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

                                  8065

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              June 5, 2015
                               ___________

Introduced  by M. of A. RUSSELL -- read once and referred to the Commit-
  tee on Energy

AN ACT to amend  the  public  service  law,  in  relation  to  long-term
  contracts for renewable energy

  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-o to read as follows:
  S  66-O. LONG-TERM CONTRACTS FOR RENEWABLE ENERGY. 1. DEFINITIONS.  AS
USED IN THIS SECTION THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING  MEAN-
INGS:
  (A) "ELIGIBLE RESOURCE" MEANS A SOURCE OF ELECTRICAL GENERATION THAT:
  (I)  GENERATES POWER THAT IS WITHIN OR DELIVERED TO THE CONTROL REGION
OF THE NEW YORK INDEPENDENT SYSTEM OPERATOR;
  (II) IS A RENEWABLE ENERGY RESOURCE; AND
  (III) DOES NOT CURRENTLY HAVE A LONG-TERM CONTRACT WITH THE STATE.
  (B) "RENEWABLE ENERGY RESOURCE" SHALL HAVE THE  SAME  MEANING  AS  SET
FORTH IN SUBDIVISION TWELVE OF SECTION 1-103 OF THE ENERGY LAW.
  (C) "RENEWABLE ENERGY CREDIT" MEANS A TRADABLE INSTRUMENT THAT REPRES-
ENTS  AN  AMOUNT  OF  ELECTRICITY  GENERATED  FROM ELIGIBLE RESOURCES OR
RENEWABLE ENERGY RESOURCES.
  (D) "LONG-TERM CONTRACT" MEANS A CONTRACT WITH  AN  ELECTRIC  AND  GAS
CORPORATION FOR A PERIOD OF UP TO TWENTY YEARS.
  2.  COMMISSION  AUTHORITY.  THE COMMISSION MAY DIRECT ELECTRIC AND GAS
CORPORATIONS TO ENTER INTO LONG-TERM CONTRACTS FOR ENERGY, CAPACITY  AND
RENEWABLE  ENERGY  CREDITS  WITH  ELIGIBLE  RESOURCES. AT A MINIMUM, THE
COMMISSION SHALL PROCURE TWO PERCENT OF THE STATE'S ANNUAL RETAIL  ELEC-
TRICITY LOAD BY TWO THOUSAND SIXTEEN, FOUR PERCENT BY TWO THOUSAND EIGH-
TEEN, AND SIX PERCENT BY TWO THOUSAND TWENTY.
  3.  PRIORITY OF LONG-TERM CONTRACTS. IN SELECTING ENERGY, CAPACITY AND
RENEWABLE ENERGY CREDITS FOR CONTRACTING PURSUANT TO SUBDIVISION TWO  OF

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11416-01-5
              

A. 8065                             2

THIS  SECTION,  THE COMMISSION SHALL PRIORITIZE LONG-TERM CONTRACTS WITH
ELIGIBLE RESOURCES THAT THE COMMISSION DETERMINES WILL  MAXIMIZE  FINAN-
CIAL BENEFITS TO ELECTRICITY CUSTOMERS, PROVIDE A HEDGE AGAINST VOLATILE
FOSSIL FUEL PRICES, AND CREATE OR MAINTAIN PROPERTY TAXES AND EMPLOYMENT
IN THE STATE OF NEW YORK.
  4. CONTRACT TERM. A CONTRACT ENTERED INTO PURSUANT TO THIS SECTION MAY
NOT BE FOR A TERM OF MORE THAN TWENTY YEARS, UNLESS THE COMMISSION FINDS
A  CONTRACT  FOR A LONGER TERM WOULD PROVIDE SIGNIFICANTLY GREATER RATE-
PAYER BENEFITS.
  5. COMPETITIVE SOLICITATION  PROCESS  AND  CONTRACT  NEGOTIATION.  THE
COMMISSION  SHALL  ESTABLISH A SCHEDULE FOR ANNUAL COMPETITIVE SOLICITA-
TIONS FOR LONG-TERM CONTRACTS PURSUANT TO THIS  SECTION.  THIS  SCHEDULE
MUST  INCLUDE A TIMELINE FOR NEGOTIATION, COMMISSION DECISION MAKING AND
CONTRACT CLOSING.
  6. DISPOSITION OF RESOURCES. AN ELECTRIC  AND  GAS  CORPORATION  SHALL
SELL  ENERGY,  CAPACITY  OR  OTHER  PRODUCTS  PURCHASED PURSUANT TO THIS
SECTION OR TAKE OTHER ACTION RELATIVE TO SUCH ENERGY, CAPACITY OR  OTHER
PRODUCTS AS DIRECTED BY THE COMMISSION.
  7.  COST  RECOVERY.  THE  COMMISSION  SHALL  ENSURE THAT ALL COSTS AND
DIRECT FINANCIAL BENEFITS ASSOCIATED WITH CONTRACTS ENTERED  INTO  UNDER
THIS  SECTION ARE ALLOCATED TO RATEPAYERS. A PRICE DIFFERENTIAL EXISTING
AT ANY TIME DURING THE TERM OF THE CONTRACT BETWEEN THE  CONTRACT  PRICE
AND THE PREVAILING MARKET PRICE AT WHICH THE ENERGY, CAPACITY AND RENEW-
ABLE  ENERGY  CREDITS  ARE  SOLD  OR  ANY  GAINS  OR LOSSES DERIVED FROM
CONTRACTS FOR DIFFERENCES MUST BE REFLECTED IN THE  AMOUNTS  CHARGED  TO
RATEPAYERS AND MAY NOT BE CONSIDERED IMPRUDENT.
  8.  CONTRACT  PAYMENTS.  LONG-TERM  CONTRACTS ENTERED INTO PURSUANT TO
THIS SECTION  MUST  PROVIDE  THAT  PAYMENTS  WILL  BE  MADE  ONLY  AFTER
CONTRACTED  AMOUNTS  OF  ENERGY,  CAPACITY  OR  OTHER PRODUCTS HAVE BEEN
PROVIDED.
  9. CUSTOMER BENEFITS. THE COMMISSIONER MAY  DIRECT  ELECTRIC  AND  GAS
CORPORATIONS  TO  ENTER INTO CONTRACTS UNDER THIS SECTION ONLY AS AGENTS
FOR THEIR CUSTOMERS. THE COMMISSION SHALL ADOPT RULES TO ENSURE THAT  TO
THE  EXTENT  THE  BENEFITS  TO  RATEPAYERS  OF  A LONG-TERM CONTRACT ARE
PROJECTED TO OCCUR IN THE LATER YEARS OF  THE  CONTRACT  TERM,  ADEQUATE
FINANCIAL  SECURITY IS IN PLACE SO THAT IT IS REASONABLY LIKELY RATEPAY-
ERS WILL OBTAIN THE PROJECTED BENEFITS OF THE LONG-TERM CONTRACT.
  10. RULES AND REGULATIONS. THE COMMISSION SHALL ADOPT RULES AND  REGU-
LATIONS  TO  IMPLEMENT  THIS SECTION. IN ADOPTING RULES AND REGULATIONS,
THE COMMISSION SHALL CONSIDER THE FINANCIAL IMPLICATIONS OF THIS SECTION
ON ELECTRIC AND GAS CORPORATIONS.
  S 2. This act shall take effect immediately.