Relates to the applicability of certain state laws to the Long Island Power Authority and its service provider in relation to financial transparency and oversight.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6209
SPONSOR: Thiele TITLE OF BILL: An act to amend the public authorities law, in
relation to the applicability of certain state laws to the Long Island
Power Authority and its service provider in relation to financial trans-
parency and oversight
PURPOSE:
This legislation would restore the New York State Comptroller's and New
York State Attorney General's role with respect to the oversight and
financial transparency of the Long Island Power Authority (LIPA).
SUMMARY OF PROVISIONS:
Section 1020-cc of the public authorities law is amended to subject all
contracts of LIPA and Public Service Enterprise Group of Long Island
(PSEG-LI) to certain provisions contained in the State Finance Law, the
Public Service Law, the Social Service Law and the General Municipal
Law.
JUSTIFICATION:
The intent of the LIPA Reform Act of 2013 was to significantly revamp
LIPA's role with respect to the delivery of electricity and its
relationship to customers, and bring much-needed accountability and
transparency to all matters related to electrical service on Long Island
and the Rockaway Peninsula in Queens. At a cost of $5.5 million, the Act
created a Long Island-based office in the Department of Public Service
(DPS-LI) that was to oversee the core utility operations of LIPA's
service provider, he Public Service Enterprise Group of Long Island
(PSEG-LI). The DPS-LI has only been performing an advisory role and in
the short time since its creation, the PSEG-LI has become an unregulated
monopoly that has seen very disturbing developments. Utility rates are
up, debt has increased, the commitment to renewable energy is down and
community outreach is lacking. LIPA has decreased the number of public
meetings. Customer satisfaction ranks 95th out of the 95 public utility
companies across the State. Most importantly, Long Island's energy deci-
sions are still being made in Albany, and now New Jersey. While LIPA's
role has been diminished, they are still ultimately responsible for
overseeing management and power supply agreements. As such, it is
necessary to restore transparency and grant oversight to the State Comp-
troller and the State Attorney General with respect to LIPA and PSEG's
State contracts.
LEGISLATIVE HISTORY:
2015: New Legislation
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect immediately.
