S T A T E   O F   N E W   Y O R K
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                                  10117

                          I N  A S S E M B L Y

                               May 7, 2012
                               ___________

Introduced  by M. of A. BRENNAN -- read once and referred to the Commit-
  tee 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:

  Section 1. 1. Definitions. For  the  purposes  of  this  section,  the
terms:
  a.  "independent system operator" shall mean any not-for-profit corpo-
ration formed and operating in the state of New York that is approved by
the United States federal energy regulatory commission to operate in the
state to administer and monitor wholesale electricity markets.
  b. "end use sector member" shall mean any entity that purchases  elec-
tricity for its own consumption and not for resale.
  2.  Board  members.  The  board of directors of the independent system
operator shall include three members who shall represent  the  interests
of  small  business owners and farmers. The governor, the speaker of the
assembly and the temporary president of the senate  shall  each  appoint
one such member.
  3.  Disclosure of information. a. An independent system operator oper-
ating in this state shall disclose price data related to  its  wholesale
market  operations  including,  but not limited to, information on real-
time, hour-head and day-ahead bids in the independent system  operator's
wholesale  electricity market auctions, transmission congestion contract
auctions and installed capacity market auctions  with  no  more  than  a
three  month  delay.  Such  data  shall be provided in aggregate hourly,
daily, monthly, annual and historical data sets for comparison  purposes
and shall also reflect seasonal and peak load variations and averages.
  b.  The  independent  system operator shall also disclose the names of
any bidder that submits a bid in any of the auctions described in  para-
graph a of this subdivision and the amount of the bid.
  c.  Such  information  shall be made in a format readily available and
accessible to the public.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04844-07-2
              

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  4. Consumer liaison. The independent system operator shall appoint  an
employee  to  serve  as consumer liaison, whose primary duty shall be to
interact with members of the end-use sector for the purposes of:
  a. keeping end-use sector members informed about developments that may
affect their interests;
  b.  explaining  the issues and proposals under discussion and proposed
for consideration at the operating committee, business issues  committee
and management committee as well as the ramifications of those proposals
on residential consumers;
  c.  responding to the questions and concerns of members of the end-use
sector; and
  d. serving as the liaison between the end-use sector and  the  members
of  the  operator's board of directors who are designated or assigned to
focus on the interests of the residential, small business and farm elec-
tricity users.
  5. Notwithstanding any other provision of law  to  the  contrary,  the
independent  system  operator  shall  be  subject  to  the provisions of
section 74-a and article 7 of the public officers law.
  S 2. Section 66 of the public service law is amended by adding  a  new
subdivision 29 to read as follows:
  29. (A) FOR THE PURPOSES OF THIS SUBDIVISION:
  (I) "INDEPENDENT SYSTEM OPERATOR" SHALL MEAN ANY NOT-FOR-PROFIT CORPO-
RATION  FORMED AND OPERATING IN THE STATE THAT IS APPROVED BY THE UNITED
STATES FEDERAL ENERGY REGULATORY COMMISSION TO OPERATE IN THE  STATE  TO
ADMINISTER AND MONITOR WHOLESALE ELECTRICITY MARKETS; AND
  (II)  "END  USE SECTOR MEMBER" SHALL INCLUDE ANY ENTITY THAT PURCHASES
ELECTRICITY FOR ITS OWN CONSUMPTION AND NOT FOR RESALE.
  (B) THE COMMISSIONER IS AUTHORIZED AND DIRECTED TO  PROVIDE  OVERSIGHT
AND MONITOR THE MARKET AND CORPORATE OPERATIONS OF AN INDEPENDENT SYSTEM
OPERATOR, INCLUDING  BUT NOT LIMITED TO THE EXTENT TO WHICH IT:
  (I)  SERVES THE NEEDS OF ALL CUSTOMER CLASSES AND OPERATES IN A MANNER
THAT IS IN THE BEST INTEREST OF THE PUBLIC;
  (II) ENSURES RELIABILITY, QUALITY AND MAINTENANCE OF THE  TRANSMISSION
SYSTEM;
  (III)  COMPLIES WITH THE REQUIREMENTS OF THE NEW YORK STATE OPEN MEET-
ING AND FREEDOM OF INFORMATION LAWS; AND
  (IV) CONTRIBUTES TO THE ACHIEVEMENT  OF  ENERGY  EFFICIENCY  AND  FUEL
DIVERSITY GOALS OF THE STATE.
  (C) THE COMMISSIONER SHALL ANNUALLY ISSUE A REPORT RELATING THE MARKET
AND  CORPORATE  OPERATIONS  OF  THE  INDEPENDENT SYSTEM OPERATOR.   SUCH
REPORTS SHALL INCLUDE, BUT NOT BE LIMITED TO:
  (I)  ANALYSES  BY  AN  INDEPENDENT  SYSTEM  OPERATOR  AND  OTHER  DATA
COLLECTED  AND  ANALYZED  BY  THE  COMMISSION  INFORMATION ON REAL-TIME,
HOUR-AHEAD AND DAY-AHEAD MARKET  BIDS  AND  BIDDERS  IN  AN  INDEPENDENT
SYSTEM  OPERATOR'S  WHOLESALE  ELECTRICITY MARKET AUCTIONS, TRANSMISSION
CONGESTION CONTRACT AUCTIONS AND INSTALLED MARKET AUCTIONS;
  (II) A DETERMINATION OF THE EXTENT TO WHICH  THE  ENERGY  MARKETS  ARE
MAINTAINING NECESSARY LEVELS OF RELIABILITY;
  (III) A DETERMINATION OF WHETHER OR NOT ALL CUSTOMER CLASSES ARE BEING
ADEQUATELY SERVED BY COMPETITIVE ENERGY MARKETS;
  (IV) A DETERMINATION OF THE COMPETITIVENESS OF ENERGY MARKETS; INCLUD-
ING  A  DETERMINATION  WHETHER OR NOT THE ELECTRIC INDUSTRY IS PROVIDING
CONSUMERS WITH THE LOWEST PRICES POSSIBLE WITHIN A RESTRUCTURED, COMPET-
ITIVE RETAIL MARKETPLACE;
  (V) A DETERMINATION OF THE EXTENT TO  WHICH  THE  ENERGY  MARKETS  ARE
ACHIEVING THE ENERGY EFFICIENCY AND FUEL DIVERSITY GOALS OF THE STATE;

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  (VI)  THE NAME AND TERMS OF THE BOARDS OF DIRECTORS AND OF THE MEMBERS
OF THE INDEPENDENT SYSTEM OPERATOR'S MANAGEMENT, OPERATING AND  BUSINESS
COMMITTEES;
  (VII) AN INDEPENDENT SYSTEM OPERATOR'S FINANCIAL INFORMATION; AND
  (VIII) RECOMMENDATIONS FOR IMPROVING ANY DEFICIENCIES SO IDENTIFIED IN
ELECTRICITY  ENERGY  MARKETS,  INCLUDING  NON-COMPETITIVE  PRICING SITU-
ATIONS.
  (D) THE COMMISSION SHALL SUBMIT SUCH REPORT TO THE GOVERNOR, THE PRES-
IDENT PRO TEM OF THE SENATE, THE SPEAKER OF THE ASSEMBLY,  THE  MINORITY
LEADERS OF THE SENATE AND THE ASSEMBLY, THE CHAIRS OF THE ENERGY COMMIT-
TEES  OF  THE  SENATE  AND  THE ASSEMBLY, NO LATER THAN APRIL FIRST, TWO
THOUSAND TWELVE AND ANNUALLY THEREAFTER.
  S 3. This act shall take effect immediately.