NY State Senate Bill 2021-S1087

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to energy and telecommunications
Jan 06, 2021	referred to energy and telecommunications

co-Sponsors

2021-S1087 (ACTIVE) - Details

See Assembly Version of this Bill:: A2621
Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Authorities Law
Laws Affected:: Amd §§1020-d & 1020-f, Pub Auth L; amd §3-b, Pub Serv L
Versions Introduced in 2019-2020 Legislative Session:: S2983, A5503

2021-S1087 (ACTIVE) - Summary

Enacts the "Long Island power authority ratepayers protection act"; requires a public hearing in each county within the service area before approval of a final rate plan.

2021-S1087 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S1087

SPONSOR: GAUGHRAN
 
TITLE OF BILL:

An act to amend the public authorities law and the public service law,
in relation to enacting the "Long Island power authority ratepayers
protection act"

 
PURPOSE:

Establishes the "Long Island Power Authority Ratepayers Protection Act."

 
SUMMARY OF PROVISIONS:

Section 1. Cites the "Long Island Power Authority Ratepayers Protection
Act."

Section 2. Amends Section 1020-d of the Public Authorities Law to
provide for the replacement of the current appointed Long Island Power
Authority (LIPA) board of trustees beginning January 1, 2024.  Addi-

tionally, this section sets forth new criteria relating the election of
the LIPA Board of Trustees which shall consist of a Chairman appointed
by the Governor and confirmed by the Senate, and eight other trustees
elected by the voters from eight districts of equal population estab-
lished by the Legislature.

Section 3. Subdivision (u) of Section 1020-f of the Public Authorities
Law is amended to provide the LIPA Board with full discretion to consid-
er a rate increase including consideration of the economic impact on
ratepayers and the region. The LIPA Board shall not approve a final rate
plan until a public hearing is held in each county of the service area.
Written notice of the date and place of any public hearings concerning
proposed rate increases must be sent to customers in advance of such
hearing.

Section 4. Amends paragraph a of subdivision 3 of Section 3-b of the
Public Service Law to prohibit the Department of Public Service-Long
Island from recommending a rate increase to offset revenue loss due to
energy conservation efforts by consumers.

Section 5. Severability Clause

Section 6. Provides for an immediate effective date.

 
JUSTIFICATION:

The "Long Island Power Authority Ratepayers Protection Act" is designed
to provide ratepayers a greater voice with respect to the activities of
LIPA and PSEG-LI. This begins with the establishment of an elected LIPA
Board as was originally envisioned when LIPA was created in 1986. Under
this bill, there would continue to be a nine member board with the
Chairman still being appointed by the Governor and confirmed by the
Senate. However, the instead of the remaining eight trustees being
appointed by the Governor and Legislature, they would be elected by the
people of Long Island from eight districts of equal population covering
the LIPA service area of Suffolk, Nassau, and part of Queens in the
Rockaways beginning January 1, 2024.

The LIPA Board would be responsible to Long Islanders, not Albany.  They
would have full discretion to consider a rate increase including consid-
eration of the economic impact on ratepayers and the region.

The LIPA Board shall not approve a final rate plan until it holds a
public hearing in each county within the service area with at least 30
days public notice. Notice must be provided in writing in advance of any
public hearing concerning rate increases. At such hearing, the Depart-
ment of Public Service - Long Island (DPS-LI) shall present the basis
for its recommendations. Within 90 days of the conclusion of the public
hearing, the LIPA Board shall render a final determination on the rate
proposal. In making a final determination, the LIPA Board shall protect
the economic interests of its ratepayers and the service area. The LIPA
Board shall also consider the recommendations of DPS-LI and the criteria
in paragraph a of subdivision 3 of Section 3-b of the Public Service
Law. The LIPA Board shall not be authorized to approve any rate increase
to offset revenue loss due to energy conservation efforts by consumers.
Such final determination shall be considered final for the purposes of
review under article seventy-eight of the civil practice law and rules.

The enactment of this legislation will provide the oversight and trans-
parency that is needed to ensure that the best interests of Long Island
ratepayers are being served.

