S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10165
 
                           I N  A S S E M B L Y
 
                               May 10, 2024
                                ___________
 
 Introduced by COMMITTEE ON RULES -- (at request of M. of A. K. Brown) --
   read  once  and referred to the Committee on Corporations, Authorities
   and Commissions
 
 AN ACT to amend the public service law, the education law, the executive
   law and the public authorities law, in relation  to  improving  public
   service  commission  oversight of the Long Island power authority; and
   to repeal certain provisions of the public service law relating there-
   to
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 3-b of the public service law is REPEALED.
   §  2.  Section  5 of the public service law is amended by adding a new
 subdivision 7 to read as follows:
   7. A. FOR PURPOSES OF THIS SUBDIVISION:
   I. "AUTHORITY" MEANS THE LONG ISLAND POWER AUTHORITY.
   II. "SERVICE PROVIDER"  MEANS  THE  ENTITY  UNDER  CONTRACT  WITH  THE
 AUTHORITY  TO  PROVIDE MANAGEMENT AND OPERATION SERVICES ASSOCIATED WITH
 THE AUTHORITY'S ELECTRIC TRANSMISSION AND DISTRIBUTION  SYSTEM  AND  ANY
 SUBSIDIARY  OF  SUCH  ENTITY THAT PROVIDES SUCH SERVICES UNDER CONTRACT.
 HOWEVER, THE SERVICE PROVIDER AND ANY AFFILIATE OF THE SERVICE  PROVIDER
 WITH  WHOM  THE  AUTHORITY  OR  SERVICE  PROVIDER  CONTRACTS  TO PROVIDE
 SERVICES ASSOCIATED  WITH  THE  AUTHORITY'S  ELECTRIC  TRANSMISSION  AND
 DISTRIBUTION  SYSTEM  SHALL  NOT  BE  CONSIDERED AN ELECTRIC CORPORATION
 UNDER THIS CHAPTER.
   III. "OPERATIONS SERVICES AGREEMENT" MEANS AN AGREEMENT AND ANY AMEND-
 MENTS THERETO BETWEEN THE LONG ISLAND LIGHTING COMPANY DBA LIPA  OR  THE
 LONG  ISLAND POWER AUTHORITY AND THE SERVICE PROVIDER TO PROVIDE MANAGE-
 MENT AND OPERATION SERVICES ASSOCIATED  WITH  THE  AUTHORITY'S  ELECTRIC
 TRANSMISSION AND DISTRIBUTION SYSTEM.
   B.  I.  IN  UNDERTAKING  THE  REQUIREMENTS OF THIS SECTION, SUBJECT TO
 SUBDIVISIONS (U) AND (BB) THROUGH (HH) OF SECTION ONE THOUSAND  TWENTY-F
 OF  THE  PUBLIC  AUTHORITIES  LAW, THE DEPARTMENT SHALL BE EMPOWERED AND
 AUTHORIZED TO: REVIEW AND MAKE RECOMMENDATIONS TO THE BOARD OF THE  LONG
 ISLAND  POWER AUTHORITY WITH RESPECT TO THE RATES AND CHARGES, INCLUDING
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15038-01-4
 A. 10165                            2
 
 CHARGES RELATED TO ENERGY EFFICIENCY AND RENEWABLE ENERGY  PROGRAMS,  TO
 BE  ESTABLISHED BY THE AUTHORITY AND BECOME APPLICABLE ON OR AFTER JANU-
 ARY FIRST, TWO THOUSAND SIXTEEN PURSUANT TO SUBDIVISION (U)  OF  SECTION
 ONE THOUSAND TWENTY-F OF THE PUBLIC AUTHORITIES LAW.
   II.  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.
   III. 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.
   IV. IN THE CONTEXT OF SUCH REVIEW, THE DEPARTMENT MAY MAKE RECOMMENDA-
 TIONS WITH REGARD TO THE COMPENSATION OR FEE STRUCTURE  INCLUDED  WITHIN
 THE OPERATIONS SERVICES AGREEMENT.
