Bill Text: NY A01563 | 2009-2010 | General Assembly | Introduced

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Bill Title: An act to amend the public service law, in relation to abolishing the market clearing price

Spectrum: Partisan Bill (Democrat 34-1)

Status: (Introduced - Dead) 2010-06-15 - reported referred to ways and means [A01563 Detail]

Download: New_York-2009-A01563-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         1563
                              2009-2010 Regular Sessions
                                 I N  A S S E M B L Y
                                      (PREFILED)
                                    January 7, 2009
                                      ___________
       Introduced  by  M. of A. BRODSKY -- Multi-Sponsored by -- M. of A. BRAD-
         LEY,  COLTON,  DESTITO,  GUNTHER,  JAFFEE,  KOON,   MILLMAN,   REILLY,
         P. RIVERA,  ZEBROWSKI  --  read  once and referred to the Committee on
         Corporations, Authorities and Commissions
       AN ACT to amend the public service law, in relation  to  abolishing  the
         market clearing price
         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
    2  three new subdivisions 29, 30 and 31 to read as follows:
    3    29.  REVIEW  THE  RATES  OF  ANY  PUBLIC  UTILITY  ON AN ANNUAL BASIS,
    4  PROVIDED HOWEVER THAT UPON A DETERMINATION BY THE  COMMISSION  THAT  THE
    5  PUBLIC  INTEREST  DOES  NOT REQUIRE SUCH ANNUAL RATE REVIEW, A REVIEW OF
    6  RATES MAY BE UNDERTAKEN AT NO MORE THAN THREE YEAR INTERVALS.
    7    30. (A) USE THE FULLEST EXTENT OF ITS POWERS TO REGULATE THE  DISTRIB-
    8  UTION OF RETAIL ELECTRIC ENERGY TO RETAIL CUSTOMERS IN THE STATE AND, TO
    9  THE  EXTENT  NOT PROHIBITED BY FEDERAL LAW, THE TRANSMISSION OF ELECTRIC
   10  ENERGY IN THE STATE.
   11    (B) A MARKET CLEARING PRICE MECHANISM FOR THE PURCHASE OF POWER  SHALL
   12  BE  FORBIDDEN  FOR PURCHASES MADE THROUGH THE WHOLESALE MARKET VIA A BID
   13  PROCUREMENT OR AUCTION PROCESS HELD BY THE INDEPENDENT  SYSTEM  OPERATOR
   14  ("ISO")  OF NEW YORK, OR ANY SUCCESSOR IN LAW AND FUNCTION TO SUCH ENTI-
   15  TY.
   16    (C) SUCH AUCTION OR BID PROCUREMENT PROCESS SHALL BE OVERSEEN  BY  THE
   17  COMMISSION,  WHICH  SHALL REQUIRE A DESCENDING CLOCK, PAY-AS-BID AUCTION
   18  IN WHICH BID AMOUNTS WILL CONTINUE TO FALL UNTIL NO BIDDER IS WILLING TO
   19  SUPPLY ELECTRICITY AT A LOWER PRICE. FOR THE PURPOSES  OF  THIS  ARTICLE
   20  "DESCENDING  CLOCK  AUCTION" SHALL BE DEFINED AS AN AUCTION IN WHICH THE
   21  PRICES DROP THROUGHOUT AN AUCTION  OF  TIME-LIMITED  DURATION;  STARTING
   22  HIGH AND BEING REDUCED GRADUALLY UNTIL THE SUPPLY BID IS JUST SUFFICIENT
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD04798-01-9
       A. 1563                             2
    1  TO  MEET  THE ELECTRICAL LOAD TO BE PROCURED. PRICES THAT TICK DOWN IN A
    2  ROUND DECREASE BY A DECREMENT; WHICH IS A GIVEN PERCENTAGE OF THE PREVI-
    3  OUS PRICE. BIDDERS HOLDING THE FINAL BIDS WHEN THE  AUCTION  CLOSES  ARE
    4  THE WINNERS.
    5    (D)  BIDDERS  WILL  BE FORBIDDEN FROM KNOWING WHEN THE AMOUNT OF ELEC-
    6  TRICITY SUPPLY FILLS REQUIREMENTS.
    7    (E) THE COMMISSION SHALL APPOINT  AN  INDEPENDENT  MARKET  ADVISOR  TO
    8  REVIEW  MARKET  PRACTICES  AND  BEHAVIOR; THAT WILL RECOMMEND TO THE ISO
    9  ACTIONS THAT CAN BE TAKEN TO MITIGATE  OR  CORRECT  BEHAVIOR  BY  MARKET
   10  PARTICIPANTS  THAT  WAS  REASONABLY  CALCULATED TO, OR HAD THE EFFECT OF
   11  AFFECTING THE FUNCTION OF THE AUCTION PROCESS SO THAT THE WINNING BIDDER
   12  WAS NOT THE LOWEST PRICE BIDDER.
   13    (F) UTILITIES MAY BUY POWER FROM MARKETS OTHER THAN THE  ISO,  OR  VIA
   14  CONTRACTS  WITH  INDIVIDUALS  OR GROUPS OF GENERATING ENTITIES, PROVIDED
   15  THAT SUCH ELECTRICAL ENERGY MUST BE OFFERED TO  CUSTOMERS  AT  JUST  AND
   16  REASONABLE RATES.
   17    31.  (A)  THE COMMISSION SHALL EXERCISE ITS FULL JURISDICTION OVER THE
   18  ISO OF NEW YORK.
   19    (B) THE COMMISSION SHALL REGULATE THE RELIABILITY, QUALITY AND MAINTE-
   20  NANCE BY TRANSMITTERS AND DISTRIBUTORS OF THEIR TRANSMISSION AND  RETAIL
   21  DISTRIBUTION SYSTEMS.
   22    (C)  THE  COMMISSION  SHALL REGULATE THE RELIABILITY, QUALITY, MAINTE-
   23  NANCE, AND PRICE OF GENERATORS.
   24    (D) THE COMMISSION SHALL NOT REQUIRE ANY INCUMBENT ELECTRIC UTILITY TO
   25  DIVEST ITSELF OF ANY GENERATION,  TRANSMISSION  OR  DISTRIBUTION  ASSETS
   26  PURSUANT  TO  ANY PROVISION OF THIS CHAPTER WITHOUT SPECIFIC AUTHORIZING
   27  LEGISLATION FOR SUCH PURPOSE.
   28    (E) THE COMMISSION  SHALL  DEVELOP  CODES  OF  CONDUCT  GOVERNING  THE
   29  CONDUCT  OF INCUMBENT ELECTRIC UTILITIES AND AFFILIATES THEREOF WHEN ANY
   30  SUCH AFFILIATES PROVIDE, OR CONTROL ANY  ENTITY  THAT  PROVIDES,  GENER-
   31  ATION, DISTRIBUTION, OR TRANSMISSION SERVICES TO THE EXTENT NECESSARY TO
   32  PREVENT IMPAIRMENT OF COMPETITION. NOTHING IN THIS CHAPTER SHALL PREVENT
   33  AN  INCUMBENT  ELECTRIC  UTILITY  FROM  OFFERING METERING OPTIONS TO ITS
   34  CUSTOMERS.
   35    S 2. This act shall take effect immediately.