Public Utility Service

NYC Admin. Code tit. 22, ch. 3

in effect

NYC Admin. Code § 22-301 Authorization for public utility service.

§ 22-301 Authorization for public utility service. Pursuant to article fourteen-A of the general municipal law, the city hereby establishes a public utility service, as such term is defined in section three hundred sixty of such article, which is authorized to establish, construct, lease, purchase, own, acquire, use and/or operate facilities within or without the territorial limits of the city, for the purpose of furnishing to itself or for compensation to its inhabitants any service similar to that furnished by any public utility company specified in article four of the public service law. For such purpose the city may purchase electrical and other forms of energy from the state, or from any state agency, or other municipal corporation, or from any private or public corporation, and may sell or distribute such power to itself and to residential, commercial, industrial and other customers. The city shall possess any and all powers granted to a public utility service pursuant to article fourteen-A of the general municipal law and any other applicable provision of law.

NYC Admin. Code § 22-302 Acquisition of energy and facilities.

§ 22-302 Acquisition of energy and facilities. The city shall contract for or otherwise purchase or acquire hydroelectric or other forms of energy as shall be available from the power authority of the state of New York, the state, any state agency, any other municipal corporation, or any private or public corporation, and shall arrange to use, lease or acquire the transmission, substation and distribution facilities necessary to furnish such power to the city and, for compensation, to residential, commercial, industrial and other customers; provided, however, that the city will not acquire or build any electric or gas transmission or distribution facilities which are parallel to, or duplicative of electric or gas transmission or distribution facilities of any utility companies within the city, nor take any action to impair any agreements, franchises, rights or obligations of any utility company within the city including, to provide safe, adequate and efficient service to conduct its business in the city and to protect its assets unless so authorized by further local law and public referendum.

NYC Admin. Code § 22-303 Distribution and sale of energy.

§ 22-303 Distribution and sale of energy. The city shall arrange with any utility companies for the distribution of energy through the use, lease, or acquisition of transmission, substation and distribution facilities within the service areas of such companies and for such companies to act on behalf of the city for collection of charges for such energy within such service areas, or for the sale of energy to such companies for resale to customers within the service areas of such companies.

NYC Admin. Code § 22-304 Rates.

§ 22-304 Rates. The fixing of rates for furnishing hydroelectric and other forms of energy to residential, commercial, industrial and other customers shall include consideration of (1) the actual cost to the city for the purchase, distribution and delivery of such energy to such customers, (2) the actual expenses necessary for administration of the public utility service, including expenses for research and development, and (3) any other costs or charges allowed under law, including but not limited to, losses of tax revenues resulting from the operation of the public utility service. Such rates shall be computed to provide revenue in an amount not less than that necessary to recover fully such costs and expenses. Such rates shall be subject to approval of the city council.

NYC Admin. Code § 22-305 Municipal energy fund.

§ 22-305 Municipal energy fund. Revenues received from the operation of the public utility service shall be paid into a fund to be known as the municipal energy fund. The revenues paid into such fund shall not be revenues of the city, and payments from such fund shall be made without appropriation and shall not be included in the expense budget of the city. Nothing herein shall prohibit the city from appropriating expense or capital funds in connection with the public utility service, nor shall payments from the municipal energy fund to the general fund be prohibited.

Source: City of New York, Charter, Administrative Code and Rules (American Legal Publishing XML export, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/newyorkcity/latest/NYCadmin/0-0-0-39638Fetched: 10/24/2026