Bill Text: NJ S1258 | 2014-2015 | Regular Session | Introduced
Bill Title: Requires BPU to mandate electric power supply reliability and prevent market manipulation by electric power suppliers.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-02-25 - Introduced in the Senate, Referred to Senate Economic Growth Committee [S1258 Detail]
Download: New_Jersey-2014-S1258-Introduced.html
Sponsored by:
Senator SHIRLEY K. TURNER
District 15 (Hunterdon and Mercer)
SYNOPSIS
Requires BPU to mandate electric power supply reliability and prevent market manipulation by electric power suppliers.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning electric power supply and amending P.L.1999, c.23.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 29 of P.L.1999, c.23 (C.48:3-78) is amended to read as follows:
29. a. A person shall not offer to provide or provide electric generation service to retail customers in this State unless that person has applied for and obtained from the board, pursuant to standards adopted by the board, an electric power supplier license. Persons providing [such services] electric generation service on the effective date of [this act] P.L.1999, c.23 (C.48:3-49 et al.) shall have 120 days to apply for and receive the requisite license.
b. The board shall issue a license to an electric power supplier that is in compliance with the licensing standards adopted pursuant to subsection c. of this section. A license shall expire one year from the date of issuance unless the holder thereof pays to the board, within 30 days before the expiration date, a renewal fee accompanied by a renewal application on a form prescribed by the board. If a licensee has made, in accordance with this section and any applicable board rules or regulations, timely and sufficient application for renewal, the license shall not expire until the application has been reviewed and acted upon by the board. Nothing in this section shall limit the authority of the board to deny, suspend or revoke a license at any time, consistent with the provisions of [this act] P.L.1999, c.23 (C.48:3-49 et al.).
c. Notwithstanding any provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the board shall initiate a proceeding and shall adopt, in consultation with the Division of Consumer Affairs in the Department of Law and Public Safety, after notice, provision of the opportunity for comment, and public hearing, interim electric power supplier licensing standards within 90 days of the effective date of [this act] P.L.1999, c.23 (C.48:3-49 et al.). [Such] The standards shall be effective as regulations immediately upon filing with the Office of Administrative Law and shall be effective for a period not to exceed 18 months, and may, thereafter, be amended, adopted or readopted by the board in accordance with the provisions of the "Administrative Procedure Act." The standards shall include, but need not be limited to, the following requirements that an electric power supplier:
(1) Register with the board, which shall include the filing of basic information pertaining to the supplier, such as the name, address, telephone number, and company background and profile, and a list of the services or products offered by the supplier. A supplier shall provide annual updates of this information to the board. The registration shall also include:
(a) Evidence of financial integrity;
(b) Information on any disciplinary proceedings or actions by law enforcement authorities in which the electric power supplier, its subsidiaries, affiliates, or parent has been involved in this State or any other states;
(c) The ownership interests of the supplier including the interests owned by the supplier and the interests owning the supplier;
(d) The name and address of the in-State agent of the supplier that is authorized to receive service of process;
(e) The name and address of the in-State customer service agent for the supplier; and
(f) The quantity of retail electric sales made in this State during the 12 months preceding the application.
(2) Agree to meet all reliability standards established by the Mid-Atlantic Area Council of the North American Electric Reliability Council or its successor, the PJM Interconnection, L.L.C. independent system operator or its successor, the Federal Energy Regulatory Commission, the board, or any other state, regional, federal, or industry body with authority to establish reliability standards. The board [may] shall establish specific standards applicable to electric power suppliers to ensure the adequacy of electric power capacity and the prevention of market manipulation, if [it determines that] the standards established by any other state, regional, federal or industry bodies are not sufficient to assure the provision of safe, adequate, proper and reliable electric generation service to retail customers in this State. [Such] The reliability standards shall ensure bulk power system operations, maintenance and security, and shall ensure the adequacy of electric power capacity necessary to meet retail loads;
(3) Maintain an office within this State for the purposes of accepting service of process, maintaining such records as the board requires and ensuring accessibility to the board, consumers, and electric public utilities;
(4) Maintain a surety bond under terms and conditions as determined by the board;
(5) Provide a description of the products and services to be rendered;
(6) Comply with [such] specific standards of conduct for electric power suppliers as the board shall adopt; and
(7) Provide through legal certification by an officer of the electric power supplier [such] any information as the board or its staff shall require to assist the board in making [any] a determination concerning revocation, suspension, issuance, or renewal of the supplier's license pursuant to section 32 of [this act] P.L.1999, c.23 (C.48:3-81).
