N.Y. Public Service Law § 66

§ 66. General powers of commission in respect to gas and electricity.\nThe commission shall:\n 1. Have general supervision of all gas corporations and electric\ncorporations having authority under any general or special law or under\nany charter or franchise to lay down, erect or maintain wires, pipes,\nconduits, ducts or other fixtures in, over or under the streets,\nhighways and public places of any municipality for the purpose of\nfurnishing or distributing gas or of furnishing or transmitting\nelectricity for light, heat or power, or maintaining underground\nconduits or ducts for electrical conductors, and all gas plants and\nelectric plants owned, leased or operated by any gas corporation or\nelectric corporation.\n 1-a. Review the annual capital expenditure of each combination gas and\nelectric corporation and may order such improvement in the manufacture,\nconveying, transportation, distribution or supply of gas, in the\nmanufacture, transmission or supply of electricity, or in the methods\nemployed by such corporation as in the commission's judgment is\nadequate, just and reasonable.\n 2. Investigate and ascertain, from time to time, the quality of gas\nsupplied by persons, corporations and municipalities; examine or\ninvestigate the methods employed by such persons, corporations and\nmunicipalities in manufacturing, distributing and supplying gas or\nelectricity for light, heat or power and in transmitting the same, and\nhave power to order such reasonable improvements as will best promote\nthe public interest, preserve the public health and protect those using\nsuch gas or electricity and those employed in the manufacture and\ndistribution thereof, and have power to order reasonable improvements\nand extensions of the works, wires, poles, lines, conduits, ducts and\nother reasonable devices, apparatus and property of gas corporations,\nelectric corporations and municipalities; and have power after an\ninvestigation and a hearing to order any corporation having authority\nunder any general or special law or under any charter or franchise, to\nlay down, erect or maintain wires, pipes, conduits, ducts or other\nfixtures in, over or under the streets, highways and public places of\nany municipality for the purpose of supplying, selling or distributing\nnatural gas, to augment its supply of natural gas, whenever the\ncommission deems necessary and whenever artificial gas can be reasonably\nobtained, by acquiring by purchase, manufacture or otherwise a supply\nthereof to be mixed with such natural gas, in order to render adequate\nservice to the customers of such corporation or to maintain a proper and\nuniform pressure; and have power after an investigation and a hearing to\norder any corporation having authority under any general or special law\nor under any charter or franchise, to lay down, erect or maintain wires,\npipes, conduits, ducts or other fixtures in, over or under the streets,\nhighways and public places of any municipality for the purpose of\nsupplying, selling or distributing artificial gas, to augment its supply\nof artificial gas, whenever the commission deems necessary and whenever\nnatural gas can be reasonably obtained, by acquiring by purchase or\notherwise a supply thereof to be mixed with such artificial gas, in\norder to render adequate service to the customers of such corporation or\nto maintain a proper and uniform pressure; and to fix such rate for the\nsupplying of mixed gas as shall secure to such corporation a fair\nreturn; and may order the curtailment or discontinuance of the use of\nnatural gas for manufacturing or industrial purposes, for periods\naggregating not to exceed four months in any calendar year, if it is\nestablished to the satisfaction of the commission that the supply of\nnatural gas is not adequate to meet the reasonable demands of domestic\nconsumption and may prohibit the use of natural gas in wasteful devices\nand practices.\n 2-a. Have power, after an investigation and hearing held on notice and\nupon a finding that as a result of a shortage of gas a public emergency\nexists, to determine whether any gas corporation has available, or may\nbe made available by the operation of its facilities, gas in excess of\nan amount necessary to supply its consumers for purposes for which gas\nmay properly be used during such emergency. Upon the making of such a\ndetermination it shall have power to order such a gas corporation to\ntransfer and make available to any other gas corporation where a\nshortage of gas exists, for the duration of the emergency, any or all of\nsuch excess gas for which the transferring company shall receive just\ncompensation. Such order may require the installation and operation of\nall necessary connections and facilities at the expense of the\npurchasing gas corporation and require the selling and purchasing gas\ncorporation to adopt appropriate regulations and practices to carry out\nthe transfer of gas as ordered.\n 3. Have power by order to fix and change from time to time standards\nof the purity, illuminating power and heating power, and standards for\nthe measurement thereof, of gas to be manufactured, distributed or sold\nby persons, corporations or municipalities for lighting, heating or\npower purposes, notwithstanding that other standards of the purity,\nilluminating power and heating power of gas and standards for the\nmeasurement thereof, may have been fixed by general or special statute\nand to prescribe from time to time the efficiency of the electric supply\nsystem, of the current supplied and of the lamps furnished by the\npersons, corporations or municipalities generating and selling electric\ncurrent, and by order to require the gas so manufactured, distributed or\nsold to equal the standards so fixed by it, and to prescribe from time\nto time the reasonable minimum and maximum pressure at which gas shall\nbe delivered by said persons, corporations or municipalities. For the\npurpose of determining whether the gas manufactured, distributed or sold\nby such persons, corporations or municipalities for lighting, heating or\npower purposes conforms to the standards of illuminating power, heating\npower, purity and pressure, and for the purpose of determining whether\nthe efficiency of the electric supply system, of the current supplied\nand of the lamps furnished conforms to the orders issued by the\ncommission, the commission shall have power of its own motion, to\nexamine and investigate the plants and methods employed in\nmanufacturing, delivering and supplying gas or electricity, and shall\nhave access through its members or persons employed and authorized by it\nto make such examinations and investigations to all parts of the\nmanufacturing plants owned, used or operated by the manufacture,\ntransmission or distribution of gas or electricity by any such person,\ncorporation or municipality.\n 4. Have power, in its discretion, to prescribe uniform methods of\nkeeping accounts, records and books, to be observed by gas corporations\nand electric corporations and by municipalities engaged in the\nmanufacture, sale and distribution of gas and electricity for light,\nheat or power. It may also in its discretion prescribe, by order, forms\nof accounts, records and memoranda to be kept by such persons,\ncorporations and municipalities. Notice of alterations by the commission\nin the required method or form of keeping a system of accounts shall be\ngiven to such persons or corporations by the commission at least six\nmonths before the same shall take effect. Any other and additional forms\nof accounts, records and memoranda kept by such corporations shall be\nsubject to examination by the commission.\n 5. Examine all persons, corporations and municipalities under its\nsupervision and keep informed as to the methods, practices, regulations\nand property employed by them in the transaction of their business.\nWhenever the commission shall be of opinion, after a hearing had upon\nits own motion or upon complaint, that the rates, charges or\nclassifications or the acts or regulations of any such person,\ncorporation or municipality are unjust, unreasonable, unjustly\ndiscriminatory or unduly preferential or in anywise in violation of any\nprovision of law, the commission shall determine and prescribe in the\nmanner provided by and subject to the provisions of section seventy-two\nof this chapter the just and reasonable rates, charges and\nclassifications thereafter to be in force for the service to be\nfurnished notwithstanding that a higher or lower rate or charge has\nheretofore been prescribed by general or special statute, contract,\ngrant, franchise condition, consent or other agreement, and the just and\nreasonable acts and regulations to be done and observed; and whenever\nthe commission shall be of opinion, after a hearing had upon its own\nmotion or upon complaint, that the property, equipment or appliances of\nany such person, corporation or municipality are unsafe, inefficient or\ninadequate, the commission shall determine and prescribe the safe,\nefficient and adequate property, equipment and appliances thereafter to\nbe used, maintained and operated for the security and accommodation of\nthe public and in compliance with the provisions of law and of their\nfranchises and charters.