New York Assembly Bill A10680

New York 2025-2026 Regular Session

• Introduced: 3/20/26
• Refer: 3/20/26

Caption

Authorizes gas or electrical corporations to submit proposals to the public service commission establishing voluntary rates for energy supplied to residential customers utilizing heat pumps as primary heat

Summary

This bill amends the Public Service Law to require investor-owned gas or electric utilities, by August 1, 2027, to include in a general rate case a proposal for voluntary rates for residential customers who use a heat pump as their primary heating source. The bill defines a heat pump and allows the utility to structure the offering as a new rate, a rider, or an addition to an existing time-of-use rate. The stated purpose of the voluntary rate is to lower the average monthly energy bill for qualifying heat pump customers, but only if the rate is cost-justified. The bill also requires that the rate be designed to avoid cross-subsidies from other customers, indicating that any discount or special pricing must not shift costs unfairly to non-participating ratepayers. The act would take effect immediately, though the utility proposal requirement would be tied to the later rate-case deadline.

Impact

The bill would add a new section 66-x to the Public Service Law and create a new regulatory framework for utility rate design for residential heat pump users. It would affect investor-owned gas and electric corporations that provide electric or thermal energy, and it would direct the Public Service Commission to consider voluntary heat-pump-specific rates within general rate cases. The practical impact would be to encourage electrification and heat pump adoption by potentially reducing operating costs for households that rely on heat pumps for primary heating, while limiting cost shifts to other customers.

Sentiment

The available context suggests a generally supportive or at least policy-forward posture toward the bill, as it is framed as a consumer savings and clean-heating measure rather than a mandate. There are no recorded votes or committee transcript excerpts showing opposition, amendment debate, or formal support statements. The bill’s placement in the Assembly Committee on Energy is consistent with a technical utility-rate proposal that is likely intended to advance heat pump adoption and energy affordability.

Contention

The main point of potential contention is cost allocation: the bill explicitly requires that any voluntary rate avoid cross-subsidies, which suggests concern that non-heat-pump customers should not bear added costs. Another likely issue is whether the rate would be truly cost-justified and how the Public Service Commission would evaluate that standard in a general rate case. Utilities may also scrutinize the administrative complexity of creating new riders or time-of-use structures, while consumer advocates may focus on whether the proposal meaningfully lowers bills for households using heat pumps as their primary heating source.