senate Bill S6388

2013-2014 Legislative Session

Relates to mandating the public service commission to establish a smart metering pilot program

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 20, 2014 committed to rules
Feb 26, 2014 advanced to third reading
Feb 11, 2014 2nd report cal.
Feb 10, 2014 1st report cal.157
Jan 21, 2014 referred to energy and telecommunications

Votes

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Feb 10, 2014 - Energy and Telecommunications committee Vote

S6388
9
0
committee
9
Aye
0
Nay
1
Aye with Reservations
0
Absent
0
Excused
0
Abstained
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Energy and Telecommunications Committee Vote: Feb 10, 2014

aye wr (1)

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S6388 - Bill Details

See Assembly Version of this Bill:
A8506
Current Committee:
Senate Rules
Law Section:
Public Service Law
Laws Affected:
Add Art 12 ยงยง250 - 255, Pub Serv L

S6388 - Bill Texts

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Relates to mandating the public service commission to establish a smart metering pilot program.

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BILL NUMBER:S6388

TITLE OF BILL: An act to amend the public service law, in relation to
mandating the public service commission to establish a smart metering
pilot program

Purpose:

To mandate the Public Service Commission to establish a smart meter
pilot program ("Pilot") in order to evaluate the benefits that smart
metering can provide.

Summary of Specific Provisions:

The bill adds new provisions to Article 12 of the Public Service Law,
including: Section 250 to direct the Public Service Commission to
establish a smart metering Pilot; Section 251 to define key terms;
Section 252 to charge the utilities with implementing the Pilot;
Section 253 to force the Commission to consider cost, environmental
and economic factors in establishing the Pilot; Section 253 also
requires the utilities to furnish technical information to the
Commission and to make consumer privacy a top priority, as well as to
provide notice to affected customers; Section 254 covers the
installation of smart meters, and provides any residential customer on
whose home a smart meter of other two-way meter has or will be
installed, whether past of the Pilot or not, the option to "opt-out"
of receiving smart meter or two-way meter; Section 255 provides for
reasonable utility cost recovery.

Existing Law:

Public Service Law does not currently address smart meters or pilot
projects.

Justification:

Smart meter technology holds tremendous potential benefits for both
residential energy consumers and utilities. Not only could smart
metering reduce monthly residential electricity bills, but by shifting
energy consumption to off-peak periods, smart meters can help reduce
stress on the electrical generating facilities, transmission lines,
and the national electrical grid. This would help prevent blackouts,
reduce statewide energy costs, and create environmental benefits.
Smart grid technologies can aid in combating climate change by
promoting utilization of renewable resources, as well as by helping to
improve electric system reliability and efficiency. This bill is in
furtherance of the Public Service Commission's 2011 Smart Grid Policy
Statement, which outlined how New York will fulfill its obligation to
modernize the electrical grid. The Policy Statement offered
guidelines but was scant in detail and timeframes. By mandating smart
grid demonstration programs, the Commission will evaluate the
cost/benefit of statewide residential smart meter implementation. This
bill also promotes freedom of choice by providing an "opt-out" for
consumers who do not wish to have smart meters placed on their
property.

Fiscal Implications:


None

Legislative History:

New Bill

Effective Date:

Immediately

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

                                  6388

                            I N  S E N A T E

                            January 21, 2014
                               ___________

Introduced  by  Sens. MAZIARZ, PARKER -- read twice and ordered printed,
  and when printed to be committed to the Committee on Energy and  Tele-
  communications

AN  ACT  to  amend  the public service law, in relation to mandating the
  public service commission to establish a smart metering pilot program

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative intent. The legislature hereby finds that it is
in  the economic and environmental interest of the citizens of the state
of New York to create a smart  meter  pilot  program  ("pilot  program")
under  the  direction  of  the  New York state public service commission
("the commission"). The pilot program is  the  first  concrete  step  in
realizing  the economic, environmental, health, and safety benefits that
smart meter technology has promised.
  Smart meters empower customers to reduce their energy costs by provid-
ing real-time pricing information, and will  help  the  state  meet  its
energy  efficiency  goals  in  a  way  that reduces costs for all energy
users.
  Given extreme weather events and natural disasters in New York, utili-
ties have had to respond to an increasing number of power outages. Smart
meters can provide both the state and the utilities a powerful tool that
aids them in pinpointing outages quickly and accurately.  Such technolo-
gy promotes the state's goal of minimizing  public  health  impacts  and
improving the reliability of the state's energy systems.
  The  legislature  believes that a public service commission proceeding
is the best venue to discuss and determine the technical aspects of grid
modernization, including health and  safety  concerns.  The  legislature
also,  however,  wishes  to promote a policy whereby residential utility
customers have the right to choose the type of meter that is  placed  on
their  premises.  Within the territory where the pilot program or use of
any other two-way meter capable of sending and receiving electronic data
anywhere within the state is to  take  place,  the  responsible  utility
shall  offer an "opt-out" provision whereby a customer has the choice to
retain their old meter so long as they pay a reasonable fee.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13546-01-4