 
LEGISLATIVE HISTORY:

S.2983 / A.5503 of 2019/20

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S1087 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1087
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              January 6, 2021
                                ___________
 
 Introduced  by Sen. GAUGHRAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on  Energy  and  Telecommuni-
   cations
 
 AN  ACT  to amend the public authorities law and the public service law,
   in relation to enacting the "Long Island  power  authority  ratepayers
   protection act"

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act may be  cited  as  the  "Long  Island
 power authority ratepayers protection act".
   §  2.  Section  1020-d  of  the  public authorities law, as amended by
 section 4 of part A of chapter 173 of the laws of 2013,  is  amended  to
 read as follows:
   §  1020-d.  Board of trustees. 1. Starting on January first, two thou-
 sand fourteen, the board of  the  authority  shall  be  constituted  and
 consist  of  nine trustees all of whom shall be residents of the service
 area, five of whom shall be appointed by the governor, one of  whom  the
 governor shall designate as chair, and serve at his or her pleasure, two
 of whom shall be appointed by the temporary president of the senate, and
 two  of  whom  shall be appointed by the speaker of the assembly. One of
 the governor's appointees shall serve an initial term of two years;  one
 of the governor's appointees shall serve an initial term of three years;
 and  three  of  the governor's appointees shall serve an initial term of
 four years. One of the appointees of  the  temporary  president  of  the
 senate  and  one  of the appointees of the speaker of the assembly shall
 serve initial terms of two years; and one  appointee  of  the  temporary
 president of the senate and one appointee of the speaker of the assembly
 shall serve initial terms of three years. Thereafter, all terms shall be
 for  a  period of four years. In the event of a vacancy occurring in the
 office of trustee by death, resignation  or  otherwise,  the  respective
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03869-01-1

 S. 1087                             2
 
 appointing  officer  shall appoint a successor who shall hold office for
 the unexpired portion of the term.
   1-A.  (A)  BEGINNING  JANUARY  FIRST,  TWO  THOUSAND TWENTY-FOUR, SUCH
 AUTHORITY SHALL CONSIST OF NINE TRUSTEES. ONE TRUSTEE, WHO SHALL BE  THE
 CHAIRPERSON, SHALL BE A RESIDENT OF THE SERVICE AREA, SHALL BE APPOINTED
 BY  THE  GOVERNOR SUBJECT TO CONFIRMATION BY THE SENATE, AND SHALL SERVE
 AT THE  GOVERNOR'S  PLEASURE.  EIGHT  TRUSTEES  SHALL  BE  ELECTED  FROM
 DISTRICTS  ESTABLISHED BY THE LEGISLATURE. EACH ELECTED TRUSTEE SHALL BE
 A RESIDENT OF THE DISTRICT FROM WHICH HE OR SHE IS  ELECTED.  NO  PERSON
 WHO IS AN ELECTED OR APPOINTED OFFICIAL OF THE STATE OR ANY MUNICIPALITY
 OR ANY AGENCY OR INSTRUMENTALITY THEREOF, SHALL BE QUALIFIED TO SERVE AS
