S T A T E O F N E W Y O R K
________________________________________________________________________
1980
2011-2012 Regular Sessions
I N S E N A T E
January 14, 2011
___________
Introduced by Sen. GIANARIS -- 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 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. Subdivision 19 of section 66 of the public service law, as
added by chapter 556 of the laws of 1976 and the closing paragraph as
added by chapter 586 of the laws of 1986, is amended to read as follows:
19. 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 companies, 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 and an evaluation of the efficiency of the company's operations.
THE AUDIT SHALL INCLUDE INDEPENDENT VERIFICATION OF THE INFORMATION
PROVIDED BY THE COMPANY. The commission shall have discretion to have
such audits performed by its staff, or by independent auditors. UPON
COMPLETION, COPIES OF THE AUDITS SHALL BE PROVIDED TO THE GOVERNOR,
SPEAKER OF THE ASSEMBLY, THE TEMPORARY PRESIDENT OF THE SENATE, THE
CHAIR OF THE SENATE FINANCE COMMITTEE, THE CHAIR OF THE ASSEMBLY WAYS
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05112-01-1
S. 1980 2
AND MEANS COMMITTEE, THE CHAIR OF THE ASSEMBLY ENERGY COMMITTEE AND THE
CHAIR OF THE SENATE ENERGY AND TELECOMMUNICATIONS COMMITTEE.
In every case in which the commission chooses to have the audit
provided for in this subdivision 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.
The commission shall have authority to direct the company to implement
any recommendations resulting from such audits that it finds to be
necessary and reasonable.
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.
S 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law. 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.