\n 6. Require every person and corporation under its supervision and it\nshall be the duty of every such person and corporation to file with the\ncommission an annual report, verified by the oath of the president,\nvice-president, treasurer, secretary, general manager, or receiver, if\nany, thereof, or by the person required to file the same. The\nverification shall be made by said official holding office at the time\nof the filing of said report, and if not made upon the knowledge of the\nperson verifying the same shall set forth the sources of his information\nand the grounds of his belief as to any matters not stated to be\nverified upon his knowledge. The report shall show in detail (a) the\namount of its authorized capital stock and the amount thereof issued and\noutstanding; (b) the amount of its authorized bonded indebtedness and\nthe amount of its bonds and other forms of evidence of indebtedness\nissued and outstanding; (c) its receipts and expenditures during the\npreceding year; (d) the amount paid as dividends upon its stock and as\ninterest upon its bonds; (e) the names of its officers and the aggregate\namount paid as salaries to them and the amount paid as wages to its\nemployees; (f) the location of its plant or plants and system, with a\nfull description of its property and franchises, stating in detail how\neach franchise stated to be owned was acquired; and (g) such other facts\npertaining to the operation and maintenance of the plant and system, and\nthe affairs of such person or corporation as may be required by the\ncommission. Such reports shall be in the form, cover the period and be\nfiled at the time prescribed by the commission. The commission may, from\ntime to time, make changes and additions in such forms. When any such\nreport is defective or believed to be erroneous, the commission shall\nnotify the person, corporation or municipality making such report to\namend the same within a time prescribed by the commission. Any such\nperson or corporation or municipality which shall neglect to make any\nsuch report or which shall fail to correct any such report within the\ntime prescribed by the commission shall be liable to a penalty of one\nhundred dollars and an additional penalty of one hundred dollars for\neach day after the prescribed time for which it shall neglect to file or\ncorrect the same, to be sued for in the name of the people of the state\nof New York. The amount recovered in any such action shall be paid into\nthe state treasury and be credited to the general fund. The commission\nmay extend the time prescribed for cause shown.\n 7. Require each municipality engaged in operating any works or systems\nfor the manufacture and supplying of gas or electricity to make an\nannual report to the commission, verified by the oath of the general\nmanager or superintendent thereof, showing in detail, (a) the amount of\nits authorized bonded indebtedness and the amount of its bonds and other\nforms of evidence of indebtedness issued and outstanding for lighting\npurposes; (b) its receipts and expenditures during the preceding year;\n(c) the amount paid as interest upon its bonds and upon other forms of\nevidence of indebtedness; (d) the name of and the amount paid to each\nperson receiving a yearly or monthly salary, and the amount paid as\nwages to employees; (e) the location of its plant and system with a full\ndescription of the property; and (f) such other facts pertaining to the\noperation and maintenance of the plant and system as may be required by\nthe commission. Such report shall be in the form, cover the period and\nbe filed at the time prescribed by the commission.\n 8. Have power, either through its members or inspectors or employees\nduly authorized by it, to enter in or upon and to inspect the property,\nbuildings, plants, factories, power houses, ducts, conduits and offices\nof any of such corporations, persons or municipalities.\n 9. Have power to examine the accounts, books, contracts, records,\ndocuments and papers of any such corporation, person or municipality,\nand have power, after hearing, to prescribe by order the accounts in\nwhich particular outlays and receipts shall be entered, charged or\ncredited. At any such hearing the burden of proof shall be on the\nperson, corporation or municipality to establish the correctness of the\naccounts in which such outlays and receipts have been entered, and the\ncommission may suspend a charge or credit pending submission of proof by\nsuch person, corporation or municipality.\n 10. Have power to compel, by subpoena duces tecum, the production of\nany accounts, books, contracts, records, documents, memoranda and\npapers. In lieu of requiring production of originals by subpoena duces\ntecum the commission or any commissioner may require sworn copies of any\nsuch books, records, contracts, documents and papers, or parts thereof,\nto be filed with it. The commission may require of all such\ncorporations, persons or municipalities, specific answers to questions\nupon which the commission may need information, and may also require\nsuch corporations, persons or municipalities to file periodic reports in\nthe form, covering the period and filed at the time prescribed by the\ncommission. If such corporation, person or municipality shall fail to\nmake specific answer to any question or shall fail to make a periodic\nreport when required by the commission as herein provided within the\ntime and in the form prescribed by the commission for the making and\nfiling of any such report or answer, such corporation, person or the\nofficer of the municipality shall forfeit to the state the sum of one\nhundred dollars for each and every day it shall continue to be in\ndefault with respect to such report or answer. Such forfeiture shall be\nrecovered in an action brought by the commission in the name of the\npeople of the state of New York. The amount recovered in any such action\nshall be paid into the state treasury and be credited to the general\nfund.\n 11. Have power in all parts of the state, either as a commission or\nthrough its members, or through an officer or employee specially\nauthorized to conduct an investigation or hearing to subpoena witnesses,\ntake testimony and administer oaths to witnesses in any proceeding or\nexamination instituted before it, or conducted by it in reference to any\nmatter within its jurisdiction under this article.\n 12. (a) Have power to require every gas corporation, electric\ncorporation and municipality hereinafter in this subdivision called a\nutility to file with the commission and to print and keep open to public\ninspection schedules showing all rates and charges made, established or\nenforced or to be charged or enforced, all forms of contract or\nagreement and all rules and regulations relating to rates, charges or\nservice used or to be used, and all general privileges and facilities\ngranted or allowed by such utility; but this subdivision shall not apply\nto state, municipal or federal contracts, except to the extent such\ncontracts relate to transportation of electricity.\n (b) No change shall be made in any rate or charge, or in any form of\ncontract or agreement or any rule or regulation relating to any rate,\ncharge or service, or in any general privilege or facility, which shall\nhave been filed by a utility in compliance with an order of the\ncommission, except after thirty days' notice to the commission and to\neach county, city, town and village served by such utility which had\nfiled with such utility, within the prior twelve months, a request for\nsuch notice and which shall be affected by such change and publication\nof a notice to the public of such proposed change once in each week for\nfour successive weeks in a newspaper having general circulation in each\ncounty containing territory affected by the proposed change, which\nnotice shall plainly state the changes proposed and when the change will\ngo into effect. The commission for good cause shown may, except in the\ncase of major changes, allow changes to take effect prior to the end of\nsuch thirty-day period and without publication of notice to the public\nunder such conditions as it may prescribe. The commission may delegate\nto the secretary of the commission its authority to approve a change to\na schedule postponing the effective date of such schedule previously\nfiled with the commission and to allow for good cause shown the\npostponement to take effect prior to the end of such thirty-day period\nand without publication of notice to the public.\n (c) For the purpose of this subdivision, "major changes" shall mean an\nincrease in the rates and charges which would increase the aggregate\nrevenues of the applicant more than the greater of three hundred\nthousand dollars or two and one-half percent, but shall not include\nchanges in rates, charges or rentals (i) allowed to go into effect by\nthe commission or made by the utility pursuant to an order of the\ncommission after hearings held upon notice to the public, or (ii)\nproposed by a municipality.\n (d) No utility shall charge, demand, collect or receive a greater or\nless or different compensation for any service rendered or to be\nrendered than the rates and charges specified in its schedule filed and\nin effect; nor shall any utility refund or remit in any manner or by any\ndevice any portion of the rates or charges so specified, nor extend to\nany person any form of contract or agreement, or any rule or regulation,\nor any privilege or facility, except such as are regularly and uniformly\nextended to all persons under like circumstances.\n (e) The commission shall have power to prescribe the form of every\nsuch schedule, and from time to time prescribe by order such changes in\nthe form thereof as may be deemed wise. The commission shall also have\npower to establish such rules and regulations to carry into effect this\nsubdivision as it may deem necessary, and to modify or amend such rules\nor regulations from time to time. Nothing in this chapter shall be taken\nto prohibit a utility from establishing sliding scale upward rates,\nbeginning at a fixed price per unit for a small consumption and then\nincreasing the price per unit as the consumption is increased.\n (f) (i) Whenever there shall be filed with the commission by any\nutility any schedule stating a new rate or charge, or any change in any\nform of contract or agreement or any rule or regulation relating to any\nrate, charge or service, or in any general privilege or facility, the\ncommission may, at any time within sixty days from the date when such\nschedule would or has become effective, either upon complaint or upon\nits own initiative, and, if it so orders, without answer or other formal\npleading by the utility, but upon reasonable notice, hold a hearing\nconcerning the propriety of a change proposed by the filing. If such\nchange is a major change, the commission shall hold such a hearing.