S T A T E O F N E W Y O R K
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7889
2011-2012 Regular Sessions
I N A S S E M B L Y
May 20, 2011
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Introduced by M. of A. BRENNAN -- read once and referred to the Commit-
tee on Governmental Operations
AN ACT to amend the public service law, in relation to providing over-
sight and monitoring the operations of an independent system operator
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 66 of the public service law is amended by adding a
new subdivision 29 to read as follows:
29. (A) FOR THE PURPOSES OF THIS SUBDIVISION:
(I) "INDEPENDENT SYSTEM OPERATOR" SHALL MEAN ANY ENTITY OPERATING IN
THE STATE THAT IS APPROVED BY THE UNITED STATES FEDERAL ENERGY REGULATO-
RY COMMISSION TO OPERATE IN THE STATE TO ADMINISTER AND MONITOR WHOLE-
SALE ELECTRICITY MARKETS; AND
(II) "END USE SECTOR MEMBER" SHALL INCLUDE ANY ENTITY THAT PURCHASES
ELECTRICITY FOR ITS OWN CONSUMPTION AND NOT FOR RESALE.
(B) THE COMMISSIONER IS AUTHORIZED AND DIRECTED TO PROVIDE OVERSIGHT
AND MONITOR THE MARKET OPERATIONS OF AN INDEPENDENT SYSTEM OPERATOR,
INCLUDING BUT NOT LIMITED TO THE EXTENT TO WHICH IT:
(I) SERVES THE NEEDS OF ALL CUSTOMER CLASSES AND OPERATES IN A MANNER
THAT IS IN THE BEST INTEREST OF THE PUBLIC;
(II) ENSURES RELIABILITY, QUALITY AND MAINTENANCE OF THE TRANSMISSION
SYSTEM;
(III) MEETS THE REQUIREMENTS OF THE NEW YORK STATE OPEN MEETING LAWS;
AND
(IV) CONTRIBUTES TO THE ACHIEVEMENT OF ENERGY EFFICIENCY AND FUEL
DIVERSITY GOALS OF THE STATE.
(C) THE COMMISSION SHALL ENSURE THAT AN INDEPENDENT SYSTEM OPERATOR
OPERATE IN A MANNER TO PREVENT MARKET MANIPULATION AND OPPORTUNITIES FOR
COLLUSION BY REQUIRING AN INDEPENDENT SYSTEM OPERATOR TO DISCLOSE PRICE
DATA RELATED TO ITS WHOLESALE MARKET OPERATIONS INCLUDING, BUT NOT
LIMITED TO, INFORMATION ON REAL-TIME, DAY-AHEAD AND SPOT MARKET BIDS AND
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04844-05-1
A. 7889 2
BIDDERS IN AN INDEPENDENT SYSTEM OPERATOR'S WHOLESALE ELECTRICITY MARKET
AUCTIONS, TRANSMISSION CONGESTION CONTRACT AUCTIONS AND INSTALLED CAPAC-
ITY MARKET AUCTIONS TO BE MADE PUBLIC WITH NO MORE THAN A THREE MONTH
DELAY. SUCH INFORMATION SHALL BE MADE IN A FORMAT READILY AVAILABLE AND
ACCESSIBLE TO THE PUBLIC INCLUDING, BUT NOT LIMITED TO PROVIDING SUCH
DATA IN AGGREGATE HOURLY, DAILY, MONTHLY, ANNUAL AND HISTORICAL DATA
SETS FOR COMPARISON PURPOSES AS WELL AS DATA RELATED TO SEASONAL AND
PEAK LOAD VARIATIONS AND AVERAGES.
(D) THE COMMISSION SHALL ENSURE ACCOUNTABILITY BY REQUIRING THAT AN
INDEPENDENT SYSTEM OPERATOR'S BOARD OF DIRECTORS INCLUDES AT LEAST THREE
NON-GOVERNMENTAL APPOINTMENTS THAT DIRECTLY REPRESENT THE INTERESTS OF
RESIDENTIAL SMALL BUSINESS AND FARM ELECTRICITY USERS. THE GOVERNOR,
THE SPEAKER OF THE ASSEMBLY AND THE TEMPORARY PRESIDENT OF THE SENATE
SHALL EACH APPOINT ONE REPRESENTATIVE TO THE BOARD.
