S T A T E O F N E W Y O R K
________________________________________________________________________
1337--B
2013-2014 Regular Sessions
I N S E N A T E
(PREFILED)
January 9, 2013
___________
Introduced by Sens. MAZIARZ, RITCHIE -- read twice and ordered printed,
and when printed to be committed to the Committee on Energy and Tele-
communications -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee -- 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.
LBD02300-03-3
S. 1337--B 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. 1337--B 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 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 FOURTEEN AND ANNUALLY THEREAFTER.
S 3. This act shall take effect immediately.