New York bill restricts estimated utility billing while promoting smart meter adoption

The New York Legislature convened on June 5, 2025, to discuss a significant bill aimed at reforming the public service law regarding estimated utility billing practices. The proposed legislation seeks to prohibit consecutive estimated billing, except under specific circumstances, and to allow the use of smart meters as actual readings. Utilities will be required to report compliance with these changes to the Public Service Commission (PSC), which will develop best practices and technology standards.

The discussion began with a focus on the bill's intent to enhance transparency and accuracy in utility billing. The bill's sponsor, Mr. Jacobson, emphasized that the legislation aims to encourage utilities to obtain actual meter readings rather than relying on estimates. He noted that the bill addresses concerns raised by the governor during a previous veto, specifically clarifying when estimated billing is permissible and ensuring that utilities take necessary actions to resolve issues preventing actual readings.

During the meeting, legislators raised questions about the bill's implications for customers, including whether it would affect both residential and commercial users. Mr. Jacobson estimated that approximately 8.5 million customers statewide could be impacted by the changes. He acknowledged the importance of estimated billing in certain situations but reiterated that the bill aims to limit its use to ensure customers receive accurate charges for their utility consumption.

Concerns were also voiced regarding the potential financial implications of the bill. Some legislators questioned whether prohibiting charges for services rendered during consecutive estimated billing would ultimately lead to increased costs for other ratepayers. Mr. Jacobson defended the bill, stating that it includes necessary penalties to incentivize utilities to comply with the new standards.

The conversation shifted to the role of smart meters in resolving billing issues. Mr. Jacobson expressed confidence that smart meters would significantly reduce reliance on estimated billing, although some legislators questioned the costs associated with implementing this technology. The discussion also touched on existing regulations that govern estimated billing practices, with some legislators arguing that the PSC already possesses sufficient authority to manage these issues without new legislation.

As the meeting progressed, legislators debated the broader context of rising utility costs, linking them to recent green energy mandates and their impact on consumer bills. Some members expressed skepticism about the bill's ability to address the root causes of increasing utility rates, suggesting that the focus should be on affordability and reliability rather than solely on billing practices.

In conclusion, the meeting highlighted the complexities surrounding utility billing reform in New York. While the proposed bill aims to enhance transparency and accuracy in billing, concerns about its financial implications and the broader context of rising utility costs remain at the forefront of legislative discussions. The next steps will involve further deliberation on the bill and its potential impact on New York's utility customers.