(E) THE COMMISSION SHALL REQUIRE AN INDEPENDENT SYSTEM OPERATOR TO
CREATE THE POSITION OF CONSUMER LIAISON WHOSE PRIMARY ROLE SHALL BE TO
INTERACT WITH MEMBERS OF THE END-USE SECTOR FOR THE PURPOSES OF:
(I) KEEPING END-USE SECTOR MEMBERS INFORMED ABOUT DEVELOPMENTS IN
WORKING GROUPS/SUB-COMMITTEES THAT MAY AFFECT THEIR INTERESTS;
(II) EXPLAINING THE ISSUES AND PROPOSALS UNDER DISCUSSION AT THE WORK-
ING GROUP/SUB-COMMITTEE MEETINGS AND PROPOSED FOR CONSIDERATION AT THE
OPERATING COMMITTEE, BUSINESS ISSUES COMMITTEE AND MANAGEMENT COMMITTEE
AS WELL AS THE RAMIFICATIONS OF THOSE PROPOSALS ON CONSUMERS;
(III) LISTENING AND RESPONDING TO THE QUESTIONS AND CONCERNS OF
MEMBERS OF THE END-USE SECTOR; AND
(IV) SERVING AS THE LIAISON BETWEEN THE END-USE SECTOR AND THE DIREC-
TORS DESIGNATED OR ASSIGNED TO PAY PARTICULAR ATTENTION TO THE INTERESTS
OF THE RESIDENTIAL, SMALL BUSINESS AND FARM ELECTRICITY USERS.
(F) THE COMMISSION SHALL REQUIRE AN INDEPENDENT SYSTEM OPERATOR TO
ESTABLISH AND FUND AN END-USE CONSUMER SECTOR CONSULTANT FOR THE
PURPOSES OF:
(I) PARTICIPATING IN TASK FORCE, WORKING GROUP AND COMMITTEE MEETINGS
AS WELL AS IN OTHER MEETINGS ADDRESSING MATTERS AFFECTING MARKETS ADMIN-
ISTERED BY AN INDEPENDENT SYSTEM OPERATOR;
(II) ANALYZING EXISTING OR PROPOSED MARKET RULES REGARDING WHOLESALE
SERVICE; AND
(III) PROVIDING TECHNICAL ASSISTANCE, AND SUPPORTING END-USE SECTOR
PARTICIPATION IN PROCEEDINGS BEFORE THE FEDERAL ENERGY REGULATORY
COMMISSION, THE PUBLIC SERVICE COMMISSION, OR OTHER REGULATORY AND/OR
ADJUDICATIVE BODIES IN MATTERS AFFECTING MARKETS ADMINISTERED BY AN
INDEPENDENT SYSTEM OPERATOR.
(G) (I) THE COMMISSION SHALL REQUIRE AN INDEPENDENT SYSTEM OPERATOR TO
FILE A TARIFF AMENDMENT CREATING A RATE SCHEDULE TO ALLOW ALL MARKET
PARTICIPANTS SERVING INTERNAL NEW YORK LOAD TO FUND COSTS OF HIRING AN
END-USE CONSUMER SECTOR CONSULTANT.
(II) COSTS AND FEES ELIGIBLE FOR RECOVERY THROUGH THE TARIFF WOULD
INCLUDE THOSE ASSOCIATED WITH THE END-USE CONSUMER SECTOR CONSULTANT
PERFORMING THE TASKS OUTLINED IN PARAGRAPH (F) OF THIS SUBDIVISION.
(III) COSTS AND FEES NOT ELIGIBLE FOR RECOVERY SHALL INCLUDE, BUT NOT
BE LIMITED TO, GOVERNMENTAL LOBBYING, PUBLIC OUTREACH (MEDIA, SPEAKING
ENGAGEMENTS, ETC.), AND CONDUCT NOT AUTHORIZED BY THE END-USE SECTOR.
