Bill Text: NY S02983 | 2019-2020 | General Assembly | Introduced
Bill Title: Enacts the "Long Island power authority ratepayers protection act"; requires a public hearing in each county within the service area before approval of a final rate plan.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO ENERGY AND TELECOMMUNICATIONS [S02983 Detail]
Download: New_York-2019-S02983-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 2983 2019-2020 Regular Sessions IN SENATE January 31, 2019 ___________ Introduced by Sen. GAUGHRAN -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommuni- cations AN ACT to amend the public authorities law and the public service law, in relation to enacting the "Long Island power authority ratepayers protection 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 may be cited as the "Long Island 2 power authority ratepayers protection act". 3 § 2. Section 1020-d of the public authorities law, as amended by 4 section 4 of part A of chapter 173 of the laws of 2013, is amended and a 5 new subdivision 1-a is added to read as follows: 6 § 1020-d. Board of trustees. 1. Starting on January first, two thou- 7 sand fourteen, the board of the authority shall be constituted and 8 consist of nine trustees all of whom shall be residents of the service 9 area, five of whom shall be appointed by the governor, one of whom the 10 governor shall designate as chair, and serve at his or her pleasure, two 11 of whom shall be appointed by the temporary president of the senate, and 12 two of whom shall be appointed by the speaker of the assembly. One of 13 the governor's appointees shall serve an initial term of two years; one 14 of the governor's appointees shall serve an initial term of three years; 15 and three of the governor's appointees shall serve an initial term of 16 four years. One of the appointees of the temporary president of the 17 senate and one of the appointees of the speaker of the assembly shall 18 serve initial terms of two years; and one appointee of the temporary 19 president of the senate and one appointee of the speaker of the assembly 20 shall serve initial terms of three years. Thereafter, all terms shall be 21 for a period of four years. In the event of a vacancy occurring in the 22 office of trustee by death, resignation or otherwise, the respective EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07496-03-9S. 2983 2 1 appointing officer shall appoint a successor who shall hold office for 2 the unexpired portion of the term. 3 1-a. (a) Beginning January first, two thousand twenty-two, such 4 authority shall consist of nine trustees. One trustee, who shall be the 5 chairperson, shall be a resident of the service area, shall be appointed 6 by the governor subject to confirmation by the senate, and shall serve 7 at the governor's pleasure. Eight trustees shall be elected from 8 districts established by the legislature. Each elected trustee shall be 9 a resident of the district from which he or she is elected. No person 10 who is an elected or appointed official of the state or any municipality 11 or any agency or instrumentality thereof, shall be qualified to serve as 12 an elected trustee. Each elected trustee shall hold office until his or 13 her successor has been elected and qualified. In the event of a vacancy 14 occurring in the office of a trustee by death, resignation or otherwise, 15 a successor shall be chosen to hold office for the unexpired term in the 16 manner prescribed by the election law. 17 (b) Prior to May first, two thousand twenty-one, the legislature shall 18 establish eight districts, which shall be equal in population as deter- 19 mined by the last federal decennial census. Prior to May first, two 20 thousand twenty-five and each tenth year thereafter, the legislature 21 shall reapportion the eight districts, which shall be equal in popu- 22 lation as determined by the last federal decennial census. 23 (c) Such trustees, shall be elected in elections conducted by the 24 boards of elections pursuant to applicable provisions of the election 25 law. The first such election shall be held on the first Tuesday in 26 December two thousand twenty-one, and the trustees so elected shall take 27 office on January first, two thousand twenty-two. At such election all 28 eight trustees shall be elected for a term of two years. Each such term 29 ending on December thirty-first of the last year thereof. No political 30 party shall be entitled to nominate candidates for the office of trustee 31 at any such election. 32 (d) Five trustees shall constitute a quorum for the purpose of organ- 33 izing the authority and conducting the business thereof. The vote of a 34 majority of the trustees shall be required for the purpose of taking 35 action. 36 2. No trustee shall receive a salary, but each shall be entitled to 37 reimbursement for reasonable expenses in the performance of duties 38 assigned hereunder. 39 3. [Notwithstanding the provisions of any other law, no trustee, offi-40cer or employee of the state, any state agency or municipality appointed41a trustee shall be deemed to have forfeited or shall forfeit his or her42office or employment by reason of his or her acceptance of a trusteeship43on the authority, his or her service thereon or his or her employment44therewith.454. All trustees] The chairperson appointed under this section shall 46 have relevant utility, corporate board or financial experience. 