   V. 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.
   VI. 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 INTER-
 VENTION UNIT.
   C.  REVIEW  THE  ANNUAL  CAPITAL  EXPENDITURES PROPOSED BY THE SERVICE
 PROVIDER AND RECOMMEND SUCH IMPROVEMENT IN THE  MANUFACTURE,  CONVEYING,
 TRANSPORTATION, DISTRIBUTION OR SUPPLY OF ELECTRICITY, OR IN THE METHODS
 EMPLOYED  BY THE SERVICE PROVIDER AS IN THE DEPARTMENT'S JUDGMENT ALLOWS
 FOR SAFE AND ADEQUATE SERVICE.
   D. ANNUALLY REVIEW THE EMERGENCY RESPONSE PLAN OF  THE  AUTHORITY  AND
 THE SERVICE PROVIDER IN ACCORDANCE WITH THE FOLLOWING REQUIREMENTS:
   I.  EXAMINE  AND  DETERMINE  WHETHER  THE  EMERGENCY  RESPONSE PLAN IS
 CONSISTENT WITH THE REQUIREMENTS OF PARAGRAPH (A) OF  SUBDIVISION  TWEN-
 TY-ONE  OF  SECTION  SIXTY-SIX  OF  THIS  CHAPTER AND ANY REGULATIONS OR
 ORDERS PROMULGATED THERETO, AND TO RECOMMEND AMENDMENTS OF SAME; AND
   II. REVIEW AND MAKE RECOMMENDATIONS TO THE AUTHORITY WITH  RESPECT  TO
 THE  PERFORMANCE  OF THE SERVICE PROVIDER IN RESTORING SERVICE OR OTHER-
 WISE MEETING THE REQUIREMENTS OF THE EMERGENCY RESPONSE PLAN  DURING  AN
 EMERGENCY  EVENT, DEFINED FOR PURPOSES OF THIS SECTION AS AN EVENT WHERE
 WIDESPREAD OUTAGES HAVE OCCURRED IN THE  AUTHORITY'S  SERVICE  TERRITORY
 DUE  TO  A STORM OR OTHER CAUSES BEYOND THE CONTROL OF THE AUTHORITY AND
 ITS SERVICE PROVIDER, INCLUDING MAKING DETERMINATIONS  WITH  RESPECT  TO
 WHETHER  THE  SERVICE PROVIDER IS REASONABLY ABLE TO IMPLEMENT THE EMER-
 GENCY RESPONSE PLAN, WHETHER THE LENGTH OF ANY OUTAGES RELATED  TO  SUCH
 EMERGENCY  WERE  MATERIALLY  LONGER  THAN THEY WOULD OTHERWISE HAVE BEEN
 BECAUSE THE SERVICE PROVIDER FAILED TO REASONABLY IMPLEMENT THE EMERGEN-
 CY RESPONSE PLAN, THE REASONABLENESS OF COSTS ASSOCIATED WITH SUCH EMER-
 GENCY RESPONSE, THE COSTS, IF ANY, THAT WERE UNREASONABLY AND IMPRUDENT-
 LY INCURRED BY THE SERVICE PROVIDER, AND WHETHER  THE  SERVICE  PROVIDER
 WOULD  BE LIABLE FOR ANY SUCH COSTS PURSUANT TO THE TERMS AND CONDITIONS
 OF THE OPERATIONS SERVICES AGREEMENT.