\nPending such hearing and decision thereon, the commission, upon filing\nwith such schedule and delivering to the utility, a statement in writing\nof its reasons therefor, may suspend the operation of such schedule, but\nnot for a longer period than fourteen months beyond the time when it\nwould otherwise go into effect. After full hearing, whether completed\nbefore or after the schedule goes into effect, the commission may make\nsuch order in reference thereto as would be proper in a proceeding begun\nafter the rate, charge, form of contract or agreement, rule, regulation,\nservice, general privilege or facility had become effective.\n (ii) The commission is authorized to approve, and any hearing\ninvolving a major change in rates for a gas corporation, electric\ncorporation, or combination gas and electric corporation may consider,\nwhether as a result of litigation or settlement negotiations, multi-year\nchanges in rates or charges, in addition to the utility's filing. Any\nsuch additional multi-year rates or charges which result from a\nlitigated process are authorized to be implemented in a similar manner\nto those resulting from settlement negotiations. The commission shall,\nin each order approving a major change in rates for such corporation,\nexplain how the information in the record that it received from such\ncorporation and the parties impacted its determination to approve a\nmajor change in rates consistent with the public interest either as a\nresult of litigation or from a settlement, and include a written summary\nof the commission's rationale.\n (g) The commission shall review all filings to determine if they are\nin compliance with section seventy-two-a of this article. The commission\nshall have the power to hold public hearings concerning the propriety of\nany increased rate or charge for fuel costs. At any hearing involving\nsuch an increase, the burden of proof as to the correctness and\nreasonableness of the charge shall be upon the utility.\n (h) The commission may, as authorized by section seventy-two of this\narticle, establish temporary rates or charges for any period of\nsuspension under this section.\n (i) At any hearing involving a rate, the burden of proof to show that\nthe change or proposed change if proposed by the utility, or that the\nexisting rate, if it is proposed to reduce the rate, is just and\nreasonable shall be upon the utility; and the commission may give to the\nhearing and decision of such questions preference over all other\nquestions pending before it.\n (j) The schedule, rates, charges, form of contract or agreement, rule,\nregulation, service, general privilege or facility in force when the new\nschedule, rate, charge, form of contract, rule, regulation, service,\ngeneral privilege or facility was filed shall continue in force during\nthe period of the suspension unless the commission shall establish a\ntemporary rate or charge as authorized by section seventy-two of this\narticle. Provided, however, that whenever the commission shall deny a\nrequest by a utility for a major change in rates or charges, the\nschedule, rate, charge, form of contract or agreement, rule, regulation,\ngeneral privilege, facility, or service immediately in effect prior to\nsuch request being filed shall remain in full force and effect until\nsuch time as the commission approves a new schedule of rates or charges,\nunless the commission established a temporary rate or charge as\nauthorized by section seventy-two of this article.\n (k) In any case in which the commission determines that the whole or\nany part of any increased rate or charge imposed by a utility pursuant\nto any automatic adjustment, including but not limited to any fuel\nadjustment, was not just and reasonable, because of a lack of reasonable\ncare on the part of the utility in providing gas or electric service,\nthe commission may order the utility to refund, with interest, any\nmoneys collected by the utility pursuant to such whole or part of such\nincreased rate or charge. In determining whether a utility exercised\nreasonable care in providing gas or electric service, the commission\nshall take into account the public health and safety consequences, and\nthe economic consequences to ratepayers, of the utility's actions.\n (l) (i) The commission shall, within ten days of the commencement of\nany matter involving a major change in a rate for electric or gas\nservice, publish, in a readily accessible location on the department's\nwebsite, a summary in plain language, not to exceed one page or five\nhundred words, to the extent such information is available, containing\nthe following:\n (A) the proposed rate term;\n (B) the total proposed rate change, in both percentage change from\nprior rate year and absolute requested tariff value, including yearly or\nsliding scale breakdown if applicable;\n (C) the average proposed rate change for a residential, commercial,\nand industrial ratepayer, including yearly or sliding scale breakdown if\napplicable;\n (D) an explanation of why the rate changes are requested and a summary\nof how the proposed revenue will be spent;\n (E) the proposed return on equity in both percentage and absolute\nvalue over the total rate term;\n (F) an estimated timeline of relevant hearings, comment periods, and\ndeadlines;\n (G) an explanation of how to submit public comment; and\n (H) any other information the commission finds relevant.\n (ii) The commission shall, within ten days of the issuance of an order\nadopting a rate change for electric or gas service or a tariff relating\nto a major change in a rate for electric or gas service, publish, in a\nreadily accessible location on the department's website, a summary, not\nto exceed one page or five hundred words, containing the following:\n (A) the rate term;\n (B) the total rate change, in both percentage change from prior rate\nyear and absolute tariff value, including yearly or sliding scale\nbreakdown if applicable;\n (C) a comparison of the initial proposed rate change and absolute\ntariff value and the final approved rate and tariff value;\n (D) the average rate change for a residential, commercial, and\nindustrial ratepayer, including yearly or sliding scale breakdown if\napplicable;\n (E) a summary of how the revenue will be spent;\n (F) the authorized return on equity in both percentage and absolute\nvalue over the total rate term;\n (G) a summary of other proposals relevant to ratepayers such as\nearnings adjustment mechanisms, excess revenue allocation, performance\nmetrics, affordability programs, and additional fees; and\n (H) any other information the commission finds relevant.\n (iii) In addition to the requirements of paragraph (b) of this\nsubdivision, the commission shall send such summaries to members of the\nlegislature who represent any portion of the territory impacted by the\nproposed change as well as newspapers having general circulation in each\ncounty containing the territory affected by the proposed change.\n * (m) As a separate and distinct part of any filing by a utility\nproposing a major change in rates, the utility must provide a\ndescription of any proposed capital expenditure, on a per project basis,\nincluding but not limited to, the: (i) purpose of and the need for each\nof the proposed capital expenditures, (ii) total cost, (iii) expected\nperiod of usefulness, (iv) location in the service territory, (v)\nrationale for inclusion in the proceeding, and (vi) anticipated benefits\nto ratepayers and the operation of the distribution system. Such\ndescriptions of capital expenditures, on a per project basis, shall be\nposted on the commission's website. Pursuant to paragraph (i) of this\nsubdivision, the burden of proof to show that a change in rates related\nto each capital expenditure is just and reasonable shall be on the\nutility.\n * NB Effective until January 1, 2027\n * (m) As a separate and distinct part of any filing by a utility\nproposing a major change in rates, the utility must provide a\ndescription of any proposed capital expenditure, on a per project basis,\nincluding but not limited to, the: (i) purpose of and the need for each\nof the proposed capital expenditures, and if it advances state policy\nobjectives, (ii) total cost, (iii) expected period of usefulness, (iv)\nlocation in the service territory, (v) rationale for inclusion in the\nproceeding, (vi) if there was consideration of non-wire or non-pipe\nalternatives prior to inclusion of traditional capital investments in\ndistribution infrastructure, and (vii) anticipated benefits to\nratepayers and the operation of the distribution system, including, but\nnot limited to, through avoided energy demand, transmission and\ndistribution upgrades, or energy efficiency measures. Such descriptions\nof capital expenditures, on a per project basis, shall be posted on the\ncommission's website. When reviewing each capital expenditure the\ncommission shall consider whether the utility has satisfied the burden\nof proof to show that a change in rates related to each capital\nexpenditure is just and reasonable.\n * NB Effective January 1, 2027\n * (n) (i) The commission shall require each filing for a major change\nin rates made by a gas corporation, an electric corporation, or a\ncombination gas and electric corporation, to include an executive\ncompensation disclosure. Such executive compensation disclosure shall\ninclude: (A) the median of the annual total compensation of all\nemployees of the gas corporation or electric corporation, except for\nsenior management positions; (B) the annual total compensation of the\nchief executive officer; (C) the annual total compensation for each\nother senior management position; and (D) the ratio of the amount\ndescribed in clause (A) of this subparagraph to the amount described in\nclause (B) of this subparagraph.