WHAT THIS BILL REGULATES · 3 REQUIREMENT TYPES
How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
This act shall be known and may be cited as the "utilityUtility"Utility" shall mean any electric, gas, or combination utility subject to the jurisdiction of the public service commission.Pub. Serv. Law § 65-c(1)(a) billing integrity act."
Establishes the short title of the act as the Utility Billing Integrity Act. Creates no compliance obligation.
The legislature hereby finds and declares that: 1. New York ratepayers are increasingly burdened by inaccurate, delayed, and unpredictable utilityUtility"Utility" shall mean any electric, gas, or combination utility subject to the jurisdiction of the public service commission.Pub. Serv. Law § 65-c(1)(a) billing, including but not limited to estimated billing practices, retroactive backbilling, and unexplained spikes in charges; 2. Existing consumer protection mechanisms are largely reactive in nature, requiring customers to identify, dispute, and resolve billing errors only after financial harm has occurred; 3. UtilityUtility"Utility" shall mean any electric, gas, or combination utility subject to the jurisdiction of the public service commission.Pub. Serv. Law § 65-c(1)(a) billing systems are complex, opaque, and often inaccessible to the average consumer, placing an unreasonable burden on ratepayers to detect inaccuracies; 4. Evidence from consumer protection organizations demonstrates that billing errors, including backbilling and estimated usage discrepancies, can result in significant and unexpected financial obligations for customers; 5. Broader utilityUtility"Utility" shall mean any electric, gas, or combination utility subject to the jurisdiction of the public service commission.Pub. Serv. Law § 65-c(1)(a) billing analysis further suggests that overbilling due to errors, misapplied rates, and inaccurate metering is widespread and frequently undetected; 6. At the same time, modern utilityUtility"Utility" shall mean any electric, gas, or combination utility subject to the jurisdiction of the public service commission.Pub. Serv. Law § 65-c(1)(a) infrastructure, including advanced metering systems and data analytics capabilities, provides utilities with the tools necessary to identify anomalies, detect irregularities, and prevent billing errors prior to issuing charges to consumers; 7. It is the intent of the legislature to require the use of such technologies in a manner that enhances consumer protection, promotes billing accuracy, and restores public confidence in utilityUtility"Utility" shall mean any electric, gas, or combination utility subject to the jurisdiction of the public service commission.Pub. Serv. Law § 65-c(1)(a) billing practices; 8. The legislature further intends to ensure that no residential customerResidential customer"Residential customer" shall mean a customer receiving utility service for personal, family, or household use.Pub. Serv. Law § 65-c(1)(d) is subject to late fees, service termination, or collection activity based on a bill that has not been verified for accuracy; and 9. The legislature further finds that creating additional layers of bureaucracy without addressing the root causes of billing inaccuracies will not provide meaningful or timely relief to consumers, and that systemic, preventative solutions are necessary to ensure affordability and fairness.
Recites the legislature's findings on the prevalence of inaccurate, delayed, and unpredictable utility billing and the availability of modern anomaly detection technologies to address those problems proactively. The section declares the legislature's intent to require preventative, technology-driven billing integrity solutions and to shield residential customers from adverse action on unverified bills. No operative obligation is created.
(a)–(d) For the purposes of this section, the following terms shall have the following meanings: (a) "UtilityUtility"Utility" shall mean any electric, gas, or combination utility subject to the jurisdiction of the public service commission.Pub. Serv. Law § 65-c(1)(a)" shall mean any electric, gas, or combination utilityUtility"Utility" shall mean any electric, gas, or combination utility subject to the jurisdiction of the public service commission.Pub. Serv. Law § 65-c(1)(a) subject to the jurisdiction of the public service commission. (b) "Anomaly detection systemAnomaly detection system"Anomaly detection system" shall mean a system, including but not limited to advanced analytics, machine learning, or artificial intelligence, used to identify irregularities, inconsistencies, or deviations in customer billing data.Pub. Serv. Law § 65-c(1)(b)" shall mean a system, including but not limited to advanced analytics, machine learning, or artificial intelligence, used to identify irregularities, inconsistencies, or deviations in customer billing data. (c) "Billing anomalyBilling anomaly"Billing anomaly" shall mean a material deviation in a customer's utility bill that may indicate an error, including but not limited to abnormal usage spikes, discrepancies between estimated and actual meter readings, misapplied rates or tariffs, or irregular billing patterns.Pub. Serv. Law § 65-c(1)(c)" shall mean a material deviation in a customer's utilityUtility"Utility" shall mean any electric, gas, or combination utility subject to the jurisdiction of the public service commission.Pub. Serv. Law § 65-c(1)(a) bill that may indicate an error, including but not limited to abnormal usage spikes, discrepancies between estimated and actual meter readings, misapplied rates or tariffs, or irregular billing patterns. (d) "Residential customerResidential customer"Residential customer" shall mean a customer receiving utility service for personal, family, or household use.Pub. Serv. Law § 65-c(1)(d)" shall mean a customer receiving utilityUtility"Utility" shall mean any electric, gas, or combination utility subject to the jurisdiction of the public service commission.Pub. Serv. Law § 65-c(1)(a) service for personal, family, or household use.
