Bill Text: NY A01095 | 2013-2014 | General Assembly | Introduced


Bill Title: Relates to providing oversight and monitoring the operations of an independent system operator; authorizes the public service commission to provide oversight and requires annual reports on the independent system operator.

Spectrum: Partisan Bill (Democrat 15-0)

Status: (Introduced - Dead) 2014-01-08 - referred to corporations, authorities and commissions [A01095 Detail]

Download: New_York-2013-A01095-Introduced.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         1095
                              2013-2014 Regular Sessions
                                 I N  A S S E M B L Y
                                      (PREFILED)
                                    January 9, 2013
                                      ___________
       Introduced  by M. of A. CAHILL, JACOBS, GUNTHER, MARKEY, WRIGHT, ZEBROW-
         SKI, JAFFEE, RUSSELL,  STEVENSON,  LUPARDO,  COOK,  MOYA,  SCHIMEL  --
         Multi-Sponsored  by  --  M. of A.  GLICK, SCARBOROUGH, SWEENEY -- read
         once and referred to the Committee on  Corporations,  Authorities  and
         Commissions
       AN  ACT  to amend the public service law, in relation to providing over-
         sight and monitoring the operations of an independent system operator
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Section 66 of the public service law is amended by adding a
    2  new subdivision 29 to read as follows:
    3    29. (A) FOR THE PURPOSES OF THIS SUBDIVISION:
    4    (I)  "INDEPENDENT  SYSTEM OPERATOR" SHALL MEAN ANY ENTITY OPERATING IN
    5  THE STATE THAT IS APPROVED BY THE UNITED STATES FEDERAL ENERGY REGULATO-
    6  RY COMMISSION TO OPERATE IN THE STATE TO ADMINISTER AND  MONITOR  WHOLE-
    7  SALE ELECTRICITY MARKETS; AND
    8    (II)  "END  USE SECTOR MEMBER" SHALL INCLUDE ANY ENTITY THAT PURCHASES
    9  ELECTRICITY FOR ITS OWN CONSUMPTION AND NOT FOR RESALE.
   10    (B) THE COMMISSIONER IS AUTHORIZED AND DIRECTED TO  PROVIDE  OVERSIGHT
   11  AND  MONITOR  THE  MARKET  OPERATIONS OF AN INDEPENDENT SYSTEM OPERATOR,
   12  INCLUDING  BUT NOT LIMITED TO THE EXTENT TO WHICH IT:
   13    (I) SERVES THE NEEDS OF ALL CUSTOMER CLASSES AND OPERATES IN A  MANNER
   14  THAT IS IN THE BEST INTEREST OF THE PUBLIC;
   15    (II)  ENSURES RELIABILITY, QUALITY AND MAINTENANCE OF THE TRANSMISSION
   16  SYSTEM;
   17    (III) MEETS THE REQUIREMENTS OF THE NEW YORK STATE OPEN MEETING  LAWS;
