LBD12057-06-0
A. 11120 2
ing factor in bringing about a death or personal injury, forfeit to the
state of New York a sum [not to exceed the greater of:
(a) two hundred and fifty thousand dollars constituting a civil penal-
ty for each separate and distinct offense; provided, however, that for
purposes of this paragraph each day of a continuing violation shall not
be deemed a separate and distinct offense. The total period of a contin-
uing violation, as well as every distinct violation, shall be similarly
treated as a separate and distinct offense for purposes of this para-
graph; or
(b) the maximum forfeiture determined in accordance with subdivision
two of this section.
4. Notwithstanding the provisions of subdivision one or two of this
section, a public utility company, corporation or person and the offi-
cers, agents and employees thereof that knowingly fails or neglects to
obey or comply with a provision of this chapter, or an order or regu-
lation adopted under authority of this chapter, designed to protect the
overall reliability and continuity of electric service, shall forfeit to
the state of New York a sum not to exceed the greater of:
(a) five hundred thousand dollars constituting a civil penalty for
each separate and distinct offense; provided, however, that for purposes
of this paragraph each day of a continuing violation shall not be deemed
a separate and distinct offense. The total period of a continuing
violation, as well as every distinct violation, shall be similarly
treated as a separate and distinct offense for purposes of this para-
graph; or
(b) the maximum forfeiture determined in accordance with subdivision
two of this section.] FIXED BY THE PUBLIC SERVICE COMMISSION, AFTER
CONSIDERING THE FOLLOWING:
(A) THE SCOPE OF DAMAGES CAUSED BY THE VIOLATION, TO CONSUMERS, BUSI-
NESSES AND THE STATE;
(B) EACH INDIVIDUAL ACT OR OMISSION WHICH LED TO THE VIOLATION;
(C) WHETHER THE VIOLATION WAS WILLFUL;
(D) WHETHER THE VIOLATION WAS RECURRING, OR HAD BEEN THE SUBJECT OF A
PREVIOUS FINDING BY THE COMMISSION;
(E) THE ECONOMIC DAMAGE ASSOCIATED WITH THE VIOLATION, TO RATEPAYERS
IN THE FORM OF FUTURE INVESTMENTS THAT MUST BE MADE TO THE INFRASTRUC-
TURE WEAKENED OR DAMAGED IN THE EVENT, WHICH WAS IN THE ESTIMATION OF
THE COMMISSION PREVENTABLE; AND
(F) WHETHER THE VIOLATION WAS CAUSED IN WHOLE OR IN PART DUE TO THE
SYSTEMATIC FAILURE OF THE ENTITY TO MAINTAIN OR REPLACE OBSOLETE OR
DETERIORATED MATERIALS OR EQUIPMENT.
4. A PUBLIC UTILITY COMPANY, CORPORATION OR PERSON AND THE OFFICERS,
AGENTS AND EMPLOYEES THEREOF SHALL FORFEIT TO THE STATE OF NEW YORK A
SUM ASSESSED BY THE COMMISSION FOR THE PURPOSES OF PROVIDING RESIDENTIAL
CONSUMER RELIEF RELATED TO THE LOSS OF PERSONAL PROPERTY, NOT TO EXCEED
FIVE HUNDRED DOLLARS PER HOUSEHOLD, AND/OR AN AMOUNT SPECIFIED BY THE
COMMISSION PURSUANT TO AN ORDER MAY BE REQUIRED TO SET ASIDE FOR RELIEF
FOR COMMERCIAL, INDUSTRIAL OR GOVERNMENTAL CUSTOMERS OF THE UTILITY
WHICH MAY BE AVAILABLE AS BILL CREDITS FOR PARTICULAR CASES WHERE THERE
WAS SIGNIFICANT DAMAGES, IN THE EVENT OF CONTINUED SERVICE OUTAGES WHICH
CONSTITUTE A VIOLATION OF SUCH COMPANY'S, CORPORATION'S, OR PERSON'S
EMERGENCY RESPONSE PLAN SUBMITTED PURSUANT TO SECTION SIXTY-SIX OF THIS
CHAPTER. ALL MONEYS RECOVERED PURSUANT TO THIS SUBDIVISION, TOGETHER
WITH THE COSTS THEREOF, SHALL BE REMITTED TO, OR FOR THE BENEFIT OF, THE
RATEPAYERS IN A MANNER TO BE DETERMINED BY THE COMMISSION.
A. 11120 3
5. Penalties provided for pursuant to this section shall be recovered
in an action as provided in section twenty-four of this article.
6. Any payment made by a public utility company, corporation or person
and the officers, agents and employees thereof as a result of an action
as provided in section twenty-four of this article and the cost of liti-
gation and investigation related to any such action shall not be
included by the commission in revenue requirements used to establish
rates and charges.
