N.Y. Public Service Law § 89-j: Notice and hearing; order fixing price of water or requiring improvement

§ 89-j. Notice and hearing; order fixing price of water or requiring

improvement. Before proceeding under a complaint presented as provided

in section eighty-nine-i, 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 of its own motion as to any matter of which

complaint may be made, as provided in section eighty-nine-i 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 just and reasonable prices, rates or charges for water 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 supply or distribution of water, 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. If it shall be

made to appear to the satisfaction of the commission that the public

interest requires a change in the price of water 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 four of

section eighty-nine-c shall be the maximum price to be charged by such

person or corporation for water 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 the 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 water to be thereafter charged. In

determining the price to be charged for water 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, the burden

of proof to show that the change in rate or price if proposed by the

person or corporation operating such utility, or that the existing rate

or price, if on motion of the commission or in a complaint filed with

the commission it is proposed to reduce the rate or price, is just and

reasonable shall be upon the person or corporation operating such

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.