Bill Text: NY A11120 | 2019-2020 | General Assembly | Introduced

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Bill Title: Relates to strengthening of utility storm response and compliance; provides considerations for determining the amount of any penalty to be assessed; authorizes the department of public service to undertake any additional administrative or investigatory actions related to such violation or violations, including but not limited to, service of an administrative complaint, implementation of discovery, interviews, depositions and the holding of evidentiary hearings; establishes a study of municipal takeover of water supply in Nassau county to determine if municipal takeover of the private utility provided water service will better protect the aquifer and provide better and safer service to the residents of Nassau County.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2020-11-06 - referred to corporations, authorities and commissions [A11120 Detail]

Download: New_York-2019-A11120-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          11120

                   IN ASSEMBLY

                                    November 6, 2020
                                       ___________

        Introduced  by  COMMITTEE  ON  RULES  -- (at request of M. of A. Paulin,
          Lavine) -- (at request of the Governor) -- read once and  referred  to
          the Committee on Corporations, Authorities and Commissions

        AN  ACT to amend the public service law, in relation to strengthening of
          utility storm response and compliance; and to create a study of munic-
          ipal takeover of water supply in northwest Nassau County

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

     1    Section  1.  Section 25 of the public service law, as added by chapter
     2  665 of the laws of 1980, subdivision 2, paragraph (a) of  subdivision  3
     3  and paragraph (a) of subdivision 4 as amended by chapter 375 of the laws
     4  of 1986, is amended to read as follows:
     5    § 25. Penalties.  1.  Every  public  utility  company,  corporation or
     6  person and the officers, agents and employees  thereof  shall  obey  and
     7  comply  with  every  provision  of this chapter and every order or regu-
     8  lation adopted under authority of this chapter so long as the same shall
     9  be in force.
    10    2. Any public utility company, corporation or person and the officers,
    11  agents and employees thereof that knowingly fails or neglects to obey or
    12  comply with a provision of this chapter or a regulation  or  [an]  order
    13  adopted  under authority of this chapter so long as the same shall be in
    14  force, shall forfeit to the people of the state of New York  a  sum  not
    15  exceeding  one hundred thousand dollars constituting a civil penalty for
    16  each and every offense and, in the case of a continuing violation,  each
    17  day shall be deemed a separate and distinct offense.
    18    3.  Notwithstanding the provisions of subdivision two of this section,
    19  any such public utility company, corporation or person and the officers,
    20  agents and employees thereof that knowingly fails or neglects to obey or
    21  comply with a provision of this  chapter,  or  an  order  or  regulation
    22  adopted  under  the  authority of this chapter, adopted specifically for
    23  the protection of human safety, including but not limited to the commis-
    24  sion's code of gas safety regulations shall, if it is determined by  the
    25  commission that such safety violation caused or constituted a contribut-

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD12057-06-0
        A. 11120                            2

     1  ing  factor in bringing about a death or personal injury, forfeit to the
     2  state of New York a sum [not to exceed the greater of:
     3    (a) two hundred and fifty thousand dollars constituting a civil penal-
     4  ty  for  each separate and distinct offense; provided, however, that for
     5  purposes of this paragraph each day of a continuing violation shall  not
     6  be deemed a separate and distinct offense. The total period of a contin-
     7  uing  violation, as well as every distinct violation, shall be similarly
     8  treated as a separate and distinct offense for purposes  of  this  para-
     9  graph; or
    10    (b)  the  maximum forfeiture determined in accordance with subdivision
    11  two of this section.
    12    4. Notwithstanding the provisions of subdivision one or  two  of  this
    13  section,  a  public utility company, corporation or person and the offi-
    14  cers, agents and employees thereof that knowingly fails or  neglects  to
    15  obey  or  comply  with a provision of this chapter, or an order or regu-
    16  lation adopted under authority of this chapter, designed to protect  the
    17  overall reliability and continuity of electric service, shall forfeit to
    18  the state of New York a sum not to exceed the greater of:
    19    (a)  five  hundred  thousand  dollars constituting a civil penalty for
    20  each separate and distinct offense; provided, however, that for purposes
    21  of this paragraph each day of a continuing violation shall not be deemed
    22  a separate and distinct  offense.  The  total  period  of  a  continuing
    23  violation,  as  well  as  every  distinct  violation, shall be similarly
    24  treated as a separate and distinct offense for purposes  of  this  para-
    25  graph; or
    26    (b)  the  maximum forfeiture determined in accordance with subdivision
    27  two of this section.] fixed by  the  public  service  commission,  after
    28  considering the following:
    29    (a)  the scope of damages caused by the violation, to consumers, busi-
    30  nesses and the state;
    31    (b) each individual act or omission which led to the violation;
    32    (c) whether the violation was willful;
    33    (d) whether the violation was recurring, or had been the subject of  a
    34  previous finding by the commission;
    35    (e)  the  economic damage associated with the violation, to ratepayers
    36  in the form of future investments that must be made to  the  infrastruc-
    37  ture  weakened  or  damaged in the event, which was in the estimation of
    38  the commission preventable; and
    39    (f) whether the violation was caused in whole or in part  due  to  the
    40  systematic  failure  of  the  entity  to maintain or replace obsolete or
    41  deteriorated materials or equipment.
    42    4. A public utility company, corporation or person and  the  officers,
    43  agents  and  employees  thereof shall forfeit to the state of New York a
    44  sum assessed by the commission for the purposes of providing residential
    45  consumer relief related to the loss of personal property, not to  exceed
    46  five  hundred  dollars  per household, and/or an amount specified by the
    47  commission pursuant to an order may be required to set aside for  relief
    48  for  commercial,  industrial  or  governmental  customers of the utility
    49  which may be available as bill credits for particular cases where  there
    50  was significant damages, in the event of continued service outages which
    51  constitute  a  violation  of  such company's, corporation's, or person's
    52  emergency response plan submitted pursuant to section sixty-six of  this
    53  chapter.  All  moneys  recovered  pursuant to this subdivision, together
    54  with the costs thereof, shall be remitted to, or for the benefit of, the
    55  ratepayers in a manner to be determined by the commission.
        A. 11120                            3