(H) THE COMMISSIONER SHALL ANNUALLY ISSUE A REPORT RELATING THE MARKET
OPERATION OF AN INDEPENDENT SYSTEM OPERATOR. SUCH REPORTS SHALL
INCLUDE, BUT NOT BE LIMITED TO:
(I) ANALYSES BY AN INDEPENDENT SYSTEM OPERATOR AND OTHER SUCH DATA
COLLECTED AND ANALYZED BY THE COMMISSION INFORMATION ON REAL-TIME,
A. 7889 3
HOUR-AHEAD AND DAY-AHEAD MARKET BIDS AND BIDDERS IN AN INDEPENDENT
SYSTEM OPERATOR'S WHOLESALE ELECTRICITY MARKET AUCTIONS, TRANSMISSION
CONGESTION CONTRACT AUCTIONS AND INSTALLED MARKET AUCTIONS;
(II) A DETERMINATION OF THE EXTENT TO WHICH THE ENERGY MARKETS ARE
MAINTAINING NECESSARY LEVELS OF RELIABILITY;
(III) A DETERMINATION OF WHETHER OR NOT ALL CUSTOMER CLASSES ARE BEING
ADEQUATELY SERVED BY COMPETITIVE ENERGY MARKETS;
(IV) A DETERMINATION OF THE COMPETITIVENESS OF ENERGY MARKETS; INCLUD-
ING A DETERMINATION WHETHER OR NOT THE ELECTRIC INDUSTRY IS PROVIDING
CONSUMERS WITH THE LOWEST PRICES POSSIBLE WITHIN A RESTRUCTURED, COMPET-
ITIVE RETAIL MARKETPLACE;
(V) A DETERMINATION OF THE EXTENT TO WHICH THE ENERGY MARKETS ARE
ACHIEVING THE ENERGY EFFICIENCY AND FUEL DIVERSITY GOALS OF THE STATE;
(VI) THE NAME AND TERMS OF THE BOARDS OF DIRECTORS AND AN INDEPENDENT
SYSTEM OPERATOR MANAGEMENT, OPERATING AND BUSINESS COMMITTEE MEMBERS;
(VII) AN INDEPENDENT SYSTEM OPERATOR'S FINANCIAL INFORMATION; AND
(VIII) RECOMMENDATIONS FOR IMPROVING ANY DEFICIENCIES SO IDENTIFIED IN
ELECTRICITY ENERGY MARKETS, INCLUDING NON-COMPETITIVE PRICING SITU-
ATIONS. THE COMMISSION SHALL SUBMIT SUCH REPORT TO THE GOVERNOR, THE
PRESIDENT PRO TEM OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE MINOR-
ITY LEADERS OF THE SENATE AND THE ASSEMBLY, THE CHAIRS OF THE ENERGY
COMMITTEES OF THE SENATE AND THE ASSEMBLY, NO LATER THAN APRIL FIRST,
TWO THOUSAND TWELVE AND ANNUALLY THEREAFTER.
S 2. Subdivision 6 of section 66 of the public service law, as amended
by chapter 784 of the laws of 1923, is amended to read as follows:
6. [Require] NOTWITHSTANDING ANY OTHER RULE, REGULATION, OR ORDER,
REQUIRE every person and corporation under its supervision and it shall
be the duty of every such person and corporation to file with the
commission an annual report, verified by the oath of the president,
vice-president, treasurer, secretary, general manager, or receiver, if
any, thereof, or by the person required to file the same. The verifica-
tion shall be made by said official holding office at the time of the
filing of said report, and if not made upon the knowledge of the person
verifying the same shall set forth the sources of his information and
the grounds of his belief as to any matters not stated to be verified
upon his knowledge. The report shall show in detail (a) the amount of
its authorized capital stock and the amount thereof issued and outstand-
ing; (b) the amount of its authorized bonded indebtedness and the amount
of its bonds and other forms of evidence of indebtedness issued and
outstanding; (c) its receipts and expenditures during the preceding
year; (d) the amount paid as dividends upon its stock and as interest
upon its bonds; (e) the names of its officers and the aggregate amount
paid as salaries to them and the amount paid as wages to its employees;
(f) the location of its plant or plants and system, with a full
description of its property and franchises, stating in detail how each
franchise stated to be owned was acquired; and (g) such other facts
pertaining to the operation and maintenance of the plant and system, and
the affairs of such person or corporation as may be required by the
commission. Such reports shall be in the form, cover the period and be
filed at the time prescribed by the commission. The commission may, from
time to time, make [changes and] additions in such forms. When any such
report is defective or believed to be erroneous, the commission shall
notify the person, corporation or municipality making such report to
amend the same within a time prescribed by the commission. Any such
person or corporation or municipality which shall neglect to make any
such report or which shall fail to correct any such report within the
A. 7889 4
time prescribed by the commission shall be liable to a penalty of one
hundred dollars and an additional penalty of one hundred dollars for
each day after the prescribed time for which it shall neglect to file or
correct the same, to be sued for in the name of the people of the state
of New York. The amount recovered in any such action shall be paid into
the state treasury and be credited to the general fund. The commission
may extend the time prescribed for cause shown.
S 3. This act shall take effect immediately.