senate Bill S7537

Directs the public service commission to investigate the use of funds from the Systems Benefits Charge to cover costs associated with a new capacity zone

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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

  • 15 / May / 2014
    • REFERRED TO ENERGY AND TELECOMMUNICATIONS

Summary

Directs the public service commission to investigate the use of funds from the Systems Benefits Charge to pay the portion of consumers' bills that results from Federal Energy Commission Docket No. ER13-1380-000 proceeding that ordered a new capacity zone be created in New York state.

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Bill Details

Versions:
S7537
Legislative Cycle:
2013-2014
Current Committee:
Senate Energy And Telecommunications
Law Section:
Public Services

Sponsor Memo

BILL NUMBER:S7537

TITLE OF BILL: An act directing the public service commission to
investigate the use of funds from the Systems Benefits Charge to cover
costs associated with a new capacity zone

PURPOSE: Directs the public service commission to investigate the use
of funds from the System Benefits Charge to cover costs associated
with a new capacity zone

SUMMARY OF PROVISIONS:

Section 1 compels the public service commission, within 30 days of the
effective date of this act to investigate the development of a program
to use funds collected for the system benefits charge to pay the
portion of consumers bills that results from FERC Docket No.
ER13-1380-000 that ordered a new capacity zone to be created in New
York State. The Public Service Commission would have to consult with
the New York State Energy Research and Development Authority
(NYSERDA). The proceeding must be completed within 90 days from the
commencement of the proceedings. The PSC must also conduct at least
two public hearings within the area that comprises the new capacity
zone.

Section 2 sets an immediate effective date

JUSTIFICATION: The Federal Energy Regulatory Commission (FERC) has
allowed the New York Independent System Operator (NYISO) to create a
new capacity zone in southeastern New York that would mandate local
utility providers to purchase energy resources from producers within a
specific geographic region. The new capacity zone has the potential to
cost residential, commercial, and industrial customers in the lower
Hudson Valley up to $350 million in additional electric bills. If
unchecked, the new capacity zone will drive families and businesses
out of the state due to unbearable costs.

In 1996, the New York State Public Service Commission (PSC) called for
the establishment of a System Benefits Charge (SBC) to fund public
policy initiatives that could not be adequately addressed directly by
New York State's electricity markets. The PSC has used the funds from
this charge for energy programs targeting efficiency measures,
research and development, and helping to reduce the cost of energy for
low-income New Yorkers. The goals of the SBC exactly match the
challenges of the new capacity zone for southeastern New York. It is
only appropriate that the PSC work with NYSERDA to listen to the
public and develop a sensible alternative to prevent a $350 million
increase in utility bills for residents of the Hudson Valley and
Upstate New York.

LEGISLATIVE HISTORY: This is a new bill.

LOCAL FISCAL IMPLICATIONS: Using the System Benefits Charge to pay
for the increased utility costs will save residents and businesses of
the lower Hudson Valley up to $350 million in increased utility costs.

EFFECTIVE DATE: This act shall take effect immediately.


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

                                  7537

                            I N  S E N A T E

                              May 15, 2014
                               ___________

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

AN ACT directing the public service commission to investigate the use of
  funds  from the Systems Benefits Charge to cover costs associated with
  a new capacity zone

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

  Section  1.  Notwithstanding any general or special law, rule or regu-
lation, the public service commission  shall,  within  30  days  of  the
effective  date  of  this  act, commence a proceeding to investigate the
development of a program to use funds collected for the system  benefits
charge  to  pay the portion of consumers bills that results from Federal
Energy Regulatory Commission Docket No.  ER13-1380-000  proceeding  that
ordered a new capacity zone be created in New York state. The commission
shall  consult  with  the New York State energy research and development
authority in the preparation of its recommendations  to  the  commission
for  such  a  determination.  The proceeding must be completed within 90
days from the commencement of  the  proceedings.  The  commission  shall
conduct  at least two public hearings within the area that comprises the
proposed new capacity zone.
  S 2. This act shall take effect immediately.





 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15236-02-4

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