S T A T E   O F   N E W   Y O R K
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                                  2366

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            January 18, 2011
                               ___________

Introduced by M. of A. HEVESI -- read once and referred to the Committee
  on Corporations, Authorities and Commissions

AN  ACT  to  amend the public service law, in relation to the management
  and operations audits of certain utilities

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

  Section  1. Subdivision 19 of section 66 of the public service law, as
added by chapter 556 of the laws of 1976 and the  closing  paragraph  as
added by chapter 586 of the laws of 1986, is amended to read as follows:
  19.  The  commission  shall  have  power to provide for management and
operations audits of gas corporations and  electric  corporations.  Such
audits  shall be performed AT SUCH TIMES AS THE COMMISSION SHALL DIRECT,
BUT AN AUDIT SHALL BE PERFORMED at least once every  [five  years]  YEAR
for  combination gas and electric companies, as well as for straight gas
corporations having annual gross  revenues  in  excess  of  two  hundred
million  dollars. WHEN ANY SUCH CORPORATION ALSO OPERATES A STEAM CORPO-
RATION PURSUANT TO ARTICLE FOUR-A OF THIS CHAPTER, THE COMMISSION  SHALL
PROVIDE  FOR  A MANAGEMENT AND OPERATIONS AUDIT OF THE STEAM CORPORATION
IN THE TIME AND MANNER SPECIFIED IN  THIS  SECTION.    The  audit  shall
include,  but  not  be  limited  to,  an  investigation of the company's
construction program, planning [in relation], SECURITY  AND  MAINTENANCE
OPERATIONS  AS  THEY  RELATE  to the needs of its customers for reliable
service and an evaluation of the efficiency of the company's operations.
THE AUDIT SHALL INCLUDE  INDEPENDENT  VERIFICATION  OF  THE  INFORMATION
PROVIDED  BY  THE  COMPANY. The commission shall have discretion to have
such audits performed by its staff, or by independent  auditors.    UPON
COMPLETION,  COPIES  OF  THE  AUDITS  SHALL BE PROVIDED TO THE GOVERNOR,
SPEAKER OF THE ASSEMBLY, THE TEMPORARY  PRESIDENT  OF  THE  SENATE,  THE
CHAIR  OF  THE  SENATE FINANCE COMMITTEE, THE CHAIR OF THE ASSEMBLY WAYS
AND MEANS COMMITTEE, THE CHAIR OF THE ASSEMBLY ENERGY COMMITTEE AND  THE
CHAIR OF THE SENATE ENERGY AND TELECOMMUNICATIONS COMMITTEE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05112-01-1
              

A. 2366                             2

  In  every  case  in  which  the  commission  chooses to have the audit
provided for in this subdivision performed by independent  auditors,  it
shall  have authority to select the auditors, and to require the company
being audited to enter into a contract with the auditors  providing  for
their  payment  by the company. Such contract shall provide further that
the auditors shall work for and under the direction  of  the  commission
according  to  such  terms as the commission may determine are necessary
and reasonable.
  The commission shall have authority to direct the company to implement
any recommendations resulting from such  audits  that  it  finds  to  be
necessary and reasonable.
  Upon  the  application  of  a  gas or electric corporation for a major
change in rates as defined in subdivision twelve of this section OR OF A
STEAM CORPORATION FOR A MAJOR CHANGE IN RATES AS DEFINED IN  SUBDIVISION
TEN  OF SECTION EIGHTY OF THIS CHAPTER, the commission shall review that
corporation's compliance with the directions  and  recommendations  made
previously by the commission, as a result of the most recently completed
management  and  operations audit.  The commission shall incorporate the
findings of such review in its opinion or order.
  S 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law. Provided, that the public service commission
is immediately authorized and directed to  take  any  and  all  actions,
including  but  not  limited to the promulgation of any necessary rules,
necessary to fully implement the provisions of this act on its effective
date.