     1    5. Penalties provided for pursuant to this section shall be  recovered
     2  in an action as provided in section twenty-four of this article.
     3    6. Any payment made by a public utility company, corporation or person
     4  and  the officers, agents and employees thereof as a result of an action
     5  as provided in section twenty-four of this article and the cost of liti-
     6  gation and investigation  related  to  any  such  action  shall  not  be
     7  included  by  the  commission  in revenue requirements used to establish
     8  rates and charges.
     9    7. In construing and enforcing the provisions of this chapter relating
    10  to forfeitures and penalties, the act of any director, officer, agent or
    11  employee of a public utility company, corporation or person acting with-
    12  in the scope of his or her official duties or employment shall be deemed
    13  to be the act of such public utility company, corporation or person.
    14    § 2. Section 25-a of the public service law, as added by section 2  of
    15  part X of chapter 57 of the laws of 2013, is amended to read as follows:
    16    §  25-a.  Combination  gas  and  electric corporations; administrative
    17  sanctions; recovery of penalties. Notwithstanding  sections  twenty-four
    18  and  twenty-five  of this article: 1. Every combination gas and electric
    19  corporation and the officers thereof shall adhere to every provision  of
    20  this  chapter  and  every order or regulation adopted under authority of
    21  this chapter so long as the same shall be in force.
    22    2. (a) The commission shall have  the  authority  to  assess  a  civil
    23  penalty  in  an amount as set forth in this section and impose any other
    24  required relief against a combination gas and electric  corporation  and
    25  the  officers thereof subject to the jurisdiction, supervision, or regu-
    26  lation pursuant to this chapter [in an  amount  as  set  forth  in  this
    27  section]. In determining the amount of any penalty to be assessed pursu-
    28  ant to this section, the commission shall consider: [(i) the seriousness
    29  of  the  violation  for  which  a penalty is sought; (ii) the nature and
    30  extent of any previous violations for which penalties have been assessed
    31  against the corporation or officer; (iii) whether there was knowledge of
    32  the violation; (iv) the gross  revenues  and  financial  status  of  the
    33  corporation;  and  (v)  such  other  factors  as the commission may deem
    34  appropriate and relevant.]
    35    (i) the scope of damages caused by the violation, to consumers,  busi-
    36  nesses and the state;
    37    (ii) each individual act or omission which led to the violation;
    38    (iii) whether the violation was willful;
    39    (iv) whether the violation was recurring, or had been the subject of a
    40  previous finding by the commission;
    41    (v)  the  economic damage associated with the violation, to ratepayers
    42  in the form of future investments that must be made to  the  infrastruc-
    43  ture  weakened  or  damaged in the event, which was in the estimation of
    44  the commission preventable; and
    45    (vi) whether the violation was caused in whole or in part due  to  the
    46  systematic  failure  of  the  entity  to maintain or replace obsolete or
    47  deteriorated materials or equipment.
    48    The remedies provided by this subdivision are in addition to any other
    49  remedies provided in law.
    50    (b) [Whenever the commission has reason to believe that a  combination
    51  gas  and electric corporation or such officers thereof should be subject
    52  to imposition of a civil penalty as set forth in  this  subdivision,  it
    53  shall notify such corporation or officer.] The department is authorized,
    54  pursuant  to  a  referral  made  by  the  chief executive officer of the
    55  department, to commence a proceeding pursuant to this section upon issu-
    56  ance of a notice of violation if it believes that a combination gas  and
        A. 11120                            4

