Senate Bill S2095

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

                                  2095

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 11, 2009
                               ___________

Introduced  by  Sen. VALESKY -- read twice and ordered printed, and when
  printed to be committed to the Committee on  Energy  and  Telecommuni-
  cations

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

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

S. 2095                             2

PROVIDED,  FURTHER,  THAT IN THE EVENT THAT SUCH MUTUAL AGREEMENT IS NOT
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.