New York Gov. Cuomo Proposes Legislation To Prohibit Utility Disconnections During Emergencies

New York Governor Andrew Cuomo, as part of the 2021 State of the State, announced a proposal to prohibit utility disconnections, including for electric and gas utilities, in regions that are under a state of emergency.

Utilities that fail to comply would be subject to penalties.

Although ESCOs do not have disconnection authority in New York, ESCOs may elect to bill under a purchase of receivables mechanism, which includes a discount to reflect, among other things, an uncollectibles rate. Any increase in utility uncollectibles would eventually be reflected in the POR discount

"Utility companies provide essential services, and we need to make sure they continue to provide them, rain or shine. That's why we're proposing legislation to make sure that New Yorkers, especially those living in regions under states of emergency, have access to these critical services to provide for themselves and their families," Cuomo said.