     1  electric  corporation, or such officers thereof, may be subject to impo-
     2  sition of a civil penalty as set forth in this subdivision  and/or  such
     3  other  relief as may be required to address such alleged violation. Such
     4  notice  shall  include,  but shall not be limited to: (i) the date and a
     5  brief description of the facts and nature of each act or failure to  act
     6  for  which  such penalty is proposed; (ii) a list of each statute, regu-
     7  lation or order  that  the  [commission]  department  alleges  has  been
     8  violated;  and  (iii)  the  amount of each penalty that the [commission]
     9  department proposes to [assess]  be  assessed;  and  (iv)  any  proposed
    10  actions  that  the  department  deems  necessary to address such alleged
    11  violation or violations. The department is authorized to  undertake  any
    12  additional  administrative  or  investigatory  actions  related  to such
    13  violation or violations, including but not limited  to,  service  of  an
    14  administrative complaint, implementation of discovery, interviews, depo-
    15  sitions,  entering into a settlement agreement or other stipulation, and
    16  the holding of evidentiary hearings, as provided in this chapter.
    17    (c) [Whenever the commission has reason to believe that a  combination
    18  gas  and electric corporation or such officers thereof should be subject
    19  to imposition of a civil penalty or  penalties  as  set  forth  in  this
    20  subdivision,  the commission shall hold a hearing to demonstrate why the
    21  proposed penalty or penalties should be assessed against  such  combina-
    22  tion  gas  and electric corporation or such officers.] Any assessment of
    23  penalties, resolution of claims or imposition of other relief levied  by
    24  the  department  pursuant  to  an  investigation or complaint proceeding
    25  commenced pursuant  to  paragraph  (b)  of  this  subdivision  shall  be
    26  required  to be established after holding of an evidentiary hearing, and
    27  such finding is required to be approved by the  commission  but  may  be
    28  settled by agreement between the parties at any time prior to such hear-
    29  ing, or after such hearing, as mutually agreed upon by the parties.
    30    3. Any combination gas and electric corporation or such officers ther-
    31  eof,  determined by the commission to have failed to [reasonably] comply
    32  as shown by a preponderance of the evidence, at an evidentiary  hearing,
    33  with  a  provision of this chapter, regulation or an order adopted under
    34  authority of this chapter so long as the same shall be  in  force  shall
    35  forfeit a sum [not exceeding the greater of one hundred thousand dollars
    36  or  two  one-hundredths  of  one  percent of the annual intrastate gross
    37  operating revenue of the corporation, not including taxes  paid  to  and
    38  revenues  collected  on  behalf  of  government entities, constituting a
    39  civil penalty for each and every offense and, in the case of a  continu-
    40  ing violation, each day shall be deemed a separate and distinct offense]
    41  fixed by the public service commission, after considering the following:
    42    (a)  the scope of damages caused by the violation, to consumers, busi-
    43  nesses and the state;
    44    (b) each individual act or omission which led to the violation;
    45    (c) whether the violation was willful;
    46    (d) whether the violation was recurring, or had been the subject of  a
    47  previous finding by the commission;
    48    (e)  the  economic damage associated with the violation, to ratepayers
    49  in the form of future investments that must be made to  the  infrastruc-
    50  ture  weakened  or  damaged in the event, which was in the estimation of
    51  the commission preventable; and
    52    (f) whether the violation was caused in whole or in part  due  to  the
    53  systematic  failure  of  the  entity  to maintain or replace obsolete or
    54  deteriorated materials or equipment.
    55    4. [Notwithstanding  the  provisions  of  subdivision  three  of  this
    56  section, any such combination gas and electric corporation determined by
        A. 11120                            5