Defines the four key terms used throughout the act: utility, anomaly detection system, billing anomaly, and residential customer. The anomaly detection system definition is notable for its breadth — it encompasses any system, including advanced analytics, machine learning, or artificial intelligence, used to identify irregularities in customer billing data.
(a)–(b) 1 Every utilityUtility"Utility" shall mean any electric, gas, or combination utility subject to the jurisdiction of the public service commission.Pub. Serv. Law § 65-c(1)(a) shall implement and maintain a billing integrity program utilizing anomaly detection systemsAnomaly detection system"Anomaly detection system" shall mean a system, including but not limited to advanced analytics, machine learning, or artificial intelligence, used to identify irregularities, inconsistencies, or deviations in customer billing data.Pub. Serv. Law § 65-c(1)(b) to review all residential utilityUtility"Utility" shall mean any electric, gas, or combination utility subject to the jurisdiction of the public service commission.Pub. Serv. Law § 65-c(1)(a) bills prior to issuance. (b) Such systems shall, at a minimum, analyze: (i) historical usage patterns; (ii) seasonal and weather-related variations; (iii) meter reading data, including distinctions between estimated and actual readings; (iv) applicable rate classifications and tariffs; and (v) month-to-month and year-to-year usage deviations.
Imposes the act's core operational mandate: every covered utility must implement and maintain a billing integrity program that uses anomaly detection systems to review all residential utility bills before they are issued. The bill specifies a minimum set of data dimensions the system must analyze, including historical usage patterns, seasonal and weather-related variations, meter reading data (distinguishing estimated from actual readings), applicable rate classifications and tariffs, and month-to-month and year-to-year usage deviations.
(a)–(b) 2 Any residential bill identified as containing a billing anomalyBilling anomaly"Billing anomaly" shall mean a material deviation in a customer's utility bill that may indicate an error, including but not limited to abnormal usage spikes, discrepancies between estimated and actual meter readings, misapplied rates or tariffs, or irregular billing patterns.Pub. Serv. Law § 65-c(1)(c) shall be subject to additional review prior to issuance. (b) No such bill shall be issued as a final charge until: (i) the anomaly has been reviewed by qualified personnel; and (ii) any identified error has been corrected.
Requires that any residential bill flagged as containing a billing anomaly undergo additional review before it may be issued as a final charge. The review must include examination by qualified personnel and correction of any identified error. This subdivision works in tandem with the prohibition on fully automated adverse determinations in subdivision 10.
(a)–(c) 3 Where a billing anomalyBilling anomaly"Billing anomaly" shall mean a material deviation in a customer's utility bill that may indicate an error, including but not limited to abnormal usage spikes, discrepancies between estimated and actual meter readings, misapplied rates or tariffs, or irregular billing patterns.Pub. Serv. Law § 65-c(1)(c) is identified, the utilityUtility"Utility" shall mean any electric, gas, or combination utility subject to the jurisdiction of the public service commission.Pub. Serv. Law § 65-c(1)(a) shall provide prompt notice to the customer that the bill is under review. (b) During the review period: (i) no late fees shall be assessed; (ii) no service termination proceedings shall be initiated; and (iii) no negative credit reporting or collection activity shall occur. (c) The utilityUtility"Utility" shall mean any electric, gas, or combination utility subject to the jurisdiction of the public service commission.Pub. Serv. Law § 65-c(1)(a) shall complete its review within a reasonable period of time, not to exceed ten business days, unless otherwise authorized by the commission.
When a billing anomaly is identified, the utility must promptly notify the customer that the bill is under review. During the review period, the utility is prohibited from assessing late fees, initiating service termination proceedings, or engaging in negative credit reporting or collection activity. The utility must complete its review within ten business days unless the commission authorizes an extension.
(a)–(b) 4 Where a customer's projected or actual bill exceeds a threshold established by the commission, the utilityUtility"Utility" shall mean any electric, gas, or combination utility subject to the jurisdiction of the public service commission.Pub. Serv. Law § 65-c(1)(a) shall provide advance notice to the customer. (b) Such notice shall include, but not be limited to: (i) a clear explanation of the increase; (ii) options for review or dispute; and (iii) information regarding available assistance programs, where applicable.
Requires utilities to provide advance notice to customers when a projected or actual bill exceeds a threshold to be established by the commission. The notice must include a clear explanation of the increase, options for review or dispute, and information about available assistance programs. This is a proactive consumer disclosure obligation triggered by bill amount, distinct from the anomaly-detection notice in subdivision 4.
(a)–(c) 5 Any residential customerResidential customer"Residential customer" shall mean a customer receiving utility service for personal, family, or household use.Pub. Serv. Law § 65-c(1)(d) may request a billing review where such customer reasonably believes a billing anomalyBilling anomaly"Billing anomaly" shall mean a material deviation in a customer's utility bill that may indicate an error, including but not limited to abnormal usage spikes, discrepancies between estimated and actual meter readings, misapplied rates or tariffs, or irregular billing patterns.Pub. Serv. Law § 65-c(1)(c) exists. (b) Upon receipt of such request, the utilityUtility"Utility" shall mean any electric, gas, or combination utility subject to the jurisdiction of the public service commission.Pub. Serv. Law § 65-c(1)(a) shall: (i) suspend any adverse action, including late fees, collections, or service termination; (ii) conduct a review consistent with subdivision three of this section; and (iii) provide a written determination to the customer within ten business days. (c) The commission shall establish procedures to ensure such requests are accessible, timely, and transparent.
