Bill Text: NY A07558 | 2023-2024 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Extends provisions of law relating to reports by the legislative commission on the future of the Long Island Power Authority.

Spectrum: Slight Partisan Bill (Democrat 3-1)

Status: (Introduced) 2023-06-06 - substituted by s7441a [A07558 Detail]

Download: New_York-2023-A07558-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          7558

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                      May 25, 2023
                                       ___________

        Introduced  by  M.  of  A. THIELE, PHEFFER AMATO, SMITH, SOLAGES -- read
          once and referred to the Committee on Governmental Operations

        AN ACT to amend the legislative law,  in  relation  to  the  legislative
          commission on the future of the Long Island Power Authority

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Subdivisions 1, 10, and 12 of section 83-n of the  legisla-
     2  tive  law, as added by section 1 of part JJ of chapter 55 of the laws of
     3  2022, are amended to read as follows:
     4    1. The legislature hereby finds and declares that chapter 517  of  the
     5  laws  of  1986  created  the  Long  Island  Power Authority (LIPA). Said
     6  authority was created, in part, because  the  decisions  by  LILCO,  the
     7  private  utility  that  provided  electricity to Long Island and part of
     8  Queens, "to commence construction of the Shoreham  nuclear  power  plant
     9  and  thereafter  to continue such construction were imprudent". Further,
    10  the legislature found in chapter 517 of the laws of 1986 that  "a  situ-
    11  ation  threatening  the economy, health and safety exists in the service
    12  area". One of the two express purposes of the act was the closure of the
    13  Shoreham nuclear power plant. In 1992, LIPA bought the Shoreham  nuclear
    14  power plant. The plant was fully decommissioned in 1994.
    15    The  second  purpose  of  such chapter 517 was to replace LILCO with a
    16  publicly owned power authority. The legislature found that "There  is  a
    17  lack  of  confidence that the needs of the residents and of commerce and
    18  industry in the service area for electricity can be supplied in a  reli-
    19  able,  efficient and economic manner by the Long Island lighting company
    20  (hereinafter referred to as "LILCO")" and "Such matters of state concern
    21  best can be dealt with by replacing such investor owned utility  with  a
    22  publicly owned power authority."
    23    In  1995,  LIPA replaced LILCO as the electric company for its service
    24  area. However, LIPA was never established  as  a  true  "publicly  owned
    25  power  authority"  as  originally  envisioned  by the State Legislature.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11537-01-3
        A. 7558                             2

     1  Rather, since 1995, LIPA has opted for a  third-party  management  model
     2  whereby  LIPA  contracts  its  responsibility to manage the utility to a
     3  private, investor owned utility company.
     4    LIPA is the only utility in the nation that is operated under a third-
     5  party  management model. This model has repeatedly failed its customers.
     6  There has been a lack of transparency,  oversight,  and  accountability.
     7  This  failure  has  been most dramatically evidenced in the unacceptable
     8  storm response by LIPA and its third-party contractors during Superstorm
     9  Sandy in 2012 and Tropical Storm Isaias in 2020.
    10    After more than 25 years of unsatisfactory management under the third-
    11  party management model, a better alternative must be implemented.   That
    12  inquiry  must  begin with the original intent of chapter 517 of the laws
    13  of 1986, whereby LIPA was to directly manage and operate the utility  as
    14  a  true public power utility. Initial investigations by LIPA after Trop-
    15  ical Storm Isaias in 2020-2021 indicate that both ratepayer savings  and
    16  increased  management  efficiencies could be achieved through the public
    17  power model.
    18    Consequently, it is the purpose  of  this  section  to  implement  the
    19  original vision for LIPA intended by chapter 517 of the laws of 1986, as
    20  a publicly owned power company. The legislature hereby creates a commis-
    21  sion  to provide the legislature with the specific actions, legislation,
    22  and timeline necessary to restructure LIPA into a  true  publicly  owned
    23  power authority. The public must participate in that process so that the
    24  new  LIPA  becomes transparent with proper oversight and accountability.
    25  The legislative commission shall submit its final report to the legisla-
    26  ture no later than [April first] November thirtieth, two thousand  twen-
    27  ty-three.
    28    10. No later than [December thirty-first, two thousand twenty-two] May
    29  first,  two  thousand  twenty-three,  the commission shall issue a draft
    30  report to the members of the legislature regarding the establishment  of
    31  a public power model for the Long Island Power Authority. The commission
    32  shall  hold  at least one public hearing with a public comment period in
    33  each of the counties comprising the service  area  of  the  Long  Island
    34  Power  Authority  on the draft report no later than [February fifteenth]
    35  October first, two thousand twenty-three  and  before  issuing  a  final
    36  report.
    37    12. No later than [April first] November thirtieth, two thousand twen-
    38  ty-three,  the  commission  shall issue a final report to the members of
    39  the legislature regarding the establishment of a public power model  for
    40  the  Long  Island  Power Authority. Such report shall provide any legis-
    41  lation required to implement the public power model.
    42    § 2. Severability. If any provision of this  act  or  the  application
    43  thereof  shall  for  any  reason  be  adjudged by any court of competent
    44  jurisdiction to be invalid, such judgment shall not  affect,  impair  or
    45  invalidate the remainder of this act, but shall be confined in its oper-
    46  ation  to  the provision thereof directly involved in the controversy in
    47  which the judgment shall have been rendered.
    48    § 3. This act shall take effect immediately.