7. In construing and enforcing the provisions of this chapter relating
to forfeitures and penalties, the act of any director, officer, agent or
employee of a public utility company, corporation or person acting with-
in the scope of his or her official duties or employment shall be deemed
to be the act of such public utility company, corporation or person.
§ 2. Section 25-a of the public service law, as added by section 2 of
part X of chapter 57 of the laws of 2013, is amended to read as follows:
§ 25-a. Combination gas and electric corporations; administrative
sanctions; recovery of penalties. Notwithstanding sections twenty-four
and twenty-five of this article: 1. Every combination gas and electric
corporation and the officers thereof shall adhere to every provision of
this chapter and every order or regulation adopted under authority of
this chapter so long as the same shall be in force.
2. (a) The commission shall have the authority to assess a civil
penalty IN AN AMOUNT AS SET FORTH IN THIS SECTION AND IMPOSE ANY OTHER
REQUIRED RELIEF against a combination gas and electric corporation and
the officers thereof subject to the jurisdiction, supervision, or regu-
lation pursuant to this chapter [in an amount as set forth in this
section]. In determining the amount of any penalty to be assessed pursu-
ant to this section, the commission shall consider: [(i) the seriousness
of the violation for which a penalty is sought; (ii) the nature and
extent of any previous violations for which penalties have been assessed
against the corporation or officer; (iii) whether there was knowledge of
the violation; (iv) the gross revenues and financial status of the
corporation; and (v) such other factors as the commission may deem
appropriate and relevant.]
(I) THE SCOPE OF DAMAGES CAUSED BY THE VIOLATION, TO CONSUMERS, BUSI-
NESSES AND THE STATE;
(II) EACH INDIVIDUAL ACT OR OMISSION WHICH LED TO THE VIOLATION;
(III) WHETHER THE VIOLATION WAS WILLFUL;
(IV) WHETHER THE VIOLATION WAS RECURRING, OR HAD BEEN THE SUBJECT OF A
PREVIOUS FINDING BY THE COMMISSION;
(V) THE ECONOMIC DAMAGE ASSOCIATED WITH THE VIOLATION, TO RATEPAYERS
IN THE FORM OF FUTURE INVESTMENTS THAT MUST BE MADE TO THE INFRASTRUC-
TURE WEAKENED OR DAMAGED IN THE EVENT, WHICH WAS IN THE ESTIMATION OF
THE COMMISSION PREVENTABLE; AND
(VI) WHETHER THE VIOLATION WAS CAUSED IN WHOLE OR IN PART DUE TO THE
SYSTEMATIC FAILURE OF THE ENTITY TO MAINTAIN OR REPLACE OBSOLETE OR
DETERIORATED MATERIALS OR EQUIPMENT.
The remedies provided by this subdivision are in addition to any other
remedies provided in law.
(b) [Whenever the commission has reason to believe that a combination
gas and electric corporation or such officers thereof should be subject
to imposition of a civil penalty as set forth in this subdivision, it
shall notify such corporation or officer.] THE DEPARTMENT IS AUTHORIZED,
PURSUANT TO A REFERRAL MADE BY THE CHIEF EXECUTIVE OFFICER OF THE
DEPARTMENT, TO COMMENCE A PROCEEDING PURSUANT TO THIS SECTION UPON ISSU-
ANCE OF A NOTICE OF VIOLATION IF IT BELIEVES THAT A COMBINATION GAS AND
A. 11120 4
ELECTRIC CORPORATION, OR SUCH OFFICERS THEREOF, MAY BE SUBJECT TO IMPO-
SITION OF A CIVIL PENALTY AS SET FORTH IN THIS SUBDIVISION AND/OR SUCH
OTHER RELIEF AS MAY BE REQUIRED TO ADDRESS SUCH ALLEGED VIOLATION. Such
notice shall include, but shall not be limited to: (i) the date and a
brief description of the facts and nature of each act or failure to act
for which such penalty is proposed; (ii) a list of each statute, regu-
lation or order that the [commission] DEPARTMENT alleges has been
violated; and (iii) the amount of each penalty that the [commission]
DEPARTMENT proposes to [assess] BE ASSESSED; AND (IV) ANY PROPOSED
ACTIONS THAT THE DEPARTMENT DEEMS NECESSARY TO ADDRESS SUCH ALLEGED
VIOLATION OR VIOLATIONS. THE DEPARTMENT IS AUTHORIZED TO UNDERTAKE ANY
ADDITIONAL ADMINISTRATIVE OR INVESTIGATORY ACTIONS RELATED TO SUCH
VIOLATION OR VIOLATIONS, INCLUDING BUT NOT LIMITED TO, SERVICE OF AN
ADMINISTRATIVE COMPLAINT, IMPLEMENTATION OF DISCOVERY, INTERVIEWS, DEPO-
SITIONS, ENTERING INTO A SETTLEMENT AGREEMENT OR OTHER STIPULATION, and
the holding of evidentiary hearings, as provided in this chapter.
