N.Y. Public Service Law § 85: Notice and hearing; order fixing price of steam, or requiring improvement

§ 85. Notice and hearing; order fixing price of steam, or requiring

improvement. Before proceeding under a complaint presented as provided

in section eighty-four, the commission shall cause notice of such

complaint, and the purpose thereof, to be served upon the person or

corporation affected thereby. Such person or corporation shall have an

opportunity to be heard in respect to the matters complained of at a

time and place to be specified in such notice. An investigation may be

instituted by the commission on its own motion as to any matter of which

complaint may be made, as provided in section eighty-four of this

chapter, or to enable it to ascertain the facts requisite to the

exercise of any power conferred upon it. After a hearing and after such

an investigation as shall have been made by the commission or its

officers, agents, examiners or inspectors, the commission may, by order,

fix the maximum price of steam to be charged by such corporation or

person, for the service to be furnished notwithstanding that a higher or

lower price has been theretofore prescribed by general or special

statute, contract, grant, franchise condition, consent or other

agreement; and may order such improvement in the manufacture,

distribution or supply of steam, or in the methods employed by such

person or corporation, as will in its judgment be adequate, just and

reasonable. Any such change in price shall be upon such terms,

conditions or safeguards, as the commission may prescribe. It it shall

appear to the satisfaction of the commission that the public interest

requires a change in the price of steam charged by any such person or

corporation, or that such change is necessary for the purpose of

providing adequate and efficient service, or for the preservation of the

property, the commission, upon such terms, conditions or safeguards as

it deems proper, may authorize an immediate, reasonable, temporary

increase or decrease in such price pending a final determination of the

price to be thereafter charged by such person or corporation. The terms,

conditions or safeguards prescribed may include provisions for the

purposes for which the additional revenue derived from any such

temporary increase may be expended and for the impounding thereof until

the same shall be applied to the purposes so specified. The price fixed

by the commission under this section or under subdivision five of

section eighty shall be the maximum price to be charged by such person,

corporation or municipality for steam for the service to be furnished

within the territory and for a period to be fixed by the commission in

the order, not exceeding three years except in case of a sliding scale,

and thereafter until the commission shall, upon its own motion or upon

the complaint of any corporation, person or municipality interested, fix

a higher or lower maximum price of steam to be thereafter charged. In

determining the price to be charged for steam the commission may

consider all facts which in its judgment have any bearing upon a proper

determination of the question although not set forth in the complaint

and not within the allegations contained therein, with due regard among

other things to a reasonable average return upon capital actually

expended and to the necessity of making reservations out of income for

surplus and contingencies. At any hearing involving a rate or price, the

burden of proof to show that the change in rate, if proposed by the

person, corporation or municipality operating such utility, or that the

existing rate, if on motion of the commission or in a complaint filed

with the commission it is proposed to reduce the rate, is just and

reasonable, shall be upon the person, corporation or municipality

operating the utility, and the commission may give to the hearing and

decision of such questions preference over all other questions pending

before it and decide the same as speedily as possible.