NY State Senate Bill 2023-S1702

Senate Bill S1702

2023-2024 Legislative Session

Expands the scope of management and operations audits of gas and electric corporations conducted by the public service commission

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Current 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to energy and telecommunications
Jan 13, 2023	referred to energy and telecommunications

co-Sponsors

2023-S1702 (ACTIVE) - Details

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: S1980
2013-2014: S584
2015-2016: S2390
2017-2018: S2475
2019-2020: S1266
2021-2022: S101

2023-S1702 (ACTIVE) - Summary

Expands the scope of management and operations audits of gas and electric corporations conducted by the public service commission; requires copies of such audits to be provided to the governor and various legislative leaders.

2023-S1702 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S1702

SPONSOR: GIANARIS
 
TITLE OF BILL:

An act to amend the public service law, in relation to the management
and operations audits of certain utilities

 
PURPOSE:

New York's utility regulators are reliant on antiquated laws, regu-
lations and policies that let companies engaged in energy transmission
and distribution operate without effective oversight.  The legislative-
ly-required schedule for PSC audits of the management and operations of
certain utilities has not always been regularly met. This is a critical
layer of oversight for companies that operate as monopoly service
providers in many areas.

 
SUMMARY OF PROVISIONS:

Section one amends paragraphs (a) and (c) of subdivision 19 of § 66 of
the Public Service Law to make the following revisions to the statutori-

ly required process for management and operations audits of electric and
gas corporations:

* the audit schedule - currently at least once every 5 years - could be
accelerated by the Public Service Commission (PSC), but must occur at
least annually;

* audits would be expanded to include not only construction program
planning, but also "maintenance operations";

* upon completion, copies of audits must be provided to the Governor and
Legislature; and

* auditors shall independently verify information provided by the utili-
ty. Section two provides the effective date.

 
EXISTING LAW:

Click here

 
JUSTIFICATION:

New York's utility regulators are reliant on antiquated laws, regu-
lations and policies that let companies engaged in energy transmission
and distribution operate without effective oversight. A Task Force
convened in response to a massive power outage in western Queens in 2006
found that the legislatively required schedule for PSC audits of the
management and operations of certain utilities was not being met. Inci-
dents of utility service outages have continued into recent years. Trop-
ical Storm Isaias prompted PSC investigation into utilities' preparation
and response to the electric power outages, however, more oversight is
necessary to ensure utilities are prepared for any potential outages.
This bill strengthens the current audit provisions by including review
of a utility's maintenance and security programs and independent verifi-
cation of information provided by the company, allows the PSC to order
audits more frequently than every 5 years, and requires copies of
completed audits to be filed with the Governor and Legislature.
 
LEGISLATIVE HISTORY:

2022: Died in Energy and Telecommunications

2021: Died in Energy and Telecommunications

2020: Died in Energy and Telecommunications

2019: Died in Energy and Telecommunications

2018: Died in Energy and Telecommunications

2017: Died in Energy and Telecommunications

2016: Died in Energy and Telecommunications

2015: Died in Energy and Telecommunications

2014: Senate Bill 584-A (Gianaris)-Died in Senate Energy Telecommuni-
cations Committee

2012: Senate Bill 1980 (Gianaris)-Died in Assembly Corporations, Author-
ities and Commissions Committee

2013: Assembly Bill 667 (Hevesi)- Authorities and Commissions Committee

2012: Assembly Bill 2366 (Hevesi)- Died in Assembly Corporations,
Authorities and Commissions Committee

2010: Assembly Bill 1554 (Gianaris) - Died in Assembly Corporations,
Authorities and Commissions Committee

2008: Assembly Bill 8620-A (Gianaris) - Died in Assembly Corporations,
Authorities and Commissions Committee

 
FISCAL IMPLICATIONS:

None.

 
LOCAL FISCAL IMPLICATIONS:

Click here

 
EFFECTIVE DATE:
This act shall take effect on the same date and in the same manner as
section 4 of chapter 743 of the laws of 2022, takes effect. Provided,
that the public service commission is immediately authorized and
directed to take any and all actions, including but not limited to the
promulgation of any necessary rules, necessary to fully implement the
provisions of this act on its effective date.