(c) [Whenever the commission has reason to believe that a combination
gas and electric corporation or such officers thereof should be subject
to imposition of a civil penalty or penalties as set forth in this
subdivision, the commission shall hold a hearing to demonstrate why the
proposed penalty or penalties should be assessed against such combina-
tion gas and electric corporation or such officers.] ANY ASSESSMENT OF
PENALTIES, RESOLUTION OF CLAIMS OR IMPOSITION OF OTHER RELIEF LEVIED BY
THE DEPARTMENT PURSUANT TO AN INVESTIGATION OR COMPLAINT PROCEEDING
COMMENCED PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION SHALL BE
REQUIRED TO BE ESTABLISHED AFTER HOLDING OF AN EVIDENTIARY HEARING, AND
SUCH FINDING IS REQUIRED TO BE APPROVED BY THE COMMISSION BUT MAY BE
SETTLED BY AGREEMENT BETWEEN THE PARTIES AT ANY TIME PRIOR TO SUCH HEAR-
ING, OR AFTER SUCH HEARING, AS MUTUALLY AGREED UPON BY THE PARTIES.
3. Any combination gas and electric corporation OR SUCH OFFICERS THER-
EOF, determined by the commission to have failed to [reasonably] comply
as shown by a preponderance of the evidence, AT AN EVIDENTIARY HEARING,
with a provision of this chapter, regulation or an order adopted under
authority of this chapter so long as the same shall be in force shall
forfeit a sum [not exceeding the greater of one hundred thousand dollars
or two one-hundredths of one percent of the annual intrastate gross
operating revenue of the corporation, not including taxes paid to and
revenues collected on behalf of government entities, constituting a
civil penalty for each and every offense and, in the case of a continu-
ing violation, each day shall be deemed a separate and distinct offense]
FIXED BY THE PUBLIC SERVICE COMMISSION, AFTER CONSIDERING THE FOLLOWING:
(A) THE SCOPE OF DAMAGES CAUSED BY THE VIOLATION, TO CONSUMERS, BUSI-
NESSES AND THE STATE;
(B) EACH INDIVIDUAL ACT OR OMISSION WHICH LED TO THE VIOLATION;
(C) WHETHER THE VIOLATION WAS WILLFUL;
(D) WHETHER THE VIOLATION WAS RECURRING, OR HAD BEEN THE SUBJECT OF A
PREVIOUS FINDING BY THE COMMISSION;
(E) THE ECONOMIC DAMAGE ASSOCIATED WITH THE VIOLATION, TO RATEPAYERS
IN THE FORM OF FUTURE INVESTMENTS THAT MUST BE MADE TO THE INFRASTRUC-
TURE WEAKENED OR DAMAGED IN THE EVENT, WHICH WAS IN THE ESTIMATION OF
THE COMMISSION PREVENTABLE; AND
(F) WHETHER THE VIOLATION WAS CAUSED IN WHOLE OR IN PART DUE TO THE
SYSTEMATIC FAILURE OF THE ENTITY TO MAINTAIN OR REPLACE OBSOLETE OR
DETERIORATED MATERIALS OR EQUIPMENT.
4. [Notwithstanding the provisions of subdivision three of this
section, any such combination gas and electric corporation determined by
A. 11120 5
the commission to have failed to reasonably comply with a provision of
this chapter, or an order or regulation adopted under the authority of
this chapter specifically for the protection of human safety or
prevention of significant damage to real property, including, but not
limited to, the commission's code of gas safety regulations shall, if it
is determined by the commission by a preponderance of the evidence that
such safety violation caused or constituted a contributing factor in
bringing about: (a) a death or personal injury; or (b) damage to real
property in excess of fifty thousand dollars, forfeit a sum not to
exceed the greater of:
(i) two hundred fifty thousand dollars or three one-hundredths of one
percent of the annual intrastate gross operating revenue of the corpo-
ration, not including taxes paid to and revenues collected on behalf of
government entities, whichever is greater, constituting a civil penalty
for each separate and distinct offense; provided, however, that for
purposes of this paragraph, each day of a continuing violation shall not
be deemed a separate and distinct offense. The total period of a contin-
uing violation, as well as every distinct violation, shall be similarly
treated as a separate and distinct offense for purposes of this para-
graph; or
(ii) the maximum forfeiture determined in accordance with subdivision
three of this section.