 AN  ELECTED TRUSTEE. EACH ELECTED TRUSTEE SHALL HOLD OFFICE UNTIL HIS OR
 HER SUCCESSOR HAS BEEN ELECTED AND QUALIFIED. IN THE EVENT OF A  VACANCY
 OCCURRING IN THE OFFICE OF A TRUSTEE BY DEATH, RESIGNATION OR OTHERWISE,
 A SUCCESSOR SHALL BE CHOSEN TO HOLD OFFICE FOR THE UNEXPIRED TERM IN THE
 MANNER PRESCRIBED BY THE ELECTION LAW.
   (B)  PRIOR  TO  MAY  FIRST, TWO THOUSAND TWENTY-THREE, THE LEGISLATURE
 SHALL ESTABLISH EIGHT DISTRICTS, WHICH SHALL BE EQUAL IN  POPULATION  AS
 DETERMINED BY THE LAST FEDERAL DECENNIAL CENSUS. PRIOR TO MAY FIRST, TWO
 THOUSAND  TWENTY-SEVEN  AND  EACH TENTH YEAR THEREAFTER, THE LEGISLATURE
 SHALL REAPPORTION THE EIGHT DISTRICTS, WHICH SHALL  BE  EQUAL  IN  POPU-
 LATION AS DETERMINED BY THE LAST FEDERAL DECENNIAL CENSUS.
   (C)  SUCH  TRUSTEES,  SHALL  BE  ELECTED IN ELECTIONS CONDUCTED BY THE
 BOARDS OF ELECTIONS PURSUANT TO APPLICABLE PROVISIONS  OF  THE  ELECTION
 LAW.  THE  FIRST  SUCH  ELECTION  SHALL  BE HELD ON THE FIRST TUESDAY IN
 DECEMBER TWO THOUSAND TWENTY-THREE, AND THE TRUSTEES  SO  ELECTED  SHALL
 TAKE OFFICE ON JANUARY FIRST, TWO THOUSAND TWENTY-FOUR. AT SUCH ELECTION
 ALL  EIGHT  TRUSTEES SHALL BE ELECTED FOR A TERM OF TWO YEARS. EACH SUCH
 TERM ENDING ON DECEMBER THIRTY-FIRST OF THE LAST YEAR THEREOF. NO  POLI-
 TICAL  PARTY  SHALL BE ENTITLED TO NOMINATE CANDIDATES FOR THE OFFICE OF
 TRUSTEE AT ANY SUCH ELECTION.
   (D) FIVE TRUSTEES SHALL CONSTITUTE A QUORUM FOR THE PURPOSE OF  ORGAN-
 IZING  THE  AUTHORITY AND CONDUCTING THE BUSINESS THEREOF. THE VOTE OF A
 MAJORITY OF THE TRUSTEES SHALL BE REQUIRED FOR  THE  PURPOSE  OF  TAKING
 ACTION.
   2.  No  trustee  shall receive a salary, but each shall be entitled to
 reimbursement for reasonable  expenses  in  the  performance  of  duties
 assigned hereunder.
   3. [Notwithstanding the provisions of any other law, no trustee, offi-
 cer or employee of the state, any state agency or municipality appointed
 a  trustee shall be deemed to have forfeited or shall forfeit his or her
 office or employment by reason of his or her acceptance of a trusteeship
 on the authority, his or her service thereon or his  or  her  employment
 therewith.
   4.  All  trustees]  THE CHAIRPERSON appointed under this section shall
 have relevant utility, corporate board or financial experience.
   § 3. Paragraphs 2, 3 and 4 of subdivision (u) of section 1020-f of the
 public authorities law, as added by section 7 of part A of  chapter  173
 of the laws of 2013, are amended to read as follows:
   2.  The authority and the service provider shall thereafter submit for
 review to the department of public service any rate proposal that  would
 increase  the rates and charges and thus increase the aggregate revenues
 of the authority by more than two and one-half percent to be measured on
 an annual basis[; provided, however, that the authority may  place  such
 rates  and  charges into effect on an interim basis, subject to prospec-
 tive rate adjustment; provided, further, that a final rate  plan  issued