     1  the  commission  to have failed to reasonably comply with a provision of
     2  this chapter, or an order or regulation adopted under the  authority  of
     3  this  chapter  specifically  for  the  protection  of  human  safety  or
     4  prevention  of  significant  damage to real property, including, but not
     5  limited to, the commission's code of gas safety regulations shall, if it
     6  is determined by the commission by a preponderance of the evidence  that
     7  such  safety  violation  caused  or constituted a contributing factor in
     8  bringing about:  (a) a death or personal injury; or (b) damage  to  real
     9  property  in  excess  of  fifty  thousand  dollars, forfeit a sum not to
    10  exceed the greater of:
    11    (i) two hundred fifty thousand dollars or three one-hundredths of  one
    12  percent  of  the annual intrastate gross operating revenue of the corpo-
    13  ration, not including taxes paid to and revenues collected on behalf  of
    14  government  entities, whichever is greater, constituting a civil penalty
    15  for each separate and distinct  offense;  provided,  however,  that  for
    16  purposes of this paragraph, each day of a continuing violation shall not
    17  be deemed a separate and distinct offense. The total period of a contin-
    18  uing  violation, as well as every distinct violation, shall be similarly
    19  treated as a separate and distinct offense for purposes  of  this  para-
    20  graph; or
    21    (ii)  the maximum forfeiture determined in accordance with subdivision
    22  three of this section.
    23    5. Notwithstanding the provisions of subdivision three or four of this
    24  section, a combination gas and electric corporation  determined  by  the
    25  commission to have failed to reasonably comply by a preponderance of the
    26  evidence  with  a  provision  of this chapter, or an order or regulation
    27  adopted under authority of this chapter, designed to protect the overall
    28  reliability and continuity of electric service, including but not limit-
    29  ed to the restoration of electric service following a major outage event
    30  or emergency, shall forfeit a sum not to exceed the greater of:
    31    (a) five hundred  thousand  dollars  or  four  one-hundredths  of  one
    32  percent  of  the annual intrastate gross operating revenue of the corpo-
    33  ration, not including taxes paid to and revenues collected on behalf  of
    34  government  entities, whichever is greater, constituting a civil penalty
    35  for each separate and distinct  offense;  provided,  however,  that  for
    36  purposes  of this paragraph each day of a continuing violation shall not
    37  be deemed a separate and distinct offense. The total period of a contin-
    38  uing violation, as well as every distinct violation shall  be  similarly
    39  treated  as  a  separate and distinct offense for purposes of this para-
    40  graph; or
    41    (b) the maximum forfeiture determined in accordance  with  subdivision
    42  three of this section.
    43    6.  Any officer of any combination gas and electric corporation deter-
    44  mined by the commission to have violated the provisions  of  subdivision
    45  three,  four,  or  five  of  this  section, and who knowingly violates a
    46  provision of this chapter, regulation or an order adopted under authori-
    47  ty of this chapter so long as the same shall be in force shall forfeit a
    48  sum not to exceed one hundred  thousand  dollars  constituting  a  civil
    49  penalty  for  each  and  every  offense and, in the case of a continuing
    50  violation, each day shall be deemed a separate and distinct offense.
    51    7. Any such assessment may  be  compromised  or  discontinued  by  the
    52  commission.]  All  moneys  recovered  pursuant to this section, together
    53  with the costs thereof, shall be remitted to, or for the benefit of, the
    54  ratepayers in a manner to be determined by the commission.
    55    [8.] 5. Upon a failure by a combination gas and  electric  corporation
    56  or  officer  to remit any penalty assessed by the commission pursuant to
        A. 11120                            6

