S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2059

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 15, 2009
                               ___________

Introduced  by M. of A. PARMENT -- Multi-Sponsored by -- M. of A. DESTI-
  TO, ENGLEBRIGHT -- read once and referred to the Committee on Energy

AN ACT to amend the  rural  electric  cooperative  law  and  the  public
  service law, in relation to the powers of rural electric cooperatives

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision (d) of section 14 of the rural electric cooper-
ative law is amended to read as follows:
  (d) To generate, manufacture, purchase, acquire, accumulate and trans-
mit electric energy, and to distribute, sell,  supply,  and  dispose  of
electric  energy  to its members, to governmental agencies and political
subdivisions, and to other persons not in excess of ten  per  centum  of
the  number  of  its members, provided, however, that such other persons
shall become members within one year after they commence taking electric
service from the cooperative; and provided, further  however,  that  the
furnishing by a cooperative of electric cold storage or processing plant
service  shall  not  be deemed to be distributing, selling, supplying or
disposing of electric energy, and  provided,  further  however,  that  a
cooperative  [shall not] MAY, WITHIN THE TERRITORY WHERE THE COOPERATIVE
HOLDS A FRANCHISE, distribute, sell, supply or dispose of electric ener-
gy to any premises or building receiving and using central station elec-
tric service or entitled to receive such service as provided by  section
twelve  of  the transportation corporations law on the effective date of
this chapter or to any premises or buildings  hereafter  served  by  any
person,  corporation  or municipality supplying central station electric
service, if no co-operative service is available  to  such  premises  or
building  at  the  time of such installation, [without the consent] WITH
THE MUTUAL AGREEMENT of the person, corporation, or municipality supply-
ing or required by said section  twelve  of  the  transportation  corpo-
rations  law  to  supply  such  central  station  electric  service, AND
PROVIDED, FURTHER, THAT IN THE EVENT THAT SUCH MUTUAL AGREEMENT  IS  NOT

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04734-01-9
              

A. 2059                             2

REACHED  WITHIN  NINETY DAYS OF THE STATEMENT OF INTEREST BY THE COOPER-
ATIVE, THEN THE CONSIDERATION TO THE PERSON, CORPORATION OR MUNICIPALITY
FOR SUCH SERVICES BY THE COOPERATIVE SHALL BE DETERMINED  WITHIN  NINETY
DAYS   BY   THE   PUBLIC  SERVICE  COMMISSION  PURSUANT  TO  SUBDIVISION
TWENTY-NINE OF SECTION SIXTY-SIX OF THE PUBLIC SERVICE LAW.  THE COOPER-
ATIVE SHALL HAVE NINETY DAYS TO ACCEPT THE CONSIDERATION  AS  DETERMINED
BY THE PUBLIC SERVICE COMMISSION;
  S  2.  Section 66 of the public service law is amended by adding a new
subdivision 29 to read as follows:
  29. IN THE EVENT THAT A MUTUAL AGREEMENT IS NOT  REACHED  PURSUANT  TO
SUBDIVISION  (D)  OF  SECTION FOURTEEN OF THE RURAL ELECTRIC COOPERATIVE
LAW, THE COMMISSION SHALL DETERMINE WITHIN NINETY DAYS THE CONSIDERATION
BY THE RURAL ELECTRIC COOPERATIVE TO THE PERSON, AS DEFINED  IN  SECTION
TWO  OF  THE RURAL ELECTRIC COOPERATIVE LAW, TO THE ELECTRIC CORPORATION
OR TO THE MUNICIPALITY FOR SERVICES, AS DESCRIBED IN SUBDIVISION (D)  OF
SECTION  FOURTEEN  OF  THE  RURAL  ELECTRIC COOPERATIVE LAW, TAKING INTO
ACCOUNT THE OVERALL ECONOMIC EFFICIENCY OF SUCH SERVICES  AND  CONSIDER-
ATION  AND  WHETHER  THE CONSIDERATION AVOIDS ANY NEGATIVE EFFECT ON THE
CUSTOMERS OF THE ELECTRIC CORPORATION OR THE MUNICIPALITY.  THE  COMMIS-
SION SHALL INFORM THE RURAL ELECTRIC COOPERATIVE OF ITS DETERMINATION.
  S 3. The opening paragraph of section 67 of the rural electric cooper-
ative law is amended to read as follows:
  Cooperatives  and  foreign  corporations  doing business in this state
pursuant to this chapter shall be exempt in all respects from the juris-
diction and control of the public service commission of this  state  and
shall not be subject to the provisions of the public service law, EXCEPT
FOR  THE  PROVISIONS  OF SUBDIVISION TWENTY-NINE OF SECTION SIXTY-SIX OF
THE PUBLIC SERVICE LAW.  Each cooperative, however, shall file with  the
public  service  commission an annual report verified by the oath of the
president, vice-president, treasurer,  secretary,  general  manager,  or
receiver, if any. The report shall show in detail
  S 4. This act shall take effect immediately.