Enacts the "Long Island power authority ratepayers protection act"; provides that any issuance of bonds by the authority must be authorized by a majority of the ratepayers of the authority by a public referendum after at least one public hearing in each of the affected counties; makes related provisions.
STATE OF NEW YORK
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S. 4116--A A. 4757--A
2017-2018 Regular Sessions
SENATE - ASSEMBLY
February 3, 2017
___________
IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
ed, and when printed to be committed to the Committee on Corporations,
Authorities and Commissions -- recommitted to the Committee on Corpo-
rations, Authorities and Commissions in accordance with Senate Rule 6,
sec. 8 -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee
IN ASSEMBLY -- Introduced by M. of A. THIELE, ENGLEBRIGHT, RA, RAIA,
RAMOS, McDONOUGH, MURRAY, MONTESANO, JEAN-PIERRE, PALUMBO -- read once
and referred to the Committee on Energy -- recommitted to the Commit-
tee on Energy in accordance with Assembly Rule 3, sec. 2 -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the public authorities law and the public service law,
in relation to enacting the "Long Island power authority ratepayers
protection 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 may be cited as the "Long Island
2 power authority ratepayers protection act".
3 § 2. Section 1020-d of the public authorities law, as amended by
4 section 4 of part A of chapter 173 of the laws of 2013, is amended to
5 read as follows:
6 § 1020-d. Board of trustees. 1. Starting on January first, two thou-
7 sand fourteen, the board of the authority shall be constituted and
8 consist of nine trustees all of whom shall be residents of the service
9 area, five of whom shall be appointed by the governor, one of whom the
10 governor shall designate as chair, and serve at his or her pleasure, two
11 of whom shall be appointed by the temporary president of the senate, and
12 two of whom shall be appointed by the speaker of the assembly. One of
13 the governor's appointees shall serve an initial term of two years; one
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04116-03-8
S. 4116--A 2 A. 4757--A
1 of the governor's appointees shall serve an initial term of three years;
2 and three of the governor's appointees shall serve an initial term of
3 four years. One of the appointees of the temporary president of the
4 senate and one of the appointees of the speaker of the assembly shall
5 serve initial terms of two years; and one appointee of the temporary
6 president of the senate and one appointee of the speaker of the assembly
7 shall serve initial terms of three years. Thereafter, all terms shall be
8 for a period of four years. In the event of a vacancy occurring in the
9 office of trustee by death, resignation or otherwise, the respective
10 appointing officer shall appoint a successor who shall hold office for
11 the unexpired portion of the term.
12 1-a. (a) Beginning January first, two thousand twenty, such authority
13 shall consist of nine trustees. One trustee, who shall be the chair-
14 person, shall be a resident of the service area, shall be appointed by
15 the governor subject to confirmation by the senate, and shall serve at
16 the governor's pleasure. Eight trustees shall be elected from districts
17 established by the legislature. Each elected trustee shall be a resident
18 of the district from which he or she is elected. No person who is an
19 elected or appointed official of the state or any municipality or any
20 agency or instrumentality thereof, shall be qualified to serve as an
21 elected trustee. Each elected trustee shall hold office until his or her
22 successor has been elected and qualified. In the event of a vacancy
23 occurring in the office of a trustee by death, resignation or otherwise,
24 a successor shall be chosen to hold office for the unexpired term in the
25 manner prescribed by the election law.
26 (b) Prior to May first, two thousand nineteen, the legislature shall
27 establish eight districts, which shall be equal in population as deter-
28 mined by the last federal decennial census. Prior to May first, two
29 thousand twenty-three and each tenth year thereafter, the legislature
30 shall reapportion the eight districts, which shall be equal in popu-
31 lation as determined by the last federal decennial census.
32 (c) Such trustees, shall be elected in elections conducted by the
33 boards of elections pursuant to applicable provisions of the election
34 law. The first such election shall be held on the first Tuesday in
35 December two thousand nineteen, and the trustees so elected shall take
36 office on January first, two thousand twenty. At such election all eight
37 trustees shall be elected for a term of two years. Each such term ending
38 on December thirty-first of the last year thereof. No political party
39 shall be entitled to nominate candidates for the office of trustee at
40 any such election.