     1  this section, the commission, through  its  counsel,  may  institute  an
     2  action or special proceeding to collect the penalty in a court of compe-
     3  tent jurisdiction.
     4    [9.] 6. Any payment made by a combination gas and electric corporation
     5  or  the  officers  thereof  as  a  result of an assessment or penalty as
     6  provided in this section, and the cost of litigation  and  investigation
     7  related  to  any such assessment, shall not be recoverable from ratepay-
     8  ers.
     9    [10.] 7. In construing and enforcing the provisions  of  this  chapter
    10  relating  to  penalties,  the  act  of  any  director, officer, agent or
    11  employee of a combined gas and electric corporation  acting  within  the
    12  scope  of his or her official duties or employment shall be deemed to be
    13  the act of such corporation.
    14    [11.] 8. It shall be a violation of this chapter  should  a  director,
    15  officer  or  employee  of  a public utility company, corporation, person
    16  acting in his or her official duties or employment, or an  agent  acting
    17  on  behalf  of  an  employer  take  retaliatory personnel action such as
    18  discharge, suspension, demotion, penalization or discrimination  against
    19  an  employee  for  reporting  a violation of a provision of this chapter
    20  [of] an order or regulation adopted under the authority of this chapter,
    21  including, but  not  limited  to,  those  governing  safe  and  adequate
    22  service,  protection of human safety or prevention of significant damage
    23  to real property, including, but not limited to, the  commission's  code
    24  of  gas safety.  Nothing in this subdivision shall be deemed to diminish
    25  the rights, privileges or remedies of any employee under any  other  law
    26  or  regulation,  including  but  not  limited to article twenty-C of the
    27  labor law and section seventy-five-b of the civil service law, or  under
    28  any collective bargaining agreement or employment contract.
    29    § 3. The public service law is amended by adding a new section 25-b to
    30  read as follows:
    31    §  25-b.  Administrative  actions  against  other  regulated entities.
    32  Notwithstanding any other provision of  this  chapter,  section  twenty-
    33  five-a  of  this  article  shall apply in equal force to: 1. an electric
    34  corporation as defined in subdivision thirteen of section  two  of  this
    35  article;  2.  a  gas  corporation  as  defined  in subdivision eleven of
    36  section two of this article; 3. a  cable  television  company  or  cable
    37  television  system as defined in subdivisions one and two of section two
    38  hundred twelve of this article; 4. a telephone corporation as defined in
    39  subdivision seventeen of section two of this article; 5. a steam  corpo-
    40  ration as defined in subdivision twenty-two of section two of this arti-
    41  cle;  and 6. a water-works corporation as defined in subdivision twenty-
    42  seven of section two of  this  article;  as  well  as  the  officers  or
    43  employees of any such corporate entities described above.
    44    §  4.  Subdivision 2 of section 68 of the public service law, as added
    45  by section 5 of part X of chapter 57 of the laws of 2013, is amended and
    46  a new subdivision 3 is added to read as follows:
    47    2. Revocation or  modification  of  certificate.  The  commission  may
    48  commence  a  proceeding,  conducted  in accordance with the commission's
    49  rules and regulations, to revoke or modify a combined electric  and  gas
    50  corporation's  certificate  as  it relates to such corporation's service
    51  territory or any portion thereof based on findings of repeated  (two  or
    52  more)  violations  of  this  chapter  or  rules or regulations or orders
    53  adopted thereto [that demonstrate a failure of], or violations  of  this
    54  chapter or rules, regulations, or orders thereto demonstrating a failure
    55  of  such  corporation  to continue to provide safe and adequate service.
    56  Whenever the commission has reason to believe  that  such  corporation's
        A. 11120                            7

     1  certificate may be subject to revocation or modification, it shall noti-
     2  fy  such  corporation  of the facts and nature of each act or failure to
     3  act allegedly warranting such revocation or modification, and the  stat-
     4  ute,  regulation or order allegedly violated, and otherwise consider the
     5  following factors:
     6    (a) the factors identified in subdivision  one  of  this  section  for
     7  issuance of a certificate of public convenience and necessity; and
     8    (b)  whether [another person, firm or corporation is qualified, avail-
     9  able, and prepared to provide alternative service that  is  adequate  to
    10  serve  the public convenience and necessity, and that the] transition to
    11  [such] an alternative person, firm  or  corporation  is  in  the  public
    12  interest; and
    13    (c)  upon  any  other standards and procedures deemed necessary by the
    14  commission to ensure continuity of safe and adequate  service,  and  due
    15  process.
    16    3.  (a) In the event the commission makes the required findings pursu-
    17  ant to subdivision two of this section warranting the revocation of  the
    18  certificate of a combined electric and gas corporation's certificate, it
    19  may  further  determine  as  part  of  such proceeding that an emergency
    20  exists with respect to the corporations' ability to  provide  continuous
    21  service.  If such determination is made, then the commission may appoint
    22  one or more persons to be receivers of and  for  such  corporation.  The
    23  commission  may  grant such receiver or receivers with authority to take
    24  charge of such  corporation's  assets,  estate,  effects,  business  and
    25  affairs,  and to collect the outstanding debts, claims, and property due
    26  and belonging to the corporation, with power to prosecute and defend, in
    27  the name of the corporation  or  otherwise,  all  claims  or  suits,  to
    28  appoint  an  agent  or agents under them, and to do all other acts which
    29  might be done by the corporation and which may be necessary or proper.
    30    (b) Such proceeding shall be heard in no less than  thirty  days  from
    31  service  of  the  statement  of  violations  to  the public utility. The
    32  commission, if it determines that revocation is warranted  shall  forth-
    33  with  determine  the  penalty associated therewith.   The penalty shall,
    34  notwithstanding sections twenty-four and twenty-five  of  this  chapter,
    35  not  exceed the value of the real property and fixtures thereto utilized
    36  in utility delivery by such person, firm or corporation, which shall  be
    37  paid in-kind by such person, firm or corporation, and shall, however, be
    38  paid  a  monetary  amount  fixed  by  the commission which shall reflect
    39  payment for the shareholder equity  contribution,  or  any  bonds  which
    40  shall  be  either  assumed  by the state or a new entity, unless further
    41  reduced by depreciation.  Calculation of such penalty shall be in  addi-
    42  tion  to  any  penalties  assessed  pursuant to sections twenty-four and
    43  twenty-five of this chapter for any given violation or outage.
    44    (c) The powers of the receivers shall continue for thirty days,  which
    45  may  be  continued for additional periods of thirty days, so long as the
    46  commission confirms such determination  continues  to  be  necessary  in
    47  order to assure continuous service.
    48    §  5.  Subdivision  21  of  section  66  of the public service law, as
    49  amended by section 4 of part X of chapter 57 of the  laws  of  2013,  is
    50  amended to read as follows:
    51    21.  (a) Each electric corporation subject to section twenty-five-a of
    52  this chapter shall annually, on or before December fifteenth, submit  to
    53  the  commission  an emergency response plan for review and approval. The
    54  emergency response plan shall be  designed  for  the  reasonably  prompt
    55  restoration  of  service  in the case of an emergency event, defined for
    56  purposes of this subdivision as an event where widespread  outages  have
        A. 11120                            8