\n (ii) The commission shall develop performance-based targets that tie\ncompensation for the chief executive officer and other senior management\npositions and ratepayer-funded incentive compensation programs to the\nenergy affordability index developed pursuant to section sixty-six-x of\nthis article and shall consider adjustments to the corporation's return\non equity based on such metric. Such adjustments shall not be based on\nfactors which the corporation does not control, including, but not\nlimited to, commodity supply prices.\n (iii) For purposes of this paragraph, "senior management positions"\nshall include a chief executive officer, chief operations officer, chief\nfinancial officer, chief information officer, chief information\ntechnology officer, officer responsible for regulatory affairs, general\ncounsel, and any other positions considered to be senior management by\nthe corporation.\n * NB Effective January 1, 2027\n * (o) (i) The commission shall require each filing for a major change\nin rates made by a gas corporation, electric corporation, or combination\ngas and electric corporation, to include, in addition to the\ncorporation's recommended proposal, a budget constrained proposal that\nseparately addresses operating expenses, capital expenditures,\nprogrammatic or policy expenditures, commodity supply costs, taxes, and\nother costs not within the control of the corporation. Such budget\nconstrained proposal shall not increase the applicant's aggregate\nrevenues by more than the average of the annual consumer price index\nincreases over the prior three years.\n (ii) In each filing for a major change in rates, the corporation shall\ndemonstrate how any increase in its aggregate revenues by more than the\nincrease set forth in the budget constrained proposal is necessary to\nensure safety, reliability, or the continuation of energy affordability\nprograms, energy efficiency programs, or cost-effective electrification\nupgrades. If the commission finds that the corporation has made such a\ndemonstration, the commission must provide a detailed explanation as to\nwhy an increase of more than the budget constrained proposal was\nnecessary in its order adopting the new schedule of rates and charges.\nThe commission, in making its determination, shall consider the\ndisclosures required pursuant to paragraph (n) of this subdivision, the\ndescriptions and considerations required by paragraph (m) of this\nsubdivision, and the affordability index provided by the applicant\npursuant to section sixty-six-x of this article.\n (iii) The commission shall require the corporation to track\nexpenditures and outcomes and explain material deviations from the\napproved schedule of rates and charges no less frequently than on an\nannual basis.\n * NB Effective January 1, 2027\n * (p) (i) The commission is authorized and directed to, within two\nhundred seventy days of the effective date of this paragraph, establish\nrules to limit a utility's ability to recover its direct or indirect\ncosts associated with its attendance in, participation in, preparation\nfor, or appeal of any rate proceeding conducted before the commission.\nSuch costs may include, but need not be limited to, attorneys' fees,\nfees to engage expert witnesses or consultants, the portion of employee\nsalaries associated with such attendance, participation, preparation or\nappeal of a rate proceeding and related costs identified by the\ncommission.\n (ii) In establishing such rules the commission may consider: (A)\nsetting an overall percentage of the utility's expenses in a rate case\nthat are not recoverable; (B) setting a baseline of the reasonable cost\nof participation in a rate case; (C) establishing discovery parameters\nand what information in a proceeding must be promptly and\ncomprehensively disclosed by the utility to interveners and to the\ncommission to reduce time and costs associated with a lengthy discovery\nprocess; and (D) any other method that the commission determines will\naccelerate the delivery of such utility information, reduce such costs,\nand limit recovery of such costs to an amount that is reasonable and\nprudent.\n * NB Effective January 1, 2027\n * (q) The commission shall require each filing involving a major\nchange in rates filed by a gas corporation, electric corporation, or\ncombination gas and electric corporation to include an affordability\nindex that shows the energy burden of such corporation's residential\ncustomers at the time of the corporation's filing and what the energy\nburden would be following the corporation's filed change in rates, as\ncalculated using the methodology adopted by the commission pursuant to\nsection sixty-six-x of this article.\n (i) The corporation shall additionally include within such filing\npotential solutions to assist energy burdened customers.\n (ii) All information pertaining to the requirements set forth in this\nparagraph shall be publicly available on the commission's website,\nexcept in cases where such public availability and posting would result\nin disclosure of confidential information, such confidential information\nshall be excluded or anonymized.\n * NB Effective January 1, 2027\n 12-a. Have power to fix and alter the format and informational\nrequirements of bills utilized by public and private gas corporations,\nelectric corporations and gas and electric corporations in levying\ncharges for service, to assure simplicity and clarity and to require\nindication of any adjustment charges, including but not limited to fuel\nadjustments, in monetary amounts. The commission shall further ensure\nperiodic explanation of applicable rates and rate schedules for the\npurpose of assisting customers in making the most efficient use of\nenergy.\n 12-b. (a) In consultation with the commissioner of the department of\ncommerce have power 1. to designate as economic incentive areas specific\nareas in which reduced economic activity, unemployment and\nunderutilization of utility facilities justifies the approval of reduced\nincentive rates for utility services, and to promulgate criteria for\nidentifying such areas and customers eligible for such rates. Upon\napplication of a utility corporation the commission shall authorize\nspecial economic incentive rates in such areas to such customers and for\nsuch periods of time as the commission finds will best effectuate the\npurposes of this subdivision. The commission may also provide for the\ngradual elimination of the rate reduction authorized, and for the\nelimination of such reduction, if any conditions imposed by the\ncommission are not met. 2. to designate or form classes of customers as\nappropriate for special rates or tariffs, in order to prevent loss of\nsuch customers, or to attract new customers where necessary to maintain\neconomic use of utility facilities.\n Any such special rate or tariff shall be so designed as to recover the\nincremental cost of providing service to such customers and to\ncontribute to the common costs which otherwise would be borne by other\ncustomers.\n (b) The commission may also authorize utility corporations to contract\nwith existing or prospective industrial and commercial customers to\nwheel or deliver electricity or gas purchased directly by such\ncustomers, provided that the commission finds that such arrangements are\nin the overall best interest of the rate payers of the corporation, and\nthat the rates and fees for the services provided adequately compensate\nthe corporation for the use of its facilities.\n 12-c. Notwithstanding any other provision of law, upon application of\na gas or electric corporation, the commission shall authorize such\ncorporation to charge a special empire zone rate equal to the\nincremental cost of providing service to customers certified as eligible\nfor such rate pursuant to article eighteen-B of the general municipal\nlaw.\n 12-d. Notwithstanding any other provision of law, upon application of\na gas or electric corporation, the commission shall authorize such\ncorporation to charge a special excelsior jobs program rate equal to the\nincremental cost of providing service to participants in the excelsior\njobs program as defined in article seventeen of the economic development\nlaw.\n 13. In case any electric corporation or gas corporation is engaged in\ncarrying on any business other than owning, operating or managing a gas\nplant or an electric plant, which other business is not otherwise\nsubject to the jurisdiction of the commission, and is so conducted that\nits operations are to be substantially kept separate and apart from the\nowning, operating, managing or controlling of such gas plant or electric\nplant, said corporation in respect of such other business shall not be\nsubject to any of the provisions of this chapter and shall not be\nrequired to procure the assent or authorization of the commission to any\nact in such other business or to make any report in respect thereof. But\nthis subdivision shall not restrict or limit the powers of the\ncommission in respect to the owning, operating, managing or controlling\nby such corporation of such gas plant or electric plant, and said powers\nshall include also the right to inquire as to, and prescribe the\napportionment of, capitalization, earnings, debts and expenses fairly\nand justly to be awarded to or borne by the ownership, operation,\nmanagement or control of such gas plant or electric plant as\ndistinguished from such other business. In any such case if the owning,\noperating, managing or controlling of such gas plant or electric plant\nby any such corporation is wholly subsidiary and incidental to the other\nbusiness carried on by it and is inconsiderable in amount and not\ngeneral in its character, the commission may by general rules exempt\nsuch corporation from making full reports and from the keeping of\naccounts as to such subsidiary and incidental business. Where the\npermission granted such corporation pursuant to section sixty-eight is\nto supply gas only to less than twenty customers specified by the\ncommission, the commission may, if the public interest permits, exempt\nsuch corporation from compliance with all or any of the provisions of\nthis article except those affecting matters of public safety and the\nprovisions of sections sixty-five, sixty-eight and seventy-four.