Wiktor Wise
The New York State Public Service Commission (PSC) grants electric franchises in New York. The PSC has authorized the Make-Ready Program, which provides incentives for the installation of light-duty Level 2 and direct current fast chargers (DCFC) by electric utilities. The PSC directs utilities to establish a medium- and heavy-duty make-ready pilot program, a fleet assessment service, and a transit authority make-ready program. The PSC also offers a commercial tariff to facilitate faster EV charging and does not have jurisdiction over publicly available EV chargers. The PSC adopted rule changes in 2005 that address competitive franchising situations, requiring applicants for competing franchises to file applications with the municipality. The PSC has also been involved in cable franchise agreements with towns in New York, such as Louisville and Cornwall-on-Hudson.
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What You'll Learn
The Public Service Commission (PSC)
One of the key roles of the PSC is to grant and renew franchises for cable television and electric utilities. The PSC evaluates applications for franchises and ensures that the franchise agreements are fair and in the best interests of the municipality and its residents. For instance, the PSC granted a certificate of confirmation for a cable franchise agreement between the Village of Cornwall-on-Hudson and Verizon New York Inc. The PSC also approved a franchise renewal agreement between the Town of Jewett and Time Warner Cable.
In addition to franchise approvals, the PSC is actively involved in promoting and regulating clean energy initiatives. The PSC has authorized the Make-Ready Program, which provides incentives for the installation of light-duty Level 2 and direct current fast chargers (DCFC) by electric utilities. The PSC also directs utilities to establish pilot programs for medium- and heavy-duty electric vehicles and supports the transition to zero-emission school buses.
The PSC is committed to protecting consumers and ensuring competitive neutrality in the franchising process. They have adopted rule changes to address competitive franchising situations and require applicants to indicate their commitment to providing services on the same terms as the incumbent provider. The PSC also mandates the inclusion of specific provisions in franchise agreements, such as precise franchise fees and the subject areas that cannot be addressed in the franchise document due to federal preemption.
Furthermore, the PSC has demonstrated its dedication to supporting New Yorkers during challenging times. In response to the COVID-19 pandemic, the PSC adopted a statewide Electric and Gas Bill Relief Program. This program provided utility bill relief for low-income electric and natural gas customers, preventing service terminations for hundreds of thousands of residential and small commercial customers across the state.
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Cable franchise agreements
In the United States, cable television services are provided by private for-profit companies, which sign cable franchise agreements with cities and counties to provide cable television to residents. These agreements are contracts between a cable operator and a local government that allow the operator to provide cable television service to residents within the government's jurisdiction.
The cable franchise fee is an annual fee charged by the local government to the cable company as compensation for using public property it owns as a right-of-way for its cable. The fee is set during the initial negotiation of the franchise agreement, usually through a bidding process where the government requests bids from cable providers to serve their community. The fee can be renegotiated when the agreement is renewed, usually after 10 to 12 years. Although it is paid to the government, it is not considered a tax.
The cable franchise fee has been a source of contention and controversy. Cable providers list the fee as a separate item on customers' bills, so customers are aware of any increases in the fee, which may be interpreted as a "tax increase". This practice may discourage governments from increasing the fee when the franchise agreement is renewed.
Local governments generally prefer that the fee not be listed on the bill because, when broken down per customer, it appears to be a tax on the customer, potentially causing antipathy against government officials. If presented as a lump sum payment by the cable provider, it would likely be perceived by the public as a fee-for-service, which is how governments view it.
In addition to fees, cable franchise agreements also address issues such as oversight on how cable providers use public easements and right-of-ways, as well as limited authority over customer service issues. However, these agreements typically do not grant oversight on rates or cable programming services.
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Utility bill relief programs
The New York State Public Service Commission (PSC) has implemented a statewide Electric and Gas Bill Relief Program to aid low-income families and individuals who faced financial hardship during the COVID-19 pandemic. The program was approved on June 16, 2022, and provided credits to eligible customers' accounts over 90 days, starting on January 19, 2023.
The Phase 1 program, which closed on December 31, 2022, offered credits to residential low-income customers enrolled in their utility's Energy Affordability Program (EAP), addressing unpaid COVID-period balances accrued through May 1, 2022. This phase provided relief to approximately 311,000 utility customers, or about 778,000 New Yorkers.