S. 6388                             2

  S 2. The public service law is amended by adding a new article  12  to
read as follows:
                               ARTICLE 12
                        SMART METER PILOT PROGRAM
SECTION 250. CREATION OF SMART METER PILOT PROGRAM.
        251. DEFINITIONS.
        252. IMPLEMENTATION OF PILOT PROGRAM.
        253. PILOT PROGRAM; CONSIDERATIONS BY COMMISSION.
        254. INSTALLATION OF SMART METERS.
        255. COST-RECOVERY.
  S  250.  CREATION  OF  SMART METER PILOT PROGRAM. THE COMMISSION SHALL
COMMENCE A PROCEEDING TO ESTABLISH A STATEWIDE SMART METER PILOT PROGRAM
("PILOT" OR "PILOT PROGRAM"). THE RULES AND REQUIREMENTS  OF  THE  PILOT
PROGRAM  SHALL BE ESTABLISHED WITHIN TWENTY-FOUR MONTHS OF THE EFFECTIVE
DATE OF THIS ARTICLE. THE PILOT PROGRAM WILL BE DESIGNED TO PROVIDE  THE
COMMISSION WITH INFORMATION TO DETERMINE THE BEST USE OF THIS TECHNOLOGY
FOR  THE  BENEFIT  OF  RATEPAYERS AND THE STATE'S ENERGY INFRASTRUCTURE.
THE COMMISSION SHALL ALLOW THE UTILITIES REASONABLE  COST  RECOVERY  FOR
THE PILOT PROGRAM UNDER A SEPARATE PROCEEDING.
  S  251.  DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS ARE
DEFINED AS FOLLOWS:
  1. "SMART  METERS"  ARE  DEFINED  AS  METERS  THAT  RECORD  ELECTRICAL
CONSUMPTION  IN  REAL-TIME  OR OVER SHORT INTERVALS AND COMMUNICATE SUCH
INFORMATION TO THE UTILITY THROUGH A TWO-WAY INFORMATION EXCHANGE.
  2. "UTILITY" IS DEFINED AS ANY ELECTRIC UTILITY WITH  ANNUAL  REVENUES
IN  EXCESS  OF TWO HUNDRED MILLION DOLLARS FROM SERVICES PROVIDED TO ITS
CUSTOMERS.
  S 252. IMPLEMENTATION OF PILOT PROGRAM. 1. A  PILOT  PROGRAM,  AS  SET
FORTH  IN  THIS  ARTICLE,  SHALL BE IMPLEMENTED BY EACH ELECTRIC UTILITY
THAT MAINTAINS A SERVICE AREA WITHIN NEW YORK STATE.    THE  PILOT  MUST
COMPRISE A MINIMUM OF ONE PERCENT OF THE UTILITY'S CUSTOMERS IN ORDER TO
PROVIDE  ADEQUATE SAMPLE SIZE.  EACH UTILITY CHARGED WITH IMPLEMENTING A
PILOT PROGRAM SHALL, WITHIN FORTY-EIGHT MONTHS OF THE EFFECTIVE DATE  OF
THIS  ARTICLE,  PROVIDE  THE RESULTS OF THE PILOT PROGRAM TO THE COMMIS-
SION. THE COMMISSION SHALL, IN ITS INITIAL PROCEEDING,  DICTATE  TO  THE
UTILITIES  WHAT  INFORMATION  MUST BE FURNISHED FROM EACH UTILITY TO THE
COMMISSION WITH RESPECT TO THE PILOT.
  2. AFTER THE COMMISSION RECEIVES ITS PILOT PROGRAM  REPORTS  FROM  THE
UTILITIES,  IT  SHALL ISSUE A REPORT OF ITS EVALUATION OF THE PILOT. THE
REPORT MUST BE PUBLISHED WITHIN FIFTY-FOUR MONTHS OF THE EFFECTIVE  DATE
OF THIS ARTICLE. A COPY OF THE REPORT MUST BE FURNISHED TO THE TEMPORARY
PRESIDENT  OF  THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE CHAIR OF THE
SENATE ENERGY AND TELECOMMUNICATIONS COMMITTEE  AND  THE  CHAIR  OF  THE
ASSEMBLY  ENERGY  COMMITTEE.  THE REPORT SHALL ALSO BE MADE AVAILABLE TO
THE PUBLIC ON THE COMMISSION'S WEBSITE.
  S 253. PILOT PROGRAM; CONSIDERATIONS BY COMMISSION. 1. IN ESTABLISHING
THE PILOT PROGRAM, THE COMMISSION MUST CONSIDER THE FOLLOWING:
  (A) THE COST OF THE PILOT PROGRAM,  INCLUDING  PROPOSED  BENEFITS  AND
COST-SAVINGS;
  (B) THE BURDEN OR BENEFIT THAT A SMART METER PROGRAM WOULD HAVE ON THE
GRID;
  (C)  THE EXPECTED LIFE OF THE CAPITAL INVESTMENTS AND COSTS OF MAINTE-
NANCE OF THE PILOT;
  (D) THE EXPECTED "PAYBACK" OR AMORTIZATION PERIOD FOR CAPITAL  INVEST-
MENTS OF THE PILOT;