41 (d) Five trustees shall constitute a quorum for the purpose of organ-
42 izing the authority and conducting the business thereof. The vote of a
43 majority of the trustees shall be required for the purpose of taking
44 action.
45 2. No trustee shall receive a salary, but each shall be entitled to
46 reimbursement for reasonable expenses in the performance of duties
47 assigned hereunder.
48 3. [Notwithstanding the provisions of any other law, no trustee, offi-
49 cer or employee of the state, any state agency or municipality appointed
50 a trustee shall be deemed to have forfeited or shall forfeit his or her
51 office or employment by reason of his or her acceptance of a trusteeship
52 on the authority, his or her service thereon or his or her employment
53 therewith.
54 4. All trustees] The chairperson appointed under this section shall
55 have relevant utility, corporate board or financial experience.
S. 4116--A 3 A. 4757--A
1 § 3. Subdivision (u) of section 1020-f of the public authorities law,
2 as added by section 7 of part A of chapter 173 of the laws of 2013 and
3 paragraph 2-a as added by chapter 471 of the laws of 2014, is amended to
4 read as follows:
5 (u) Rate plans. Subject to subdivision six of section one thousand
6 twenty-k of this title to fix rates and charges for the furnishing or
7 rendition of gas or electric power or of any related service at the
8 lowest level consistent with sound fiscal and operating practices of the
9 authority and which provide for safe and adequate service. In implement-
10 ing this power:
11 1. The authority and the service provider shall, on or before February
12 first, two thousand fifteen, submit for review to the department of
13 public service a three-year rate proposal for rates and charges to take
14 effect on or after January first, two thousand sixteen.
15 2. The authority and the service provider shall thereafter submit for
16 review to the department of public service any rate proposal that would
17 increase the rates and charges and thus increase the aggregate revenues
18 of the authority by more than two and one-half percent to be measured on
19 an annual basis[; provided, however, that the authority may place such
20 rates and charges into effect on an interim basis, subject to prospec-
21 tive rate adjustment; provided, further, that a final rate plan issued
22 by the authority that would not so increase such rates and charges shall
23 not be subject to the requirements of paragraph four of this subdivision
24 and shall be considered final for the purposes of review under article
25 seventy-eight of the civil practice law and rules]. The authority
26 and/or the service provider may otherwise submit for review to such
27 department any rate proposal irrespective of its effect on revenues.
28 2-a. The authority and the service provider shall not submit any rate
29 proposal that shall assess any fee, penalty or other charge of any kind
30 for the voluntary termination of electric service to any residential
31 customer for the purpose of utilizing alternative sources of electric
32 generation in excess of that charged to customers who terminate their
33 electric service for any other reason.
34 3. The authority shall not fix any final rates and charges proposed
35 that would not be subject to review by the department of public service
36 pursuant to paragraphs one and two of this subdivision until after hold-
37 ing public hearings thereon upon reasonable public notice, with at least
38 one such hearing to be held in each [in the] county [of Suffolk and the
39 county of Nassau] within the service area upon at least thirty days
40 notice to the public.
41 4. Any recommendations associated with a rate proposal submitted
42 pursuant to paragraphs one and two of this subdivision shall be provided
43 by the department of public service to the board of the authority imme-
44 diately upon their finalization by the department. [Unless the board of
45 the authority makes a preliminary determination in its discretion that
46 any particular recommendation is inconsistent with the authority's sound
47 fiscal operating practices, any existing contractual or operating obli-
48 gations, or the provision of safe and adequate service, the board shall
49 implement such recommendations as part of its final rate plan and such
50 final determination shall be deemed to satisfy the requirements of this
51 subdivision and be considered final for the purposes of review under
52 article seventy-eight of the civil practice law and rules. The board
53 shall make any such preliminary determination of inconsistency within
54 thirty days of receipt of such recommendations, with notice and the
55 basis of such determination being provided to the department of public
56 service, and contemporaneously posted on the websites of the authority
S. 4116--A 4 A. 4757--A
1 and its service provider. The board shall thereafter, within thirty days
2 of such posting and with due advance notice to the public, hold a public
3 hearing with respect to its preliminary determination of inconsistency.