 S. 1087                             3

 by the authority that would not so increase such rates and charges shall
 not be subject to the requirements of paragraph four of this subdivision
 and  shall  be considered final for the purposes of review under article
 seventy-eight  of  the  civil  practice  law and rules].   The authority
 and/or the service provider may otherwise  submit  for  review  to  such
 department any rate proposal irrespective of its effect on revenues.
   3.  The  authority  shall not fix any final rates and charges proposed
 that would not be subject to review by the department of public  service
 pursuant to paragraphs one and two of this subdivision until after hold-
 ing public hearings thereon upon reasonable public notice, with at least
 one  such hearing to be held IN each [in the] county [of Suffolk and the
 county of Nassau] WITHIN THE SERVICE AREA  UPON  AT  LEAST  THIRTY  DAYS
 NOTICE  TO  THE PUBLIC. THE AUTHORITY AND SERVICE PROVIDER SHALL PROVIDE
 TO THEIR CUSTOMERS ADVANCE WRITTEN NOTICE OF THE DATE AND PLACE  OF  ANY
 PUBLIC HEARINGS CONCERNING PROPOSED INCREASES IN RATES.
   4.  Any  recommendations  associated  with  a  rate proposal submitted
 pursuant to paragraphs one and two of this subdivision shall be provided
 by the department of public service to the board of the authority  imme-
 diately  upon their finalization by the department. [Unless the board of
 the authority makes a preliminary determination in its  discretion  that
 any particular recommendation is inconsistent with the authority's sound
 fiscal  operating practices, any existing contractual or operating obli-
 gations, or the provision of safe and adequate service, the board  shall
 implement  such  recommendations as part of its final rate plan and such
 final determination shall be deemed to satisfy the requirements of  this
 subdivision  and  be  considered  final for the purposes of review under
 article seventy-eight of the civil practice law  and  rules.  The  board
 shall  make  any  such preliminary determination of inconsistency within
 thirty days of receipt of such  recommendations,  with  notice  and  the
 basis  of  such determination being provided to the department of public
 service, and contemporaneously posted on the websites of  the  authority
 and its service provider. The board shall thereafter, within thirty days
 of such posting and with due advance notice to the public, hold a public
 hearing  with respect to its preliminary determination of inconsistency.
 At such hearing, the department of  public  service  shall  present  the
 basis for its recommendations, the board shall present the basis for its
 determination  of inconsistency and the service provider may present its
 position. The authority and the service provider may,  during  the  time
 period before such public hearing reach agreement with the department on
 disputed issues. Within thirty days after such public hearing, the board
 of  the  authority  shall  announce  its final determination and planned
 implementation with respect to any such recommendations. The authority's
 final determination of inconsistency shall be subject to any  applicable
 judicial  review  proceeding,  including  review available under article
 seventy-eight of the civil practice law and rules.] THE BOARD SHALL  NOT
 APPROVE A FINAL RATE PLAN UNTIL IT HOLDS A PUBLIC HEARING IN EACH COUNTY
 WITHIN  THE SERVICE AREA UPON AT LEAST THIRTY DAYS NOTICE TO THE PUBLIC.
 AT SUCH HEARING, THE DEPARTMENT OF  PUBLIC  SERVICE  SHALL  PRESENT  THE
 BASIS  FOR  ITS RECOMMENDATIONS. WITHIN NINETY DAYS OF THE CONCLUSION OF
 THE PUBLIC HEARING, THE BOARD SHALL RENDER A FINAL DETERMINATION ON  THE
 RATE  PROPOSAL. IN MAKING A FINAL DETERMINATION, THE BOARD SHALL PROTECT
 THE ECONOMIC INTERESTS OF ITS RATEPAYERS AND THE SERVICE AREA. THE BOARD
 SHALL ALSO CONSIDER THE RECOMMENDATIONS OF THE DEPARTMENT  AND  CRITERIA
 IN  PARAGRAPH  (A) OF SUBDIVISION THREE OF SECTION THREE-B OF THE PUBLIC
 SERVICE LAW. THE BOARD SHALL NOT  BE  AUTHORIZED  TO  APPROVE  ANY  RATE
 INCREASE  TO  OFFSET  REVENUE LOSS DUE TO ENERGY CONSERVATION EFFORTS BY

 S. 1087                             4

 CONSUMERS. SUCH FINAL DETERMINATION SHALL BE CONSIDERED  FINAL  FOR  THE
 PURPOSES OF REVIEW UNDER ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW
 AND RULES.
   § 4. Subparagraph (v) of paragraph (a) of subdivision 3 of section 3-b
 of  the  public  service  law,  as amended by chapter 479 of the laws of
 2017, is amended and a  new  subparagraph  (vi)  is  added  to  read  as
 follows:
   (v)  The parties to any such rate review proceeding shall include, but
 not be limited to, department staff, the authority, the service provider
 and[, to the extent it deems  necessary  or  appropriate,]  the  utility
 intervention unit.
   (VI)  THE  DEPARTMENT  SHALL  NOT  RECOMMEND A RATE INCREASE TO OFFSET
 REVENUE LOSS DUE TO ENERGY CONSERVATION EFFORTS BY CONSUMERS.
   § 5. Severability. If any provision of this  act  or  the  application
 thereof  shall  for  any  reason  be  adjudged by any court of competent
 jurisdiction to be invalid, such judgment shall not  affect,  impair  or
 invalidate the remainder of this act, but shall be confined in its oper-
 ation  to  the provision thereof directly involved in the controversy in
 which the judgment shall have been rendered.
   § 6. This act shall take effect immediately.

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Senate Bill S1087

Sponsored By

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

co-Sponsors

2021-S1087 (ACTIVE) - Details

2021-S1087 (ACTIVE) - Summary

2021-S1087 (ACTIVE) - Sponsor Memo

2021-S1087 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S1087

Share this bill

Sponsored By

James Gaughran

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

co-Sponsors

John E. Brooks

2021-S1087 (ACTIVE) - Details

2021-S1087 (ACTIVE) - Summary

2021-S1087 (ACTIVE) - Sponsor Memo

2021-S1087 (ACTIVE) - Bill Text download pdf

Comments