S T A T E O F N E W Y O R K
________________________________________________________________________
5606
2011-2012 Regular Sessions
I N A S S E M B L Y
February 24, 2011
___________
Introduced by M. of A. BRENNAN, DESTITO, SCHROEDER, ZEBROWSKI, CAHILL,
CASTRO -- Multi-Sponsored by -- M. of A. CLARK, GOTTFRIED, MAGEE,
MAISEL, MARKEY, MILLMAN, PEOPLES-STOKES, PHEFFER, SWEENEY, WEISENBERG
-- read once and referred to the Committee on Energy
AN ACT to amend the public service law, in relation to electric capacity
and power procurement; and to amend the public authorities law, in
relation to powers of the Long Island power authority respecting port-
folio management services
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The public service law is amended by adding a new section
66-i to read as follows:
S 66-I. ELECTRIC CAPACITY AND POWER PROCUREMENT. 1. ANY ELECTRIC UTIL-
ITY CORPORATION, IN MEETING ITS OBLIGATION TO PROVIDE ELECTRIC CAPACITY
AND POWER SERVICES TO CUSTOMERS WHO DO NOT CHOOSE TO RECEIVE ELECTRIC
CAPACITY AND POWER SERVICE FROM ANOTHER PROVIDER, SHALL CONSIDER ALL
REASONABLY AVAILABLE SUPPLY-SIDE AND DEMAND-SIDE RESOURCES, AND SHALL
SELECT THE SOURCE OR SOURCES WHICH BEST SERVE THE PUBLIC INTEREST,
TAKING INTO CONSIDERATION SUCH FACTORS AS RATEPAYER IMPACTS, SYSTEM
RELIABILITY, ENVIRONMENTAL IMPACTS, CONSERVATION OF ENERGY RESOURCES,
PRESERVATION OR CREATION OF ECONOMIC OPPORTUNITIES, FUEL EFFICIENCY,
FUEL AVAILABILITY AND DIVERSITY, AND PUBLIC HEALTH AND WELFARE. EACH
ELECTRIC UTILITY CORPORATION SHALL PROVIDE PORTFOLIO MANAGEMENT SERVICES
TO ALL ELECTRIC CUSTOMERS WITHIN ITS SERVICE TERRITORY WHO DO NOT CHOOSE
TO RECEIVE ELECTRIC CAPACITY AND POWER SERVICE FROM ANOTHER PROVIDER.
FOR PURPOSES OF THIS SECTION, "PORTFOLIO MANAGEMENT SERVICE" SHALL MEAN
THE PROVISION OF RELIABLE ELECTRIC CAPACITY AND POWER SERVICES DERIVED
FROM A MIX OF SUPPLY-SIDE RESOURCES, INCLUDING LONG-TERM CONTRACTS, FOR
SUPPLY DELIVERY DATES GREATER THAN ONE YEAR, SHORT-TERM CONTRACTS, FOR
SUPPLY DELIVERY DATES WITHIN ONE YEAR, AND PURCHASES ON THE DAY-AHEAD
AND SPOT WHOLESALE MARKETS; DEMAND-SIDE RESOURCES; AND OTHER MECHANISMS
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00977-01-1
A. 5606 2
WHICH COLLECTIVELY REDUCE THE VOLATILITY OF WHOLESALE ELECTRICITY PRICES
AND MINIMIZE CUSTOMER BILLS. FOR PURPOSES OF THIS SECTION, "SUPPLY-SIDE
RESOURCES" SHALL INCLUDE CAPACITY AND ENERGY DERIVED FROM EXISTING
CENTRAL-STATION POWER PLANTS OR FROM PROPOSED CENTRAL-STATION POWER
PLANTS OR OTHER ELECTRIC GENERATING FACILITIES, INCLUDING RENEWABLE
ENERGY RESOURCES, WHICH DELIVER POWER TO THE TRANSMISSION AND/OR
DISTRIBUTION GRID. FOR PURPOSES OF THIS SECTION, "DEMAND-SIDE
RESOURCES" SHALL INCLUDE CAPACITY AND ENERGY DERIVED FROM CLEAN DISTRIB-
UTED GENERATION SOURCES, INCLUDING RENEWABLE ENERGY RESOURCES, LOAD
MANAGEMENT ACTIVITIES THAT CAN BE MONITORED THROUGH ACTIVITIES IN
ACCORDANCE WITH PROCEDURES ESTABLISHED BY THE NEW YORK POWER POOL OR ANY
SUCCESSOR ORGANIZATION, AND OTHER ENERGY EFFICIENCY ACTIVITIES, ABOVE
AND BEYOND ANY PROGRAMS FUNDED BY ELECTRIC UTILITY RATEPAYERS MANAGED BY
THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY. THIS
SERVICE DOES NOT INCLUDE OWNERSHIP AND OPERATION OF TRANSMISSION AND
DISTRIBUTION SYSTEMS.
