senate Bill S652

Amended

Makes provisions regarding electric service for farmers

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 05 / Jan / 2011
    • REFERRED TO ENERGY AND TELECOMMUNICATIONS
  • 04 / Jan / 2012
    • REFERRED TO ENERGY AND TELECOMMUNICATIONS
  • 25 / Jan / 2012
    • AMEND AND RECOMMIT TO ENERGY AND TELECOMMUNICATIONS
  • 25 / Jan / 2012
    • PRINT NUMBER 652A

Summary

Prohibits extra charges on farmers for electric service and prohibits limitations on farmers installing and operating on-site electric generation equipment and related technology.

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Bill Details

See Assembly Version of this Bill:
A2458
Versions:
S652
S652A
Legislative Cycle:
2011-2012
Current Committee:
Senate Energy And Telecommunications
Law Section:
Public Service Law
Laws Affected:
Amd ยงยง65 & 66, Pub Serv L
Versions Introduced in 2009-2010 Legislative Cycle:
S1641, S1641

Sponsor Memo

BILL NUMBER:S652

TITLE OF BILL:
An act
to amend the public service law, in relation to electric service for
farmers; and providing for the repeal of such provisions upon expiration
thereof

PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to allow farmers to provide for on-site
electric generation without being forced to pay
prohibitive fees to electric providers.

SUMMARY OF SPECIFIC PROVISIONS:
This bill would prohibit electric utilities from imposing any fee,
penalty or charge or any restriction on a customer that is a farmer
when the farmer installs on-site electric generating capability to
serve domestic and farm needs for electricity. This prohibition would
apply whether or not the consumer continues to be connected to the
electric distribution system. This bill also would ensure that costs
for other customers are not increased as a result of this fee
prohibition.
The benefits of the bill would be offered on a first-come-first-serve
basis until a sufficient number of farmers in each service territory
installs a total amount of on-site generating capacity equaling 0.1%
of the demand of the service utility for the year 1996 or until
September 1, 2016 whichever comes first.
This bill would add a new subdivision 6-a to Section 65 of the Public
Service Law.

JUSTIFICATION:
Electric energy costs are a significant component of farm economics.
On-site generation can be effective not only to reduce energy cost
but also to protect farmers from the devastating costs of natural
disasters. Fees, penalties, charges, and other restrictions imposed
by utilities for not buying their electricity adversely affect the
economies of on-site generation and discourage the use of this
technology. This legislation is needed to protect
and encourage cost-effective agriculture and to preserve farm jobs
in New York State.

PRIOR LEGISLATIVE HISTORY:
2009-2010: S.1641
2007-2008: S.2205
2005-2006: A.2720 Passed Assembly and S.4824 Died in Energy Committee
2003-2004: A.9830 Passed Assembly
2001: A.7214 Passed Assembly
1999-2000: S.5994

FISCAL IMPLICATIONS:
Minimal impact on Gross Receipts Tax collections.

EFFECTIVE DATE:
This act shall take effect immediately and shall be deemed to be
repealed September 1, 2014, except that the provisions of this act


shall continue to apply to a customer who is a qualifying farmer as
long as such on-site electric generation system remains in use.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   652

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  Sen. VALESKY -- read twice and ordered printed, and when
  printed to be committed to the Committee on  Energy  and  Telecommuni-
  cations

AN  ACT to amend the public service law, in relation to electric service
  for farmers; and providing for the  repeal  of  such  provisions  upon
  expiration thereof

