Bill Text: NY S04317 | 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: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO ENERGY AND TELECOMMUNICATIONS [S04317 Detail]
Download: New_York-2019-S04317-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. LBD03271-01-9S. 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 such3rates and charges into effect on an interim basis, subject to prospec-4tive rate adjustment; provided, further, that a final rate plan issued5by the authority that would not so increase such rates and charges shall6not be subject to the requirements of paragraph four of this subdivision7and shall be considered final for the purposes of review under article8seventy-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 the22county 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 of28the authority makes a preliminary determination in its discretion that29any particular recommendation is inconsistent with the authority's sound30fiscal operating practices, any existing contractual or operating obli-31gations, or the provision of safe and adequate service, the board shall32implement such recommendations as part of its final rate plan and such33final determination shall be deemed to satisfy the requirements of this34subdivision and be considered final for the purposes of review under35article seventy-eight of the civil practice law and rules. The board36shall make any such preliminary determination of inconsistency within37thirty days of receipt of such recommendations, with notice and the38basis of such determination being provided to the department of public39service, and contemporaneously posted on the websites of the authority40and its service provider. The board shall thereafter, within thirty days41of such posting and with due advance notice to the public, hold a public42hearing with respect to its preliminary determination of inconsistency.43At such hearing, the department of public service shall present the44basis for its recommendations, the board shall present the basis for its45determination of inconsistency and the service provider may present its46position. The authority and the service provider may, during the time47period before such public hearing reach agreement with the department on48disputed issues. Within thirty days after such public hearing, the board49of the authority shall announce its final determination and planned50implementation with respect to any such recommendations. The authority's51final determination of inconsistency shall be subject to any applicable52judicial review proceeding, including review available under article53seventy-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 theS. 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.