     1  occurred  in the service territory of the company due to storms or other
     2  causes beyond the control of the company. The  emergency  response  plan
     3  shall  include, but need not be limited to, the following: (i) the iden-
     4  tification of management staff responsible for company operations during
     5  an  emergency;  (ii)  a communications plan that includes:  (A) a system
     6  that relays service information with customers during an emergency  that
     7  extends  beyond  normal  business hours and business conditions; [(iii)]
     8  (B) identification of and outreach plans to customers who had documented
     9  their need for essential electricity for medical needs; [(iv)] (C) iden-
    10  tification of and outreach plans to customers who had  documented  their
    11  need  for  essential electricity to provide critical telecommunications,
    12  critical transportation, critical fuel distribution  services  or  other
    13  large-load customers identified by the commission; [(v)] (D) designation
    14  of  company  staff  to  communicate with local officials and appropriate
    15  regulatory agencies; [(vi)]  and  (E)  identifies,  tests  and  verifies
    16  redundancies  in  communications systems; (iii) provisions regarding how
    17  the company will assure the safety of  its  employees  and  contractors;
    18  [(vii)]  (iv)  procedures  for deploying company and mutual aid crews to
    19  work  assignment  areas;  [(viii)]  (v)  identification  of   additional
    20  supplies and equipment needed during an emergency; [(ix)] (vi) the means
    21  of  obtaining  additional supplies and equipment; [(x)] (vii) procedures
    22  to practice the emergency response plan; [(xi)] (viii) appropriate safe-
    23  ty precautions regarding electrical hazards, including plans to promptly
    24  secure downed wires within  thirty-six  hours  of  notification  of  the
    25  location  of  such downed wires from a municipal emergency official; and
    26  [(xii)] (ix) such other additional information  as  the  commission  may
    27  require.  Each  such  corporation  shall,  on an annual basis, undertake
    28  drills implementing procedures  to  practice  its  emergency  management
    29  plan.  The  commission may adopt additional requirements consistent with
    30  ensuring the reasonably prompt restoration of service in the case of  an
    31  emergency event.
    32    (b)  After  review  of  a  corporation's  emergency response plan, the
    33  commission may require such corporation to amend the plan.  The  commis-
    34  sion  may also open an investigation of the corporation's plan to deter-
    35  mine its sufficiency to respond adequately to an emergency event.    If,
    36  after  hearings, the commission finds a material deficiency in the plan,
    37  it may order the company  to  make  such  modifications  that  it  deems
    38  reasonably necessary to remedy the deficiency.
    39    (c)  The  commission  is authorized to open an investigation to review
    40  the performance of any corporation in  restoring  service,  implementing
    41  communications  plans or otherwise meeting the requirements of the emer-
    42  gency response plan during an emergency  event.  If,  after  evidentiary
    43  hearings  or  other investigatory proceedings, the commission finds that
    44  the corporation failed to [reasonably] implement its emergency  response
    45  plan  or the length of such corporation's outages were materially longer
    46  than they would have been, because  of  such  corporation's  failure  to
    47  [reasonably]  implement  its emergency response plan, the commission may
    48  deny the recovery of any part of the service restoration costs caused by
    49  such failure, commensurate with the degree and  impact  of  the  service
    50  outage;  provided,  however, that nothing herein limits the commission's
    51  authority to otherwise commence a proceeding pursuant to sections  twen-
    52  ty-four, twenty-five and twenty-five-a of this chapter.
    53    (d) The commission shall certify to the department of homeland securi-
    54  ty  and  emergency  services  that  each  such  corporation's  emergency
    55  response plan is sufficient to ensure to the  greatest  extent  feasible
        A. 11120                            9