S. 6388                             3

  (E) ANY ENVIRONMENTAL AND/OR GRID-RESILIENCY BENEFITS OF SMART METERS;
AND
  (F)  ANYTHING  ELSE THE COMMISSION DEEMS APPROPRIATE UNDER THE CIRCUM-
STANCES.
  2. UPON REQUEST OF THE COMMISSION, EACH UTILITY SHALL PROVIDE  TO  THE
COMMISSION A STATEMENT INCLUDING:
  (A)  THE  AMOUNT  AND TYPE OF METERS CURRENTLY IN OPERATION WITHIN ITS
SERVICE TERRITORY;
  (B) THE ESTIMATED COST OF COMPLYING WITH THE PROPOSED PILOT, INCLUDING
CUSTOMER COST-SAVINGS;
  (C) OTHER BENEFITS AND DETRIMENTS OF THE PROPOSED PILOT; AND
  (D) ANYTHING ELSE THE COMMISSION DEEMS APPROPRIATE AND  NECESSARY  FOR
IMPLEMENTING THE PILOT.
  3.  IN ORDER TO FUND THE PILOT PROGRAM, THE COMMISSION SHALL AUTHORIZE
REASONABLE  COST-RECOVERY  IN  ACCORDANCE  WITH  SECTION   TWO   HUNDRED
FIFTY-FIVE OF THIS ARTICLE.
  4.  THE PILOT PROGRAM MUST ADDRESS CUSTOMER PRIVACY, AND MUST INCLUDE,
BUT IS NOT LIMITED TO, THE FOLLOWING CONSIDERATIONS:
  (A) WHAT INFORMATION IS GATHERED FROM THE CUSTOMER;
  (B) BY WHOM IT IS READ;
  (C) WHERE/HOW THE INFORMATION IS TRANSMITTED AND STORED;
  (D) LENGTH OF TIME THAT THE UTILITY CAN HOLD THE HOME'S USAGE INFORMA-
TION;
  (E) WHEN AND  HOW  THE  CUSTOMER'S  INFORMATION  WILL  BE  PERMANENTLY
DELETED;
  (F) WHETHER SUCH INFORMATION IS RECOVERABLE UNDER FOIL;
  (G) WHETHER SUCH INFORMATION WILL BE MADE AVAILABLE IN CRIMINAL INVES-
TIGATIONS  AND  WHETHER  THE  SHERIFF'S  OFFICE  MAY GAIN ACCESS TO SUCH
INFORMATION, INCLUDING THE PROCEDURE FOR OBTAINING SUCH RECORDS; AND
  (H) ANYTHING ELSE THAT THE COMMISSION DEEMS APPROPRIATE AND NECESSARY.
  5. EACH UTILITY MUST NOTIFY ALL CUSTOMERS WHO MAY BE AFFECTED  BY  THE
PILOT PROGRAM OF THE FOLLOWING:
  (A) AN EXPLANATION OF THE SMART METER PROGRAM;
  (B) CUSTOMER RIGHTS UNDER THE SMART METER PROGRAM;
  (C) THE RIGHT TO OPT-OUT;
  (D) INFORMATION ON THE RADIO FREQUENCY USED IN SMART METERS;
  (E) AN EXPLANATION OF SMART METER TECHNOLOGY PRIVACY CONCERNS;
  (F) THE BENEFITS/PURPOSE OF THE SMART METERING PROGRAM; AND
  (G) ANYTHING ELSE THE COMMISSION DEEMS NECESSARY AND APPROPRIATE.
  S  254. INSTALLATION OF SMART METERS.  1. ANY RESIDENTIAL CUSTOMER WHO
OWNS PROPERTY ON WHICH A SMART METER OR ANY OTHER TWO-WAY METER HAS BEEN
INSTALLED WHETHER THROUGH A PILOT PROGRAM OR OTHERWISE MAY REQUEST,  FOR
A  REASONABLE  FEE  TO  BE  DETERMINED  BY  THE COMMISSION IN A SEPARATE
PROCEEDING, THAT THE UTILITY REMOVE THE SMART METER AND REPLACE IT  WITH
A  DIGITAL,  NON-COMMUNICATING  METER.  AS  LONG  AS THE SMART METER WAS
INITIALLY INSTALLED AT THE DISCRETION AND EXPENSE OF THE UTILITY  COMPA-
NY,  AND  WAS  DONE WITHOUT THE WRITTEN AUTHORIZATION OF THE RESIDENTIAL
CUSTOMER, SUCH REQUEST WILL NOT BE UNREASONABLY DENIED  BY  THE  UTILITY
COMPANY,  AND  ANY DENIAL OF SUCH REQUEST WILL BE ACCOMPANIED BY WRITTEN
JUSTIFICATION. PURSUANT TO SECTION TWO HUNDRED FIFTY-FIVE OF THIS  ARTI-
CLE, THE UTILITY COMPANY MAY REQUIRE A REASONABLE FEE ("OPT-OUT FEE") TO
REPLACE A SMART METER WITH A NON-SMART METER. THE REASONABLE FEE WILL BE
BASED  ON,  AMONG  OTHER THINGS, THE LOCATION OF THE PREMISES, AND OTHER
REQUIREMENTS AS DETERMINED BY THE COMMISSION, AND WILL  INCLUDE  BOTH  A
ONE-TIME REPLACEMENT FEE AND A MONTHLY SERVICE FEE.