d. An electric public utility shall:
(1) Incorporate by reference the board's licensing requirements in its tariffs for transmission and distribution service;
(2) Apply the licensing requirements and other conditions for access to the transmission and distribution system uniformly to all electric power suppliers; and
(3) Report alleged violations of the board's licensing requirements of which it becomes aware to the board.
e. The board shall establish an alternative dispute resolution program to resolve any licensure or access dispute between an electric power supplier and an electric public utility. The board may establish reasonable fees, not to exceed actual costs, for the provision of alternate dispute resolution services. If an informal resolution of the dispute is unsuccessful, the board shall adjudicate the dispute as a contested case pursuant to the "Administrative Procedure [Act."] Act," P.L.1968, c.410 (C.52:14B-1 et seq.).
f. The board shall monitor the retail supply market in this State, and shall consider information available from the PJM Interconnection, L.L.C. independent system operator or its successor with respect to the conduct of electric power suppliers. The board shall monitor proposed acquisitions of electric generating facilities by electric power suppliers [as it deems necessary,] in order to ascertain whether an electric power supplier has or is proposed to have control over electric generating facilities of sufficient number or strategic location to charge non-competitive prices to retail customers in this State. The board shall [have the authority to] deny, suspend, or revoke an electric power supplier's license, after hearing, if it determines that an electric power supplier has or may acquire such control, or if the electric power supplier's violations of the rules, regulations, or procedures of the PJM Interconnection, L.L.C. independent system operator or its successor may adversely affect the reliability of service to retail customers in this State or may result in retail customers being charged non-competitive prices.
g. The board [may] shall establish safety and service quality standards for electric power suppliers, and nothing in [this act] P.L.1999, c.23 (C.48:3-49 et al.) shall limit the authority of the board to promulgate [such] those safety or service quality standards or to resolve complaints regarding the quality of electric generation service.
h. The board may establish, by written order pursuant to subsection c. of this section or by rule, a licensure fee to cover the costs of licensing electric power suppliers. The fee shall include a reasonable surcharge to fund a consumer education program in this State established pursuant to section 36 of [this act] P.L.1999, c.23 (C.48:3-85).
i. Any provision of [this act] P.L.1999, c.23 (C.48:3-49 et al.) to the contrary notwithstanding, any person acting as an energy agent shall be required to register with the board. This registration shall include, but need not be limited to, the name, address, telephone number, and business affiliation or profile of the energy agent, evidence of financial integrity as determined by the board, and evidence of knowledge of the energy industry. This registration shall be updated annually. Nothing in this subsection shall be construed to limit or exempt an energy agent from liability under any other law pertaining to any activity which an energy agent may engage in.
(cf: P.L.1999, c.23, s.29)
2. This act shall take effect on the 60th day after the date of enactment, but the Board of Public Utilities may take such anticipatory administrative action in advance thereof as shall be necessary for the implementation of this act.
STATEMENT
This bill requires the Board of Public Utilities (board) to establish standards applicable to electric power suppliers to ensure the adequacy of electric power supply capacity and the prevention of market manipulation if those standards established by any other state, regional, federal, or industry bodies are not sufficient to assure safe, adequate, proper, and reliable electric power generation service to retail customers. The standards are to ensure power system maintenance. Current law allows, but does not require, the board to establish standards ensuring only the adequacy of electric power supply capacity.
The bill requires the board to: 1) monitor proposed acquisitions of electric generating facilities by power suppliers in order to ascertain whether a supplier has or is proposed to have control over facilities of sufficient number or strategic location to charge non-competitive prices to retail customers in this State; 2) deny, suspend or revoke a power supplier's license, after hearing, if it determines that the supplier has or may acquire such control, or if the supplier's violations of the rules, regulations, or procedures of the independent system operator may adversely affect the reliability of power supply service to retail customers in this State or may result in retail customers being charged non-competitive prices; and 3) establish safety and service quality standards for suppliers. Current law allows, but does not require, the board to undertake those actions.