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative intent. The legislature finds and declares that
the installation of on-site electric generation  systems  would  address
the  high  energy  costs of farmers and would result in the creation and
retention of jobs in New  York  state.  Barriers  to  such  installation
should  be removed to encourage private investment in these technologies
and to stimulate economic growth.
  S 2. Section 65 of the public service law is amended by adding  a  new
subdivision 6-a to read as follows:
  6-A.  CERTAIN CHARGES PROHIBITED. (A) NO ELECTRIC CORPORATION OR MUNI-
CIPALITY OWNING ELECTRIC PLANT USEFUL FOR THE DISTRIBUTION OF  ELECTRIC-
ITY  SHALL  IMPOSE  ON ANY CUSTOMER THAT IS A QUALIFYING FARMER ANY FEE,
PENALTY OR CHARGE OF ANY KIND OTHER THAN ITS CHARGES BASED UPON THE COST
OF SERVICES ACTUALLY PROVIDED TO SUCH CUSTOMER, FOR ELECTRICITY,  TRANS-
MISSION, DISTRIBUTION, METERING, BILLING AND CUSTOMER SERVICES. NO ELEC-
TRIC  CORPORATION OR MUNICIPALITY SHALL IMPLEMENT POLICIES OR PROCEDURES
THAT WOULD PREVENT QUALIFYING  FARMERS  FROM  INSTALLING  AND  OPERATING
ON-SITE GENERATION EQUIPMENT AND RELATED TECHNOLOGY.
  (B) FOR THE PURPOSE OF THIS SUBDIVISION:
  (I)  "FARMER"  MEANS  A  PERSON  WHOSE  FEDERAL GROSS INCOME FROM FARM
PRODUCTION FOR THE PREVIOUS TAXABLE  YEAR  WAS  AT  LEAST  TEN  THOUSAND
DOLLARS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03506-01-1

S. 652                              2

  (II) "QUALIFYING FARMER" MEANS A FARMER THAT INSTALLS AN ON-SITE ELEC-
TRIC  GENERATION  SYSTEM  TO PROVIDE ELECTRIC SERVICE TO A FARM (WHETHER
THE FARMER CONTINUES TO MAINTAIN ACCESS TO TRANSMISSION AND DISTRIBUTION
SERVICES OR VOLUNTARILY DISCONNECTS ACCESS TO TRANSMISSION AND  DISTRIB-
UTION  SERVICES)  AND  FILES  A  NOTIFICATION  THEREOF WITH THE ELECTRIC
CORPORATION OR MUNICIPALITY, WITH A COPY TO THE DEPARTMENT, PRIOR TO THE
CUT-OFF DATE.
  (III) "CUT-OFF DATE" FOR EACH SERVICE TERRITORY MEANS  THE  DATE  WHEN
THE  ELECTRIC CORPORATION OR MUNICIPALITY SERVING SUCH SERVICE TERRITORY
SHALL HAVE RECEIVED NOTIFICATIONS FROM QUALIFYING FARMERS SUCH THAT  THE
SUM  OF  THE RATED GENERATING CAPACITY SHOWN ON SUCH NOTIFICATIONS SHALL
EQUAL OR EXCEED ONE-TENTH OF ONE PERCENT OF ITS  TOTAL  ELECTRIC  DEMAND
FOR  THE  YEAR NINETEEN HUNDRED NINETY-SIX, AS DETERMINED BY THE DEPART-
MENT, OR SEPTEMBER FIRST, TWO THOUSAND SIXTEEN, WHICHEVER OCCURS FIRST.
  S 3. Subdivision 28 of section 66 of the public service law, as  added
by chapter 82 of the laws of 1998, is amended to read as follows:
  28.  No  revenues  foregone by an electric corporation, as a result of
subjecting certain veterans' organizations [with] TO  rates  or  charges
applicable to domestic consumers pursuant to section seventy-six of this
article  OR  AS A RESULT OF PROHIBITING CERTAIN CHARGES RELATED TO ELEC-
TRIC SERVICE PROVIDED  TO  FARMERS  PURSUANT  TO  SUBDIVISION  SIX-A  OF
SECTION  SIXTY-FIVE OF THIS ARTICLE, shall be recovered from the custom-
ers of such corporation.
  S 4. This act shall take effect immediately and shall be deemed to  be
repealed September 1, 2016, except that the provisions of this act shall
continue  to  apply  to a customer who is a qualifying farmer as long as
such on-site electric generation system remains in use.

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