Assembly passes Jacobson bill limiting estimated utility billing; PSC to adopt model procedures

Assemblymember Jacobson's bill to curb excessive use of estimated utility billing and require a model procedure from utilities cleared the New York State Assembly after extended questioning on cost and recovery mechanisms.

The bill, presented on the floor as Assembly number 888‑c (calendar 30), would limit utilities to the existing criteria in subdivision 1 of section 39 of the public service law for issuing estimated bills and require that, within six months of the law's effective date, utilities submit a model procedure for calculating estimated bills to the Public Service Commission (PSC). Jacobson said the measure’s aim is to “protect utility customers by mitigating excessive fluctuations in their utility bills” and that “All other billings shall use actual meter readings.”

Members pressed the sponsor on practical implications. Assemblymember Palmisano asked what constitutes an “actual meter read,” whether smart meters qualify, and whether mandating actual readings but forbidding recovery of related costs would discourage utilities from performing them. Jacobson responded that an actual read may occur “any way that the utility can read the meter” and emphasized the bill’s phrasing—“to the extent practicable, any additional cost … shall not be passed on to the customer”—is intended to express the Legislature’s will that utilities minimize rate impacts while the PSC retains authority to evaluate cost recovery through its proceedings.

Cost figures were debated on the floor. A member estimated smart‑metering at roughly $30 per customer per year and suggested implementation statewide could be on the order of $180,000,000; Jacobson said he judged any per‑customer increase would be modest and acceptable if it produced more accurate, transparent bills. Opponents cautioned the statutory language could create a disincentive for utilities to invest in meter‑reading infrastructure if costs are deemed nonrecoverable.

The floor recorded a party vote after debate and several members explained their positions, with floor statements noting concerns that statutory language could be interpreted in ways that affect utility finances and future investments. The clerk announced the result: Ayes 104, Noes 42; the bill was passed.

Jacobson told colleagues the bill also requires the PSC to promulgate rules by Nov. 1, 2025, adopting the submitted model procedures. The member exchange on the floor made clear key outstanding issues for implementation: how the PSC will interpret recoverability of costs, what constitutes an “actual meter read” in varied utility contexts, and how the PSC will balance customer protections with utility financing and investment needs.

Next steps: The bill, carried by the Assembly, will proceed to the next stage as provided under legislative process; members said conferences and follow‑up with the PSC and utilities are likely as implementation details are worked out.