Bill Text: NY S04116 | 2017-2018 | General Assembly | Amended
Bill Title: 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.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-05-15 - REPORTED AND COMMITTED TO FINANCE [S04116 Detail]
Download: New_York-2017-S04116-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 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. LBD04116-03-8S. 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-49cer or employee of the state, any state agency or municipality appointed50a trustee shall be deemed to have forfeited or shall forfeit his or her51office or employment by reason of his or her acceptance of a trusteeship52on the authority, his or her service thereon or his or her employment53therewith.544. 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 such20rates and charges into effect on an interim basis, subject to prospec-21tive rate adjustment; provided, further, that a final rate plan issued22by the authority that would not so increase such rates and charges shall23not be subject to the requirements of paragraph four of this subdivision24and shall be considered final for the purposes of review under article25seventy-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 the39county 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 of45the authority makes a preliminary determination in its discretion that46any particular recommendation is inconsistent with the authority's sound47fiscal operating practices, any existing contractual or operating obli-48gations, or the provision of safe and adequate service, the board shall49implement such recommendations as part of its final rate plan and such50final determination shall be deemed to satisfy the requirements of this51subdivision and be considered final for the purposes of review under52article seventy-eight of the civil practice law and rules. The board53shall make any such preliminary determination of inconsistency within54thirty days of receipt of such recommendations, with notice and the55basis of such determination being provided to the department of public56service, and contemporaneously posted on the websites of the authorityS. 4116--A 4 A. 4757--A 1and its service provider. The board shall thereafter, within thirty days2of such posting and with due advance notice to the public, hold a public3hearing with respect to its preliminary determination of inconsistency.4At such hearing, the department of public service shall present the5basis for its recommendations, the board shall present the basis for its6determination of inconsistency and the service provider may present its7position. The authority and the service provider may, during the time8period before such public hearing reach agreement with the department on9disputed issues. Within thirty days after such public hearing, the board10of the authority shall announce its final determination and planned11implementation with respect to any such recommendations. The authority's12final determination of inconsistency shall be subject to any applicable13judicial review proceeding, including review available under article14seventy-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.