   E. UPON NOTIFICATION TO THE LONG ISLAND POWER AUTHORITY,  UNDERTAKE  A
 COMPREHENSIVE AND REGULAR MANAGEMENT AND OPERATIONS AUDIT OF THE AUTHOR-
 ITY  AND  SERVICE  PROVIDER  PURSUANT TO SUBDIVISION (BB) OF SECTION ONE
 A. 10165                            3
 
 THOUSAND TWENTY-F OF THE PUBLIC AUTHORITIES LAW.  THE  DEPARTMENT  SHALL
 HAVE  DISCRETION  TO HAVE SUCH AN AUDIT PERFORMED BY ITS STAFF, OR BY AN
 INDEPENDENT CONTRACTOR. IN EVERY CASE IN  WHICH  AN  AUDIT  IS  REQUIRED
 PURSUANT  TO  SUBDIVISION  (BB)  OF SECTION ONE THOUSAND TWENTY-F OF THE
 PUBLIC AUTHORITIES LAW PERFORMED BY AN INDEPENDENT AUDITOR, THE  DEPART-
 MENT  SHALL HAVE THE AUTHORITY TO SELECT THE AUDITOR, AND TO REQUIRE THE
 AUTHORITY TO ENTER INTO A CONTRACT WITH THE AUDITOR THAT  IS  CONSISTENT
 WITH THE CONTRACTING-RELATED REQUIREMENTS SPECIFIED IN SUBDIVISION NINE-
 TEEN OF SECTION SIXTY-SIX OF THIS CHAPTER AND THE REQUIREMENTS OF SUBDI-
 VISION  (BB)  OF SECTION ONE THOUSAND TWENTY-F OF THE PUBLIC AUTHORITIES
 LAW. SUCH CONTRACT SHALL PROVIDE FURTHER THAT THE AUDITOR SHALL WORK FOR
 AND UNDER THE DIRECTION OF THE DEPARTMENT ACCORDING TO SUCH TERMS AS THE
 DEPARTMENT MAY DETERMINE ARE NECESSARY AND REASONABLE.
   F. ACCEPT, INVESTIGATE, MEDIATE TO RESOLVE AND MAKE RECOMMENDATIONS TO
 THE LONG ISLAND POWER AUTHORITY AND/OR THE  SERVICE  PROVIDER  REGARDING
 THE  RESOLUTION  OF COMPLAINTS FROM CONSUMERS IN THE AUTHORITY'S SERVICE
 TERRITORY RELATING TO, AMONG OTHER THINGS,  THE  PROVISION  OF  ELECTRIC
 SERVICE PROVIDED BY THE SERVICE PROVIDER AND/OR THE AUTHORITY.
   G.  REVIEW  THE NET METERING PROGRAM IMPLEMENTED UNDER SUBDIVISION (H)
 OF SECTION ONE THOUSAND TWENTY-G OF THE PUBLIC AUTHORITIES LAW AND  MAKE
 RECOMMENDATIONS  DESIGNED TO ENSURE CONSISTENCY WITH THE REQUIREMENTS OF
 SECTIONS SIXTY-SIX-J AND SIXTY-SIX-L OF  THIS  CHAPTER,  AND  ANY  REGU-
 LATIONS AND ORDERS ADOPTED THERETO.
   H.  REVIEW  AND MAKE RECOMMENDATIONS WITH RESPECT TO ANY PROPOSED PLAN
 SUBMITTED BY THE LONG ISLAND POWER AUTHORITY AND/OR THE SERVICE PROVIDER
 RELATED TO IMPLEMENTATION OF  ENERGY  EFFICIENCY  MEASURES,  DISTRIBUTED
 GENERATION  OR  ADVANCED  GRID TECHNOLOGY PROGRAMS HAVING THE PURPOSE OF
 PROVIDING CUSTOMERS WITH  TOOLS  TO  MORE  EFFICIENTLY  AND  EFFECTIVELY
 MANAGE  THEIR ENERGY USAGE AND UTILITY BILLS, AND IMPROVING SYSTEM RELI-
 ABILITY AND POWER QUALITY.
   I. REVIEW THE DATA, INFORMATION  AND  REPORTS  SUBMITTED  PURSUANT  TO
 SUBDIVISION (HH) OF SECTION ONE THOUSAND TWENTY-F OF THE PUBLIC AUTHORI-
 TIES  LAW  AND OTHER PERTINENT INFORMATION RELATED TO THE METRICS IN THE
 OPERATIONS SERVICES AGREEMENT, THE LONG ISLAND POWER AUTHORITY'S  EVALU-
 ATION OF SUCH DATA, INFORMATION AND REPORTS, AND MAKE RECOMMENDATIONS TO
 THE  AUTHORITY  WITH RESPECT TO THE SERVICE PROVIDER'S ANNUAL INCENTIVE-
 BASED COMPENSATION WITHIN THIRTY DAYS OF RECEIPT OF SUCH EVALUATION  AND
 INFORMATION.