\n 14. The commission shall have power to require each gas corporation\nand electric corporation to establish classifications of service based\nupon the quantity used, the time when used, the purpose for which used,\nthe duration of use and upon any other reasonable consideration, and to\nestablish in connection therewith just and reasonable graduated rates\nand charges; and it shall have power, either upon complaint or upon its\nown motion, to require such changes in such classifications, rates and\ncharges as it shall determine to be just and reasonable. Neither the\nscheduled rates nor the minimum charge for residential customers shall,\nafter July first, nineteen hundred thirty-seven, be based in any manner\non the number of outlets, number of rooms, cubic or square foot area or\nother such standards.\n 15. Receive, and any gas corporation may at any time submit to the\ncommission for its approval, one or more contracts proposed to be made\nby it for the purchase from the producer of by-product gas, to be used\nin its service to its consumers, in which said proposed contract the\nprice of gas shall be based on the then market price of coal, and to\nvary therewith whenever the market price of coal shall vary to the\nextent of ten per centum for a period of not less than thirty days, and\nwhich said contract shall state the efficiency of said gas, and upon the\napproval of said contract by the commission, or said contract as the\nsame may be amended, altered or changed, and upon the application of\nsaid gas corporation, the commission shall make an order fixing the rate\nor rates to be charged to consumers for the service of such gas, which\nsaid rate shall thereafter remain unchanged during the term of said\ncontract in so far as said rate shall be based on the cost of gas to\nsaid corporation, except as such cost shall vary with the variations in\nthe price of coal as in said contract provided. The commission shall\nhave like powers and duties with reference to existing contracts made\nprior to January first, nineteen hundred and twenty-two, by a gas\ncorporation for a supply of by-product gas where the price of gas varies\nas the price of coal varies. By-product, as used in this section, is\ndefined to mean one of the several products obtained by treatment of\ncoal by some process other than the customary distillation in retorts.\n 16. The commission shall have power after a hearing on its own motion,\nupon complaint or upon the application of a gas corporation or electric\ncorporation to prescribe rates and charges for gas, electricity or other\nservice rendered or to be rendered, embodying the automatic adjustment\nof such rates and charges, over a fixed period not exceeding four years,\nbased on the relation between the net income from such rates and charges\navailable for return and the fair value of the property of the\ncorporation used and useful in said service; but nothing in this\nsubdivision shall operate to prevent the commission after the expiration\nof such fixed period from fixing proper, just and reasonable rates and\ncharges to be made for gas, electricity or service as authorized in this\narticle.\n 17. Notwithstanding the provisions of this article, any gas\ncorporation which transports natural gas through the state of New York\nbut which does not deliver, sell or furnish any such gas to any person\nor corporation within the state of New York, shall be subject to\nregulation by the commission only insofar as the construction and\noperation of such facilities shall affect matters of public safety.\n 19. (a) The commission shall have power to provide for management and\noperations audits of gas corporations and electric corporations. Such\naudits shall be performed at least once every five years for combination\ngas and electric corporations, as well as for straight gas corporations\nhaving annual gross revenues in excess of two hundred million dollars.\nThe audit shall include, but not be limited to, an investigation of the\ncompany's construction program planning in relation to the needs of its\ncustomers for reliable service, an evaluation of the efficiency of the\ncompany's operations, an evaluation of customer privacy protections,\nincluding but not limited to customer electrical and gas consumption\ndata, and protection of critical energy infrastructure as defined in\nsubdivision fourteen of section 1-103 of the energy law, recommendations\nwith respect to same, and the timing with respect to the implementation\nof such recommendations. The commission shall have discretion to have\nsuch audits performed by its staff, or by independent auditors.\n In every case in which the commission chooses to have the audit\nprovided for in this subdivision or pursuant to subdivision fourteen of\nsection sixty-five of this article performed by independent auditors, it\nshall have authority to select the auditors, and to require the company\nbeing audited to enter into a contract with the auditors providing for\ntheir payment by the company. Such contract shall provide further that\nthe auditors shall work for and under the direction of the commission\naccording to such terms as the commission may determine are necessary\nand reasonable.\n (b) Each corporation subject to an audit under this subdivision shall\nfile a report with the commission within thirty days after issuance of\nsuch audit detailing its plan to implement the recommendations made in\nthe audit. After review of such plan, the commission may require each\ncombined electric and gas corporation amend its plan in a particular\nmanner. Such plan shall thereafter become enforceable upon approval by\nthe commission. The commission shall have power to commence a proceeding\nto examine any such corporation's compliance with the recommendations of\nsuch audit.\n (c) Upon the application of a gas or electric corporation for a major\nchange in rates as defined in subdivision twelve of this section, the\ncommission shall review that corporation's compliance with the\ndirections and recommendations made previously by the commission, as a\nresult of the most recently completed management and operations audit.\nThe commission shall incorporate the findings of such review in its\nopinion or order, and such findings shall be enforceable by the\ncommission.\n (d) The commission shall have the power to provide for an annual audit\nof gas corporations and electric corporations relating to the adequacy\nof cyber-security policies, protocols, procedures and protections\nincluding, but not limited to, as such policies, protocols, procedures\nand protections relate to critical energy infrastructure as defined in\nsubdivision fourteen of section 1-103 of the energy law and customer\nprivacy including but not limited to customer electric and gas\nconsumption data. The commission shall have the discretion to have such\naudits performed by its staff or by an independent third party.\n * 20. Notwithstanding any general or special law, rule or regulation,\nthe commission shall have the power to provide for the refund of any\nrevenues received by any gas or electric corporation which cause the\ncorporation to have revenues in the aggregate in excess of its\nauthorized rate of return for a period of twelve months. The commission\nmay initiate a proceeding with respect to such a refund after the\nconclusion of any such twelve month period.\n * NB Effective until January 1, 2027\n * 20. (a) Notwithstanding any general or special law, rule or\nregulation to the contrary, the commission shall have the power to\nprovide for the refund of any revenues received by any gas corporation,\nelectric corporation, or combination gas and electric corporation, which\ncause the corporation to have revenues in the aggregate in excess of its\nauthorized rate of return for a period of twelve months.\n (b) Such corporations shall be required to return all revenues derived\nfrom their actual return on equity in excess of their authorized rate of\nreturn on equity to ratepayers, less an amount not to exceed the amount\nof revenue that would be derived from a rate of return on equity equal\nto one quarter of one percent, as determined by the commission, and upon\na determination by the commission that such revenues in excess of a\ncorporation's authorized rate of return on equity provide benefits to\nratepayers through cost savings or efficiency gains which exceed the\nbenefits of refunds pursuant to paragraph (c) of this subdivision.\nProvided, however, in no event shall ratepayers, in aggregate, receive\nless in returns than the corporation retains in excess revenues.\n (c) The commission shall direct the corporation to return such excess\nrevenues in the form of a bill credit; provided, however, that if the\ncommission determines that the amount of the bill credit would be de\nminimis, the commission may set aside such excess revenues for customer\nbenefit in a following rate case. Any bill credit shall be provided to\nratepayers in a timely manner, following an accounting review by the\ndepartment of the corporation's calculation of their excess revenue, and\nshall be clearly labeled on the ratepayer's bill. Any such bill credit\nshall be returned in its entirety on a single bill, unless the credit is\nin excess of the amount due on the bill so as to require the remaining\nportion of the bill credit to appear on a subsequent bill or bills. The\ncommission may initiate a proceeding with respect to such a refund after\nthe conclusion of any such twelve-month period. In such a proceeding the\ncommission shall determine the bill credit amount due to ratepayers, may\nexamine how credits could be distributed among various customer\nclassifications of service, and shall issue an order requiring the\ndisbursement of the bill credits.\n (d) Such corporations shall be required to report annually to the\ndepartment any excess revenues and the amount returned to ratepayers.