same within a time prescribed by the commission. Any such person or

corporation 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 and 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.

6. 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, power houses, ducts, conduits and offices of any such

corporation or person.

7. Have power to examine all accounts, books, contracts, records,

documents and papers of any such person or corporation, and have power,

after a hearing, to prescribe by order all 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.

8. 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.

9. 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.

10. (a) Have power to require every steam corporation, person or

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.

(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 or published 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 the

publication for thirty days as required by order of the commission,

which shall plainly state the changes proposed to be made 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 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.

(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.

(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 steam 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 a steam 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 may, as authorized by section eighty-five of this

article, establish temporary rates or charges for any period of

suspension under this section. At any hearing involving a rate or

charge, the burden of proof to show that the change in rate or charge,

or proposed change in rate or charge if proposed by the utility, or that

the existing rate or charge, if it is proposed to reduce the rate or

charge, 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. 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 eighty-five 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 eighty-five of this article.

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

in rates made by a steam 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 steam 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) 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

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

in rates made by a steam 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 the applicant's aggregate revenues by

more than the increase set forth in the budget constrained proposal is

necessary to ensure safety, reliability, or the continuation of

affordability programs.

(iii) The commission shall require the corporation to track

expenditures and outcomes and explain all material deviations from the

approved rate plan no less frequently than on an annual basis.

* NB Effective January 1, 2027

11. In case any steam corporation is engaged in carrying on any

business other than owning, operating or managing a steam 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 steam 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 steam

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 steam plant as distinguished

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

managing or controlling of such steam 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.

12. 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 steam 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 steam

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.