Bill Text: NY S05942 | 2017-2018 | General Assembly | Amended


Bill Title: Relates to long-term contracts for renewable energy.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2018-01-31 - PRINT NUMBER 5942A [S05942 Detail]

Download: New_York-2017-S05942-Amended.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                         5942--A
                               2017-2018 Regular Sessions
                    IN SENATE
                                       May 8, 2017
                                       ___________
        Introduced  by  Sen. VALESKY -- read twice and ordered printed, and when
          printed to be committed to the Committee on  Energy  and  Telecommuni-
          cations  --  recommitted  to  the Committee on Energy and Telecommuni-
          cations in  accordance  with  Senate  Rule  6,  sec.  8  --  committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee
        AN  ACT  to  amend  the  public  service  law,  in relation to long-term
          contracts for renewable energy
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  The public service law is amended by adding a new section
     2  66-p to read as follows:
     3    § 66-p. Long-term contracts for renewable energy. 1. Definitions.   As
     4  used  in this section the following terms shall have the following mean-
     5  ings:
     6    (a) "Eligible resource" means a source of electrical generation that:
     7    (i) generates power that is within or delivered to the control  region
     8  of the New York independent system operator;
     9    (ii) is a renewable energy resource; and
    10    (iii) does not currently have a long-term contract with the state.
    11    (b)  "Renewable  energy  resource"  shall have the same meaning as set
    12  forth in subdivision twelve of section 1-103 of the energy law.
    13    (c) "Renewable energy credit" means a tradable instrument that repres-
    14  ents an amount of  electricity  generated  from  eligible  resources  or
    15  renewable energy resources.
    16    (d)  "Long-term  contract"  means  a contract with an electric and gas
    17  corporation for a period of up to twenty years.
    18    2. Commission authority. The commission may direct  electric  and  gas
    19  corporations  to enter into long-term contracts for energy, capacity and
    20  renewable energy credits with eligible  resources.  At  a  minimum,  the
    21  commission  shall procure two percent of the state's annual retail elec-
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02548-02-8

        S. 5942--A                          2
     1  tricity load by two thousand nineteen,  four  percent  by  two  thousand
     2  twenty-one, and six percent by two thousand twenty-three.
     3    3.  Priority of long-term contracts. In selecting energy, capacity and
     4  renewable energy credits for contracting pursuant to subdivision two  of
     5  this  section,  the commission shall prioritize long-term contracts with
     6  eligible resources that the commission determines will  maximize  finan-
     7  cial benefits to electricity customers, provide a hedge against volatile
     8  fossil fuel prices, and create or maintain property taxes and employment
     9  in the state of New York.
    10    4. Contract term. A contract entered into pursuant to this section may
    11  not be for a term of more than twenty years, unless the commission finds
    12  a  contract  for a longer term would provide significantly greater rate-
    13  payer benefits.
    14    5. Competitive solicitation  process  and  contract  negotiation.  The
    15  commission  shall  establish a schedule for annual competitive solicita-
    16  tions for long-term contracts pursuant to this  section.  This  schedule
    17  must  include a timeline for negotiation, commission decision making and
    18  contract closing.
    19    6. Disposition of resources. An electric  and  gas  corporation  shall
    20  sell  energy,  capacity  or  other  products  purchased pursuant to this
    21  section or take other action relative to such energy, capacity or  other
    22  products as directed by the commission.
    23    7.  Cost  recovery.  The  commission  shall  ensure that all costs and
    24  direct financial benefits associated with contracts entered  into  under
    25  this  section are allocated to ratepayers. A price differential existing
    26  at any time during the term of the contract between the  contract  price
    27  and the prevailing market price at which the energy, capacity and renew-
    28  able  energy  credits  are  sold  or  any  gains  or losses derived from
    29  contracts for differences must be reflected in the  amounts  charged  to
    30  ratepayers and may not be considered imprudent.
    31    8.  Contract  payments.  Long-term  contracts entered into pursuant to
    32  this section  must  provide  that  payments  will  be  made  only  after
    33  contracted  amounts  of  energy,  capacity  or  other products have been
    34  provided.
    35    9. Customer benefits. The commissioner may  direct  electric  and  gas
    36  corporations  to  enter into contracts under this section only as agents
    37  for their customers. The commission shall adopt rules to ensure that  to
    38  the  extent  the  benefits  to  ratepayers  of  a long-term contract are
    39  projected to occur in the later years of  the  contract  term,  adequate
    40  financial  security is in place so that it is reasonably likely ratepay-
    41  ers will obtain the projected benefits of the long-term contract.
    42    10. Rules and regulations. The commission shall adopt rules and  regu-
    43  lations  to  implement  this section. In adopting rules and regulations,
    44  the commission shall consider the financial implications of this section
    45  on electric and gas corporations.
    46    § 2. This act shall take effect immediately.
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