\n (e) For purposes of this subdivision, "authorized rate of return on\nequity" shall mean the return on the equity portion of the rate base\nthat an electric corporation, gas corporation, or combination gas and\nelectric corporation is authorized to collect in rates pursuant to the\nschedule of rates and charges on file with the commission or otherwise\nadopted by an order of the commission.\n * NB Effective January 1, 2027\n 21. (a) Each electric corporation subject to section twenty-five-a of\nthis chapter shall annually, on or before December fifteenth, submit to\nthe commission an emergency response plan for review and approval. The\nemergency response plan shall be designed for the reasonably prompt\nrestoration of service in the case of an emergency event, defined for\npurposes of this subdivision as an event where widespread outages have\noccurred in the service territory of the company due to storms, cyber\nattack, or other causes beyond the control of the company. The emergency\nresponse plan shall include, but need not be limited to, the following:\n(i) the identification of management staff responsible for company\noperations during an emergency; (ii) a communications system with\ncustomers during an emergency that extends beyond normal business hours\nand business conditions; (iii) identification of and outreach plans to\ncustomers who had documented their need for essential electricity for\nmedical needs, which shall include but not be limited to, apnea monitors\nfor infants, cuirass respirators, hemodialysis machines, IV feeding\nmachines, IV medical infusion machines, oxygen concentrators, positive\npressure respirators, respirator/ventilators, rocking bed respirators,\nsuction machines, and tank type respirators; (iv) identification of and\noutreach plans to customers who had documented their need for essential\nelectricity to provide critical telecommunications, critical\ntransportation, critical fuel distribution services or other large-load\ncustomers identified by the commission; (v) designation of company staff\nto communicate with local officials and appropriate regulatory agencies;\n(vi) provisions regarding how the company will assure the safety of its\nemployees and contractors; (vii) procedures for deploying company and\nmutual aid crews to work assignment areas; (viii) identification of\nadditional supplies and equipment needed during an emergency; (ix) the\nmeans of obtaining additional supplies and equipment; (x) procedures to\npractice the emergency response plan; (xi) appropriate safety\nprecautions regarding electrical hazards, including plans to promptly\nsecure downed wires within thirty-six hours of notification of the\nlocation of such downed wires from a municipal emergency official; (xii)\nplans to prioritize the securing of downed wires over routine\nmaintenance or other work unrelated to a response to an emergency event\nafter notification by an individual of the location of such downed wires\nand where such notification includes information indicating wire\nburning, arcing/sparking, or the restriction of ingress and egress from\na building or vehicle, or other immediate hazards. Such plans shall, at\nminimum, include procedures to identify, locate, and assess the reported\nwire no later than seventy-two hours after the response to an emergency\nevent ends; (xiii) plans setting forth how the communication and\ncoordination of efforts between the electric corporation, electric\ncorporation employees, electric corporation company crews, mutual aid\ncrews, other utilities, local governments and any other entity\nperforming services to assist such electric corporation shall occur; and\n(xiv) such other additional information as the commission may require.\nEach such corporation shall, on an annual basis, undertake drills\nimplementing procedures to practice its emergency management plan. The\ncommission may adopt additional requirements consistent with ensuring\nthe reasonably prompt restoration of service in the case of an emergency\nevent.\n (b) After review of a corporation's emergency response plan, the\ncommission may require such corporation to amend the plan. The\ncommission may also open an investigation of the corporation's plan to\ndetermine its sufficiency to respond adequately to an emergency event.\nIf, after hearings, the commission finds a material deficiency in the\nplan, it may order the company to make such modifications that it deems\nreasonably necessary to remedy the deficiency.\n (c) The commission is authorized to open an investigation to review\nthe performance of any corporation in restoring service or otherwise\nmeeting the requirements of the emergency response plan during an\nemergency event. If, after evidentiary hearings or other investigatory\nproceedings, the commission finds that the corporation failed to\nreasonably implement its emergency response plan or the length of such\ncorporation's outages were materially longer than they would have been,\nbecause of such corporation's failure to reasonably implement its\nemergency response plan, the commission may deny the recovery of any\npart of the service restoration costs caused by such failure,\ncommensurate with the degree and impact of the service outage; provided,\nhowever, that nothing herein limits the commission's authority to\notherwise commence a proceeding pursuant to sections twenty-four,\ntwenty-five and twenty-five-a of this chapter.\n (d) The commission shall certify to the department of homeland\nsecurity and emergency services that each such corporation's emergency\nresponse plan is sufficient to ensure to the greatest extent feasible\nthe timely and safe restoration of energy services after an emergency in\ncompliance with the requirements of this chapter.\n (e) The filing of each emergency response plan required under\nparagraph (a) of this subdivision shall also include a copy of all\nwritten mutual assistance agreements among utilities.\n (f) Each electric corporation shall file with the county executive or\nthe chief elected official of a county for each county within its\nservice territory the most recent approved copy of the emergency\nresponse plan required pursuant to this section. For the purposes of an\nelectric corporation operating within the city of New York, such\ncorporation shall file the most recent approved emergency response plan\nwith the emergency management office of the city of New York.\n (g) The commission shall provide access to such emergency response\nplan pursuant to article six of the public officers law.\n 22. The commission shall permit the recovery through rates established\npursuant to this section of all payments made by electric corporations\npursuant to section twenty-nine-c of the executive law.\n 23. Require every gas corporation or electric corporation having\nequipment containing five hundred parts per million or greater of\npolychlorinated biphenyls (PCBs), including but not limited to,\ncapacitors and transformers, to submit a report to the commission. The\nreport shall contain (1) a list of such equipment that is in service,\neach unit's location, size and service age, (2) a list of such equipment\nthat is retired from service after the effective date of this\nsubdivision, the date each unit was retired from service, and the\nlocation of the facility where the unit and/or PCBs are processed or\nstored, (3) the date for shipment of PCBs within or out of New York\nstate, and (4) a description of the New York state portion of the\nshipping route. The commission shall require the report to be updated\nand distributed semiannually. In addition, such corporation shall submit\nto each county and city located in the service territory of the\ncorporation a report containing the information listed above for such\nequipment and PCBs located in or transported through the county or city\nreceiving the report.\n For the purposes of this subdivision, capacitors, transformers, and\nequipment designed to use the PCB-free mineral oil dielectric fluids\nshall be presumed to contain concentrations below five hundred parts per\nmillion of PCBs, unless the unit has been serviced with fluid which\ncontains five hundred parts per million or greater of PCBs, or there is\nany other reason to believe that the unit contains or was ever mixed\nwith fluid with a concentration level of five hundred parts per million\nor greater or unless testing has specifically shown otherwise.\n 24. (a) If a nuclear power plant which is not commercially used and\nuseful in the actual generation of electricity on the effective date of\nthis subdivision and which is owned by a single utility on or after the\neffective date of this subdivision fails to commence or continue\ncommercial operation after the effective date of this subdivision, the\ncommission shall thereafter remove and exclude from the utility\ncorporation's revenue requirement all amounts, costs, charges,\nadjustments, or extraordinary cost of capital allowances theretofore\nmade, granted or provided which are attributable, directly or\nindirectly, to such nuclear power plant or to such plant's failure to\ncommence commercial operation.\n (b) The commission shall not thereafter, unless and until such plant\ncommences or recommences commercial operation, include in such utility's\nrevenue requirement any amounts, costs, charges, adjustments or\nextraordinary cost of capital allowances attributable, directly or\nindirectly, to such plant or to such plant's failure to commence\ncommerical operation.\n (c) Nothing in this subdivision shall be deemed to require a refund of\nthe charges paid by or billed to a customer of such utility prior to a\nfailure to commence or continue commercial operation of such plant.