S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4535
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 5, 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  rate  reform
   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 shall be known and may  be  cited  as
 the "Long Island power authority rate reform act".
   §  2. 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,  and
 paragraph 2-a as added by chapter 471 of the laws of 2014, is amended to
 read as follows:
   (u)  Rate  plans.  Subject  to subdivision six of section one thousand
 twenty-k of this title to fix rates and charges for  the  furnishing  or
 rendition  of  gas  or  electric  power or of any related service at the
 lowest level consistent with sound fiscal and operating practices of the
 authority and which provide for safe and adequate service. In implement-
 ing this power:
   1. The authority and the service provider shall, on or before February
 first, two thousand fifteen, submit for  review  to  the  department  of
 public  service a three-year rate proposal for rates and charges to take
 effect on or after January first, two thousand sixteen.
   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

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

                                                            LBD05786-01-1

 S. 4535                             2

 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.
   2-a.  The authority and the service provider shall not submit any rate
 proposal that shall assess any fee, penalty or other charge of any  kind
 for  the  voluntary  termination  of electric service to any residential
 customer for the purpose of utilizing alternative  sources  of  electric
 generation  in  excess  of that charged to customers who terminate their
 electric service for any other reason.
   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.
   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

 S. 4535                             3
 
 SHALL ALSO CONSIDER THE RECOMMENDATIONS OF THE DEPARTMENT AND THE CRITE-
 RIA 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 CONSUMERS. SUCH FINAL DETERMINATION SHALL BE CONSIDERED FINAL FOR THE
 PURPOSES OF REVIEW UNDER ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW
 AND RULES.
   § 3. 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
 to read as follows:
   (a) Review and make recommendations to the board of  the  Long  Island
 power authority with respect to the rates and charges, including charges
 related to energy efficiency and renewable energy programs, to be estab-
 lished by the authority and become applicable on or after January first,
 two thousand sixteen pursuant to subdivision (u) of section one thousand
 twenty-f of the public authorities law.
   (i)  The purpose of such review is to make recommendations designed to
 ensure that the authority and the  service  provider  provide  safe  and
 adequate  transmission  and  distribution  service  at  rates set at the
 lowest level consistent with sound fiscal operating practices.
   (ii) The department's recommendations shall be designed to be consist-
 ent with ensuring that the revenue requirements  related  to  such  rate
 review  are  sufficient  to  satisfy  the  authority's  obligations with
 respect to its bonds, notes and all other contracts.
   (iii) In the context of such review, the department may make recommen-
 dations with regard to the compensation or fee structure included within
 the operations services agreement.
   (iv) In undertaking such review and in making recommendations  related
 to the proposed rates and charges, the department shall establish stand-
 ards,  policies  and  procedures  that, at a minimum, provide for public
 statement and evidentiary hearings and participation of intervenors  and
 other  parties, and ensure that any final recommendations related to the
 proposed rates and charges are provided  to  the  authority  within  two
 hundred forty days of the filing with the department of such plan.
   (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.
   § 4. 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.
   § 5. This act shall take effect immediately.