Relates to the general powers of the Long Island office of the department of public service to review the rates and charges of the Long Island power authority.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6534
SPONSOR: Thiele TITLE OF BILL: An act to amend the public service law, in relation to
the general powers of the Long Island office of the department of public
service to review the rates and charges of the Long Island Power Author-
ity
PURPOSE:
This legislation provides for the review of all compensation, including
executive pay and all fees to consultants and contractors, which is paid
in connection with the Public Service Enterprise Group of Long Island
(PSEG-LI) operations services contract with the Long Island Power
Authority (LIPA).
SUMMARY OF PROVISIONS:
Amends Paragraph (a) of subdivision 3 of Section 3-b of the public
service law relating to the general powers of the Long Island office of
the Department of Public Service (DPS-LI) to review rates and charges of
LIPA.
JUSTIFICATION:
This legislation would empower the DPS-LI to review all compensation,
including executive pay and all fees to consultants and contractors,
which is paid in connection with PSEG-LI's operations services contract
with LIPA. The DPS-LI has no decision-making authority over electric
rates but is empowered to make recommendations to LIPA about rate
petitions.
In March of 2015, the PSEG-LI refused to make public the executive
compensation for its 18 top officials, claiming that such information is
exempt from state scrutiny or public disclosure under the LIPA Reform
Act passed in 2013. The management contract between LIPA and PSEG-LI is
for a term of 12 years. The fee to PSEG-LI will increase from $45
million to $73 million in 2016.
In addition, PSEG-LI has been accused of hindering scrutiny of the util-
ity's proposed three-year rate hike by failing to respond to more than
two dozen separate information requests by the DPS-LI. The State Depart-
ment of Public Service said in the filing to administrative law judges
overseeing the rate case that many of the 28 outstanding information
requests exceeded the normal 10-day response time by as many as 27 days.
Because the PSEG-LI is a contractor for a public authority (LIPA), it
has as its mission the supplying of a most basic societal need: elec-
tricity.
Its revenue is generated by the payment of the monthly electric bill of
every Long Island resident and business. The people's right to review
the documents and information related to the operation of its utility
company should be obvious in a democratic society. Access to such infor-
mation should not be thwarted by shrouding it with the cloak of secrecy
or confidentiality.This legislation would amend the LIPA Reform Act to
ensure that such information is available for public scrutiny. It would
also give DPS-LI the right to review such information and make recommen-
dations to LIPA about such matters.
LEGISLATIVE HISTORY:
2015: New Legislation
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect immediately.
