S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
     S. 4116                                                  A. 4757
 
                        2017-2018 Regular Sessions
 
                       S E N A T E - A S S E M B L Y
 
                             February 3, 2017
                                ___________
 
 IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
   ed, and when printed to be committed to the Committee on Corporations,
   Authorities and Commissions
 
 IN  ASSEMBLY -- Introduced by M. of A. THIELE, ENGLEBRIGHT, RA, LUPINAC-
   CI, SALADINO, RAIA, RAMOS, McDONOUGH, MURRAY, MONTESANO,  JEAN-PIERRE,
   PALUMBO -- read once and referred to the Committee on Energy
 
 AN  ACT  to amend the public authorities law and the public service law,
   in relation to enacting the "Long Island  power  authority  ratepayers
   protection  act";  and  to  repeal  certain  provisions  of the public
   authorities law relating thereto
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title.  This  act may be cited as the "Long Island
 power authority ratepayers protection act".
   § 2. Section 1020-d of the  public  authorities  law,  as  amended  by
 section  4  of  part A of chapter 173 of the laws of 2013, is amended to
 read as follows:
   § 1020-d. Board of trustees. 1. Starting on January first,  two  thou-
 sand  fourteen,  the  board  of  the  authority shall be constituted and
 consist of nine trustees all of whom shall be residents of  the  service
 area,  five  of whom shall be appointed by the governor, one of whom the
 governor shall designate as chair, and serve at his or her pleasure, two
 of whom shall be appointed by the temporary president of the senate, and
 two of whom shall be appointed by the speaker of the  assembly.  One  of
 the  governor's appointees shall serve an initial term of two years; one
 of the governor's appointees shall serve an initial term of three years;
 and three of the governor's appointees shall serve an  initial  term  of
 four  years.  One  of  the  appointees of the temporary president of the
 senate and one of the appointees of the speaker of  the  assembly  shall
 serve  initial  terms  of  two years; and one appointee of the temporary
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD04116-01-7

