New York Senate Bill S10157

New York 2025-2026 Regular Session

• Introduced: 5/1/26
• Refer: 5/1/26

Caption

Enacts the "utility fair acquisition act", providing that in any acquisition by a municipal corporation or a public benefit corporation created pursuant to article 5 of the public authorities law of infrastructure operated by a public utility company or private energy provider, the appraised value shall be reduced by the value of infrastructure that was financed through customer user fees, ratepayer surcharges, or other non-investor-funded mechanisms as determined by the public service commission.

Summary

S10157, titled the "utility fair acquisition act," would change how certain utility assets are valued when a municipal corporation or qualifying public benefit corporation seeks to acquire electric generation, transmission, or distribution infrastructure from a public utility company or private energy provider. The bill directs that the appraised value of the assets be reduced to reflect the portion of the infrastructure that was financed through customer user fees, ratepayer surcharges, or other non-investor-funded mechanisms. In effect, it treats ratepayer-funded contributions as a factor that should lower the purchase price in a public acquisition. The bill also assigns the Public Service Commission a central role in the valuation process. Upon request from the acquiring municipal corporation or public utility corporation, the PSC would determine how much of the infrastructure was financed through customer or ratepayer contributions and issue a report identifying that value and recommending a corresponding reduction in the acquisition price. The measure applies immediately upon enactment and amends both the General Municipal Law and the Public Authorities Law.

Impact

The bill would amend Section 362 of the General Municipal Law and add a new Section 2859 to the Public Authorities Law, creating a statutory framework for discounted valuations in utility acquisitions. It would affect municipal corporations and certain public benefit corporations seeking to acquire utility infrastructure, as well as public utility companies and private energy providers that may be subject to purchase negotiations. The Public Service Commission would gain an explicit advisory and valuation role in determining the amount of ratepayer-financed infrastructure to be credited against the acquisition price.

Sentiment

No committee transcripts or recorded votes were provided, so there is no direct evidence of debate or formal support/opposition in the available record. Based on the bill text alone, the measure appears designed to protect public and ratepayer interests in utility buyouts by ensuring that assets partly financed by customers are not purchased at full investor-owned value. The framing suggests a pro-consumer, pro-public ownership policy rationale.

Contention

The main point of contention is likely to be the valuation methodology and the extent to which customer-paid infrastructure should reduce the acquisition price. Supporters would likely argue that ratepayers should not pay twice for assets they already helped finance, while opponents may argue that the bill could undervalue utility assets, complicate negotiations, and discourage private investment or future infrastructure development. Another likely issue is the PSC's role in determining the proportional value of non-investor-funded infrastructure, which could become a disputed technical and legal question in acquisition proceedings.