Bill Text: NY A06363 | 2019-2020 | General Assembly | Introduced


Bill Title: Enacts the "Long Island power authority rate reform act"; requires that the board of trustees of LIPA not approve a final rate plan until it holds a public hearing in each county within the service area upon at least thirty days notice to the public; requires that the department of public service shall not recommend a rate increase to offset revenue loss due to energy conservation efforts by consumers.

Spectrum: Bipartisan Bill

Status: (Introduced) 2019-03-07 - referred to corporations, authorities and commissions [A06363 Detail]

Download: New_York-2019-A06363-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
            S. 4317                                                  A. 6363
                               2019-2020 Regular Sessions
                SENATE - ASSEMBLY
                                      March 7, 2019
                                       ___________
        IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
          ed,  and  when  printed to be committed to the Committee on Energy and
          Telecommunications
        IN ASSEMBLY -- Introduced by M. of A. THIELE, ENGLEBRIGHT,  JEAN-PIERRE,
          D'URSO,  MONTESANO,  RAIA,  RA,  GARBARINO,  PALUMBO  -- read once and
          referred to the Committee on Corporations, Authorities and Commissions
        AN ACT to amend the public authorities law and the public  service  law,
          in  relation  to enacting the "Long Island power authority rate reform
          act"
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Short  title. This act shall be known and may be cited as
     2  the "Long Island power authority rate reform act".
     3    § 2. Subdivision (u) of section 1020-f of the public authorities  law,
     4  as  added by section 7 of part A of chapter 173 of the laws of 2013, and
     5  paragraph 2-a as added by chapter 471 of the laws of 2014, is amended to
     6  read as follows:
     7    (u) Rate plans. Subject to subdivision six  of  section  one  thousand
     8  twenty-k  of  this  title to fix rates and charges for the furnishing or
     9  rendition of gas or electric power or of  any  related  service  at  the
    10  lowest level consistent with sound fiscal and operating practices of the
    11  authority and which provide for safe and adequate service. In implement-
    12  ing this power:
    13    1. The authority and the service provider shall, on or before February
    14  first,  two  thousand  fifteen,  submit  for review to the department of
    15  public service a three-year rate proposal for rates and charges to  take
    16  effect on or after January first, two thousand sixteen.
    17    2.  The authority and the service provider shall thereafter submit for
    18  review to the department of public service any rate proposal that  would
    19  increase  the rates and charges and thus increase the aggregate revenues
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03271-01-9

        S. 4317                             2                            A. 6363
     1  of the authority by more than two and one-half percent to be measured on
     2  an annual basis[; provided, however, that the authority may  place  such
     3  rates  and  charges into effect on an interim basis, subject to prospec-
     4  tive  rate  adjustment; provided, further, that a final rate plan issued
     5  by the authority that would not so increase such rates and charges shall
     6  not be subject to the requirements of paragraph four of this subdivision
     7  and shall be considered final for the purposes of review  under  article
     8  seventy-eight  of  the  civil  practice  law and rules].   The authority
     9  and/or the service provider may otherwise  submit  for  review  to  such
    10  department any rate proposal irrespective of its effect on revenues.
    11    2-a.  The authority and the service provider shall not submit any rate
    12  proposal that shall assess any fee, penalty or other charge of any  kind
    13  for  the  voluntary  termination  of electric service to any residential
    14  customer for the purpose of utilizing alternative  sources  of  electric
    15  generation  in  excess  of that charged to customers who terminate their
    16  electric service for any other reason.
    17    3. The authority shall not fix any final rates  and  charges  proposed
    18  that  would not be subject to review by the department of public service
    19  pursuant to paragraphs one and two of this subdivision until after hold-
    20  ing public hearings thereon upon reasonable public notice, with at least
    21  one such hearing to be held in each [in the] county [of Suffolk and  the
    22  county  of  Nassau]  within  the  service area upon at least thirty days
    23  notice to the public.
    24    4. Any recommendations  associated  with  a  rate  proposal  submitted
    25  pursuant to paragraphs one and two of this subdivision shall be provided
    26  by  the department of public service to the board of the authority imme-
    27  diately upon their finalization by the department.  [Unless the board of
    28  the authority makes a preliminary determination in its  discretion  that
    29  any particular recommendation is inconsistent with the authority's sound
    30  fiscal  operating practices, any existing contractual or operating obli-
    31  gations, or the provision of safe and adequate service, the board  shall
    32  implement  such  recommendations as part of its final rate plan and such
    33  final determination shall be deemed to satisfy the requirements of  this
    34  subdivision  and  be  considered  final for the purposes of review under
    35  article seventy-eight of the civil practice law  and  rules.  The  board
    36  shall  make  any  such preliminary determination of inconsistency within
    37  thirty days of receipt of such  recommendations,  with  notice  and  the
    38  basis  of  such determination being provided to the department of public
    39  service, and contemporaneously posted on the websites of  the  authority
    40  and its service provider. The board shall thereafter, within thirty days
    41  of such posting and with due advance notice to the public, hold a public
    42  hearing  with respect to its preliminary determination of inconsistency.
    43  At such hearing, the department of  public  service  shall  present  the
    44  basis for its recommendations, the board shall present the basis for its
    45  determination  of inconsistency and the service provider may present its
    46  position. The authority and the service provider may,  during  the  time
    47  period before such public hearing reach agreement with the department on
    48  disputed issues. Within thirty days after such public hearing, the board
    49  of  the  authority  shall  announce  its final determination and planned
    50  implementation with respect to any such recommendations. The authority's
    51  final determination of inconsistency shall be subject to any  applicable
    52  judicial  review  proceeding,  including  review available under article
    53  seventy-eight of the civil practice law and rules] The board  shall  not
    54  approve a final rate plan until it holds a public hearing in each county
    55  within  the service area upon at least thirty days notice to the public.
    56  At such hearing, the department of  public  service  shall  present  the