47 § 3. Paragraphs 2, 3 and 4 of subdivision (u) of section 1020-f of the 48 public authorities law, as added by section 7 of part A of chapter 173 49 of the laws of 2013, are amended to read as follows: 50 2. The authority and the service provider shall thereafter submit for 51 review to the department of public service any rate proposal that would 52 increase the rates and charges and thus increase the aggregate revenues 53 of the authority by more than two and one-half percent to be measured on 54 an annual basis[; provided, however, that the authority may place such55rates and charges into effect on an interim basis, subject to prospec-56tive rate adjustment; provided, further, that a final rate plan issuedS. 2983 3 1by the authority that would not so increase such rates and charges shall2not be subject to the requirements of paragraph four of this subdivision3and shall be considered final for the purposes of review under article4seventy-eight of the civil practice law and rules]. The authority 5 and/or the service provider may otherwise submit for review to such 6 department any rate proposal irrespective of its effect on revenues. 7 3. The authority shall not fix any final rates and charges proposed 8 that would not be subject to review by the department of public service 9 pursuant to paragraphs one and two of this subdivision until after hold- 10 ing public hearings thereon upon reasonable public notice, with at least 11 one such hearing to be held in each [in the] county [of Suffolk and the12county of Nassau] within the service area upon at least thirty days 13 notice to the public. The authority and service provider shall provide 14 to their customers advance written notice of the date and place of any 15 public hearings concerning proposed increases in rates. 16 4. Any recommendations associated with a rate proposal submitted 17 pursuant to paragraphs one and two of this subdivision shall be provided 18 by the department of public service to the board of the authority imme- 19 diately upon their finalization by the department. [Unless the board of20the authority makes a preliminary determination in its discretion that21any particular recommendation is inconsistent with the authority's sound22fiscal operating practices, any existing contractual or operating obli-23gations, or the provision of safe and adequate service, the board shall24implement such recommendations as part of its final rate plan and such25final determination shall be deemed to satisfy the requirements of this26subdivision and be considered final for the purposes of review under27article seventy-eight of the civil practice law and rules. The board28shall make any such preliminary determination of inconsistency within29thirty days of receipt of such recommendations, with notice and the30basis of such determination being provided to the department of public31service, and contemporaneously posted on the websites of the authority32and its service provider. The board shall thereafter, within thirty days33of such posting and with due advance notice to the public, hold a public34hearing with respect to its preliminary determination of inconsistency.35At such hearing, the department of public service shall present the36basis for its recommendations, the board shall present the basis for its37determination of inconsistency and the service provider may present its38position. The authority and the service provider may, during the time39period before such public hearing reach agreement with the department on40disputed issues. Within thirty days after such public hearing, the board41of the authority shall announce its final determination and planned42implementation with respect to any such recommendations. The authority's43final determination of inconsistency shall be subject to any applicable44judicial review proceeding, including review available under article45seventy-eight of the civil practice law and rules.] The board shall not 46 approve a final rate plan until it holds a public hearing in each county 47 within the service area upon at least thirty days notice to the public. 48 At such hearing, the department of public service shall present the 49 basis for its recommendations. Within ninety days of the conclusion of 50 the public hearing, the board shall render a final determination on the 51 rate proposal. In making a final determination, the board shall protect 52 the economic interests of its ratepayers and the service area. The board 53 shall also consider the recommendations of the department and criteria 54 in paragraph (a) of subdivision three of section three-b of the public 55 service law. The board shall not be authorized to approve any rate 56 increase to offset revenue loss due to energy conservation efforts byS. 2983 4 1 consumers. Such final determination shall be considered final for the 2 purposes of review under article seventy-eight of the civil practice law 3 and rules. 4 § 4. Subparagraph (v) of paragraph (a) of subdivision 3 of section 3-b 5 of the public service law, as amended by chapter 479 of the laws of 6 2017, is amended and a new subparagraph (vi) is added to read as 7 follows: 8 (v) The parties to any such rate review proceeding shall include, but 9 not be limited to, department staff, the authority, the service provider 10 and[, to the extent it deems necessary or appropriate,] the utility 11 intervention unit. 12 (vi) The department shall not recommend a rate increase to offset 13 revenue loss due to energy conservation efforts by consumers. 14 § 5. Severability. If any provision of this act or the application 15 thereof shall for any reason be adjudged by any court of competent 16 jurisdiction to be invalid, such judgment shall not affect, impair or 17 invalidate the remainder of this act, but shall be confined in its oper- 18 ation to the provision thereof directly involved in the controversy in 19 which the judgment shall have been rendered. 20 § 6. This act shall take effect immediately.