NY State Senate Bill 2009-S2164

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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to energy and telecommunications
Feb 12, 2009	referred to energy and telecommunications

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2009-S2164 (ACTIVE) - Details

Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Service Law
Laws Affected:: Amd §65, Pub Serv L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S1068
2013-2014: S1621

2009-S2164 (ACTIVE) - Summary

Relates to automatic rate adjustments for natural gas or electric service; permits such rate adjustment only when associated with and reflective of changes in the reasonable costs of fuel purchased for the production of electricity by such electric corporation or changes in the reasonable costs of gas or electricity purchased by such gas corporation or electric corporation for resale to residential customers; limits gas and electric corporation to no more than one rate adjustment in any six month period; makes related provisions.

2009-S2164 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S2164

 TITLE OF BILL :
An act to amend the public service law, in relation to the utilization
of automatic rate adjustments for natural gas or electric service and
providing for the repeal of such provisions upon expiration thereof

 PURPOSE OR GENERAL IDEA OF BILL :
This bill would require increased oversight by the Public Service
Commission (PSC) regarding the types of costs that are recovered
through automatic adjustments to gas and electric rates.

 SUMMARY OF SPECIFIC PROVISIONS :
This bill would:

* permit automatic rate adjustments only when costs are reflective of
the reasonable costs of fuel

* limit a gas or electric corporation to one automatic rate adjustment
in any six-month period and limits annualized increases associated
with automatic rate adjustments to the lesser of $300,000 or 2.5% of
the gas or electric corporation's revenues during a 12-month period

* require the PSC to determine if automatic adjustments and utility
efforts to control costs are prudent

* if the PSC finds that such provisions would create a substantial
impairment of financial impairment to a gas or electric corporation,
the commission shall modify the provisions to protect the financial
integrity of such corporation.

 JUSTIFICATION :
Restructuring the electric industry, as implemented administratively
by the PSC, was supposed to result in price decreases, not price
increases. Since deregulation, electric prices have in fact increased
and most industry experts predict higher prices for the next several
years. Many are concerned about the potential for extreme price
volatility, especially during peak summer demand, because power prices
vary with market conditions. Also, demand for electricity is
increasing, and the supply of generation seems to be limited, both of
which cause upward pressure on power prices. During the summer of
2000, wholesale electricity prices rose to over $1,000 per
megawatt-hour. On a normal weather day, this price would be about $30
per megawatt-hour.

Utilities can pass these higher costs on to ratepayers through
automatic adjustments, such as "market supply charges" or fuel
adjustment charges. This bill would require the PSC to examine the
effect of higher prices that are passed on to consumers through these
automatic adjustments on customer bills and to ensure that utilities
are acting appropriately to provide just and reasonable rates to
retail consumers.

 PRIOR LEGISLATIVE HISTORY :
1999-2000 A.11386 Ways & Means 2001-02 A.8980 Passed Assembly

 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS :
To be determined.

 EFFECTIVE DATE :
Immediate and shall expire and be deemed repealed January 31, 2013.

2009-S2164 (ACTIVE) - Bill Text download pdf

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

                                  2164

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 12, 2009
                               ___________

Introduced by Sens. PARKER, DIAZ, DILAN, DUANE, HASSELL-THOMPSON, KRUEG-
  ER, ONORATO, OPPENHEIMER, SAMPSON, SCHNEIDERMAN, SERRANO -- 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 utilization
  of automatic rate adjustments for natural gas or electric service  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. Subdivision 4 of section 65 of the public service  law,  as
amended  by  chapter  789  of  the  laws  of 1930, is amended to read as
follows:
  4. Nothing in this chapter shall be taken to  prohibit  a  gas  corpo-
ration  or  electric corporation from establishing a sliding scale for a
fixed period for the automatic adjustment [or] OF charges for gas, elec-
tricity or any RELATED service rendered or to be rendered  [and]  BY  OR
the  dividends  to  be  paid  to stockholders of such gas corporation or
electric corporation, provided that:
  (A) the sliding scale shall first have been filed with and approved by
the commission; [but]
  (B) WITH RESPECT TO THE AUTOMATIC ADJUSTMENT OF CHARGES FOR  THE  SALE
OF  GAS  OR ELECTRICITY TO RESIDENTIAL CONSUMERS, PURSUANT TO THIS CHAP-
TER:
  (I) ANY AUTOMATIC RATE ADJUSTMENT SHALL BE PERMITTED ONLY WHEN ASSOCI-
ATED WITH AND REFLECTIVE OF CHANGES IN  THE  REASONABLE  COSTS  OF  FUEL
PURCHASED FOR THE PRODUCTION OF ELECTRICITY BY SUCH ELECTRIC CORPORATION
OR  CHANGES  IN  THE REASONABLE COSTS OF GAS OR ELECTRICITY PURCHASED BY
SUCH GAS CORPORATION OR ELECTRIC CORPORATION FOR RESALE  TO  RESIDENTIAL
CONSUMERS;
  (II)  SUCH  GAS CORPORATION OR ELECTRIC CORPORATION SHALL MAKE NO MORE
THAN ONE SUCH ADJUSTMENT IN ANY SIX MONTH PERIOD; AND

