NY State Senate Bill 2015-S3543A

Senate Bill S3543A

2015-2016 Legislative Session

Relates to providing oversight and monitoring the operations of an independent system operator

download bill text pdf

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 22, 2016	print number 3543a
Feb 22, 2016	amend and recommit to energy and telecommunications
Jan 06, 2016	referred to energy and telecommunications
Feb 12, 2015	referred to energy and telecommunications

Bill Amendments

Original

A (Active)

2015-S3543 - Details

See Assembly Version of this Bill:: A1928
Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Service Law
Laws Affected:: Amd §66, Pub Serv L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S7415, A10117
2013-2014: S1337, A6255
2017-2018: S5632, A3758

2015-S3543 - Summary

Relates to providing oversight and monitoring of the operations of an independent system operator; authorizes the public service commission to provide oversight and requires annual reports on the independent system operator.

2015-S3543 - Sponsor Memo

                                BILL NUMBER:S3543

TITLE OF BILL:  An act to amend the public service law, in relation to
providing oversight and monitoring the operations of an independent
system operator

PURPOSE:  To require the Public Service Commission to monitor and
report on the operations of the independent system operator (ISO) that
operates in this State.

SUMMARY OF PROVISIONS:

Section one of the bill defines the independent system operator, its
board members, requires disclosure of information it must make
available to the public, the appointment of a consumer liaison, and
makes it subject to the open meetings law.

Section 2 would require the PSC to oversee and monitor the wholesale
electricity market, as well as the operations of the ISO that operates
in this State. The PSC is also required to issue a report annually on,
among other things, an analysis of the bids made in the ISO market
auctions; whether the energy markets are maintaining minimum levels of
reliability; whether the markets are achieving energy efficiency and
fuel diversity goals; and the ISO's financial information.

JUSTIFICATION:  The health, welfare, and prosperity of all New York

residents require the provision of adequate, efficient, reliable,
environmentally sound, and lowest-cost electric service at affordable
prices. Many of the decisions that govern the sale, purchase and
transmission of electricity in New York State are made by a federally
approved independent system operator with limited input from New York
consumers.

The intent of this legislation is to recognize and remedy the fact
that individual action by residential consumers, small businesses and
farmers for the purposes of participating in independent system
operator processes and communicating their views is rendered
impracticable by reason of the disproportionate expense of taking such
action.

Independent system operator proceedings are offered in a way that
minimizes public participation. It is incredibly difficult for typical
New Yorkers to remain on top of the day to-today activities of an
independent system operator. In many instances, the only people who
can attend and participate in the decision making processes of an
independent system operator are most likely those whose job depends on
it, representatives of generators, transmission owners, utilities and
other special interests.

Requiring consumer representation on the board of directors, a
consumer liaison and increased transparency will spur a more open and
accountable independent system operator processes that may yield
creative socially responsible solutions to the difficult issues
associated with electricity markets in New York State.

LEGISLATIVE HISTORY:  2013-14 - S. 1337b - Energy Committee/A. 6255-a
- Corporations, Authorities and Commissions Committee.


FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: Immediate.

2015-S3543 - Bill Text download pdf

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

                                  3543

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 12, 2015
                               ___________

Introduced  by  Sen.  GRIFFO -- 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 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-ahead 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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02449-01-5

S. 3543                             2

  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.
  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  arti-
cles 6 and 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;

S. 3543                             3

  (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;
  (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 SIXTEEN AND ANNUALLY THEREAFTER.
  S 3. This act shall take effect immediately.

2015-S3543A (ACTIVE) - Details

See Assembly Version of this Bill:: A1928
Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Service Law
Laws Affected:: Amd §66, Pub Serv L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S7415, A10117
2013-2014: S1337, A6255
2017-2018: S5632, A3758

2015-S3543A (ACTIVE) - Summary

2015-S3543A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S3543A

 TITLE OF BILL :  An act to amend the public service law, in relation
to providing oversight and monitoring the operations of an independent
system operator

 PURPOSE :  To require the Public Service Commission to monitor and
report on the operations of the independent system operator (ISO) that
operates in this State.

 SUMMARY OF PROVISIONS :

Section one of the bill defines the independent system operator, its
board members, requires disclosure of information it must make
available to the public, the appointment of a consumer liaison, and
makes it subject to the open meetings law.

Section 2 would require the PSC to oversee and monitor the wholesale
electricity market, as well as the operations of the ISO that operates
in this State. The PSC is also required to issue a report annually on,
among other things, an analysis of the bids made in the ISO market
auctions; whether the energy markets are maintaining minimum levels of
reliability; whether the markets are achieving energy efficiency and
fuel diversity goals; and the ISO's financial information.

 JUSTIFICATION :  The health, welfare, and prosperity of all New York

residents require the provision of adequate, efficient, reliable,
environmentally sound, and lowest-cost electric service at affordable
prices. Many of the decisions that govern the sale, purchase and
transmission of electricity in New York State are made by a federally
approved independent system operator with limited input from New York
consumers.

The intent of this legislation is to recognize and remedy the fact
that individual action by residential consumers, small businesses and
farmers for the purposes of participating in independent system
operator processes and communicating their views is rendered
impracticable by reason of the disproportionate expense of taking such
action.

Independent system operator proceedings are offered in a way that
minimizes public participation. It is incredibly difficult for typical
New Yorkers to remain on top of the day to-today activities of an
independent system operator. In many instances, the only people who
can attend and participate in the decision making processes of an
independent system operator are most likely those whose job depends on
it, representatives of generators, transmission owners, utilities and
other special interests.

Requiring consumer representation on the board of directors, a
consumer liaison and increased transparency will spur a more open and
accountable independent system operator processes that may yield
creative socially responsible solutions to the difficult issues
associated with electricity markets in New York State.

 LEGISLATIVE HISTORY :  2013-14 - S. 1337b - Energy Committee/A.
6255-a - Corporations, Authorities and Commissions Committee.

 FISCAL IMPLICATIONS :  None.

 EFFECTIVE DATE :  immediate.

2015-S3543A (ACTIVE) - Bill Text download pdf

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

                                 3543--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 12, 2015
                               ___________

Introduced  by  Sen.  GRIFFO -- 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 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-ahead 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,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02449-02-6

S. 3543--A                          2

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.
  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  arti-
cles 6 and 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;

S. 3543--A                          3

  (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;
  (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
TEMPORARY  PRESIDENT  OF  THE  SENATE,  THE SPEAKER OF THE ASSEMBLY, THE
MINORITY LEADERS OF THE SENATE AND THE ASSEMBLY, THE CHAIRS OF THE ENER-
GY COMMITTEES OF THE SENATE AND THE ASSEMBLY, NO LATER THAN APRIL FIRST,
TWO THOUSAND SEVENTEEN AND ANNUALLY THEREAFTER.
  S 3. This act shall take effect immediately.

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