Grants residential customers the right to request a billing review when they reasonably believe a billing anomaly exists. Upon receiving such a request, the utility must suspend adverse actions (late fees, collections, service termination), conduct a review consistent with the anomaly review procedures in subdivision 3, and provide a written determination within ten business days. The commission must establish procedures to ensure these requests are accessible, timely, and transparent.
(a)–(c) 6 Where a billing error is identified, the utilityUtility"Utility" shall mean any electric, gas, or combination utility subject to the jurisdiction of the public service commission.Pub. Serv. Law § 65-c(1)(a) shall promptly correct such error. (b) Any overcharge shall be automatically credited or refunded to the customer in a timely manner. (c) The commission may establish additional requirements for interest, penalties, or credits associated with such overcharges.
Requires utilities to promptly correct any identified billing error and automatically credit or refund overcharges to the customer. The commission may impose additional requirements for interest, penalties, or credits associated with overcharges. This is a remediation obligation that follows from the anomaly detection and review process established in earlier subdivisions.
(a) 7 Each utilityUtility"Utility" shall mean any electric, gas, or combination utility subject to the jurisdiction of the public service commission.Pub. Serv. Law § 65-c(1)(a) shall submit quarterly reports to the commission detailing: (i) the number of billing anomalies detected; (ii) the number of confirmed billing errors; (iii) the average time to resolution; (iv) the total amount credited or refunded to customers; and (v) such other metrics as the commission may require.
(b)–(c) 8 The commission shall make such reports publicly available in an aggregated and anonymized format. (c) The commission shall maintain a publicly accessible online dashboard displaying, in a standardized and user-friendly format: (i) billing accuracy rates by utilityUtility"Utility" shall mean any electric, gas, or combination utility subject to the jurisdiction of the public service commission.Pub. Serv. Law § 65-c(1)(a); (ii) number of anomalies detected; (iii) total customer refunds issued; (iv) average resolution times; and (v) comparative performance metrics across utilities.
Imposes quarterly reporting obligations on utilities to the commission, covering the number of billing anomalies detected, confirmed billing errors, average resolution time, total refunds, and any additional metrics the commission may require. The commission must publish aggregated and anonymized reports and maintain a publicly accessible online dashboard displaying billing accuracy rates, anomaly counts, refunds, resolution times, and comparative performance metrics across utilities.
(a)–(b) The commission shall promulgate rules and regulations necessary to implement the provisions of this section. (b) The commission shall have the authority to: (i) audit utilityUtility"Utility" shall mean any electric, gas, or combination utility subject to the jurisdiction of the public service commission.Pub. Serv. Law § 65-c(1)(a) billing integrity systems; (ii) establish performance standards; (iii) require corrective actions; and (iv) impose penalties for noncompliance.
Grants the Public Service Commission authority to promulgate implementing rules and regulations, audit utility billing integrity systems, establish performance standards, require corrective actions, and impose penalties for noncompliance. This is the enforcement backbone of the act.
9 Nothing in this section shall be construed to permit fully automated adverse determinations. Final determinations regarding disputed or anomalous bills shall be subject to human review.
Prohibits fully automated adverse determinations, requiring that final determinations regarding disputed or anomalous bills be subject to human review. This is a categorical human-in-the-loop requirement that reinforces the qualified-personnel review mandate in subdivision 3 and ensures that the anomaly detection system cannot unilaterally issue an adverse billing determination.
10 Utilities shall ensure that any data used in connection with anomaly detection systemsAnomaly detection system"Anomaly detection system" shall mean a system, including but not limited to advanced analytics, machine learning, or artificial intelligence, used to identify irregularities, inconsistencies, or deviations in customer billing data.Pub. Serv. Law § 65-c(1)(b) is handled in accordance with applicable state and federal privacy laws and is used solely for billing integrity and consumer protection purposes.
Requires utilities to handle data used in connection with anomaly detection systems in accordance with applicable state and federal privacy laws and to use such data solely for billing integrity and consumer protection purposes. This is a purpose-limitation obligation that constrains the secondary use of billing data ingested by the AI system.
(a)–(b) The commission shall ensure that costs associated with compliance with this section are not unreasonably passed through to ratepayers. (b) The commission may disallow recovery of costs resulting from preventable billing errors or system deficiencies.
Directs the commission to ensure that compliance costs are not unreasonably passed through to ratepayers and permits the commission to disallow recovery of costs resulting from preventable billing errors or system deficiencies. This is a rate-regulation provision governing cost allocation rather than an AI-specific compliance obligation.
This act shall take effect one year after it shall have become a law.
The act takes effect one year after it becomes law. No specific date is set because the bill has not been enacted.