Senate Bill S10157

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10157
 
                             I N  S E N A T E
 
                                May 1, 2026
                                ___________
 
 Introduced  by  Sen. SALAZAR -- read twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN ACT to amend the general municipal law  and  the  public  authorities
   law, in relation to enacting the "utility fair acquisition 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 "utility fair acquisition act".
   §  2.  Section 362 of the general municipal law, as amended by chapter
 838 of the laws of 1945, is amended to read as follows:
   § 362. Financing the cost of public utility service. 1. Any  municipal
 corporation may finance the cost of such public utility service in whole
 or  in  part  by  levying  taxes  in the same manner as taxes are levied
 pursuant to law for any permanent improvement by such  municipal  corpo-
 ration,  or the same may be financed in whole or in part pursuant to the
 local finance law.
   2. (A) IN ANY ACQUISITION  BY  A  MUNICIPAL  CORPORATION  OF  ELECTRIC
 GENERATION,  TRANSMISSION OR DISTRIBUTION INFRASTRUCTURE CURRENTLY OPER-
 ATED BY A PUBLIC   UTILITY   COMPANY OR  PRIVATE  ENERGY  PROVIDER,  THE
 APPRAISED  VALUE  SHALL  BE REDUCED BY THE PROPORTIONAL VALUE OF INFRAS-
 TRUCTURE  THAT  WAS  FINANCED  THROUGH  CUSTOMER  USER  FEES,  RATEPAYER
 SURCHARGES,  OR  OTHER  NON-INVESTOR-FUNDED MECHANISMS, AS DETERMINED BY
 THE PUBLIC SERVICE COMMISSION.
   (B) THE PUBLIC SERVICE COMMISSION SHALL, UPON REQUEST BY  A  MUNICIPAL
 CORPORATION  SEEKING  TO ACQUIRE UTILITY ASSETS, DETERMINE THE EXTENT TO
 WHICH SUCH ASSETS WERE FINANCED THROUGH CUSTOMER  USER  FEES,  RATEPAYER
 SURCHARGES,  OR  OTHER NON-INVESTOR-FUNDED MECHANISMS, AND SHALL ISSUE A
 REPORT IDENTIFYING THE VALUE OF SUCH CONTRIBUTIONS  AND  RECOMMENDING  A
 COMMENSURATE REDUCTION IN THE ACQUISITION PRICE.
   §  3.  The  public  authorities law is amended by adding a new section
 2859 to read as follows:
   § 2859. FINANCING THE COST OF A PUBLIC UTILITY SERVICE.  NOTWITHSTAND-
 ING ANY OTHER PROVISIONS OF THIS TITLE OR THE PROVISIONS OF ANY GENERAL,
 SPECIAL OR LOCAL LAW, ANY PUBLIC BENEFIT CORPORATION CREATED PURSUANT TO
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13499-04-6
 S. 10157                            2
 
 ARTICLE FIVE OF THIS CHAPTER WHICH IS  AUTHORIZED  BY  LAW  TO  PRODUCE,
 DEVELOP,  DISTRIBUTE  AND  SELL  WATER,  WATER  SERVICES, FACILITIES AND
 COMMODITIES SHALL HAVE THE POWER:
   1.  IN  ANY ACQUISITION BY A PUBLIC UTILITY CORPORATION OF GENERATION,
 TRANSMISSION OR DISTRIBUTION  INFRASTRUCTURE  CURRENTLY  OPERATED  BY  A
 PUBLIC  UTILITY  COMPANY OR PRIVATE ENERGY PROVIDER, THE APPRAISED VALUE
 SHALL BE REDUCED BY THE PROPORTIONAL VALUE OF  INFRASTRUCTURE  THAT  WAS
 FINANCED  THROUGH  CUSTOMER  USER  FEES,  RATEPAYER SURCHARGES, OR OTHER
 NON-INVESTOR-FUNDED MECHANISMS, AS  DETERMINED  BY  THE  PUBLIC  SERVICE
 COMMISSION.
   2. THE PUBLIC SERVICE COMMISSION SHALL, UPON REQUEST BY A PUBLIC UTIL-
 ITY  CORPORATION SEEKING TO ACQUIRE UTILITY ASSETS, DETERMINE THE EXTENT
 TO WHICH SUCH ASSETS WERE FINANCED THROUGH CUSTOMER USER FEES, RATEPAYER
 SURCHARGES, OR OTHER NON-INVESTOR-FUNDED MECHANISMS, AND SHALL  ISSUE  A
 REPORT  IDENTIFYING  THE  VALUE OF SUCH CONTRIBUTIONS AND RECOMMENDING A
 COMMENSURATE REDUCTION IN THE ACQUISITION PRICE.
   § 4. This act shall take effect immediately.