5. Notwithstanding the provisions of subdivision three or four of this
section, a combination gas and electric corporation determined by the
commission to have failed to reasonably comply by a preponderance of the
evidence with a provision of this chapter, or an order or regulation
adopted under authority of this chapter, designed to protect the overall
reliability and continuity of electric service, including but not limit-
ed to the restoration of electric service following a major outage event
or emergency, shall forfeit a sum not to exceed the greater of:
(a) five hundred thousand dollars or four one-hundredths of one
percent of the annual intrastate gross operating revenue of the corpo-
ration, not including taxes paid to and revenues collected on behalf of
government entities, whichever is greater, constituting a civil penalty
for each separate and distinct offense; provided, however, that for
purposes of this paragraph each day of a continuing violation shall not
be deemed a separate and distinct offense. The total period of a contin-
uing violation, as well as every distinct violation shall be similarly
treated as a separate and distinct offense for purposes of this para-
graph; or
(b) the maximum forfeiture determined in accordance with subdivision
three of this section.
6. Any officer of any combination gas and electric corporation deter-
mined by the commission to have violated the provisions of subdivision
three, four, or five of this section, and who knowingly violates a
provision of this chapter, regulation or an order adopted under authori-
ty of this chapter so long as the same shall be in force shall forfeit a
sum not to exceed one hundred thousand dollars constituting a civil
penalty for each and every offense and, in the case of a continuing
violation, each day shall be deemed a separate and distinct offense.
7. Any such assessment may be compromised or discontinued by the
commission.] All moneys recovered pursuant to this section, together
with the costs thereof, shall be remitted to, or for the benefit of, the
ratepayers in a manner to be determined by the commission.
[8.] 5. Upon a failure by a combination gas and electric corporation
or officer to remit any penalty assessed by the commission pursuant to
A. 11120 6
this section, the commission, through its counsel, may institute an
action or special proceeding to collect the penalty in a court of compe-
tent jurisdiction.
[9.] 6. Any payment made by a combination gas and electric corporation
or the officers thereof as a result of an assessment OR PENALTY as
provided in this section, and the cost of litigation and investigation
related to any such assessment, shall not be recoverable from ratepay-
ers.
[10.] 7. In construing and enforcing the provisions of this chapter
relating to penalties, the act of any director, officer, agent or
employee of a combined gas and electric corporation acting within the
scope of his or her official duties or employment shall be deemed to be
the act of such corporation.
[11.] 8. It shall be a violation of this chapter should a director,
officer or employee of a public utility company, corporation, person
acting in his or her official duties or employment, or an agent acting
on behalf of an employer take retaliatory personnel action such as
discharge, suspension, demotion, penalization or discrimination against
an employee for reporting a violation of a provision of this chapter
[of] an order or regulation adopted under the authority of this chapter,
including, but not limited to, those governing safe and adequate
service, protection of human safety or prevention of significant damage
to real property, including, but not limited to, the commission's code
of gas safety. Nothing in this subdivision shall be deemed to diminish
the rights, privileges or remedies of any employee under any other law
or regulation, including but not limited to article twenty-C of the
labor law and section seventy-five-b of the civil service law, or under
any collective bargaining agreement or employment contract.
§ 3. The public service law is amended by adding a new section 25-b to
read as follows:
§ 25-B. ADMINISTRATIVE ACTIONS AGAINST OTHER REGULATED ENTITIES.
NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, SECTION TWENTY-
FIVE-A OF THIS ARTICLE SHALL APPLY IN EQUAL FORCE TO: 1. AN ELECTRIC
CORPORATION AS DEFINED IN SUBDIVISION THIRTEEN OF SECTION TWO OF THIS
ARTICLE; 2. A GAS CORPORATION AS DEFINED IN SUBDIVISION ELEVEN OF
SECTION TWO OF THIS ARTICLE; 3. A CABLE TELEVISION COMPANY OR CABLE
TELEVISION SYSTEM AS DEFINED IN SUBDIVISIONS ONE AND TWO OF SECTION TWO
HUNDRED TWELVE OF THIS ARTICLE; 4. A TELEPHONE CORPORATION AS DEFINED IN
SUBDIVISION SEVENTEEN OF SECTION TWO OF THIS ARTICLE; 5. A STEAM CORPO-
RATION AS DEFINED IN SUBDIVISION TWENTY-TWO OF SECTION TWO OF THIS ARTI-
CLE; AND 6. A WATER-WORKS CORPORATION AS DEFINED IN SUBDIVISION TWENTY-
SEVEN OF SECTION TWO OF THIS ARTICLE; AS WELL AS THE OFFICERS OR
EMPLOYEES OF ANY SUCH CORPORATE ENTITIES DESCRIBED ABOVE.
§ 4. Subdivision 2 of section 68 of the public service law, as added
by section 5 of part X of chapter 57 of the laws of 2013, is amended and
a new subdivision 3 is added to read as follows:
2. Revocation or modification of certificate. The commission may
commence a proceeding, conducted in accordance with the commission's
rules and regulations, to revoke or modify a combined electric and gas
corporation's certificate as it relates to such corporation's service
territory or any portion thereof based on findings of repeated (TWO OR
MORE) violations of this chapter or rules or regulations OR ORDERS
adopted thereto [that demonstrate a failure of], OR VIOLATIONS OF THIS
CHAPTER OR RULES, REGULATIONS, OR ORDERS THERETO DEMONSTRATING A FAILURE
OF such corporation to continue to provide safe and adequate service.