   18  AND
   19    (IV)  CONTRIBUTES  TO  THE  ACHIEVEMENT  OF ENERGY EFFICIENCY AND FUEL
   20  DIVERSITY GOALS OF THE STATE.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD02353-01-3
       A. 1095                             2
    1    (C) THE COMMISSION SHALL ENSURE THAT AN  INDEPENDENT  SYSTEM  OPERATOR
    2  OPERATE IN A MANNER TO PREVENT MARKET MANIPULATION AND OPPORTUNITIES FOR
    3  COLLUSION  BY REQUIRING AN INDEPENDENT SYSTEM OPERATOR TO DISCLOSE PRICE
    4  DATA RELATED TO ITS  WHOLESALE  MARKET  OPERATIONS  INCLUDING,  BUT  NOT
    5  LIMITED TO, INFORMATION ON REAL-TIME, DAY-AHEAD AND SPOT MARKET BIDS AND
    6  BIDDERS IN AN INDEPENDENT SYSTEM OPERATOR'S WHOLESALE ELECTRICITY MARKET
    7  AUCTIONS, TRANSMISSION CONGESTION CONTRACT AUCTIONS AND INSTALLED CAPAC-
    8  ITY  MARKET  AUCTIONS  TO BE MADE PUBLIC WITH NO MORE THAN A THREE MONTH
    9  DELAY. SUCH INFORMATION SHALL BE MADE IN A FORMAT READILY AVAILABLE  AND
   10  ACCESSIBLE  TO  THE  PUBLIC INCLUDING, BUT NOT LIMITED TO PROVIDING SUCH
   11  DATA IN AGGREGATE HOURLY, DAILY, MONTHLY,  ANNUAL  AND  HISTORICAL  DATA
   12  SETS  FOR  COMPARISON  PURPOSES  AS WELL AS DATA RELATED TO SEASONAL AND
   13  PEAK LOAD VARIATIONS AND AVERAGES.
   14    (D) THE COMMISSION SHALL ENSURE ACCOUNTABILITY BY  REQUIRING  THAT  AN
   15  INDEPENDENT SYSTEM OPERATOR'S BOARD OF DIRECTORS INCLUDES AT LEAST THREE
   16  NON-GOVERNMENTAL  APPOINTMENTS  THAT DIRECTLY REPRESENT THE INTERESTS OF
   17  RESIDENTIAL SMALL BUSINESS AND FARM ELECTRICITY USERS.    THE  GOVERNOR,
   18  THE  SPEAKER  OF  THE ASSEMBLY AND THE TEMPORARY PRESIDENT OF THE SENATE
   19  SHALL EACH APPOINT ONE REPRESENTATIVE TO THE BOARD.
   20    (E) THE COMMISSION SHALL REQUIRE AN  INDEPENDENT  SYSTEM  OPERATOR  TO
   21  CREATE  THE  POSITION OF CONSUMER LIAISON WHOSE PRIMARY ROLE SHALL BE TO
   22  INTERACT WITH MEMBERS OF THE END-USE SECTOR FOR THE PURPOSES OF:
   23    (I) KEEPING END-USE SECTOR  MEMBERS  INFORMED  ABOUT  DEVELOPMENTS  IN
   24  WORKING GROUPS/SUB-COMMITTEES THAT MAY AFFECT THEIR INTERESTS;
   25    (II) EXPLAINING THE ISSUES AND PROPOSALS UNDER DISCUSSION AT THE WORK-
   26  ING  GROUP/SUB-COMMITTEE  MEETINGS AND PROPOSED FOR CONSIDERATION AT THE
   27  OPERATING COMMITTEE, BUSINESS ISSUES COMMITTEE AND MANAGEMENT  COMMITTEE
   28  AS WELL AS THE RAMIFICATIONS OF THOSE PROPOSALS ON CONSUMERS;
   29    (III)  LISTENING  AND  RESPONDING  TO  THE  QUESTIONS  AND CONCERNS OF
   30  MEMBERS OF THE END-USE SECTOR; AND
   31    (IV) SERVING AS THE LIAISON BETWEEN THE END-USE SECTOR AND THE  DIREC-
   32  TORS DESIGNATED OR ASSIGNED TO PAY PARTICULAR ATTENTION TO THE INTERESTS
   33  OF THE RESIDENTIAL, SMALL BUSINESS AND FARM ELECTRICITY USERS.
   34    (F)  THE  COMMISSION  SHALL  REQUIRE AN INDEPENDENT SYSTEM OPERATOR TO
   35  ESTABLISH AND  FUND  AN  END-USE  CONSUMER  SECTOR  CONSULTANT  FOR  THE
   36  PURPOSES OF:
   37    (I)  PARTICIPATING IN TASK FORCE, WORKING GROUP AND COMMITTEE MEETINGS
   38  AS WELL AS IN OTHER MEETINGS ADDRESSING MATTERS AFFECTING MARKETS ADMIN-
   39  ISTERED BY AN INDEPENDENT SYSTEM OPERATOR;
   40    (II) ANALYZING EXISTING OR PROPOSED MARKET RULES  REGARDING  WHOLESALE
   41  SERVICE; AND
   42    (III)  PROVIDING  TECHNICAL  ASSISTANCE, AND SUPPORTING END-USE SECTOR