2023-S1702 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1702
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 13, 2023
                                ___________
 
 Introduced  by  Sens.  GIANARIS, HOYLMAN-SIGAL -- read twice and ordered
   printed, and when printed to be committed to the Committee  on  Energy
   and Telecommunications
 
 AN  ACT  to  amend the public service law, in relation to the management
   and operations audits of certain utilities

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Paragraphs (a) and (c) of subdivision 19 of section 66 of
 the public service law, paragraph (a) as amended by chapter 743  of  the
 laws  of  2022  and  paragraph  (c) as amended by section 4 of part X of
 chapter 57 of the laws of 2013, are amended to read as follows:
   (a) The commission shall have power  to  provide  for  management  and
 operations  audits  of  gas corporations and electric corporations. Such
 audits shall be performed AT SUCH TIMES AS THE COMMISSION SHALL  DIRECT,
 BUT  AN  AUDIT  SHALL BE PERFORMED at least once every [five years] YEAR
 for combination gas and electric corporations, as well as  for  straight
 gas  corporations  having annual gross revenues in excess of two hundred
 million dollars.  WHEN ANY SUCH CORPORATION ALSO OPERATES A STEAM CORPO-
 RATION PURSUANT TO ARTICLE FOUR-A OF THIS CHAPTER, THE COMMISSION  SHALL
 PROVIDE  FOR  A MANAGEMENT AND OPERATIONS AUDIT OF THE STEAM CORPORATION
 IN  THE  TIME AND MANNER SPECIFIED IN  THIS  SECTION.  The  audit  shall
 include,  but  not  be  limited  to,  an  investigation of the company's
 construction program, planning [in relation] , SECURITY AND  MAINTENANCE
 OPERATIONS  AS  THEY  RELATE  to the needs of its customers for reliable
 service, an evaluation of the efficiency of the company's operations and
 protection of critical energy infrastructure as defined  in  subdivision
 fourteen  of  section  1-103  of  the  energy  law, recommendations with
 respect to same, and the timing with respect to  the  implementation  of
 such  recommendations.  THE AUDIT SHALL INCLUDE INDEPENDENT VERIFICATION
 OF THE INFORMATION PROVIDED BY THE  CORPORATION.  The  commission  shall
 have  discretion to have such audits performed by its staff, or by inde-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05891-01-3

 S. 1702                             2
 
 pendent auditors.   UPON COMPLETION,  COPIES  OF  THE  AUDITS  SHALL  BE
 PROVIDED  TO THE GOVERNOR, SPEAKER OF THE ASSEMBLY, THE TEMPORARY PRESI-
 DENT OF THE SENATE, THE CHAIR OF THE SENATE FINANCE COMMITTEE, THE CHAIR
 OF  THE  ASSEMBLY  WAYS  AND  MEANS COMMITTEE, THE CHAIR OF THE ASSEMBLY
 ENERGY COMMITTEE AND THE CHAIR OF THE  SENATE  ENERGY  AND  TELECOMMUNI-
 CATIONS COMMITTEE.
   In  every  case  in  which  the  commission  chooses to have the audit
 provided for in this subdivision or pursuant to subdivision fourteen  of
 section sixty-five of this article performed by independent auditors, it
 shall  have authority to select the auditors, and to require the company
 being audited to enter into a contract with the auditors  providing  for
 their  payment  by the company. Such contract shall provide further that
 the auditors shall work for and under the direction  of  the  commission
 according  to  such  terms as the commission may determine are necessary
 and reasonable.
   (c) Upon the application of a gas or electric corporation for a  major
 change in rates as defined in subdivision twelve of this section OR OF A
 STEAM  CORPORATION FOR A MAJOR CHANGE IN RATES AS DEFINED IN SUBDIVISION
 TEN OF SECTION EIGHTY OF THIS CHAPTER, the commission shall review  that
 corporation's  compliance  with  the directions and recommendations made
 previously by the commission, as a result of the most recently completed
 management and operations audit.  The commission shall  incorporate  the
 findings of such review in its opinion or order, and such findings shall
 be enforceable by the commission.
   §  2.  This  act  shall  take  effect on the same date and in the same
 manner as section 4 of chapter 743 of the laws of  2022,  takes  effect.
 Provided,  that  the public service commission is immediately authorized
 and directed to take any and all actions, including but not  limited  to
 the  promulgation  of  any necessary rules, necessary to fully implement
 the provisions of this act on its effective date.

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Senate Bill S1702

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Sponsored By

Michael Gianaris