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02249-01-9

S. 2164                             2

  (III) THE ANNUALIZED INCREASE IN REVENUES FOR SUCH GAS CORPORATION  OR
ELECTRIC  CORPORATION  WHICH  IS ASSOCIATED WITH SUCH ADJUSTMENTS IN ANY
TWELVE MONTH PERIOD SHALL NOT EXCEED THE GREATER OF THREE HUNDRED  THOU-
SAND  DOLLARS  OR TWO AND ONE-HALF PERCENT OF THE CORPORATION'S REVENUES
DURING SUCH TWELVE MONTH PERIOD;
  (C)  PROVIDED, HOWEVER, THAT IF THE COMMISSION FINDS THAT THE REQUIRE-
MENTS OF PARAGRAPH (B) OF THIS SUBDIVISION ARE RESULTING OR ARE  REASON-
ABLY  CERTAIN  TO  RESULT  IN  A SUBSTANTIAL IMPAIRMENT OF THE FINANCIAL
INTEGRITY OF A GAS OR ELECTRIC CORPORATION, THE COMMISSION SHALL  INSTI-
TUTE A PROCEEDING, ON AN EMERGENCY BASIS, TO EXAMINE WHETHER SUCH CORPO-
RATION  HAS  PRUDENTLY  CONSIDERED  ALL REASONABLY AVAILABLE SOURCES AND
SUPPLIERS OF NATURAL GAS OR ELECTRICITY, INCLUDING LONG- AND  SHORT-TERM
CONTRACTS,  AND  OTHER COMPETITIVE MARKET PRODUCTS TO SATISFY THE DEMAND
FOR NATURAL GAS OR ELECTRICITY USING THE LEAST COST COMBINATION OF  SUCH
SOURCES  AND SUPPLIERS. IF, UPON THE CONCLUSION OF SUCH EXAMINATION, THE
COMMISSION FINDS THAT A SUBSTANTIAL IMPAIRMENT  OF  FINANCIAL  INTEGRITY
CONTINUES,  THEN  THE  COMMISSION  SHALL  CONDUCT  A HEARING UPON PUBLIC
NOTICE AND MAY MODIFY THE REQUIREMENT OF PARAGRAPH (B) OF THIS  SUBDIVI-
SION  TO THE EXTENT NECESSARY TO ELIMINATE THE SUBSTANTIAL IMPAIRMENT OF
FINANCIAL INTEGRITY; AND
  (D) nothing in this subdivision shall operate to prevent  the  commis-
sion  DURING  OR  after  the expiration of such fixed period from fixing
proper, just and reasonable rates and charges to be made for service  as
authorized in this article.
  S  2.  This  act shall take effect immediately and shall expire and be
deemed repealed January 31, 2013.

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Senate Bill S2164

Sponsored By

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

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co-Sponsors

2009-S2164 (ACTIVE) - Details

2009-S2164 (ACTIVE) - Summary

2009-S2164 (ACTIVE) - Sponsor Memo

2009-S2164 (ACTIVE) - Bill Text download pdf

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Sponsored By

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

Actions

co-Sponsors

2009-S2164 (ACTIVE) - Details

2009-S2164 (ACTIVE) - Summary

2009-S2164 (ACTIVE) - Sponsor Memo

2009-S2164 (ACTIVE) - Bill Text download pdf

Comments