2. WITHIN SIX MONTHS OF THE EFFECTIVE DATE OF THIS SECTION, EACH ELEC-
TRIC UTILITY CORPORATION SHALL SUBMIT TO THE COMMISSION FOR APPROVAL A
DRAFT PORTFOLIO MANAGEMENT SERVICE PLAN CONSISTING OF LONG-TERM AND
SHORT-TERM PLANS FOR ELECTRIC CAPACITY AND ENERGY PROCUREMENT AND THE
MIX OF SUPPLY-SIDE AND DEMAND-SIDE RESOURCES TO MEET FORECAST CAPACITY
AND ENERGY NEEDS. EACH ELECTRIC UTILITY CORPORATION SHALL ALSO PROVIDE
AN EXPLANATION HOW SUCH PLAN IS DESIGNED TO MODERATE POTENTIAL WHOLESALE
PRICE VOLATILITY. THE COMMISSION SHALL PROVIDE PUBLIC NOTICE OF EACH
DRAFT PORTFOLIO MANAGEMENT SERVICE PLAN AND SHALL PROVIDE OPPORTUNITIES
FOR PUBLIC COMMENT AND PUBLIC HEARING ON THE PLAN. FOLLOWING PUBLIC
COMMENT AND HEARING, THE COMMISSION SHALL APPROVE THE DRAFT PORTFOLIO
MANAGEMENT SERVICE PLAN UPON A FINDING THAT SUCH PLAN MEETS THE REQUIRE-
MENTS FOR PORTFOLIO MANAGEMENT SERVICE PLANS AS DESCRIBED IN SUBDIVISION
ONE OF THIS SECTION. THE COMMISSION SHALL HAVE AUTHORITY TO REQUIRE
EACH ELECTRIC CORPORATION TO CONDUCT COMPETITIVE BIDDING AUCTIONS OR
OTHER PROCUREMENT PROGRAMS FOR THE PURPOSE OF SATISFYING PORTFOLIO
MANAGEMENT SERVICE PLANS.
3. THE COMMISSION SHALL HAVE AUTHORITY TO PRESCRIBE GUIDELINES, RULES
AND REGULATIONS REGARDING THE PARTICIPATION OF UTILITY COMPANIES, THEIR
AFFILIATES, SUBSIDIARIES AND ANY OTHER CORPORATION OR PERSON IN PORTFO-
LIO MANAGEMENT SERVICES, INCLUDING COMPETITIVE BIDDING AUCTIONS, OR
REGARDING ANY OTHER METHOD OF ACQUIRING ELECTRIC CAPACITY AND POWER.
THE COMMISSION MAY, AFTER PUBLIC COMMENT AND EVIDENTIARY HEARING,
PROVIDE FOR PROVISION OF PORTFOLIO MANAGEMENT SERVICE TO CUSTOMERS IN AN
ELECTRIC UTILITY CORPORATION SERVICE TERRITORY BY AN ENTITY OTHER THAN
THE ELECTRIC DISTRIBUTION CORPORATION, THROUGH A COMPETITIVE BIDDING
AUCTION, SO LONG AS THE ENTITY SELECTED CAN MEET THE REQUIREMENTS OF THE
SECTION. ANY RULES, REGULATIONS, GUIDELINES AND DETERMINATIONS ADOPTED
OR ISSUED BY THE COMMISSION PERTAINING TO ACQUISITION OF ELECTRIC CAPAC-
ITY SHALL BE CONSISTENT WITH THE POLICY STATED IN THIS SECTION SHALL
ALSO REQUIRE ACQUISITIONS OF ELECTRIC CAPACITY TO BE REASONABLY CONSIST-
ENT WITH THE FORECASTS, POLICIES AND LONG-RANGE PLANNING OBJECTIVES AND
STRATEGIES CONTAINED IN THE MOST RECENT FINAL STATE ENERGY PLAN OR ANY
SUBSEQUENT UPDATE, PROVIDED, HOWEVER, THAT ANY DETERMINATION MADE BY THE
COMMISSION UNDER THIS SECTION THAT IS NOT REASONABLY CONSISTENT WITH THE
PLAN SHALL BE DEEMED IN COMPLIANCE WITH THIS SECTION, PROVIDED THAT SUCH
DETERMINATION BY THE COMMISSION INCLUDES A FINDING THAT THE ELEMENT OF
THE PLAN IS NO LONGER REASONABLE OR PROBABLE BASED ON A MATERIAL AND
SUBSTANTIAL CHANGE IN FACT OR CIRCUMSTANCE, AND A STATEMENT EXPLAINING
THE BASIS FOR THIS FINDING.
A. 5606 3
4. THE COMMISSION SHALL ESTABLISH, AFTER PUBLIC COMMENT AND EVIDENTI-
ARY HEARINGS, REGULATIONS FOR PERFORMANCE-BASED REWARDS AND PENALTIES
THAT REFLECT THE EXTENT TO WHICH THE PORTFOLIO MANAGEMENT SERVICE PLAN
PROVIDED BY EACH ELECTRIC UTILITY MINIMIZES CUSTOMER ELECTRIC BILLS AND
THE VOLATILITY OF ELECTRICITY PRICES.
5. BOARDS OF STATE OR MUNICIPALLY OWNED UTILITIES WILL REMAIN RESPON-
SIBLE FOR PORTFOLIO MANAGEMENT SERVICES AND ANY ALTERNATIVE CHOICES
AVAILABLE TO CUSTOMERS OF THESE UTILITIES.
S 2. Section 1020-f of the public authorities law, as added by chapter
517 of the laws of 1986, is amended by adding a new subdivision (bb) to
read as follows:
(BB) TO DEVELOP, WITH PUBLIC COMMENT AND HEARING, PORTFOLIO MANAGEMENT
SERVICES, FOR ALL CUSTOMERS WHO DO NOT ELECT TO TAKE GENERATION SERVICES
FROM AN ALTERNATE POWER SUPPLIER, IN ACCORDANCE WITH THE PROVISIONS OF
SUBDIVISION ONE OF SECTION SIXTY-SIX-I OF THE PUBLIC SERVICE LAW.
S 3. This act shall take effect immediately.