New York Assembly Bill A07542

New York 2025-2026 Regular Session

• Introduced: 4/1/25
• Refer: 4/1/25
• Refer: 1/7/26

Caption

Caps public gas corporations, public electric corporations and municipal gas and electric companies at a profit margin of four percent per year.

Summary

This bill would amend the Public Service Law to limit the annual profit margin of public gas corporations, public electric corporations, and municipalities providing gas or electric service to 4 percent. The bill defines “profit margin” as return on equity, measured on the equity portion of the rate allowed by the Public Service Commission. In practical terms, it would place a statutory cap on the earnings utilities may realize from regulated operations. The measure applies to both investor-owned utilities and municipal gas and electric providers, and it would take effect on January 1 following enactment. It also authorizes any necessary regulatory changes to be made before the effective date so the cap can be implemented without delay. Because the bill directly ties utility earnings to a fixed ceiling, it would likely affect rate-setting, utility revenue expectations, and Public Service Commission oversight.

Impact

The bill would add a new subdivision to section 65 of the Public Service Law, creating a statewide limit on utility return on equity for gas and electric providers. This would alter how regulated utilities and municipalities may recover costs and earn profits under commission-approved rates, and it could influence future rate cases, utility investment decisions, and municipal utility finances. The Public Service Commission would likely need to adjust its regulatory framework to ensure compliance with the new 4 percent cap.

Sentiment

Based on the bill text and caption, the measure appears to be driven by consumer-protection and affordability concerns, aiming to restrain utility profits and potentially reduce pressure on rates. No committee transcript or vote record is available, so there is no documented legislative debate or recorded support/opposition in the provided materials. The overall framing suggests a reform-oriented approach rather than a technical cleanup bill.

Contention

The main point of contention is likely the proposed 4 percent ceiling itself, since utilities and municipal providers may argue that a fixed cap is too restrictive and could undermine financial stability, infrastructure investment, or creditworthiness. Supporters would likely emphasize ratepayer relief, fairness, and limits on excessive utility earnings. Because the bill covers both private and municipal providers, another possible issue is whether a uniform profit cap is appropriate for entities with different financing and operational structures.