\n (d) For the purposes of this subdivision, the failure to commence or\ncontinue commercial operation shall mean the abandonment of such plant\nafter the effective date of this subdivision; the denial, including any\ndenial pursuant to or as a result of any administrative or judicial\nreview, of a commercial operating license or other regulatory approval\nnecessary for the plant to become commercially used and useful in the\nactual generation of electricity; the failure of the plant to become\ncommercially used and useful in the actual generation of electricity\nwithin forty-two months of the issuance of the low power testing license\nfor such plant; or the occurrence of any event or the existence of any\ncircumstances (other than customary inspection and maintenance and\nrelated repairs or refueling requirements) after the plant becomes\ncommercially used and useful in the actual generation of electricity\nwhich renders the plant not commercially used and useful in the actual\ngeneration of electricity.\n 25. Notwithstanding any other provision of law to the contrary,\nwhenever a city having a population of one million or more provides for\na deduction from gross receipts of a gas corporation or electric\ncorporation, pursuant to a local law authorized by the provisions of\nsubdivision (k) of section twelve hundred one of the tax law, the rate\nor charge imposed by any such corporation within such city upon\nnon-residential users of electricity or gas eligible to receive a rebate\nin accordance with a local law or laws adopted pursuant to article two-G\nof the general city law shall be set by the commission so as to reflect\nfully the decrease in tax liability attributable to such deduction.\n 26. Notwithstanding any other provision of law to the contrary,\nwhenever the gas facility costs of a gas corporation are paid or\nreimbursed by the city of New York as provided in the gas facility cost\nallocation act, the rates and charges of such gas corporation within\nsuch city shall be set by the commission so as to reflect fully the\namount of such payments and reimbursements made by such city. The amount\nof such payments and reimbursements shall not be reflected directly or\nindirectly in any rate or charge imposed by such corporation outside\nsuch city.\n 27. (a) Each electric corporation with annual gross revenues in excess\nof two hundred million dollars shall offer the option of paying charges\non the basis of time of use rates for service to its residential\ncustomers and to posts and halls owned by a not-for-profit corporation\nthat is a veterans' organization. Such electric corporation shall\nperiodically send a notice explaining the rates and informing such\ncustomers and organizations that the rates are available.\n (b) Any electric corporation which offers its customers time of use\nrates shall notify those customers who elect or receive such rate\nregarding the following:\n (1) the hours for which such rates are available for both standard and\ndaylight savings time;\n (2) the procedure such customers shall follow in order to have their\nmeter clocks reset following an interruption of service if such\nresetting is necessary to restore the effective hours of the time of use\nrates; and\n (3) when the utility has knowledge of an outage, a statement within\nsixty days of such outage that the time of use rates may not be applied\nat the previously stated times until the meter clock is reset, if such\nresetting is necessary.\n 28. No revenues foregone by an electric corporation, as a result of\nsubjecting certain veterans' organizations with rates or charges\napplicable to domestic consumers pursuant to section seventy-six of this\narticle, shall be recovered from the customers of such corporation.\n 29. (a) Each electric corporation subject to section twenty-five-a of\nthis chapter shall prepare and submit a climate change vulnerability\nstudy to the commission within eighteen months of the effective date of\nthis act. The commission shall provide such study to the governor and\nthe legislature. The climate change vulnerability study shall evaluate\nthe electric corporation's infrastructure, design specifications, and\nprocedures to better understand the corporation's vulnerability to\nclimate-driven risks, and shall include, but not be limited to,\nadaptation measures to address vulnerabilities and any other information\ndeemed necessary by the commission.\n (b) Within sixty days from submission of a climate change\nvulnerability study to the commission, each electric corporation subject\nto section twenty-five-a of this chapter shall submit a climate\nresilience plan to the commission for review and approval. Each plan\nshall: (i) propose storm hardening and resiliency measures for the next\nten years and twenty years, and shall explain the systematic approach\nthe corporation will follow to achieve the objectives of mitigating the\nimpacts of climate change to utility infrastructure, reducing\nrestoration costs and outage times associated with extreme weather\nevents, and enhancing reliability, as well as such other additional\nobjectives the commission may require consistent with ensuring increased\nresiliency of utility infrastructure and overall reliability during\nextreme weather events; (ii) detail how the corporation will incorporate\nclimate change into its planning, design, operations, and emergency\nresponse; (iii) incorporate climate change into existing processes and\npractices, manage climate change risks and build resilience; (iv)\npropose adjustments, as necessary, to how the corporation plans and\ndesigns infrastructure for the increasing impacts from climate change;\nand (v) address each of the elements specified in paragraph (d) of this\nsubdivision and any additional elements specified by the commission. The\ncommission shall adopt rules to specify any additional elements that\nmust be included in a corporation's filing for review of climate\nresilience plans.\n (c) Each subject electric corporation shall contemporaneously serve\nthe climate resilience plan on the parties from its last rate case filed\npursuant to subdivision twelve of this section.\n (d) In its review of each climate resilience plan filed pursuant to\nthis subdivision, which shall be separate from a corporation's rate\nproceeding, the commission shall, at minimum, consider:\n (i) the extent to which the plan is expected to mitigate the impacts\nof climate change, reduce restoration costs and outage times associated\nwith extreme weather events, and enhance reliability, including whether\nthe plan examines areas of lower reliability performance;\n (ii) the extent to which storm protection and hardening of\ntransmission and distribution infrastructure is feasible, reasonable, or\npractical in certain areas of the corporation's service territory,\nincluding, but not limited to, coastal areas, flood zones, and rural\nareas;\n (iii) the estimated costs and benefits to the corporation and its\ncustomers of making the improvements proposed in the plan, including\nconsiderations of equity in the plan as applied across the entire\nservice territory, with particular attention paid to the costs and\nbenefits in undergrounding transmission and distribution lines;\n (iv) a schedule for implementing each of the storm hardening and\nresiliency measures included in the plan;\n (v) whether the plan includes major performance benchmarks that\nmeasure the effectiveness of the implementation of the plan;\n (vi) the estimated annual rate impact resulting from implementation of\nthe plan during the first five years addressed in the plan;\n (vii) the extent to which the plan considers a multi-pronged strategy\nappropriately tailored to addressing the impacts of climate change,\nreducing restoration costs and outage times and enhancing infrastructure\nreliability, including, but not limited to, vegetation management,\nimprovements to system management practices, undergrounding of\ndistribution and transmission lines, replacement of obsolete cables,\nwires and poles, automation and circuit reconfiguration, investing in\ninfrastructure that supports the development of technologies that would\nimprove response to extreme weather events and reduce restoration costs,\nand system resiliency through the deployment of distributed energy\nresources, and fortifying critical facilities;\n (viii) the extent to which the plan identifies opportunities for\ncoordination with municipalities, customer advocate groups, the\nindependent system operator, the energy research and development\nauthority, and other utility or telecommunication service providers;\nand,\n (ix) the recommendations from the utility climate resilience working\ngroup established pursuant to paragraph (h) of this subdivision.\n (e) No later than eleven months after a corporation files a climate\nresilience plan that contains all of the elements required by this\nsubdivision, and after a public hearing on the plan, which shall include\na public forum at a physical location, attended by commission members or\ntheir designees to take in written or oral comment, the commission shall\ndetermine whether it is in the public interest to approve or modify the\nplan.\n (f) At least every five years after approval of a corporation's\nclimate resilience plan, or more frequently upon a schedule determined\nto be appropriate by the commission, each corporation must file, for\ncommission review, an updated plan that addresses each element specified\nin paragraph (b) of this subdivision. The commission shall approve,\nmodify, or deny each updated plan pursuant to the criteria used to\nreview the initial plan.\n (g) The commission shall authorize each electric corporation to fully\nrecover in the context of rate proceedings the costs associated with\neach project included in such corporation's climate resilience plan that\nis approved or modified by the commission, so long as such costs were\nprudently incurred. Each corporation may begin implementation of the\nclimate and resilience measures in accordance with the schedule\nspecified in its climate resilience plan once such plan is approved or\nmodified by the commission. For capital projects that are placed into\nservice and additional unrecovered expenses incurred prior to the base\nrates being reset in the first rate proceeding commenced by such\ncorporation subsequent to the commission's approval or modification of\nthe climate resilience plan, the company shall recover such costs\nthrough a "climate resiliency cost recovery" surcharge. The costs to be\nrecovered through such a surcharge shall be detailed in a filing to the\ncommission, and each corporation shall propose a method of allocating\ncosts to customer classes in said filing. Such costs for capital\nprojects in service may include an annual depreciation cost, calculated\nat the corporation's approved depreciation rates and a return on the\nundepreciated balance of the plant in service calculated at the\ncorporation's approved weighted average cost of capital. In addition,\nall unrecovered expense balances, net of taxes, shall also earn carrying\ncharges at the corporation's approved weighted average cost of capital.