 S. 4116                             2                            A. 4757
 
 president of the senate and one appointee of the speaker of the assembly
 shall serve initial terms of three years. Thereafter, all terms shall be
 for a period of four years. In the event of a vacancy occurring  in  the
 office  of  trustee  by  death, resignation or otherwise, the respective
 appointing officer shall appoint a successor who shall hold  office  for
 the unexpired portion of the term.
   1-A.  (A) BEGINNING JANUARY FIRST, TWO THOUSAND TWENTY, SUCH AUTHORITY
 SHALL CONSIST OF NINE TRUSTEES. ONE TRUSTEE, WHO  SHALL  BE  THE  CHAIR-
 PERSON,  SHALL  BE A RESIDENT OF THE SERVICE AREA, SHALL BE APPOINTED BY
 THE GOVERNOR SUBJECT TO CONFIRMATION BY THE SENATE, AND SHALL  SERVE  AT
 THE  GOVERNOR'S PLEASURE. EIGHT TRUSTEES SHALL BE ELECTED FROM DISTRICTS
 ESTABLISHED BY THE LEGISLATURE. EACH ELECTED TRUSTEE SHALL BE A RESIDENT
 OF THE DISTRICT FROM WHICH HE OR SHE IS ELECTED. NO  PERSON  WHO  IS  AN
 ELECTED  OR  APPOINTED  OFFICIAL OF THE STATE OR ANY MUNICIPALITY OR ANY
 AGENCY OR INSTRUMENTALITY THEREOF, SHALL BE QUALIFIED  TO  SERVE  AS  AN
 ELECTED TRUSTEE. EACH ELECTED TRUSTEE SHALL HOLD OFFICE UNTIL HIS OR HER
 SUCCESSOR  HAS  BEEN  ELECTED  AND  QUALIFIED. IN THE EVENT OF A VACANCY
 OCCURRING IN THE OFFICE OF A TRUSTEE BY DEATH, RESIGNATION OR OTHERWISE,
 A SUCCESSOR SHALL BE CHOSEN TO HOLD OFFICE FOR THE UNEXPIRED TERM IN THE
 MANNER PRESCRIBED BY THE ELECTION LAW.
   (B) PRIOR TO MAY FIRST, TWO THOUSAND NINETEEN, THE  LEGISLATURE  SHALL
 ESTABLISH  EIGHT DISTRICTS, WHICH SHALL BE EQUAL IN POPULATION AS DETER-
 MINED BY THE LAST FEDERAL DECENNIAL CENSUS.  PRIOR  TO  MAY  FIRST,  TWO
 THOUSAND  TWENTY-THREE  AND  EACH TENTH YEAR THEREAFTER, THE LEGISLATURE
 SHALL REAPPORTION THE EIGHT DISTRICTS, WHICH SHALL  BE  EQUAL  IN  POPU-
 LATION AS DETERMINED BY THE LAST FEDERAL DECENNIAL CENSUS.
   (C)  SUCH  TRUSTEES,  SHALL  BE  ELECTED IN ELECTIONS CONDUCTED BY THE
 BOARDS OF ELECTIONS PURSUANT TO APPLICABLE PROVISIONS  OF  THE  ELECTION
 LAW.  THE  FIRST  SUCH  ELECTION  SHALL  BE HELD ON THE FIRST TUESDAY IN
 DECEMBER TWO THOUSAND NINETEEN, AND THE TRUSTEES SO ELECTED  SHALL  TAKE
 OFFICE ON JANUARY FIRST, TWO THOUSAND TWENTY. AT SUCH ELECTION ALL EIGHT
 TRUSTEES SHALL BE ELECTED FOR A TERM OF TWO YEARS. EACH SUCH TERM ENDING
 ON  DECEMBER  THIRTY-FIRST  OF THE LAST YEAR THEREOF. NO POLITICAL PARTY
 SHALL BE ENTITLED TO NOMINATE CANDIDATES FOR THE OFFICE  OF  TRUSTEE  AT
 ANY SUCH ELECTION.
   (D)  FIVE TRUSTEES SHALL CONSTITUTE A QUORUM FOR THE PURPOSE OF ORGAN-
 IZING THE AUTHORITY AND CONDUCTING THE BUSINESS THEREOF. THE VOTE  OF  A
 MAJORITY  OF  THE  TRUSTEES  SHALL BE REQUIRED FOR THE PURPOSE OF TAKING
 ACTION.
   2. No trustee shall receive a salary, but each shall  be  entitled  to
 reimbursement  for  reasonable  expenses  in  the  performance of duties
 assigned hereunder.
   3. [Notwithstanding the provisions of any other law, no trustee, offi-
 cer or employee of the state, any state agency or municipality appointed
 a trustee shall be deemed to have forfeited or shall forfeit his or  her
 office or employment by reason of his or her acceptance of a trusteeship
 on  the  authority,  his or her service thereon or his or her employment
 therewith.
   4.] All trustees appointed under  this  section  shall  have  relevant
 utility,  corporate  board  or  financial  experience. BEGINNING JANUARY
 FIRST, TWO THOUSAND TWENTY ONLY THE CHAIRPERSON APPOINTED BY THE  GOVER-
 NOR SHALL BE SUBJECT TO THIS SUBDIVISION.
   §  3. Subdivision (u) of section 1020-f of the public authorities law,
 as added by section 7 of part A of chapter 173 of the laws of  2013  and
 paragraph 2-a as added by chapter 471 of the laws of 2014, is amended to
 read as follows:

 S. 4116                             3                            A. 4757
 
   (u)  Rate  plans.  Subject  to subdivision six of section one thousand
 twenty-k of this title to fix rates and charges for  the  furnishing  or
 rendition  of  gas  or  electric  power or of any related service at the
 lowest level consistent with sound fiscal and operating practices of the
 authority and which provide for safe and adequate service. In implement-
 ing this power:
   1. The authority and the service provider shall, on or before February
 first,  two  thousand  fifteen,  submit  for review to the department of
 public service a three-year rate proposal for rates and charges to  take
 effect on or after January first, two thousand sixteen.
   2.  The authority and the service provider shall thereafter submit for
 review AND APPROVAL  to  the  department  of  public  service  any  rate
 proposal that would increase the rates and charges and thus increase the
 aggregate  revenues  of  the  authority  by  more  than two and one-half
 percent to be measured on an annual basis[; provided, however, that  the
 authority  may  place  such  rates and charges into effect on an interim
 basis, subject to prospective rate adjustment; provided, further, that a
 final rate plan issued by the authority that would not so increase  such
 rates  and charges shall not be subject to the requirements of paragraph
 four of this subdivision and shall be considered final for the  purposes
 of  review  under  article  seventy-eight  of the civil practice law and
 rules].  The authority and/or the service provider may otherwise  submit
 for  review  AND APPROVAL to such department any rate proposal irrespec-
 tive of its effect on revenues.
   2-a. The authority and the service provider shall not submit any  rate
 proposal  that shall assess any fee, penalty or other charge of any kind
 for the voluntary termination of electric  service  to  any  residential
 customer  for  the  purpose of utilizing alternative sources of electric
 generation in excess of that charged to customers  who  terminate  their
 electric service for any other reason.
   3.  The  authority  shall not fix any final rates and charges proposed
 that would not be subject to review by the department of public  service
 pursuant to paragraphs one and two of this subdivision until after hold-
 ing public hearings thereon upon reasonable public notice, with at least
 one such hearing to be held each in the county of Suffolk and the county
 of Nassau.
   4.  Any  [recommendations]  APPROVALS  associated with a rate proposal
 submitted pursuant to paragraphs one and two of this  subdivision  shall
 be  provided  by  the  department  of public service to the board of the
 authority immediately upon their finalization by the department. [Unless
 the board of the authority makes  a  preliminary  determination  in  its
 discretion  that  any particular recommendation is inconsistent with the
 authority's sound fiscal operating practices, any  existing  contractual
 or operating obligations, or the provision of safe and adequate service,
 the]  THE  board  shall  [implement  such  recommendations] CONSIDER THE
 APPROVAL OF THE DEPARTMENT as part of its DETERMINATION ON  THE  DEPART-
 MENT  final  rate  plan  [and such]. THE BOARD SHALL NOT APPROVE A FINAL
 RATE PLAN UNTIL IT HOLDS A PUBLIC HEARING IN EACH COUNTY OF THE  SERVICE
 AREA  UPON  AT  LEAST THIRTY DAYS' NOTICE TO THE PUBLIC. THE BOARD SHALL
 PROTECT THE ECONOMIC INTERESTS OF ITS RATEPAYERS AND THE SERVICE AREA IN
 APPROVING ITS FINAL RATE PLAN. SUCH final determination shall be [deemed
 to satisfy the requirements of this subdivision and be] considered final
 for the purposes of review under  article  seventy-eight  of  the  civil
 practice  law  and  rules.  [The  board  shall make any such preliminary
 determination of inconsistency within thirty days  of  receipt  of  such
 recommendations,  with  notice and the basis of such determination being

