A03804 Summary:

COSPNSRColton, Abinanti
Add Art 5 Title 13 1349-a - 1349-h, Pub Auth L
Establishes a smart grid system.
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A03804 Actions:

01/31/2019referred to corporations, authorities and commissions
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A03804 Committee Votes:

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A03804 Floor Votes:

There are no votes for this bill in this legislative session.
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A03804 Text:

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 31, 2019
        Introduced by M. of A. ORTIZ, COLTON, ABINANTI -- read once and referred
          to the Committee on Corporations, Authorities and Commissions
        AN  ACT  to  amend the public authorities law, in relation to smart grid
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Article  5  of  the  public authorities law is amended by
     2  adding a new title 13 to read as follows:
     3                                  TITLE 13
     4                      NEW YORK STATE SMART GRID SYSTEMS
     5  Section 1349-a. Legislative intent.
     6          1349-b. Definitions.
     7          1349-c. Recovering costs.
     8          1349-d. Deployment plan.
     9          1349-e. Economic incentives.
    10          1349-f. Installation.
    11          1349-g. Electrical corporation.
    12          1349-h. Prohibited regulation.
    13    § 1349-a. Legislative intent. The legislature finds and  declares  all
    14  of the following:
    15    1.  smart  grid systems that allow real-time, two-way digital communi-
    16  cations between electric utilities and their distribution grid and  with
    17  their  customers  can  greatly improve the efficiency and reliability of
    18  electrical distribution systems and facilitate conservation by  enabling
    19  real-time demand response pricing.
    20    2.  smart  grid  systems  constitute  critical infrastructure that can
    21  support important homeland security needs, both  by  providing  disaster
    22  prevention  and  recovery  capabilities  to protect the state's electric
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

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     1  grid and by enabling remote monitoring of other critical  infrastructure
     2  and key assets.
     3    3.  smart grid systems will permit the state to take full advantage of
     4  distributed generation resources that will increase  distribution  effi-
     5  ciency,   lower  customer  prices,  stimulate  innovation  and  new  job
     6  creation, and  ultimately  reduce  emissions  of  greenhouse  gases  and
     7  decrease dependence on foreign oil.
     8    § 1349-b. Definitions. For purposes of this title, the following terms
     9  have the following meanings:
    10    1. "electric utility" shall mean an electrical corporation, electrical
    11  cooperative, or local publicly owned electric utility.
    12    2.  "electrical  delivery system" shall mean those facilities that are
    13  used by an electrical  corporation,  electrical  cooperative,  or  local
    14  publicly  owned  electric utility to transmit, deliver, or furnish elec-
    15  tricity to retail end-use customers.
    16    3. "smart grid system" shall mean a two-way communications system  and
    17  associated  equipment and software, including equipment installed on the
    18  electrical delivery system and on the premises of retail end-use custom-
    19  ers, that utilizes the electrical delivery system to  provide  real-time
    20  monitoring,  diagnostic,  and  control  information  and  services  that
    21  improve the efficiency and reliability of the distribution  and  use  of
    22  electricity,  including automated load control or demand response, power
    23  loss detection and prevention, remote outage and restoration  detection,
    24  continuous  reporting of utility and customer demand, dynamic pricing of
    25  electrical service, performance monitoring  of  electrical  distribution
    26  network  equipment, and predictive maintenance and diagnostics. An elec-
    27  tric utility may treat an electrical meter installed to enable the elec-
    28  trical delivery system to function properly as being part of  the  smart
    29  grid  system  if the meter has the capability of measuring and recording
    30  electricity usage data  on  a  time-differentiated  basis  of  at  least
    31  fifteen  minute  intervals  for at least four separate time segments per
    32  day.
    33    § 1349-c. Recovering costs. 1. It  is  the  policy  of  the  state  to
    34  encourage  and, where appropriate, mandate the utilization of smart grid
    35  systems by electric utilities.
    36    2. An electric utility shall recover its reasonable  costs  for  plan-
    37  ning,  building,  and  operating  a  smart  grid system from ratepayers,
    38  including administrative  and  operational  costs,  costs  for  services
    39  rendered  by utility employees, contractors, and subcontractors, capital
    40  investment and depreciation, taxes, financing, financial incentives paid
    41  to customers for participation in demand  response,  load  control,  and
    42  other  conservation  programs,  and  marketing and advertising costs for
    43  such programs.
    44    3. An electric utility shall recover the reasonable costs of equipment
    45  rendered obsolete by deployment of a smart grid  system,  based  on  the
    46  remaining depreciable life of the obsolete equipment.
    47    4.  An  electric  utility  shall not recover the costs of equipment or
    48  software from ratepayers unless the equipment and software is compatible
    49  with, and capable of interoperating with, a smart grid system.
    50    5. Subdivision four of this section does not apply  in  the  following
    51  situations:  (a) The electric utility has, prior to February twenty-sec-
    52  ond, two thousand twelve, entered into a binding financial commitment to
    53  make a purchase of, or expenditure for, the equipment or  software  that
    54  is  not compatible with, or capable of interoperating with, a smart grid
    55  system.