   J.  TO  UNDERTAKE THE REQUIREMENTS OF THIS SUBDIVISION, THE DEPARTMENT
 SHALL BE AUTHORIZED TO INSPECT ALL  PREMISES  AND  FACILITIES  OWNED  OR
 OPERATED BY THE AUTHORITY AND THE SERVICE PROVIDER, REVIEW ALL BOOKS AND
 RECORDS  OF THE AUTHORITY AND THE SERVICE PROVIDER, INTERVIEW ALL APPRO-
 PRIATE PERSONNEL, AND  REQUIRE  ANNUAL  REPORTING  CONSISTENT  WITH  THE
 REQUIREMENTS OF SUBDIVISION SIX OF SECTION SIXTY-SIX OF THIS CHAPTER AND
 ANY REGULATIONS AND ORDERS ADOPTED THERETO; PROVIDED, HOWEVER, THAT THIS
 AUTHORITY SHALL NOT EXTEND TO AFFILIATES OF THE SERVICE PROVIDER.
   § 3. Subdivision l of section 7208 of the education law, as amended by
 section  15  of part A of chapter 173 of the laws of 2013, is amended to
 read as follows:
   l. The practice of engineering or land surveying, or using  the  title
 "engineer"  or "surveyor" (i) exclusively as an officer or employee of a
 public  service  corporation  by  rendering  to  such  corporation  such
 services  in connection with its lines and property which are subject to
 supervision with respect to the  safety  and  security  thereof  by  the
 public service commission of this state, the interstate commerce commis-
 sion or other federal regulatory body and so long as such person is thus
 A. 10165                            4
 
 actually  and exclusively employed and no longer, or (ii) exclusively as
 an officer or employee of the Long Island power authority or its service
 provider, as defined under SUBDIVISION SEVEN OF section  [three-b]  FIVE
 of  the  public  service law, by rendering to such authority or provider
 such services in connection  with  its  lines  and  property  which  are
 located  in  such authority's service area and so long as such person is
 thus actually and exclusively employed and no longer;
   § 4. Subparagraph (i) of paragraph (b) of  subdivision  4  of  section
 94-a of the executive law, as amended by section 12 of part A of chapter
 173 of the laws of 2013, is amended to read as follows:
   (i) on behalf of the secretary, initiate, intervene in, or participate
 in  any  proceedings before the public service commission or the depart-
 ment of public service, to the extent authorized by [sections  three-b,]
 SUBDIVISION SEVEN OF SECTION FIVE OR SECTION twenty-four-a, seventy-one,
 eighty-four  or ninety-six of the public service law or any other appli-
 cable provision of law, where [he or  she]  SUCH  SECRETARY  deems  such
 initiation,  intervention  or participation to be necessary or appropri-
 ate;
   § 5. Paragraph 1 of subdivision (bb) and subdivisions (ee) and (ff) of
 section 1020-f of the public authorities law, paragraph 1 of subdivision
 (bb) as amended and subdivisions (ee) and (ff) as added by section 7  of
 part  A  of  chapter  173  of  the  laws of 2013, are amended to read as
 follows:
   1. The authority and the  service  provider  shall  cooperate  in  the
 undertaking and completion of a regular and comprehensive management and
 operations audit conducted pursuant to the requirements of this subdivi-
 sion  and  paragraph  [(d)]  E  of  subdivision [three] SEVEN of section
 [three-b] FIVE of the public service law. Such audit  shall  review  and
 evaluate  the  overall  operations  and  management of the authority and
 service provider,  including  such  operations  and  management  in  the
 context  of  the  authority's  duty  to  set  rates  at the lowest level
 consistent with standards and procedures provided in subdivision (u)  of
 this  section,  and  include,  but  not  be  limited to: (i) the service
 provider's construction and capital program planning in relation to  the
 needs  of customers for reliable service; (ii) the overall efficiency of
 the authority's and service provider's operations; (iii) the  manner  in
 which  the  authority  is meeting its debt service obligations; (iv) the
 authority's Fuel and Purchased Power Cost Adjustment clause and recovery
 of costs associated with such clause; (v) the  authority's  and  service
 provider's  annual  budgeting  procedures and process; (vi) the applica-
 tion, if any, of the performance metrics designated  in  the  operations
 services agreement and the accuracy of the data relied upon with respect
 to  such  application;  and  (vii)  the authority's compliance with debt
 covenants.