4 At such hearing, the department of public service shall present the
5 basis for its recommendations, the board shall present the basis for its
6 determination of inconsistency and the service provider may present its
7 position. The authority and the service provider may, during the time
8 period before such public hearing reach agreement with the department on
9 disputed issues. Within thirty days after such public hearing, the board
10 of the authority shall announce its final determination and planned
11 implementation with respect to any such recommendations. The authority's
12 final determination of inconsistency shall be subject to any applicable
13 judicial review proceeding, including review available under article
14 seventy-eight of the civil practice law and rules.] The board shall not
15 approve a final rate plan until it holds a public hearing in each county
16 within the service area upon at least thirty days notice to the public.
17 At such hearing, the department of public service shall present the
18 basis for its recommendations. Within ninety days of the conclusion of
19 the public hearing, the board shall render a final determination on the
20 rate proposal. In making a final determination, the board shall protect
21 the economic interests of its ratepayers and the service area. The board
22 shall also consider the recommendations of the department and the crite-
23 ria in paragraph (a) of subdivision three of section three-b of the
24 public service law. The board shall not be authorized to approve any
25 rate increase to offset revenue loss due to energy conservation efforts
26 by consumers. Such final determination shall be considered final for the
27 purposes of review under article seventy-eight of the civil practice law
28 and rules.
29 § 4. Paragraph (a) of subdivision 3 of section 3-b of the public
30 service law, as amended by chapter 479 of the laws of 2017, is amended
31 to read as follows:
32 (a) Review and make recommendations to the board of the Long Island
33 power authority with respect to the rates and charges, including charges
34 related to energy efficiency and renewable energy programs, to be estab-
35 lished by the authority and become applicable on or after January first,
36 two thousand sixteen pursuant to subdivision (u) of section one thousand
37 twenty-f of the public authorities law.
38 (i) The purpose of such review is to make recommendations designed to
39 ensure that the authority and the service provider provide safe and
40 adequate transmission and distribution service at rates set at the
41 lowest level consistent with sound fiscal operating practices.
42 (ii) The department's recommendations shall be designed to be consist-
43 ent with ensuring that the revenue requirements related to such rate
44 review are sufficient to satisfy the authority's obligations with
45 respect to its bonds, notes and all other contracts.
46 (iii) In the context of such review, the department may make recommen-
47 dations with regard to the compensation or fee structure included within
48 the operations services agreement.
49 (iv) In undertaking such review and in making recommendations related
50 to the proposed rates and charges, the department shall establish stand-
51 ards, policies and procedures that, at a minimum, provide for public
52 statement and evidentiary hearings and participation of intervenors and
53 other parties, and ensure that any final recommendations related to the
54 proposed rates and charges are provided to the authority within two
55 hundred forty days of the filing with the department of such plan.
S. 4116--A 5 A. 4757--A
1 (v) The parties to any such rate review proceeding shall include, but
2 not be limited to, department staff, the authority, the service provider
3 and, [to the extent it deems necessary or appropriate,] the utility
4 intervention unit.
5 (vi) The department shall not recommend a rate increase to offset
6 revenue loss due to energy conservation efforts by consumers.
7 § 5. Severability. If any provision of this act or the application
8 thereof shall for any reason be adjudged by any court of competent
9 jurisdiction to be invalid, such judgment shall not affect, impair or
10 invalidate the remainder of this act, but shall be confined in its oper-
11 ation to the provision thereof directly involved in the controversy in
12 which the judgement shall have been rendered.
13 § 6. This act shall take effect immediately.