Whenever the commission has reason to believe that such corporation's
A. 11120 7
certificate may be subject to revocation or modification, it shall noti-
fy such corporation of the facts and nature of each act or failure to
act allegedly warranting such revocation or modification, and the stat-
ute, regulation or order allegedly violated, and otherwise consider the
following factors:
(a) the factors identified in subdivision one of this section for
issuance of a certificate of public convenience and necessity; AND
(b) whether [another person, firm or corporation is qualified, avail-
able, and prepared to provide alternative service that is adequate to
serve the public convenience and necessity, and that the] transition to
[such] AN alternative person, firm or corporation is in the public
interest; and
(c) upon any other standards and procedures deemed necessary by the
commission to ensure continuity of safe and adequate service, and due
process.
3. (A) IN THE EVENT THE COMMISSION MAKES THE REQUIRED FINDINGS PURSU-
ANT TO SUBDIVISION TWO OF THIS SECTION WARRANTING THE REVOCATION OF THE
CERTIFICATE OF A COMBINED ELECTRIC AND GAS CORPORATION'S CERTIFICATE, IT
MAY FURTHER DETERMINE AS PART OF SUCH PROCEEDING THAT AN EMERGENCY
EXISTS WITH RESPECT TO THE CORPORATIONS' ABILITY TO PROVIDE CONTINUOUS
SERVICE. IF SUCH DETERMINATION IS MADE, THEN THE COMMISSION MAY APPOINT
ONE OR MORE PERSONS TO BE RECEIVERS OF AND FOR SUCH CORPORATION. THE
COMMISSION MAY GRANT SUCH RECEIVER OR RECEIVERS WITH AUTHORITY TO TAKE
CHARGE OF SUCH CORPORATION'S ASSETS, ESTATE, EFFECTS, BUSINESS AND
AFFAIRS, AND TO COLLECT THE OUTSTANDING DEBTS, CLAIMS, AND PROPERTY DUE
AND BELONGING TO THE CORPORATION, WITH POWER TO PROSECUTE AND DEFEND, IN
THE NAME OF THE CORPORATION OR OTHERWISE, ALL CLAIMS OR SUITS, TO
APPOINT AN AGENT OR AGENTS UNDER THEM, AND TO DO ALL OTHER ACTS WHICH
MIGHT BE DONE BY THE CORPORATION AND WHICH MAY BE NECESSARY OR PROPER.
(B) SUCH PROCEEDING SHALL BE HEARD IN NO LESS THAN THIRTY DAYS FROM
SERVICE OF THE STATEMENT OF VIOLATIONS TO THE PUBLIC UTILITY. THE
COMMISSION, IF IT DETERMINES THAT REVOCATION IS WARRANTED SHALL FORTH-
WITH DETERMINE THE PENALTY ASSOCIATED THEREWITH. THE PENALTY SHALL,
NOTWITHSTANDING SECTIONS TWENTY-FOUR AND TWENTY-FIVE OF THIS CHAPTER,
NOT EXCEED THE VALUE OF THE REAL PROPERTY AND FIXTURES THERETO UTILIZED
IN UTILITY DELIVERY BY SUCH PERSON, FIRM OR CORPORATION, WHICH SHALL BE
PAID IN-KIND BY SUCH PERSON, FIRM OR CORPORATION, AND SHALL, HOWEVER, BE
PAID A MONETARY AMOUNT FIXED BY THE COMMISSION WHICH SHALL REFLECT
PAYMENT FOR THE SHAREHOLDER EQUITY CONTRIBUTION, OR ANY BONDS WHICH
SHALL BE EITHER ASSUMED BY THE STATE OR A NEW ENTITY, UNLESS FURTHER
REDUCED BY DEPRECIATION. CALCULATION OF SUCH PENALTY SHALL BE IN ADDI-
TION TO ANY PENALTIES ASSESSED PURSUANT TO SECTIONS TWENTY-FOUR AND
TWENTY-FIVE OF THIS CHAPTER FOR ANY GIVEN VIOLATION OR OUTAGE.
(C) THE POWERS OF THE RECEIVERS SHALL CONTINUE FOR THIRTY DAYS, WHICH
MAY BE CONTINUED FOR ADDITIONAL PERIODS OF THIRTY DAYS, SO LONG AS THE
COMMISSION CONFIRMS SUCH DETERMINATION CONTINUES TO BE NECESSARY IN
ORDER TO ASSURE CONTINUOUS SERVICE.
