New York Assembly Bill A10042

New York 2025-2026 Regular Session

• Introduced: 1/30/26
• Refer: 1/30/26

Caption

Prohibits electric corporations and gas corporations from passing along costs or increasing charges to ratepayers as a result of increased costs incurred due to legal or regulatory proceedings against such electric corporation, gas corporation, or utility, including settlements, attorneys' fees, penalties, fines or costs.

Impact

Should this bill be enacted, it will create a significant change in the financial dynamics between utility providers and their customers. By preventing utility companies from transferring legal costs into their rates, the bill aims to protect consumers from unexpected price increases that may arise from the companies' external legal struggles. This measure is expected to foster greater accountability among utility firms, potentially making them more cautious in handling legal disputes, knowing that the costs cannot simply be passed on to consumers.

Summary

Bill A10042 aims to amend the public service law in New York by prohibiting electric and gas corporations from passing on the costs of legal or regulatory proceedings to ratepayers. This specific legislation seeks to ensure that consumers are not burdened with additional charges related to the operational legal expenses such as settlements, attorneys' fees, or penalties incurred by these utilities. The bill highlights a commitment to consumer protection by attempting to mitigate the financial impact that corporate legal matters have on households and businesses relying on these essential services.

Contention

The reception of Bill A10042 may involve some contention as stakeholders in the utility industry might argue that the inability to recover legal costs could hinder their financial stability, impacting service quality and future investments. Opponents of the bill may raise concerns about the feasibility of maintaining operational integrity without the ability to offset unexpected legal expenses. Proponents, however, argue that the bill prioritizes consumer interests at a time when utility companies could become overly reliant on cost-shifting practices that ultimately disadvantage everyday ratepayers.