Bill Text: NY A06853 | 2021-2022 | General Assembly | Introduced
Bill Title: Enacts the "Long Island power authority rate reform act"; requires that the board of trustees of LIPA not approve a final rate plan until it holds a public hearing in each county within the service area upon at least thirty days notice to the public; requires that the department of public service shall not recommend a rate increase to offset revenue loss due to energy conservation efforts by consumers.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2022-01-05 - referred to corporations, authorities and commissions [A06853 Detail]
Download: New_York-2021-A06853-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 6853 2021-2022 Regular Sessions IN ASSEMBLY April 12, 2021 ___________ Introduced by M. of A. THIELE, ENGLEBRIGHT, JEAN-PIERRE, MONTESANO, RA, M. MILLER -- read once and referred to the Committee on Corporations, Authorities and Commissions AN ACT to amend the public authorities law and the public service law, in relation to enacting the "Long Island power authority rate reform 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 shall be known and may be cited as 2 the "Long Island power authority rate reform act". 3 § 2. Subdivision (u) of section 1020-f of the public authorities law, 4 as added by section 7 of part A of chapter 173 of the laws of 2013, and 5 paragraph 2-a as added by chapter 471 of the laws of 2014, is amended to 6 read as follows: 7 (u) Rate plans. Subject to subdivision six of section one thousand 8 twenty-k of this title to fix rates and charges for the furnishing or 9 rendition of gas or electric power or of any related service at the 10 lowest level consistent with sound fiscal and operating practices of the 11 authority and which provide for safe and adequate service. In implement- 12 ing this power: 13 1. The authority and the service provider shall, on or before February 14 first, two thousand fifteen, submit for review to the department of 15 public service a three-year rate proposal for rates and charges to take 16 effect on or after January first, two thousand sixteen. 17 2. The authority and the service provider shall thereafter submit for 18 review to the department of public service any rate proposal that would 19 increase the rates and charges and thus increase the aggregate revenues 20 of the authority by more than two and one-half percent to be measured on 21 an annual basis[; provided, however, that the authority may place such22rates and charges into effect on an interim basis, subject to prospec-23tive rate adjustment; provided, further, that a final rate plan issuedEXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05786-01-1A. 6853 2 1by the authority that would not so increase such rates and charges shall2not be subject to the requirements of paragraph four of this subdivision3and shall be considered final for the purposes of review under article4seventy-eight of the civil practice law and rules]. The authority 5 and/or the service provider may otherwise submit for review to such 6 department any rate proposal irrespective of its effect on revenues. 7 2-a. The authority and the service provider shall not submit any rate 8 proposal that shall assess any fee, penalty or other charge of any kind 9 for the voluntary termination of electric service to any residential 10 customer for the purpose of utilizing alternative sources of electric 11 generation in excess of that charged to customers who terminate their 12 electric service for any other reason. 13 3. The authority shall not fix any final rates and charges proposed 14 that would not be subject to review by the department of public service 15 pursuant to paragraphs one and two of this subdivision until after hold- 16 ing public hearings thereon upon reasonable public notice, with at least 17 one such hearing to be held in each [in the] county [of Suffolk and the18county of Nassau] within the service area upon at least thirty days 19 notice to the public. 20 4. Any recommendations associated with a rate proposal submitted 21 pursuant to paragraphs one and two of this subdivision shall be provided 22 by the department of public service to the board of the authority imme- 23 diately upon their finalization by the department. [Unless the board of24the authority makes a preliminary determination in its discretion that25any particular recommendation is inconsistent with the authority's sound26fiscal operating practices, any existing contractual or operating obli-27gations, or the provision of safe and adequate service, the board shall28implement such recommendations as part of its final rate plan and such29final determination shall be deemed to satisfy the requirements of this30subdivision and be considered final for the purposes of review under31article seventy-eight of the civil practice law and rules. The board32shall make any such preliminary determination of inconsistency within33thirty days of receipt of such recommendations, with notice and the34basis of such determination being provided to the department of public35service, and contemporaneously posted on the websites of the authority36and its service provider. The board shall thereafter, within thirty days37of such posting and with due advance notice to the public, hold a public38hearing with respect to its preliminary determination of inconsistency.39At such hearing, the department of public service shall present the40basis for its recommendations, the board shall present the basis for its41determination of inconsistency and the service provider may present its42position. The authority and the service provider may, during the time43period before such public hearing reach agreement with the department on44disputed issues. Within thirty days after such public hearing, the board45of the authority shall announce its final determination and planned46implementation with respect to any such recommendations. The authority's47final determination of inconsistency shall be subject to any applicable48judicial review proceeding, including review available under article49seventy-eight of the civil practice law and rules] The board shall not 50 approve a final rate plan until it holds a public hearing in each county 51 within the service area upon at least thirty days notice to the public. 52 At such hearing, the department of public service shall present the 53 basis for its recommendations. Within ninety days of the conclusion of 54 the public hearing, the board shall render a final determination on the 55 rate proposal. In making a final determination, the board shall protect 56 the economic interests of its ratepayers and the service area. The boardA. 6853 3 1 shall also consider the recommendations of the department and the crite- 2 ria in paragraph (a) of subdivision three of section three-b of the 3 public service law. The board shall not be authorized to approve any 4 rate increase to offset revenue loss due to energy conservation efforts 5 by consumers. Such final determination shall be considered final for the 6 purposes of review under article seventy-eight of the civil practice law 7 and rules. 8 § 3. Paragraph (a) of subdivision 3 of section 3-b of the public 9 service law, as amended by chapter 479 of the laws of 2017, is amended 10 to read as follows: 11 (a) Review and make recommendations to the board of the Long Island 12 power authority with respect to the rates and charges, including charges 13 related to energy efficiency and renewable energy programs, to be estab- 14 lished by the authority and become applicable on or after January first, 15 two thousand sixteen pursuant to subdivision (u) of section one thousand 16 twenty-f of the public authorities law. 17 (i) The purpose of such review is to make recommendations designed to 18 ensure that the authority and the service provider provide safe and 19 adequate transmission and distribution service at rates set at the 20 lowest level consistent with sound fiscal operating practices. 21 (ii) The department's recommendations shall be designed to be consist- 22 ent with ensuring that the revenue requirements related to such rate 23 review are sufficient to satisfy the authority's obligations with 24 respect to its bonds, notes and all other contracts. 25 (iii) In the context of such review, the department may make recommen- 26 dations with regard to the compensation or fee structure included within 27 the operations services agreement. 28 (iv) In undertaking such review and in making recommendations related 29 to the proposed rates and charges, the department shall establish stand- 30 ards, policies and procedures that, at a minimum, provide for public 31 statement and evidentiary hearings and participation of intervenors and 32 other parties, and ensure that any final recommendations related to the 33 proposed rates and charges are provided to the authority within two 34 hundred forty days of the filing with the department of such plan. 35 (v) The parties to any such rate review proceeding shall include, but 36 not be limited to, department staff, the authority, the service provider 37 and[, to the extent it deems necessary or appropriate,] the utility 38 intervention unit. 39 (vi) The department shall not recommend a rate increase to offset 40 revenue loss due to energy conservation efforts by consumers. 41 § 4. Severability. If any provision of this act or the application 42 thereof shall for any reason be adjudged by any court of competent 43 jurisdiction to be invalid, such judgment shall not affect, impair or 44 invalidate the remainder of this act, but shall be confined in its oper- 45 ation to the provision thereof directly involved in the controversy in 46 which the judgment shall have been rendered. 47 § 5. This act shall take effect immediately.