   43  PARTICIPATION  IN  PROCEEDINGS  BEFORE  THE  FEDERAL  ENERGY  REGULATORY
   44  COMMISSION,  THE  PUBLIC  SERVICE COMMISSION, OR OTHER REGULATORY AND/OR
   45  ADJUDICATIVE BODIES IN MATTERS  AFFECTING  MARKETS  ADMINISTERED  BY  AN
   46  INDEPENDENT SYSTEM OPERATOR.
   47    (G) (I) THE COMMISSION SHALL REQUIRE AN INDEPENDENT SYSTEM OPERATOR TO
   48  FILE  A  TARIFF  AMENDMENT  CREATING A RATE SCHEDULE TO ALLOW ALL MARKET
   49  PARTICIPANTS SERVING INTERNAL NEW YORK LOAD TO FUND COSTS OF  HIRING  AN
   50  END-USE CONSUMER SECTOR CONSULTANT.
   51    (II)  COSTS  AND  FEES  ELIGIBLE FOR RECOVERY THROUGH THE TARIFF WOULD
   52  INCLUDE THOSE ASSOCIATED WITH THE  END-USE  CONSUMER  SECTOR  CONSULTANT
   53  PERFORMING THE TASKS OUTLINED IN PARAGRAPH (F) OF THIS SUBDIVISION.
   54    (III)  COSTS AND FEES NOT ELIGIBLE FOR RECOVERY SHALL INCLUDE, BUT NOT
   55  BE LIMITED TO, GOVERNMENTAL LOBBYING, PUBLIC OUTREACH  (MEDIA,  SPEAKING
   56  ENGAGEMENTS, ETC.), AND CONDUCT NOT AUTHORIZED BY THE END-USE SECTOR.
       A. 1095                             3
    1    (H) THE COMMISSIONER SHALL ANNUALLY ISSUE A REPORT RELATING THE MARKET
    2  OPERATION  OF  AN  INDEPENDENT  SYSTEM  OPERATOR.    SUCH  REPORTS SHALL
    3  INCLUDE, BUT NOT BE LIMITED TO:
    4    (I)  ANALYSES  BY  AN  INDEPENDENT SYSTEM OPERATOR AND OTHER SUCH DATA
    5  COLLECTED AND ANALYZED  BY  THE  COMMISSION  INFORMATION  ON  REAL-TIME,
    6  HOUR-AHEAD  AND  DAY-AHEAD  MARKET  BIDS  AND  BIDDERS IN AN INDEPENDENT
    7  SYSTEM OPERATOR'S WHOLESALE ELECTRICITY  MARKET  AUCTIONS,  TRANSMISSION
    8  CONGESTION CONTRACT AUCTIONS AND INSTALLED MARKET AUCTIONS;
    9    (II)  A  DETERMINATION  OF  THE EXTENT TO WHICH THE ENERGY MARKETS ARE
   10  MAINTAINING NECESSARY LEVELS OF RELIABILITY;
   11    (III) A DETERMINATION OF WHETHER OR NOT ALL CUSTOMER CLASSES ARE BEING
   12  ADEQUATELY SERVED BY COMPETITIVE ENERGY MARKETS;
   13    (IV) A DETERMINATION OF THE COMPETITIVENESS OF ENERGY MARKETS; INCLUD-
   14  ING A DETERMINATION WHETHER OR NOT THE ELECTRIC  INDUSTRY  IS  PROVIDING
   15  CONSUMERS WITH THE LOWEST PRICES POSSIBLE WITHIN A RESTRUCTURED, COMPET-
   16  ITIVE RETAIL MARKETPLACE;
   17    (V)  A  DETERMINATION  OF  THE  EXTENT TO WHICH THE ENERGY MARKETS ARE
   18  ACHIEVING THE ENERGY EFFICIENCY AND FUEL DIVERSITY GOALS OF THE STATE;
   19    (VI) THE NAME AND TERMS OF THE BOARDS OF DIRECTORS AND AN  INDEPENDENT
   20  SYSTEM OPERATOR MANAGEMENT, OPERATING AND BUSINESS COMMITTEE MEMBERS;
   21    (VII) AN INDEPENDENT SYSTEM OPERATOR'S FINANCIAL INFORMATION; AND
   22    (VIII) RECOMMENDATIONS FOR IMPROVING ANY DEFICIENCIES SO IDENTIFIED IN
   23  ELECTRICITY  ENERGY  MARKETS,  INCLUDING  NON-COMPETITIVE  PRICING SITU-
   24  ATIONS. THE COMMISSION SHALL SUBMIT SUCH REPORT  TO  THE  GOVERNOR,  THE
   25  PRESIDENT PRO TEM OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE MINOR-
   26  ITY  LEADERS  OF  THE  SENATE AND THE ASSEMBLY, THE CHAIRS OF THE ENERGY
   27  COMMITTEES OF THE SENATE AND THE ASSEMBLY, NO LATER  THAN  APRIL  FIRST,
   28  TWO THOUSAND THIRTEEN AND ANNUALLY THEREAFTER.
   29    S 2. This act shall take effect immediately.
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