   (ee) On or before July first,  two  thousand  fourteen,  and  annually
 thereafter, to submit for review to the department of public service any
 proposed  plan  related  to  implementing  energy  efficiency  measures,
 distributed generation or advanced  grid  technology  programs  for  the
 purpose  provided  pursuant  to paragraph [(g)] H of subdivision [three]
 SEVEN of section [three-b] FIVE of the public service law.
   (ff) To assist and cooperate with the  department  of  public  service
 with  respect  to any review undertaken pursuant to SUBDIVISION SEVEN OF
 section [three-b] FIVE of the public service  law,  including  providing
 the  department  with  reasonable  access to all facilities and premises
 owned or operated by the authority or  its  service  provider,  allowing
 review of all books and records of the authority and its service provid-
 A. 10165                            5
 
 er,  providing copies of requested documents, allowing interviews of all
 appropriate personnel, and responding in a reasonable and timely  manner
 to any inquiries or reporting requests made by the department; provided,
 however,  that  the  obligations set forth in this subdivision shall not
 extend to affiliates of the service provider.
   § 6. Subdivision 1 of section 1020-s of the public authorities law, as
 amended by chapter 681 of the laws  of  2021,  is  amended  to  read  as
 follows:
   1.  The  rates,  services  and  practices  relating to the electricity
 generated by facilities owned or operated by the authority shall not  be
 subject to the provisions of the public service law or to regulation by,
 or  the  jurisdiction  of,  the public service commission, except to the
 extent (a) article seven of the public service law applies to the siting
 and operation of a major utility transmission facility as defined there-
 in, (b) article ten of such law applies to the siting  of  a  generating
 facility as defined therein, (c) section eighteen-a of such law provides
 for  assessment  for  certain  costs, property or operations, (d) to the
 extent that the department of public service reviews and makes recommen-
 dations with respect to the operations and provision of services of, and
 rates and budgets established by, the authority pursuant to  SUBDIVISION
 SEVEN  OF  section [three-b] FIVE of such law, (e) that section seventy-
 four of the public service  law  applies  to  qualified  energy  storage
 systems within the authority's jurisdiction, and (f) that section seven-
 ty-four-b  of  the  public  service law applies to Long Island community
 choice aggregation programs.
   § 7. Subdivision 1-a of section 18-a of the  public  service  law,  as
 added  by  section  2  of  part A of chapter 173 of the laws of 2013, is
 amended to read as follows:
   1-a. All costs and expenses of the department related to  the  depart-
 ment's  responsibilities  under  SUBDIVISION  SEVEN OF section [three-b]
 FIVE of this chapter shall be paid  pursuant  to  appropriation  on  the
 certification  of  the [chairman] CHAIRPERSON of the department and upon
 the audit and warrant of the comptroller.  For  the  state  fiscal  year
 beginning  on  April  first, two thousand fourteen and each state fiscal
 year thereafter, payments are to be made from all moneys collected  from
 the  Long  Island power authority pursuant to this section. The total of
 such costs and expenses shall be  assessed  on  such  authority  in  the
 manner provided in subdivisions two, three and four of this section.
   § 8. This act shall take effect immediately.