§ 5. Subdivision 21 of section 66 of the public service law, as
amended by section 4 of part X of chapter 57 of the laws of 2013, is
amended to read as follows:
21. (a) Each electric corporation subject to section twenty-five-a of
this chapter shall annually, on or before December fifteenth, submit to
the commission an emergency response plan for review and approval. The
emergency response plan shall be designed for the reasonably prompt
restoration of service in the case of an emergency event, defined for
purposes of this subdivision as an event where widespread outages have
A. 11120 8
occurred in the service territory of the company due to storms or other
causes beyond the control of the company. The emergency response plan
shall include, but need not be limited to, the following: (i) the iden-
tification of management staff responsible for company operations during
an emergency; (ii) a communications PLAN THAT INCLUDES: (A) A system
THAT RELAYS SERVICE INFORMATION with customers during an emergency that
extends beyond normal business hours and business conditions; [(iii)]
(B) identification of and outreach plans to customers who had documented
their need for essential electricity for medical needs; [(iv)] (C) iden-
tification of and outreach plans to customers who had documented their
need for essential electricity to provide critical telecommunications,
critical transportation, critical fuel distribution services or other
large-load customers identified by the commission; [(v)] (D) designation
of company staff to communicate with local officials and appropriate
regulatory agencies; [(vi)] AND (E) IDENTIFIES, TESTS AND VERIFIES
REDUNDANCIES IN COMMUNICATIONS SYSTEMS; (III) provisions regarding how
the company will assure the safety of its employees and contractors;
[(vii)] (IV) procedures for deploying company and mutual aid crews to
work assignment areas; [(viii)] (V) identification of additional
supplies and equipment needed during an emergency; [(ix)] (VI) the means
of obtaining additional supplies and equipment; [(x)] (VII) procedures
to practice the emergency response plan; [(xi)] (VIII) appropriate safe-
ty precautions regarding electrical hazards, including plans to promptly
secure downed wires within thirty-six hours of notification of the
location of such downed wires from a municipal emergency official; and
[(xii)] (IX) such other additional information as the commission may
require. Each such corporation shall, on an annual basis, undertake
drills implementing procedures to practice its emergency management
plan. The commission may adopt additional requirements consistent with
ensuring the reasonably prompt restoration of service in the case of an
emergency event.
(b) After review of a corporation's emergency response plan, the
commission may require such corporation to amend the plan. The commis-
sion may also open an investigation of the corporation's plan to deter-
mine its sufficiency to respond adequately to an emergency event. If,
after hearings, the commission finds a material deficiency in the plan,
it may order the company to make such modifications that it deems
reasonably necessary to remedy the deficiency.
(c) The commission is authorized to open an investigation to review
the performance of any corporation in restoring service, IMPLEMENTING
COMMUNICATIONS PLANS or otherwise meeting the requirements of the emer-
gency response plan during an emergency event. If, after evidentiary
hearings or other investigatory proceedings, the commission finds that
the corporation failed to [reasonably] implement its emergency response
plan or the length of such corporation's outages were materially longer
than they would have been, because of such corporation's failure to
[reasonably] implement its emergency response plan, the commission may
deny the recovery of any part of the service restoration costs caused by
such failure, commensurate with the degree and impact of the service
outage; provided, however, that nothing herein limits the commission's
authority to otherwise commence a proceeding pursuant to sections twen-
ty-four, twenty-five and twenty-five-a of this chapter.
(d) The commission shall certify to the department of homeland securi-
ty and emergency services that each such corporation's emergency
response plan is sufficient to ensure to the greatest extent feasible
A. 11120 9
the timely and safe restoration of energy services after an emergency in
compliance with the requirements of this chapter.
(e) The filing of each emergency response plan required under para-
graph (a) of this subdivision shall also include a copy of all written
mutual assistance agreements among utilities.
(f) Each electric corporation shall file with the county executive or
the chief elected official of a county for each county within its
service territory the most recent approved copy of the emergency
response plan required pursuant to this section. For the purposes of an
electric corporation operating within the city of New York, such corpo-
ration shall file the most recent approved emergency response plan with
the emergency management office of the city of New York.
(g) The commission shall provide access to such emergency response
plan pursuant to article six of the public officers law.
§ 6. The public service law is amended by adding a new section 5-a to
read as follows:
§ 5-A. REVOCATION OR MODIFICATION OF AUTHORIZATION TO DO BUSINESS IN
THE STATE. 1. FOR PURPOSES OF THIS SECTION, THE TERM "UTILITY PROVIDER"
SHALL MEAN ANY OR ALL OF THE FOLLOWING: (A) AN "ELECTRIC CORPORATION" AS
DEFINED IN SUBDIVISION THIRTEEN OF SECTION TWO OF THIS ARTICLE, (B) A
"GAS CORPORATION" AS DEFINED IN SUBDIVISION ELEVEN OF SECTION TWO OF
THIS ARTICLE, (C) A "CABLE TELEVISION COMPANY" OR "CABLE TELEVISION
SYSTEM" AS DEFINED IN SUBDIVISIONS ONE AND TWO OF SECTION TWO HUNDRED
TWELVE OF THIS CHAPTER, (D) A "TELEPHONE CORPORATION" AS DEFINED IN
SUBDIVISION SEVENTEEN OF SECTION TWO OF THIS ARTICLE, (E) A "STEAM
CORPORATION" AS DEFINED IN SUBDIVISION TWENTY-TWO OF SECTION TWO OF THIS
ARTICLE, AND (F) A "WATERWORKS CORPORATION" AS DEFINED IN SUBDIVISION
TWENTY-SEVEN OF SECTION TWO OF THIS ARTICLE.
