S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1998
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 17, 2017
                                ___________
 
 Introduced by M. of A. HEVESI -- read once and referred to the Committee
   on Energy
 
 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

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

                                                            LBD02653-01-7

 A. 1998                             2
 
 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.
   §  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.
   § 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.
   § 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.
   §  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.
   § 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;

 A. 1998                             3
 
   (D)  THE EXPECTED "PAYBACK" OR AMORTIZATION PERIOD FOR CAPITAL INVEST-
 MENTS OF THE PILOT;
   (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.
   §  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

 A. 1998                             4
 
 REQUIREMENTS AS DETERMINED BY THE COMMISSION, AND WILL  INCLUDE  BOTH  A
 ONE-TIME REPLACEMENT FEE AND A MONTHLY SERVICE FEE.
   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.
   §  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.
   § 3. This act shall take effect immediately.