The PSC then adopted a second phase of the bill relief program, which provided assistance to both residential customers and small businesses. This phase included those who did not receive Phase 1 credits and those with unpaid COVID-related balances. Approximately 478,000 residential customers and 56,000 small businesses received assistance totaling $672 million. No application was necessary for this phase, and credits were automatically applied to eligible customers' accounts.
The bill relief programs focused on preventing service terminations and addressing the financial needs of non-low-income residential customers and small businesses. The funding for these programs came from a combination of utility shareholder contributions and a small surcharge on all New York ratepayer utility bills, ensuring meaningful relief for those struggling with utility bill payments.
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Electric Vehicle (EV) charging stations
New York is witnessing a rapid increase in the adoption of electric vehicles (EVs), with an expected three million EVs on the road by 2030. To meet this demand, the state is incentivizing the deployment of EV charging infrastructure through various programs and initiatives.
One such initiative is the Charge Ready NY 2.0 program, which offers rebates to public, private, and not-for-profit organizations installing Level 2 EV charging stations at workplaces, multi-unit dwellings, hotels, and motels. Level 2 stations can provide up to 25 miles of electric range per hour of charging, making them suitable for locations where drivers park for extended periods. NYSERDA provides rebates of $3,000 per charging port for workplaces, multifamily, and hotel properties, with an additional $1,000 rebate per port for sites located in disadvantaged communities. Bonus rebates are also available for sites undertaking additional actions to promote EV adoption.
The state also offers tax credits of up to $5,000, or 50% of the cost, for businesses installing public or workplace EV chargers. This initiative is part of a broader effort to support the transition to zero-emission vehicles, which includes rebates and grants for municipalities acquiring ZEVs for their fleets and installing public charging stations.
To facilitate EV charging, New York has launched the EVolve NY initiative, which aims to build a network of fast, affordable, and reliable public charging stations. EVolve NY chargers are accessible through the EV Connect and Electrify America apps, ensuring wide-ranging accessibility for EV users. These charging stations are designed to accommodate wheelchair-accessible electric vehicles, such as vans and minivans, promoting inclusivity.
The state also encourages the adoption of EVs through the Drive Clean Rebate program, offering rebates of up to $2,000 for the purchase or lease of plug-in electric vehicles. Additionally, federal tax credits of up to $7,500 are available for EV buyers, further reducing the cost of transitioning to electric mobility.
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Zero-Emission Vehicles (ZEVs)
To achieve true zero-emissions, the electricity used to recharge ZEV batteries must come from renewable or clean sources such as wind, solar, hydroelectric, or nuclear power. The development of renewable energy sources can lead to excess energy, which can be effectively utilized by ZEVs. For example, electricity demand is typically lower at night, and this excess energy can be used to recharge ZEV batteries. Additionally, most ZEVs can benefit from regenerative brakes and other optimization systems, further increasing their energy efficiency.
In New York, there are incentives to promote the adoption of ZEVs. The state offers tax credits of up to $5,000, or 50% of the cost, for businesses that install public or workplace electric vehicle chargers. There are also rebates and grants available to support municipalities in acquiring ZEVs for their fleets and installing public charging stations. New York is investing in electric vehicle fast chargers along designated EV corridors through the National Electric Vehicle Infrastructure (NEVI) Program.
The Zero Emission Vehicles Transition Council (ZEVTC) is a political forum that brings together ministers and representatives from governments with large automotive markets, accounting for more than half of all new car sales globally. The council aims to accelerate the transition to ZEVs, reduce emissions, and meet the goals of the Paris Agreement. By addressing key challenges and drawing on technical expertise, the ZEVTC works to make the transition faster, cheaper, and easier for all.
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Frequently asked questions
The Public Service Commission (PSC) is a New York State agency that regulates and oversees public utilities, including electricity, natural gas, and cable television.
The PSC grants electric franchises through a competitive franchising process. An applicant must file an application with the municipality and indicate whether they will provide service on the same terms as the incumbent provider. The municipality then evaluates the application, negotiates a franchise agreement, and holds a public hearing before awarding the franchise.
The requirements for an electric franchise application in New York include providing the franchisee's recent annual test data, a public hearing notice, a resolution granting the franchise, the franchise agreement, and a public notice from the applicant. The application must also include a franchise fee and provisions for PEG access, PSC approval, and transfer of the franchise.
