Amd §6-102, Energy L; add §66-o, amd §66, Pub Serv L; amd §1005, ren §§1020-ii, 1020-jj & 1020-kk to be
§§1020-jj, 1020-kk & 1020-ll, add §1020-ii, Pub Auth L; ren Art 7 §§70 - 72 to be Art 8 §§80 - 82, add Art 7
§70, Rur Elec Coop L
Enacts the "New York grid modernization act" to address the aging infrastructure; establishes the grid modernization program; defines terms; creates the smart grid advisory council; makes related changes.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7480
SPONSOR: Cahill TITLE OF BILL: An act to amend the energy law, the public service
law, the public authorities law and the rural electric cooperative law,
in relation to establishing the "New York grid modernization act"
PURPOSE OR GENERAL IDEA OF BILL:
This bill would require electric companies regulated by the New York
Public Service Commission (PSC), the New York Power Authority (NYPA),
the Long Island Power Authority (LIPA) and rural electric cooperatives
to develop grid modernization programs to address constraints on the
state's high voltage transmission system, including distribution system
vulnerability to weather-related damage and the establishment of consum-
er-focused initiatives.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1. Names the bill the "New York Grid Modernization Act.
Section 2. Provides for legislative findings and purposes.
Section 3. Directs the State Energy Planning Board (EPE) to take an
active role in advising PSC on the development of a grid modernization
order.
Section 4. Directs PSC, after consultation with the EPS, the Smart Grid
Advisory Council (Smart Grid Council) and the New York Transmission and
Distribution Council (Transmission and Distribution Council) to develop
a grid modernization order. The transmission and Distribution council
would be comprised of investor-owned utilities and be required to
propose to the PSC potential high voltage transmission system projects,
including transmission line upgrades and facility repairs. The seven-
member Smart Grid Council would be comprised of experts in Smart Grid
technologies, with five members appointed by executive and two addi-
tional members appointed by the Senate and Assembly, respectively. The
Smart Grid Council would be required to submit a report to the PSC on
the feasibility of establishing a statewide smart grid, including the
potential of using digital information and communication networks to
track and submit information on consumer electric usage, wholesale and
retail electric prices, voltage levels and disruptions to the distrib-
ution system, including power outages. Additionally, the report would
include an analysis of the potential to integrate household appliances
and electric vehicles with Advanced Metering Infrastructure to allow
consumers to better align personal energy use with periods of reduced
demand. Within two years of the effective date of this act, the PSC
would be required to approve its smart grid order.
Such order would require utilities to develop 10-year programs which
would include: (1) improvements to the existing high-voltage trans-
mission system; (2) improvements to the existing distribution system;
(3) consumer education and assistance for low-income customers; (4) if
deemed in the public interest, to implement smart grid technologies; and
(5) workforce recruitment and development initiatives.
Transmission projects would include replacement or repair of high volt-
age transmission facilities including transmission lines, provided that
such projects would not require the acquisition of substantial addi-
tional rights of way, would-allow for the interconnection of proposed or
existing energy production facilities including wind and solar, and
reduce susceptibility to weather-related damage.
Distribution system projects would include underground residential cable
injection, mainline cable system repairs, wood utility poll inspection
repair and the conversion of vulnerable above ground circuits to under-
ground circuits.
Consumer assistance and education projects would include residential and
nonresidential rate payer hardship programs, payment assistance to disa-
bled veterans who demonstrate difficultly making utility payments and
programs to educate ratepayers about energy usage.
If the PSC determines it is in the public interest, its grid moderniza-
tion order shall include Smart Grid deployment that will allow utility
customers to real-time energy electric prices through the use of ANT
provided that such program be designed to protect customer data. Addi-
tionally, customers would be allowed to decline the installation of any
AMT device at their property.
Transmission and distribution companies with annual gross revenues
exceeding $200 million would also be required to manage workforce devel-
opment programs to ensure sufficient staff to carry out the grid modern-
ization order. Such companies would be required to create a tuition and
financial assistance fund to support the education of prospective
employees seeking certification through state universities, community
colleges and boards of cooperative educational services. The PSC would
be required to allow transmission and distribution companies to utilize
monies collected under the Systems Benefit Charge (SBC) for workforce
development programs,
The PSC would be required to reject any rate proposal submitted by tran-
smission and distribution companies to support grid modernization order
if it would increase overall electric rates for customers above 2.5%.
Section 5. Would prohibit electric and gas companies with annual gross
revenues exceeding $200 million from employing or contracting for the
services of various classes of electric workers unless such workers meet
specific standards including certification through the American National
Standards Institute (ANSI), has been employed by an electric and gas
company within the previous two years, performed similar services in the
U.S. Armed Forces or an agency of the federal government. Electrical
workers would be required to maintain 35 hours of annual training. Elec-
tric and gas companies would be required to provide for any expenses
related to employees' annual training.
Section 6. Would require NYPA to develop a 10-year grid modernization
program similar to that required of transmission and distribution compa-
nies that would include: (1) improvements to the existing high-voltage
transmission system; (2) improvements to the existing distribution
system; (3) consumer education and assistance for low-income customers;
(4) if deemed in the feasible and advisable by the trustees, the imple-
mentation of smart grid technologies. NYPA would be prohibited from
increasing electric rates for customers above 2.5% to fund its grid
modernization program; and (5) workforce recruitment and development
initiatives.
Section 7. Would require LIPA to develop a 10-year grid modernization
program similar to that required of transmission and distribution compa-
nies that would include: (1) improvements to the existing high-voltage
transmission system; (2) improvements to the existing distribution
system; (3) consumer education and assistance for low-income customers;
(4) if deemed in the feasible and advisable by the trustees, the imple-
mentation of smart grid technologies. LIPA would be prohibited from
increasing electric rates for customers above 2.5W to fund its grid
modernization program; and (5) workforce recruitment and development
initiatives.
Section 8. Would direct rural electric cooperatives to develop grid
modernization programs similar to those required of transmission and
distribution companies, NYPA and LIPA.
JUSTIFICATION:
New York needs to redevelop its transmission and distribution systems to
meet the state's growing energy needs, reduce susceptibility to weath-
er-related power outages, and utilize in-state electric generating capa-
bility, particularly solar and wind. The inability to transmit available
power from in-state generation facilities to energy intensive regions of
the state has resulted in increased wholesale electric prices, partic-
ularly during the summer months when spot market prices are at their
highest. As a result NYPA and various utilities have are becoming
increasingly reliant on electricity produced out-of-state. Often, this
energy is produced by less efficient, dirty sources, including coal. By
requiring utilities, NYPA and LIPA to identify and upgrade congested
transmission lines, New York can bring its aged transmission system into
the Twenty-First Century. Distribution system improvements, including
the burying of vulnerable power lines and circuits that are vulnerable
to storms, will help to reduce the likelihood of the type of sustained
outages millions of New Yorkers have experienced from Hurricane Irene
and Superstorm Sandy. New York may significantly benefit from moderniz-
ing its electric grid through the use of Smart technologies that encour-
age consumers to run household appliances and other devices during off-
peak hours when prices are lowest. Additionally, with so many electric
workers set to leave the workforce in the coming years, it is necessary
to require utilities to actively recruit, train and retrain men and
women with an interest in working in the electric trades.
PRIOR LEGISLATIVE HISTORY:
2015-2016: A.2371 - Referred to Energy
2013-2014: A.1932 - Referred to Energy
FISCAL IMPLICATIONS:;
Transmission and distribution companies, NYPA, LIPA and rural electric
cooperatives would be from raising electric rates above 2.5% for custom-
ers in order to fund the grid modernization programs.
