BILL NUMBER:S7507

TITLE OF BILL:  An act to establish the "capacity zone" task force and
providing for the repeal of such provisions upon expiration thereof

PURPOSE:  Establishes the capacity zone task force to develop and
implement a conservation plan for Westchester, NYC and LI to alleviate
the need for the new capacity zone

SUMMARY OF PROVISIONS:

Section 1 establishes the capacity zone task force and outlines its
composition

Section 2 details the role of the task force and that it includes, but
is not limited to, creating and implementing a conservation plan to
reduce electricity demand in Nassau, Suffolk, Westchester, and the
City of New York

Section 3 states that the funding for the capacity zone task force and
implementation of the plan will come from the system benefits charge

Section 4 sets into statute that the task force must complete the
conservation plan within ninety days of the effective date and the
implementation of the plan shall begin one hundred eighty days after
the effective date and be completed within one and a half years of the
              

effective date

Section 5 sets an immediate effective date and sets an expiration for
the task force of three years from the effective date

JUSTIFICATION:  After failing to thoroughly study the development and
implementation of a comprehensive statewide conservation program, FERC
has allowed NYSIO to create a new capacity zone in southeastern New
York that would mandate local utility providers to purchase energy
resources from producers within a specific geographic region. The new
capacity zone has the potential to cost residential, commercial, and
industrial customers in the lower Hudson Valley up to $350 million in
additional electric bills. If unchecked, the new capacity zone will
drive families and businesses out of the state due to unbearable
costs.

One of the biggest failures of the new capacity zone is the lack of
consideration for energy conservation. The justification for the
capacity zone is the 894 megawatts (MW) bottleneck in the electric
transmission system located north of the Mid-Hudson Valley that
constrains electric supply to Westchester and greater New York City
area; comes from a transmission bottleneck of in New York City and
Long Island. An effective and sustainable energy conservation plan
that saves 1,200 megawatts or more will eliminate the need for new
energy resources to cover this impending shortage. Other states such
as California, they have faced this challenge and responded through
comprehensive conservation and efficiency efforts. If New York State
took similar measures, our savings could be from 1,100 to 2,100
megawatts of generating capacity. With newer, more efficient
technologies, New York would certainly be able to eliminate the 894 MW


bottleneck through conservation without the need for a new capacity
zone.

The capacity zone task force has defined goals and deadlines for real
action to provide a comprehensive conservation plan that will prevent
utility bill increases for many New Yorkers. The state must work with
Nassau, Suffolk, Westchester, and the City of New York to reduce
energy consumption instead of raising the cost of energy for residents
of the Hudson Valley and Upstate New York.

LEGISLATIVE HISTORY: This is a new bill.

EFFECTIVE DATE:  This act shall take effect immediately.