New York Assembly Bill A09154

New York 2025-2026 Regular Session

• Introduced: 10/17/25
• Refer: 10/17/25
• Refer: 1/7/26

Caption

Enacts the "utility fair acquisition act", providing that in any acquisition by a municipal corporation or a public benefit corporation created pursuant to article 5 of the public authorities law of infrastructure operated by a public utility company or private energy provider, the appraised value shall be reduced by the value of infrastructure that was financed through customer user fees, ratepayer surcharges, or other non-investor-funded mechanisms as determined by the public service commission.

Impact

The enactment of A09154 will have significant implications for how public utility assets are valued and acquired in New York. By directing the public service commission to assess the financing sources for utility assets, this bill aims to create a more equitable process for municipalities in acquiring essential infrastructure. It seeks to mitigate the fiscal burden on municipal governments and, ultimately, the taxpayers by aligning asset acquisition costs with the contributions already made through user fees and other non-investor funding mechanisms. The impact is expected to streamline the acquisition process and enhance the financial operations of municipal corporations involved in public utility services.

Summary

A09154, also known as the 'Utility Fair Acquisition Act,' seeks to amend existing regulations surrounding the acquisition of public utility infrastructure, specifically focusing on the financial aspects tied to asset acquisitions by municipal corporations and public benefit corporations. The bill primarily emphasizes that any municipal acquisition of electric generation, transmission, or distribution infrastructure should factor in a reduction in the appraised value based on the proportion of the infrastructure financed by customer fees or surcharges, rather than by investor funding. This aims to ensure that taxpayer contributions are considered in determining asset values during acquisitions.

Contention

While supporters of A09154 advocate for its potential to create fairness in the acquisition of public utility assets, there are notable points of contention voiced by opponents. Critics argue that this bill could inadvertently disincentivize investment from private utility companies, as it may undermine the perceived value of their infrastructure. Moreover, there are concerns that the amendments could lead to local governments facing hurdles in negotiations, as the re-evaluated asset values determined by the public service commission could complicate existing business relationships and contractual obligations between municipalities and private energy providers.