Assembly Bill A7558

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7558--A
                                                            R. R. 480
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 25, 2023
                                ___________
 
 Introduced  by  M.  of  A. THIELE, PHEFFER AMATO, SMITH, SOLAGES -- read
   once and referred to  the  Committee  on  Governmental  Operations  --
   reported  and  referred  to  the  Committee on Rules -- amended on the
   special order of third reading, ordered reprinted as amended,  retain-
   ing its place on the special order of third reading
 
 AN  ACT  to  amend  the  legislative law, in relation to the legislative
   commission on the future of the Long Island Power Authority
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivisions  1,  10,  11,  and 12 of section 83-n of the
 legislative law, as added by section 1 of part JJ of chapter 55  of  the
 laws of 2022, are amended to read as follows:
   1.  The  legislature hereby finds and declares that chapter 517 of the
 laws of 1986 created  the  Long  Island  Power  Authority  (LIPA).  Said
 authority  was  created,  in  part,  because the decisions by LILCO, the
 private utility that provided electricity to Long  Island  and  part  of
 Queens,  "to  commence  construction of the Shoreham nuclear power plant
 and thereafter to continue such construction were  imprudent".  Further,
 the  legislature  found in chapter 517 of the laws of 1986 that "a situ-
 ation threatening the economy, health and safety exists in  the  service
 area". One of the two express purposes of the act was the closure of the
 Shoreham  nuclear power plant. In 1992, LIPA bought the Shoreham nuclear
 power plant. The plant was fully decommissioned in 1994.
   The second purpose of such chapter 517 was to  replace  LILCO  with  a
 publicly  owned  power authority. The legislature found that "There is a
 lack of confidence that the needs of the residents and of  commerce  and
 industry  in the service area for electricity can be supplied in a reli-
 able, efficient and economic manner by the Long Island lighting  company
 (hereinafter referred to as "LILCO")" and "Such matters of state concern
 best  can  be dealt with by replacing such investor owned utility with a
 publicly owned power authority."
   In 1995, LIPA replaced LILCO as the electric company for  its  service
 area.  However,  LIPA  was  never  established as a true "publicly owned
 power authority" as originally  envisioned  by  the  State  Legislature.
              

 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11537-03-3
 A. 7558--A                          2
 
 Rather,  since  1995,  LIPA has opted for a third-party management model
 whereby LIPA contracts its responsibility to manage  the  utility  to  a
 private, investor owned utility company.
   LIPA is the only utility in the nation that is operated under a third-
 party  management model. This model has repeatedly failed its customers.
 There has been a lack of transparency,  oversight,  and  accountability.
 This  failure  has  been most dramatically evidenced in the unacceptable
 storm response by LIPA and its third-party contractors during Superstorm
 Sandy in 2012 and Tropical Storm Isaias in 2020.
   After more than 25 years of unsatisfactory management under the third-
 party management model, a better alternative must be implemented.   That
 inquiry  must  begin with the original intent of chapter 517 of the laws
 of 1986, whereby LIPA was to directly manage and operate the utility  as
 a  true public power utility. Initial investigations by LIPA after Trop-
 ical Storm Isaias in 2020-2021 indicate that both ratepayer savings  and
 increased  management  efficiencies could be achieved through the public
 power model.
   Consequently, it is the purpose  of  this  section  to  implement  the
 original vision for LIPA intended by chapter 517 of the laws of 1986, as
 a publicly owned power company. The legislature hereby creates a commis-
 sion  to provide the legislature with the specific actions, legislation,
 and timeline necessary to restructure LIPA into a  true  publicly  owned
 power authority. The public must participate in that process so that the
 new  LIPA  becomes transparent with proper oversight and accountability.
 The legislative commission shall submit its final report to the legisla-
 ture no later than [April first] NOVEMBER THIRTIETH, two thousand  twen-
 ty-three.
   10. No later than [December thirty-first, two thousand twenty-two] MAY
 FIRST,  TWO  THOUSAND  TWENTY-THREE,  the commission shall issue a draft
 report to the members of the legislature regarding the establishment  of
 a public power model for the Long Island Power Authority. The commission
 shall  hold  at least one public hearing with a public comment period in
 each of the counties comprising the service  area  of  the  Long  Island
 Power  Authority  on the draft report no later than [February fifteenth]
 OCTOBER FIRST, two thousand twenty-three  and  before  issuing  a  final
 report.
   11.  [No  later than February first, two thousand twenty-three] WITHIN
 THIRTY DAYS OF THE ISSUANCE OF THE COMMISSION'S DRAFT REPORT, the  comp-
 troller  shall  have the discretion to review the draft report and issue
 to  the  legislature  any  recommendations  relative  to  the   findings
 contained  in  the  draft report which relates to the establishment of a
 public power model for the Long Island Power Authority.
   12. No later than [April first] NOVEMBER THIRTIETH, two thousand twen-
 ty-three, the commission shall issue a final report to  the  members  of
 the  legislature regarding the establishment of a public power model for
 the Long Island Power Authority. Such report shall  provide  any  legis-
 lation required to implement the public power model.
   §  2.  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.
   § 3. This act shall take effect immediately.