     1  the timely and safe restoration of energy services after an emergency in
     2  compliance with the requirements of this chapter.
     3    (e)  The  filing  of each emergency response plan required under para-
     4  graph (a) of this subdivision shall also include a copy of  all  written
     5  mutual assistance agreements among utilities.
     6    (f)  Each electric corporation shall file with the county executive or
     7  the chief elected official of  a  county  for  each  county  within  its
     8  service  territory  the  most  recent  approved  copy  of  the emergency
     9  response plan required pursuant to this section. For the purposes of  an
    10  electric  corporation operating within the city of New York, such corpo-
    11  ration shall file the most recent approved emergency response plan  with
    12  the emergency management office of the city of New York.
    13    (g)  The  commission  shall  provide access to such emergency response
    14  plan pursuant to article six of the public officers law.
    15    § 6.  The public service law is amended by adding a new section 5-a to
    16  read as follows:
    17    § 5-a. Revocation or modification of authorization to do  business  in
    18  the state. 1.  For purposes of this section, the term "utility provider"
    19  shall mean any or all of the following: (a) an "electric corporation" as
    20  defined  in  subdivision  thirteen of section two of this article, (b) a
    21  "gas corporation" as defined in subdivision eleven  of  section  two  of
    22  this  article,  (c)  a  "cable  television company" or "cable television
    23  system" as defined in subdivisions one and two of  section  two  hundred
    24  twelve  of  this  chapter,  (d)  a "telephone corporation" as defined in
    25  subdivision seventeen of section two  of  this  article,  (e)  a  "steam
    26  corporation" as defined in subdivision twenty-two of section two of this
    27  article,  and  (f)  a "waterworks corporation" as defined in subdivision
    28  twenty-seven of section two of this article.
    29    2.  The commission may commence a proceeding, conducted in  accordance
    30  with  the  commission's  rules  and regulations, to prohibit any utility
    31  provider from operating in the state of New York as it relates  to  such
    32  provider's service territory or any portion thereof based on findings of
    33  repeated  (two  or  more)  violations  of this chapter, orders, rules or
    34  regulations adopted thereto that demonstrate a failure of such  provider
    35  to  continue  to  provide  adequate service. Whenever the commission has
    36  reason to believe that such utility provider may no longer  be  suitable
    37  to  do  business  in  the  state, whether or not a certificate of public
    38  convenience  and  necessity  shall  have  been  required  prior  to  its
    39  commencement  of  operation,  then  the  public service commission shall
    40  issue an order to show cause upon such utility provider, specifying  the
    41  reasons  why it should not be prohibited from providing utility services
    42  which are subject to the jurisdiction in whole or in part of the commis-
    43  sion. The order to show cause shall further include the facts and nature
    44  of each act or failure to act allegedly warranting such finding, and the
    45  statute, regulation or order allegedly violated, and otherwise consider-
    46  ing the following factors:
    47    (a) the factors for issuance of a certificate  of  public  convenience
    48  and necessity;
    49    (b)  whether  the  transition to an alternative utility provider is in
    50  the public interest; and
    51    (c) upon any other standards and procedures deemed  necessary  by  the
    52  commission  to  ensure  continuity of safe and adequate service, and due
    53  process.
    54    3. The order to show cause shall be heard in no less than thirty  days
    55  from  service  of the statement of violations to the public utility. The
    56  commission, if it determines that such order  should  be  granted  shall
        A. 11120                           10