        S. 4317                             3                            A. 6363
     1  basis  for  its recommendations. Within ninety days of the conclusion of
     2  the public hearing, the board shall render a final determination on  the
     3  rate  proposal. In making a final determination, the board shall protect
     4  the economic interests of its ratepayers and the service area. The board
     5  shall also consider the recommendations of the department and the crite-
     6  ria  in  paragraph  (a)  of  subdivision three of section three-b of the
     7  public service law. The board shall not be  authorized  to  approve  any
     8  rate  increase to offset revenue loss due to energy conservation efforts
     9  by consumers. Such final determination shall be considered final for the
    10  purposes of review under article seventy-eight of the civil practice law
    11  and rules.
    12    § 3. Paragraph (a) of subdivision 3  of  section  3-b  of  the  public
    13  service  law,  as amended by chapter 479 of the laws of 2017, is amended
    14  to read as follows:
    15    (a) Review and make recommendations to the board of  the  Long  Island
    16  power authority with respect to the rates and charges, including charges
    17  related to energy efficiency and renewable energy programs, to be estab-
    18  lished by the authority and become applicable on or after January first,
    19  two thousand sixteen pursuant to subdivision (u) of section one thousand
    20  twenty-f of the public authorities law.
    21    (i)  The purpose of such review is to make recommendations designed to
    22  ensure that the authority and the  service  provider  provide  safe  and
    23  adequate  transmission  and  distribution  service  at  rates set at the
    24  lowest level consistent with sound fiscal operating practices.
    25    (ii) The department's recommendations shall be designed to be consist-
    26  ent with ensuring that the revenue requirements  related  to  such  rate
    27  review  are  sufficient  to  satisfy  the  authority's  obligations with
    28  respect to its bonds, notes and all other contracts.
    29    (iii) In the context of such review, the department may make recommen-
    30  dations with regard to the compensation or fee structure included within
    31  the operations services agreement.
    32    (iv) In undertaking such review and in making recommendations  related
    33  to the proposed rates and charges, the department shall establish stand-
    34  ards,  policies  and  procedures  that, at a minimum, provide for public
    35  statement and evidentiary hearings and participation of intervenors  and
    36  other  parties, and ensure that any final recommendations related to the
    37  proposed rates and charges are provided  to  the  authority  within  two
    38  hundred forty days of the filing with the department of such plan.
    39    (v)  The parties to any such rate review proceeding shall include, but
    40  not be limited to, department staff, the authority, the service provider
    41  and[, to the extent it deems  necessary  or  appropriate,]  the  utility
    42  intervention unit.
    43    (vi)  The  department  shall  not  recommend a rate increase to offset
    44  revenue loss due to energy conservation efforts by consumers.
    45    § 4. Severability.  If any provision of this act  or  the  application
    46  thereof  shall  for  any  reason  be  adjudged by any court of competent
    47  jurisdiction to be invalid, such judgment shall not  affect,  impair  or
    48  invalidate the remainder of this act, but shall be confined in its oper-
    49  ation  to  the provision thereof directly involved in the controversy in
    50  which the judgment shall have been rendered.
    51    § 5. This act shall take effect immediately.
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