AI Frontier Institute

Enacts the "utility billing integrity act" to establish utility billing integrity and consumer protections through anomaly detection, advanced data analytics and the usage of artificial intelligence; requires every utility to implement and maintain a billing integrity program utilizing anomaly detection systems to review all residential utility bills prior to issuance; provides that where a billing anomaly is identified, the utility shall provide prompt notice to the customer that the bill is under review.

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New York Assembly Bill A. 10764 (the "utility billing integrity act"), introduced April 1, 2026 and referred to the Energy Committee, has not been enacted. If enacted, it would add section 65-c to the public service law. Every electric, gas, or combination utility under Public Service Commission jurisdiction would have to run a billing integrity program that uses anomaly detection systems (analytics, machine learning, or AI) to review all residential bills before issuance. The systems must analyze historical usage, seasonal and weather variation, estimated versus actual meter readings, rate classifications and tariffs, and month-to-month and year-to-year deviations (subdivision 2). Flagged bills would need review by qualified personnel and correction of any error before being issued as final (subdivision 3). The utility would give the customer prompt notice. During review it could not assess late fees, begin termination proceedings, or engage in negative credit reporting or collection. Review must finish within ten business days unless the commission authorizes more time (subdivision 4). Customers would get advance notice when a bill exceeds a commission-set threshold (subdivision 5). Residential customers could request a billing review, which suspends adverse action and requires a written determination within ten business days (subdivision 6). Errors must be corrected and overcharges automatically credited or refunded (subdivision 7). Utilities would file quarterly reports, and the commission would publish aggregated data and maintain a public dashboard (subdivision 8). The commission would make rules and could audit, set performance standards, require corrective action, and impose penalties (subdivision 9). The bill bars fully automated adverse determinations and requires human review of final decisions on disputed or anomalous bills (subdivision 10). Data use must comply with privacy laws and be limited to billing integrity and consumer protection (subdivision 11). Compliance costs must not be unreasonably passed to ratepayers, and costs of preventable errors may be disallowed (subdivision 12). The act would take effect one year after becoming law (section 4).

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