2. THE COMMISSION MAY COMMENCE A PROCEEDING, CONDUCTED IN ACCORDANCE
WITH THE COMMISSION'S RULES AND REGULATIONS, TO PROHIBIT ANY UTILITY
PROVIDER FROM OPERATING IN THE STATE OF NEW YORK AS IT RELATES TO SUCH
PROVIDER'S SERVICE TERRITORY OR ANY PORTION THEREOF BASED ON FINDINGS OF
REPEATED (TWO OR MORE) VIOLATIONS OF THIS CHAPTER, ORDERS, RULES OR
REGULATIONS ADOPTED THERETO THAT DEMONSTRATE A FAILURE OF SUCH PROVIDER
TO CONTINUE TO PROVIDE ADEQUATE SERVICE. WHENEVER THE COMMISSION HAS
REASON TO BELIEVE THAT SUCH UTILITY PROVIDER MAY NO LONGER BE SUITABLE
TO DO BUSINESS IN THE STATE, WHETHER OR NOT A CERTIFICATE OF PUBLIC
CONVENIENCE AND NECESSITY SHALL HAVE BEEN REQUIRED PRIOR TO ITS
COMMENCEMENT OF OPERATION, THEN THE PUBLIC SERVICE COMMISSION SHALL
ISSUE AN ORDER TO SHOW CAUSE UPON SUCH UTILITY PROVIDER, SPECIFYING THE
REASONS WHY IT SHOULD NOT BE PROHIBITED FROM PROVIDING UTILITY SERVICES
WHICH ARE SUBJECT TO THE JURISDICTION IN WHOLE OR IN PART OF THE COMMIS-
SION. THE ORDER TO SHOW CAUSE SHALL FURTHER INCLUDE THE FACTS AND NATURE
OF EACH ACT OR FAILURE TO ACT ALLEGEDLY WARRANTING SUCH FINDING, AND THE
STATUTE, REGULATION OR ORDER ALLEGEDLY VIOLATED, AND OTHERWISE CONSIDER-
ING THE FOLLOWING FACTORS:
(A) THE FACTORS FOR ISSUANCE OF A CERTIFICATE OF PUBLIC CONVENIENCE
AND NECESSITY;
(B) WHETHER THE TRANSITION TO AN ALTERNATIVE UTILITY PROVIDER IS IN
THE PUBLIC INTEREST; AND
(C) UPON ANY OTHER STANDARDS AND PROCEDURES DEEMED NECESSARY BY THE
COMMISSION TO ENSURE CONTINUITY OF SAFE AND ADEQUATE SERVICE, AND DUE
PROCESS.
3. THE ORDER TO SHOW CAUSE SHALL BE HEARD IN NO LESS THAN THIRTY DAYS
FROM SERVICE OF THE STATEMENT OF VIOLATIONS TO THE PUBLIC UTILITY. THE
COMMISSION, IF IT DETERMINES THAT SUCH ORDER SHOULD BE GRANTED SHALL
A. 11120 10
IMMEDIATELY PROHIBIT SUCH UTILITY PROVIDER FROM DOING BUSINESS IN THE
STATE OF NEW YORK. THE COMMISSION MAY ALSO SEEK A CIVIL PENALTY IN ADDI-
TION TO SUCH REVOCATION OR MODIFICATION. THE CIVIL PENALTY SHALL BE,
NOTWITHSTANDING ANY OTHER SECTION OF THIS CHAPTER TO THE CONTRARY, BASED
UPON THE VALUE OF THE REAL PROPERTY AND FIXTURES THERETO UTILIZED IN
UTILITY DELIVERY BY SUCH UTILITY PROVIDER, WHICH SHALL BE PAID IN-KIND
BY SUCH PROVIDER, BUT PROVIDED FURTHER THAT THE UTILITY PROVIDER SHALL
BE ADDITIONALLY PAID BY THE COMMISSION A MONETARY AMOUNT FIXED BY THE
COMMISSION WHICH SHALL REFLECT PAYMENT FOR THE SHAREHOLDER EQUITY
CONTRIBUTION, UNLESS FURTHER REDUCED BY DEPRECIATION, OR ANY BONDS WHICH
MUST BE EITHER DEFEASED, OR ACQUIRED BY A SUCCESSOR ENTITY. CALCULATION
OF SUCH CIVIL PENALTY SHALL BE IN ADDITION TO ANY PENALTIES ASSESSED
PURSUANT TO SECTION TWENTY-FOUR, TWENTY-FIVE OR TWENTY-FIVE-B OF THIS
ARTICLE FOR ANY GIVEN VIOLATION OR OUTAGE.