S. 6388                             4

  2.  ANY RESIDENTIAL CUSTOMER WITHIN THE SERVICE TERRITORY OF A UTILITY
THAT HAS ADOPTED A SMART METER INSTALLATION PROGRAM,  IS  INSTALLING  OR
HAS  INSTALLED  SMART  METERS  OR ANY OTHER TWO-WAY METER, OR INTENDS TO
INSTALL SMART METERS, HAS THE RIGHT TO BE NOTIFIED  IN  WRITING  OF  ANY
SMART  METER  UPGRADES/REPLACEMENTS OR INSTALLATIONS AT LEAST SIXTY DAYS
PRIOR TO THE EARLIEST POSSIBLE INSTALLATION OF SAME.
  (A) SUCH WRITTEN NOTIFICATION SHALL CONTAIN ALL  INFORMATION  REQUIRED
TO  BE  DISCLOSED  PURSUANT TO THIS SECTION AND SHALL CONTAIN A BOLD AND
CONSPICUOUS "OPT-OUT" OPTION EXEMPTING THE RESIDENTIAL CUSTOMER FROM THE
PROGRAM FREE OF CHARGE.
  (B) IF A PERSON CHOOSES TO "OPT-OUT" OF RECEIVING A SMART  METER,  THE
UTILITY IS PROHIBITED FROM CONTACTING THAT SAME CUSTOMER REGARDING SMART
METER INSTALLATION FOR A PERIOD OF TWO YEARS.
  (C)  HOWEVER,  IF A RESIDENTIAL CUSTOMER WHO "OPTS-OUT" OF RECEIVING A
SMART METER INSTALLATION THEN MOVES, RELOCATES,  CHANGES  RESIDENCE,  OR
DIES,  THEN  THE  PROHIBITION  ON  INSTALLATION OF A SMART METER AT THAT
PREMISES SHALL BE IMMEDIATELY VOIDED.
  (D) FURTHER, IN THE EVENT THAT A RESIDENTIAL CUSTOMER WHO HAS  "OPTED-
OUT"  WISHES TO RELOCATE TO A PREMISES ON WHICH A SMART METER IS ALREADY
OPERATING, SUCH RESIDENTIAL CUSTOMER SHALL MAKE A NEW REQUEST  THAT  THE
SMART METER BE REPLACED, AND MUST RE-PAY THE REASONABLE FEE.
  (E)  THE  COMMISSION IS AUTHORIZED TO CONSIDER A DISCOUNT OR WAIVER OF
THE FEES MENTIONED IN THIS SECTION IF IT DETERMINES THAT THE CUSTOMER IS
WITHIN A VULNERABLE CLASS, INCLUDING CUSTOMERS WHO ARE VETERANS  OR  ARE
UNABLE TO AFFORD THE OPT-OUT FEES.
  3. SUBDIVISIONS ONE AND TWO OF THIS SECTION SHALL NOT AFFECT ANY UTIL-
ITY'S  EXISTING  RIGHTS EXCEPT AS TO SMART METERS THAT HAVE ALREADY BEEN
INSTALLED.
  S  255.  COST-RECOVERY.  THE  COMMISSION  SHALL  COMMENCE  A  SEPARATE
PROCEEDING  TO ALLOW REASONABLE COST-RECOVERY FOR UTILITIES TO IMPLEMENT
THE PILOT PROGRAM AS SET FORTH IN THIS ARTICLE.  ANY COST  RECOVERY  FEE
OR FEES SHALL BE DETERMINED BY THE COMMISSION.
  S 3. This act shall take effect immediately.

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