Bill Text: NY A10165 | 2023-2024 | General Assembly | Introduced
Bill Title: Improves public service commission oversight of the Long Island power authority.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-05-10 - referred to corporations, authorities and commissions [A10165 Detail]
Download: New_York-2023-A10165-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 10165 IN ASSEMBLY May 10, 2024 ___________ Introduced by COMMITTEE ON RULES -- (at request of M. of A. K. Brown) -- read once and referred to the Committee on Corporations, Authorities and Commissions AN ACT to amend the public service law, the education law, the executive law and the public authorities law, in relation to improving public service commission oversight of the Long Island power authority; and to repeal certain provisions of the public service law relating there- to The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 3-b of the public service law is REPEALED. 2 § 2. Section 5 of the public service law is amended by adding a new 3 subdivision 7 to read as follows: 4 7. a. For purposes of this subdivision: 5 i. "Authority" means the Long Island power authority. 6 ii. "Service provider" means the entity under contract with the 7 authority to provide management and operation services associated with 8 the authority's electric transmission and distribution system and any 9 subsidiary of such entity that provides such services under contract. 10 However, the service provider and any affiliate of the service provider 11 with whom the authority or service provider contracts to provide 12 services associated with the authority's electric transmission and 13 distribution system shall not be considered an electric corporation 14 under this chapter. 15 iii. "Operations services agreement" means an agreement and any amend- 16 ments thereto between the Long Island lighting company dba LIPA or the 17 Long Island power authority and the service provider to provide manage- 18 ment and operation services associated with the authority's electric 19 transmission and distribution system. 20 b. i. In undertaking the requirements of this section, subject to 21 subdivisions (u) and (bb) through (hh) of section one thousand twenty-f 22 of the public authorities law, the department shall be empowered and 23 authorized to: Review and make recommendations to the board of the Long 24 Island power authority with respect to the rates and charges, including EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD15038-01-4A. 10165 2 1 charges related to energy efficiency and renewable energy programs, to 2 be established by the authority and become applicable on or after Janu- 3 ary first, two thousand sixteen pursuant to subdivision (u) of section 4 one thousand twenty-f of the public authorities law. 5 ii. The purpose of such review is to make recommendations designed to 6 ensure that the authority and the service provider provide safe and 7 adequate transmission and distribution service at rates set at the 8 lowest level consistent with sound fiscal operating practices. 9 iii. The department's recommendations shall be designed to be consist- 10 ent with ensuring that the revenue requirements related to such rate 11 review are sufficient to satisfy the authority's obligations with 12 respect to its bonds, notes and all other contracts. 13 iv. In the context of such review, the department may make recommenda- 14 tions with regard to the compensation or fee structure included within 15 the operations services agreement. 16 v. In undertaking such review and in making recommendations related to 17 the proposed rates and charges, the department shall establish stand- 18 ards, policies and procedures that, at a minimum, provide for public 19 statement and evidentiary hearings and participation of intervenors and 20 other parties, and ensure that any final recommendations related to the 21 proposed rates and charges are provided to the authority within two 22 hundred forty days of the filing with the department of such plan. 23 vi. The parties to any such rate review proceeding shall include, but 24 not be limited to, department staff, the authority, the service provider 25 and, to the extent it deems necessary or appropriate, the utility inter- 26 vention unit. 27 c. Review the annual capital expenditures proposed by the service 28 provider and recommend such improvement in the manufacture, conveying, 29 transportation, distribution or supply of electricity, or in the methods 30 employed by the service provider as in the department's judgment allows 31 for safe and adequate service. 32 d. Annually review the emergency response plan of the authority and 33 the service provider in accordance with the following requirements: 34 i. Examine and determine whether the emergency response plan is 35 consistent with the requirements of paragraph (a) of subdivision twen- 36 ty-one of section sixty-six of this chapter and any regulations or 37 orders promulgated thereto, and to recommend amendments of same; and 38 ii. Review and make recommendations to the authority with respect to 39 the performance of the service provider in restoring service or other- 40 wise meeting the requirements of the emergency response plan during an 41 emergency event, defined for purposes of this section as an event where 42 widespread outages have occurred in the authority's service territory 43 due to a storm or other causes beyond the control of the authority and 44 its service provider, including making determinations with respect to 45 whether the service provider is reasonably able to implement the emer- 46 gency response plan, whether the length of any outages related to such 47 emergency were materially longer than they would otherwise have been 48 because the service provider failed to reasonably implement the emergen- 49 cy response plan, the reasonableness of costs associated with such emer- 50 gency response, the costs, if any, that were unreasonably and imprudent- 51 ly incurred by the service provider, and whether the service provider 52 would be liable for any such costs pursuant to the terms and conditions 53 of the operations services agreement. 