     1  immediately  prohibit  such  utility provider from doing business in the
     2  state of New York. The commission may also seek a civil penalty in addi-
     3  tion to such revocation or modification. The  civil  penalty  shall  be,
     4  notwithstanding any other section of this chapter to the contrary, based
     5  upon  the  value  of  the real property and fixtures thereto utilized in
     6  utility delivery by such utility provider, which shall be  paid  in-kind
     7  by  such  provider, but provided further that the utility provider shall
     8  be additionally paid by the commission a monetary amount  fixed  by  the
     9  commission  which  shall  reflect  payment  for  the  shareholder equity
    10  contribution, unless further reduced by depreciation, or any bonds which
    11  must be either defeased, or acquired by a successor entity.  Calculation
    12  of  such  civil  penalty  shall be in addition to any penalties assessed
    13  pursuant to section twenty-four, twenty-five or  twenty-five-b  of  this
    14  article for any given violation or outage.
    15    4.  A  utility  provider subject to a proceeding initiated pursuant to
    16  this section shall be provided with a right to  an  evidentiary  hearing
    17  held  in  accordance with the commission's procedural regulations, prior
    18  to any final order of the commission.
    19    5. A service provider contracted by a public authority may likewise be
    20  prevented from operating in a service territory by action of the  public
    21  authority  if  the  department of public service, as part of an investi-
    22  gation of an emergency event, identifies two or more  repeated  failures
    23  of  the service provider to meet its obligations and makes a recommenda-
    24  tion to the board for the public authority to exercise  its  termination
    25  rights.
    26    §  7.  Study  of municipal takeover of private water utility in Nassau
    27  County. a. Legislative findings. The legislature hereby finds  that  the
    28  groundwater  supply  system  presently  operated by a private utility in
    29  Nassau County servicing the  residents   of   the villages  of  Atlantic
    30  Beach,  Cedarhurst,  East  Rockaway,  Hewlett  Bay Park, Hewlett Harbor,
    31  Hewlett Neck, Island Park, Lawrence, Lynbrook, Malverne, Valley  Stream,
    32  and Woodsburgh, and a portion of the village of Mill Neck, and the unin-
    33  corporated  areas  of  Baldwin,  Hewlett, Oceanside, Roosevelt, Merrick,
    34  North Merrick, Bellmore, North Bellmore, Wantagh, North Wantagh, Seaford
    35  and a portion of the area known as Massapequa and their environs, and  a
    36  portion  of  Massapequa  Park and a portion of Levittown, and Sea Cliff,
    37  Glen Head, and Glen Wood landing, is  fragile  and subject  to  episodic
    38  deficiencies  of  varying  magnitude  including  service disruptions and
    39  drastic price variations to residents    serviced    by    the  existing
    40  private    water company. The groundwater supply requires better manage-
    41  ment of its entire reserve both within and  outside  the  water  utility
    42  supply  area  as  well  as  long range planning to provide protection of
    43  important  watershed  areas,  water  conservation,  and  prevention from
    44  contamination and salt water intrusion. Since the potable water for this
    45  utility area is derived from an aquifer which   is the  sole  source  of
    46  water  for all of Long Island, the issues of contamination and conserva-
    47  tion are of statewide concern.  It is necessary and desirable  that  the
    48  study  required  by  this  section will not only  protect,  preserve and
    49  enhance  the  quality   and   quantity of the water  within  its  supply
    50  area, but that it will also serve as a model and as a leader in  foster-
    51  ing  cooperation  with  other water suppliers to better manage, conserve
    52  and protect the groundwater within and outside its supply area.
    53    b.  Study.  The  public  service commission shall immediately upon the
    54  effectiveness of this act, undertake a study to examine whether a munic-
    55  ipal takeover of the private utility provided water service will  better
    56  protect  the  aquifer  and provide better and safer service to the resi-
        A. 11120                           11

     1  dents of Nassau County. The public service commission shall consider  in
     2  such  study:  the ability of the municipal governments to safely provide
     3  service alone or in coordination with any other entity currently provid-
     4  ing  service,  or  identifying  new  providers  who  can  safely provide
     5  service; the ability to protect the aquifer long term;  the  ability  of
     6  the  municipal  governments  to  provide  water service at lower cost to
     7  customers due to their tax-exempt and  not-for-profit  status,  and  the
     8  impact on municipal tax revenues.
     9    c.  Public  forums.    The public service commission shall, in coordi-
    10  nation with such study, hold three  public  forums  in  impacted  areas,
    11  which  may be held virtually, and shall be open for public comments from
    12  stakeholders.  In addition, the commission must solicit written testimo-
    13  ny from elected officials, and superintendents of  school  districts  in
    14  impacted areas.
    15    d.    Report. The public service commission shall report such findings
    16  no later than April 1, 2021 to the governor, the county  executive,  the
    17  temporary  president of the senate, and the speaker of the assembly, and
    18  post such final report on its website.
    19    § 8. Section 5 of the public service law is amended by  adding  a  new
    20  subdivision 7 to read as follows:
    21    7.  The  commission  shall ensure that customers of an electric corpo-
    22  ration, gas corporation, steam corporation or water works corporation do
    23  not contribute to excessive executive compensation of  such  corporation
    24  by setting a threshold above which ratepayer funds may not be utilized.
    25    §  9.  This  act shall take effect on the ninetieth day after it shall
    26  have become a law.  Effective  immediately,  the  department  of  public
    27  service or the public service commission is authorized to promulgate any
    28  regulations or orders necessary to implement this act.