4. A UTILITY PROVIDER SUBJECT TO A PROCEEDING INITIATED PURSUANT TO
THIS SECTION SHALL BE PROVIDED WITH A RIGHT TO AN EVIDENTIARY HEARING
HELD IN ACCORDANCE WITH THE COMMISSION'S PROCEDURAL REGULATIONS, PRIOR
TO ANY FINAL ORDER OF THE COMMISSION.
5. A SERVICE PROVIDER CONTRACTED BY A PUBLIC AUTHORITY MAY LIKEWISE BE
PREVENTED FROM OPERATING IN A SERVICE TERRITORY BY ACTION OF THE PUBLIC
AUTHORITY IF THE DEPARTMENT OF PUBLIC SERVICE, AS PART OF AN INVESTI-
GATION OF AN EMERGENCY EVENT, IDENTIFIES TWO OR MORE REPEATED FAILURES
OF THE SERVICE PROVIDER TO MEET ITS OBLIGATIONS AND MAKES A RECOMMENDA-
TION TO THE BOARD FOR THE PUBLIC AUTHORITY TO EXERCISE ITS TERMINATION
RIGHTS.
§ 7. Study of municipal takeover of private water utility in Nassau
County. a. Legislative findings. The legislature hereby finds that the
groundwater supply system presently operated by a private utility in
Nassau County servicing the residents of the villages of Atlantic
Beach, Cedarhurst, East Rockaway, Hewlett Bay Park, Hewlett Harbor,
Hewlett Neck, Island Park, Lawrence, Lynbrook, Malverne, Valley Stream,
and Woodsburgh, and a portion of the village of Mill Neck, and the unin-
corporated areas of Baldwin, Hewlett, Oceanside, Roosevelt, Merrick,
North Merrick, Bellmore, North Bellmore, Wantagh, North Wantagh, Seaford
and a portion of the area known as Massapequa and their environs, and a
portion of Massapequa Park and a portion of Levittown, and Sea Cliff,
Glen Head, and Glen Wood landing, is fragile and subject to episodic
deficiencies of varying magnitude including service disruptions and
drastic price variations to residents serviced by the existing
private water company. The groundwater supply requires better manage-
ment of its entire reserve both within and outside the water utility
supply area as well as long range planning to provide protection of
important watershed areas, water conservation, and prevention from
contamination and salt water intrusion. Since the potable water for this
utility area is derived from an aquifer which is the sole source of
water for all of Long Island, the issues of contamination and conserva-
tion are of statewide concern. It is necessary and desirable that the
study required by this section will not only protect, preserve and
enhance the quality and quantity of the water within its supply
area, but that it will also serve as a model and as a leader in foster-
ing cooperation with other water suppliers to better manage, conserve
and protect the groundwater within and outside its supply area.
b. Study. The public service commission shall immediately upon the
effectiveness of this act, undertake a study to examine whether a munic-
ipal takeover of the private utility provided water service will better
protect the aquifer and provide better and safer service to the resi-
A. 11120 11
dents of Nassau County. The public service commission shall consider in
such study: the ability of the municipal governments to safely provide
service alone or in coordination with any other entity currently provid-
ing service, or identifying new providers who can safely provide
service; the ability to protect the aquifer long term; the ability of
the municipal governments to provide water service at lower cost to
customers due to their tax-exempt and not-for-profit status, and the
impact on municipal tax revenues.
c. Public forums. The public service commission shall, in coordi-
nation with such study, hold three public forums in impacted areas,
which may be held virtually, and shall be open for public comments from
stakeholders. In addition, the commission must solicit written testimo-
ny from elected officials, and superintendents of school districts in
impacted areas.
d. Report. The public service commission shall report such findings
no later than April 1, 2021 to the governor, the county executive, the
temporary president of the senate, and the speaker of the assembly, and
post such final report on its website.
§ 8. Section 5 of the public service law is amended by adding a new
subdivision 7 to read as follows:
7. THE COMMISSION SHALL ENSURE THAT CUSTOMERS OF AN ELECTRIC CORPO-
RATION, GAS CORPORATION, STEAM CORPORATION OR WATER WORKS CORPORATION DO
NOT CONTRIBUTE TO EXCESSIVE EXECUTIVE COMPENSATION OF SUCH CORPORATION
BY SETTING A THRESHOLD ABOVE WHICH RATEPAYER FUNDS MAY NOT BE UTILIZED.
§ 9. This act shall take effect on the ninetieth day after it shall
have become a law. Effective immediately, the department of public
service or the public service commission is authorized to promulgate any
regulations or orders necessary to implement this act.