\nThe commission may roll any unrecovered costs associated with such\nsurcharge into base rates when the corporation's base rates are reset.\nThe commission shall identify in any order approving or modifying a\ncorporation's rate plan the resiliency and storm hardening component of\nthe revenue requirement on a cost and/or percentage basis.\n (h) Each corporation shall establish a utility climate resilience\nworking group no later than one year after the effective date of this\nsubdivision. Such working group shall advise and make recommendations to\nthe corporation and the commission on the development and implementation\nof the corporation's climate resilience plan. The corporation shall, in\nconsultation with the department, include in the working group\nrepresentatives from municipalities, customer advocacy groups, and\nenergy and environmental advocacy organizations. The working group shall\nmeet at least twice annually.\n (i) Each corporation shall provide to the county executive or the\nchief elected official of a county for each county within its service\nterritory the most recent approved copy of the climate resilience plan\nrequired pursuant to this subdivision. For the purposes of an electric\ncorporation operating within the city of New York, such corporation\nshall provide the most recent approved climate resilience plan with both\nthe mayor's office and emergency management office of the city of New\nYork.\n (j) The commission shall provide access to such climate resilience\nplans pursuant to article six of the public officers law.\n (k) Beginning December first of the year after the second full year of\nimplementation of a climate resilience plan and biennially thereafter,\nthe corporation shall file with the commission a report on the status of\nits activities to comply with the plan, which report the commission\nshall, after review, submit to the governor and the legislature. The\nreport shall include, but is not limited to, identification of all storm\nprotection and resiliency activities completed or planned for\ncompletion, the actual costs and rate impacts associated with completed\nactivities as compared to the estimated costs and rate impacts for those\nactivities, the estimated costs and rate impacts associated with\nactivities planned for completion, and the governance, planning, and\noperational activities undertaken by the corporation in furtherance of\nthe climate resilience plan.\n (l) The commission shall promulgate any necessary rules and\nregulations to implement and administer the provisions of this\nsubdivision.\n 30. Promulgate rules and regulations to direct electric or gas\ncorporations to develop and implement tools to monitor: (a) operational\ncontrol networks giving the electric or gas corporation the ability to\nundertake the detection of unauthorized network behavior related to such\ncorporation's industrial control systems, as defined in subdivision\nfifteen of section 1-103 of the energy law; and (b) monitor and protect\ncustomer privacy, including but not limited to customer electric and gas\nconsumption data from unauthorized disclosure. On or before December\nthirty-first, two thousand twenty-three and not later than five years\nafter such date, and every five years thereafter, the commission shall\nprovide a report to the governor, the temporary president of the senate,\nthe speaker of the assembly, the chairperson of the assembly standing\ncommittee on energy, and the chairperson of the senate standing\ncommittee on energy and telecommunications reviewing electric or gas\ncorporation compliance with this section, including, as necessary,\nrecommendations to the legislature if the commission determines that\nadditional measures are required to ensure the effective protection of\nelectric or gas corporation critical infrastructure.\n 31. Promulgate rules and regulations to direct electric or gas\ncorporations to require the installation of advanced metering\ninfrastructure that connects to the electric or gas distribution network\noperated by such electric or gas corporation be permitted only so long\nas access to the advanced meter infrastructure enables two-way\ncommunication between utilities and meters through the optimal\ncommunications network option, such as a wireless network, that is\nshared by at least two meter providers operating within the United\nStates of America, if the commission determines that it is cost\neffective and technically feasible to do so.\n 32. Customer electric and gas consumption data shall be considered\nconfidential. The commission shall have the authority to promulgate\nrules and regulations to require gas or electric corporations to take\nnecessary measures to protect such data from unauthorized or unconsented\ndisclosure.\n * 33. (a) Following any commission decision that establishes a change\nin rates that results in an energy burden greater than three percent for\nresidential electric service or greater than three percent for\nresidential gas service, or greater than six percent for residential\ncombination electric and gas service, the commission shall have the\npower to install an independent affordability monitor inside such gas\ncorporation, electric corporation, or combination gas and electric\ncorporation for a time period determined by the commission but for no\nless than one year and which shall not continue beyond any commission\ndecision establishing a new schedule of rates or charges which\nconstitutes a major change, pursuant to subdivision twelve of this\nsection other than to complete its responsibilities pursuant to\nparagraph (c) of this subdivision relevant to the filing for which it\nwas installed.\n (b) In every case in which the commission installs an affordability\nmonitor, it shall have authority to select the monitor, who shall not be\naffiliated with, or have a financial interest in such corporation or be\nan existing employee of the department, to enter into a contract with\nthe monitor, and ensure the monitor's services are paid for. Such\ncontract shall provide further that the monitor shall work for and under\nthe direction of the commission according to such terms as the\ncommission may determine are necessary and reasonable.\n (c) (i) Such affordability monitor shall have power to examine\nrecords, including but not limited to, the accounts, books, contracts,\nproperty, assets, procurement history, taxes, accounting, operations,\nmaintenance, past and present customer billing systems and related\ndocuments, customer complaints, as well as financial documents, reports,\nand papers of the corporation and shall have full access to management\nmeetings and related records in order to review the corporation's\noperations and expenditures, and the corporation shall provide such\nmaterials and such access to the affordability monitor.\n (ii) The affordability monitor shall report to the commission at least\nbiannually the primary cost drivers that caused the energy burden to\nrise more than three percent for residential electric service or greater\nthan three percent for residential gas service, or greater than six\npercent for residential combination gas and electric service,\nopportunities for cost savings and residential rate reduction,\nrecommended changes in corporation operations, incentives, practices, or\npolicies to achieve savings, and other information the affordability\nmonitor determines relevant. Such report shall be publicly available and\nposted prominently on the commission's website.\n (iii) The commission upon receiving a report from the affordability\nmonitor shall review the primary cost drivers and identified\nopportunities for savings.\n (iv) The commission in its review shall make a determination of\nwhether the opportunities for savings detailed by the energy\naffordability monitor merit implementation. If the commission determines\nthat any of the identified opportunities for savings are not efficient,\njust and reasonable, or would impact safety or reliability, or otherwise\ndo not merit implementation, the commission shall explain the basis for\nthat determination. If the commission determines an opportunity for\nsavings merits implementation, it shall issue an order within 180 days\nto implement such opportunity.\n (d) Any gas corporation, electric corporation, or combination electric\nand gas corporation shall promptly and comprehensively comply with any\ninvestigation or investigation request.\n (e) (i) If the energy affordability monitor discovers evidence of\nwidespread errors, including but not limited to errors in billing,\nrates, charges, and compensation for employees or third-party\ncontractors, miscategorization of expenses, fraud, or wrongdoing, and\nthe department, after reviewing the evidence from the monitor,\ndetermines such evidence constitutes a credible and actionable\nallegation of a violation of the law, the department shall initiate an\ninvestigation or enforcement action.\n (ii) The commission shall determine whether the corporation was at\nfault and shall take any corrective action it deems appropriate. Any\nsettlement, interest, fees, penalties or disgorged profits collected by\nthe commission as a result of investigations pursuant to this\nsubdivision shall be returned to impacted residential and small\nnon-residential ratepayers in the form of on-bill credits.\n * NB Effective January 1, 2027\n