54 e. Upon notification to the Long Island power authority, undertake a 55 comprehensive and regular management and operations audit of the author- 56 ity and service provider pursuant to subdivision (bb) of section oneA. 10165 3 1 thousand twenty-f of the public authorities law. The department shall 2 have discretion to have such an audit performed by its staff, or by an 3 independent contractor. In every case in which an audit is required 4 pursuant to subdivision (bb) of section one thousand twenty-f of the 5 public authorities law performed by an independent auditor, the depart- 6 ment shall have the authority to select the auditor, and to require the 7 authority to enter into a contract with the auditor that is consistent 8 with the contracting-related requirements specified in subdivision nine- 9 teen of section sixty-six of this chapter and the requirements of subdi- 10 vision (bb) of section one thousand twenty-f of the public authorities 11 law. Such contract shall provide further that the auditor shall work for 12 and under the direction of the department according to such terms as the 13 department may determine are necessary and reasonable. 14 f. Accept, investigate, mediate to resolve and make recommendations to 15 the Long Island power authority and/or the service provider regarding 16 the resolution of complaints from consumers in the authority's service 17 territory relating to, among other things, the provision of electric 18 service provided by the service provider and/or the authority. 19 g. Review the net metering program implemented under subdivision (h) 20 of section one thousand twenty-g of the public authorities law and make 21 recommendations designed to ensure consistency with the requirements of 22 sections sixty-six-j and sixty-six-l of this chapter, and any regu- 23 lations and orders adopted thereto. 24 h. Review and make recommendations with respect to any proposed plan 25 submitted by the Long Island power authority and/or the service provider 26 related to implementation of energy efficiency measures, distributed 27 generation or advanced grid technology programs having the purpose of 28 providing customers with tools to more efficiently and effectively 29 manage their energy usage and utility bills, and improving system reli- 30 ability and power quality. 31 i. Review the data, information and reports submitted pursuant to 32 subdivision (hh) of section one thousand twenty-f of the public authori- 33 ties law and other pertinent information related to the metrics in the 34 operations services agreement, the Long Island power authority's evalu- 35 ation of such data, information and reports, and make recommendations to 36 the authority with respect to the service provider's annual incentive- 37 based compensation within thirty days of receipt of such evaluation and 38 information. 39 j. To undertake the requirements of this subdivision, the department 40 shall be authorized to inspect all premises and facilities owned or 41 operated by the authority and the service provider, review all books and 42 records of the authority and the service provider, interview all appro- 43 priate personnel, and require annual reporting consistent with the 44 requirements of subdivision six of section sixty-six of this chapter and 45 any regulations and orders adopted thereto; provided, however, that this 46 authority shall not extend to affiliates of the service provider. 47 § 3. Subdivision l of section 7208 of the education law, as amended by 48 section 15 of part A of chapter 173 of the laws of 2013, is amended to 49 read as follows: 50 l. The practice of engineering or land surveying, or using the title 51 "engineer" or "surveyor" (i) exclusively as an officer or employee of a 52 public service corporation by rendering to such corporation such 53 services in connection with its lines and property which are subject to 54 supervision with respect to the safety and security thereof by the 55 public service commission of this state, the interstate commerce commis- 56 sion or other federal regulatory body and so long as such person is thusA. 10165 4 1 actually and exclusively employed and no longer, or (ii) exclusively as 2 an officer or employee of the Long Island power authority or its service 3 provider, as defined under subdivision seven of section [three-b] five 4 of the public service law, by rendering to such authority or provider 5 such services in connection with its lines and property which are 6 located in such authority's service area and so long as such person is 7 thus actually and exclusively employed and no longer; 8 § 4. Subparagraph (i) of paragraph (b) of subdivision 4 of section 9 94-a of the executive law, as amended by section 12 of part A of chapter 10 173 of the laws of 2013, is amended to read as follows: 11 (i) on behalf of the secretary, initiate, intervene in, or participate 12 in any proceedings before the public service commission or the depart- 13 ment of public service, to the extent authorized by [sections three-b,] 14 subdivision seven of section five or section twenty-four-a, seventy-one, 15 eighty-four or ninety-six of the public service law or any other appli- 16 cable provision of law, where [he or she] such secretary deems such 17 initiation, intervention or participation to be necessary or appropri- 18 ate; 19 § 5. Paragraph 1 of subdivision (bb) and subdivisions (ee) and (ff) of 20 section 1020-f of the public authorities law, paragraph 1 of subdivision 21 (bb) as amended and subdivisions (ee) and (ff) as added by section 7 of 22 part A of chapter 173 of the laws of 2013, are amended to read as 23 follows: 24 1. The authority and the service provider shall cooperate in the 25 undertaking and completion of a regular and comprehensive management and 26 operations audit conducted pursuant to the requirements of this subdivi- 27 sion and paragraph [(d)] e of subdivision [three] seven of section 28 [three-b] five of the public service law. Such audit shall review and 29 evaluate the overall operations and management of the authority and 30 service provider, including such operations and management in the 31 context of the authority's duty to set rates at the lowest level 32 consistent with standards and procedures provided in subdivision (u) of 33 this section, and include, but not be limited to: (i) the service 34 provider's construction and capital program planning in relation to the 35 needs of customers for reliable service; (ii) the overall efficiency of 36 the authority's and service provider's operations; (iii) the manner in 37 which the authority is meeting its debt service obligations; (iv) the 38 authority's Fuel and Purchased Power Cost Adjustment clause and recovery 39 of costs associated with such clause; (v) the authority's and service 40 provider's annual budgeting procedures and process; (vi) the applica- 41 tion, if any, of the performance metrics designated in the operations 42 services agreement and the accuracy of the data relied upon with respect 43 to such application; and (vii) the authority's compliance with debt 44 covenants. 45 (ee) On or before July first, two thousand fourteen, and annually 46 thereafter, to submit for review to the department of public service any 47 proposed plan related to implementing energy efficiency measures, 48 distributed generation or advanced grid technology programs for the 49 purpose provided pursuant to paragraph [(g)] h of subdivision [three] 50 seven of section [three-b] five of the public service law. 51 (ff) To assist and cooperate with the department of public service 52 with respect to any review undertaken pursuant to subdivision seven of 53 section [three-b] five of the public service law, including providing 54 the department with reasonable access to all facilities and premises 55 owned or operated by the authority or its service provider, allowing 56 review of all books and records of the authority and its service provid-A. 10165 5 1 er, providing copies of requested documents, allowing interviews of all 2 appropriate personnel, and responding in a reasonable and timely manner 3 to any inquiries or reporting requests made by the department; provided, 4 however, that the obligations set forth in this subdivision shall not 5 extend to affiliates of the service provider. 6 § 6. Subdivision 1 of section 1020-s of the public authorities law, as 7 amended by chapter 681 of the laws of 2021, is amended to read as 8 follows: 9 1. The rates, services and practices relating to the electricity 10 generated by facilities owned or operated by the authority shall not be 11 subject to the provisions of the public service law or to regulation by, 12 or the jurisdiction of, the public service commission, except to the 13 extent (a) article seven of the public service law applies to the siting 14 and operation of a major utility transmission facility as defined there- 15 in, (b) article ten of such law applies to the siting of a generating 16 facility as defined therein, (c) section eighteen-a of such law provides 17 for assessment for certain costs, property or operations, (d) to the 18 extent that the department of public service reviews and makes recommen- 19 dations with respect to the operations and provision of services of, and 20 rates and budgets established by, the authority pursuant to subdivision 21 seven of section [three-b] five of such law, (e) that section seventy- 22 four of the public service law applies to qualified energy storage 23 systems within the authority's jurisdiction, and (f) that section seven- 24 ty-four-b of the public service law applies to Long Island community 25 choice aggregation programs. 26 § 7. Subdivision 1-a of section 18-a of the public service law, as 27 added by section 2 of part A of chapter 173 of the laws of 2013, is 28 amended to read as follows: 29 1-a. All costs and expenses of the department related to the depart- 30 ment's responsibilities under subdivision seven of section [three-b] 31 five of this chapter shall be paid pursuant to appropriation on the 32 certification of the [chairman] chairperson of the department and upon 33 the audit and warrant of the comptroller. For the state fiscal year 34 beginning on April first, two thousand fourteen and each state fiscal 35 year thereafter, payments are to be made from all moneys collected from 36 the Long Island power authority pursuant to this section. The total of 37 such costs and expenses shall be assessed on such authority in the 38 manner provided in subdivisions two, three and four of this section. 39 § 8. This act shall take effect immediately.