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     1    (b) The equipment or software is for providing service in a  geograph-
     2  ical  area  where the demonstrated cost of deploying a smart grid system
     3  exceeds the reasonably anticipated  benefits  of  deployment,  including
     4  benefits to the utility, ratepayers, the environment, and homeland secu-
     5  rity.
     6    § 1349-d. Deployment plan. 1. Each electric utility with more than ten
     7  thousand service connections shall develop and adopt a smart grid system
     8  deployment  plan  by  June  thirtieth,  two thousand twenty. An electric
     9  utility with ten thousand or fewer  service  connections  may  elect  to
    10  develop and adopt a smart grid system deployment plan.
    11    2.  Each  electric utility shall, by September thirtieth, two thousand
    12  twenty, issue a smart grid system request for proposals consistent  with
    13  the  deployment  plan. Respondents to a request for proposal shall offer
    14  to serve at least a majority of the electric utility's residential elec-
    15  tric subscribers.
    16    3. Unless subdivision four of this section is applicable, an  electric
    17  utility  shall make a final selection of a winning response to its smart
    18  grid system request for proposals no later than one hundred twenty  days
    19  after the date the request for proposals is issued. Any winning response
    20  selected  shall  propose  to construct a smart grid system that provides
    21  sufficient capacity and capabilities to  meet  anticipated  demands  for
    22  management  and  control  of  the electric utility's electrical delivery
    23  system until at least December thirty-first, two thousand thirty-two.
    24    4. An electric utility may decline to select a winning  proposal  only
    25  if there are no proposals meeting the requirements of the request or the
    26  electric  utility makes written findings that the costs to implement any
    27  bids meeting the requirements of the proposal would clearly outweigh the
    28  potential benefits of deploying a smart grid system, including  environ-
    29  mental  benefits and direct and indirect benefits to the utility's rate-
    30  payers.
    31    § 1349-e. Economic incentives. 1. By April first, two thousand twenty,
    32  the commission shall establish rules to ensure  that  electrical  corpo-
    33  rations  with  more  than ten thousand service connections have adequate
    34  economic incentives to  deploy  smart  grid  systems.  The  rules  shall
    35  encourage electrical corporations to deploy smart grid systems that have
    36  sufficient  capacity and capabilities to meet anticipated future demands
    37  for management and control of the electrical distribution  system  until
    38  at  least December thirty-first, two thousand thirty-four.  The economic
    39  incentives shall, for smart grid systems deployed on or  after  December
    40  thirty-first, two thousand twelve, include one or more of the following:
    41    (a) an enhanced return on its reasonable capital expenditures and on a
    42  portion  of  its reasonable operations and maintenance costs for a smart
    43  grid system; or
    44    (b) retention of a portion of any cost savings attributable to the use
    45  of a smart grid system.
    46    2. The governing board of an electric utility that  is  not  an  elec-
    47  trical corporation may establish incentives to deploy smart grid systems
    48  consistent with subdivision one of this section.
    49    3.  An  electrical  corporation  with  ten  thousand  or fewer service
    50  connections may file an application with the commission seeking authori-
    51  zation to establish incentives to deploy smart grid  systems  consistent
    52  with subdivision one of this section.
    53    §  1349-f.  Installation.  1.  An  electric utility or its contractors
    54  installing a smart grid system shall be permitted access to  any  poles,
    55  ducts,  conduits,  and rights-of-way on terms and conditions at least as

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     1  favorable as those granted to a holder of a state franchise. The  rights
     2  granted by this section do not limit either of the following:
     3    (a)  any  right  that a utility or third party installing a smart grid
     4  system may have to access  poles,  ducts,  conduits,  and  rights-of-way
     5  pursuant to contract or under any other law; or
     6    (b) the services that may be offered over a smart grid system.
     7    2.  A  smart  grid  system  is an integral component of the electrical
     8  delivery system and the installation of a smart grid  system  shall  not
     9  require  an electric utility or its contractor to obtain or expand ease-
    10  ments or other rights-of-way or to provide additional consideration as a
    11  result of the installation  or  operation  of  the  smart  grid  system.
    12  Installation of a smart grid system is consistent with, and part of, the
    13  installation of the electrical distribution system.
    14    §  1349-g. Electrical corporation. An electrical corporation may elect
    15  to own and operate a smart grid system on its  own  electrical  delivery
    16  system,  or  may  permit  an affiliated or unaffiliated entity to own or
    17  operate the smart grid system.
    18    § 1349-h.  Prohibited  regulation.  A  local  municipality  shall  not
    19  prohibit or regulate either of the following:
    20    (a)  the  installation or operation of a smart grid system by an elec-
    21  trical corporation or electrical cooperative, or a contractor or  affil-
    22  iate,  within  the  service  area of the electrical corporation or elec-
    23  trical cooperative; or
    24    (b) the installation or operation of a smart grid system  by  a  local
    25  publicly  owned  electric  utility,  or a contractor, within the service
    26  area of the utility, when approved by the governing board of the  utili-
    27  ty.
    28    § 2. This act shall take effect on the one hundred twentieth day after
    29  it  shall have become a law. Effective immediately, the addition, amend-
    30  ment and/or repeal of any rule or regulation necessary for the implemen-
    31  tation of this act on its effective date are authorized and directed  to
    32  be made and completed on or before such effective date.
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