 S. 4116                             4                            A. 4757

 provided to the department  of  public  service,  and  contemporaneously
 posted  on  the  websites of the authority and its service provider. The
 board shall thereafter, within thirty days of such posting and with  due
 advance  notice to the public, hold a public hearing with respect to its
 preliminary determination of inconsistency. At such hearing, the depart-
 ment of public service shall present the basis for its  recommendations,
 the board shall present the basis for its determination of inconsistency
 and the service provider may present its position. The authority and the
 service  provider may, during the time period before such public hearing
 reach agreement with the department on disputed  issues.  Within  thirty
 days  after  such  public  hearing,  the  board  of  the authority shall
 announce its final determination and planned implementation with respect
 to any such recommendations.  The  authority's  final  determination  of
 inconsistency  shall  be  subject  to  any  applicable  judicial  review
 proceeding, including review available under  article  seventy-eight  of
 the civil practice law and rules.]
   § 4. Section 1020-h of the public authorities law, as added by chapter
 517  of  the  laws of 1986, is amended by adding a new subdivision 12 to
 read as follows:
   12. NOTHING IN THIS TITLE SHALL BE CONSTRUED AS PREEMPTING, OR  OTHER-
 WISE  LIMITING,  THE  RIGHTS  OF ANY MUNICIPALITY LOCATED IN WHOLE OR IN
 PART IN THE SERVICE AREA FROM EXERCISING ANY POWER OR AUTHORITY  GRANTED
 TO IT BY ARTICLE FOURTEEN-A OF THE GENERAL MUNICIPAL LAW.
   § 5. Subdivision 1 of section 1020-k of the public authorities law, as
 added  by chapter 517 of the laws of 1986, is amended and a new subdivi-
 sion 1-a is added to read as follows:
   1. [The] EXCEPT AS MAY BE OTHERWISE  PROVIDED  IN  THIS  SECTION,  THE
 authority shall have power and is hereby authorized from time to time to
 issue  its  negotiable bonds in conformity with applicable provisions of
 the uniform commercial code for any purpose authorized  by  this  title,
 including without limitation (a) to acquire any real or personal proper-
 ty  or facilities deemed necessary by the authority, (b) to pay interest
 on bonds or notes of the authority, (c) to establish reserves to  secure
 such  bonds  and notes, (d) to establish or maintain such other funds or
 accounts for such purpose or purposes as the authority may  deem  neces-
 sary  or  desirable,  and (e) to pay all other expenses of the authority
 incident to the issuance of such bonds or notes.
   1-A. ANY ISSUANCE OF BONDS BY THE AUTHORITY MUST BE  AUTHORIZED  BY  A
 MAJORITY OF THE RATEPAYERS OF THE AUTHORITY BY A PUBLIC REFERENDUM AFTER
 AT LEAST ONE PUBLIC HEARING IN EACH OF THE AFFECTED COUNTIES.
   §  6.  Section  1020-cc  of  the public authorities law, as amended by
 section 11 of part A of chapter 173 of the laws of 2013, is  amended  to
 read as follows:
   §  1020-cc.  Authority  subject to certain provisions contained in the
 state finance law, the public service law, the social services  law  and
 the  general  municipal  law. 1. All contracts of the authority shall be
 subject to the provisions of the state finance law relating to contracts
 made by the state. The authority shall also establish  rules  and  regu-
 lations  with  respect to providing to its residential gas, electric and
 steam utility customers those rights and protections provided in article
 two and sections one hundred seventeen and one hundred eighteen  of  the
 public  service  law  and section one hundred thirty-one-s of the social
 services law. The  authority  shall  conform  to  any  safety  standards
 regarding  manual lockable disconnect switches for solar electric gener-
 ating equipment established by the public service commission pursuant to
 subparagraph (ii) of paragraph (a) of subdivision five and  subparagraph

 S. 4116                             5                            A. 4757
 
 (ii)  of  paragraph  (a) of subdivision five-a of section sixty-six-j of
 the  public  service  law.  The  authority  shall  let   contracts   for
 construction  or  purchase of supplies, materials, or equipment pursuant
 to  section  one  hundred three and paragraph (e) of subdivision four of
 section one hundred twenty-w of the general municipal law.
   2. The authority and service provider shall provide to the state comp-
 troller on March thirty-first and September thirtieth  of  each  year  a
 report documenting each contract in excess of two hundred fifty thousand
 dollars  per year entered into with a third party and related to manage-
 ment and operation services associated  with  the  authority's  electric
 transmission  and  distribution  system, including the name of the third
 party, the contract term and a description of services or  goods  to  be
 procured, and post such report on each of their websites. [All contracts
 entered  into  between  the  service  provider and third parties are not
 subject to the requirements of subdivision one of this section.]
   § 7. Section 1020-dd of the public authorities law is REPEALED.
   § 8. Paragraph a of subdivision 3 of section 3-b of the public service
 law, as added by section 1 of part A of chapter 173 of the laws of 2013,
 is amended to read as follows:
   (a) Review and [make recommendations to the board of the  Long  Island
 power  authority  with  respect to] APPROVE the rates and charges OF THE
 LONG ISLAND POWER AUTHORITY, including charges related to  energy  effi-
 ciency and renewable energy programs, to be established by the authority
 and  become  applicable  on or after January first, two thousand sixteen
 pursuant to subdivision (u) of section  one  thousand  twenty-f  of  the
 public authorities law.
   (i)  The  purpose  of such review is to [make recommendations] APPROVE
 RATES AND CHARGES designed to ensure that the authority and the  service
 provider provide safe and adequate transmission and distribution service
 at  rates set at the lowest level consistent with sound fiscal operating
 practices.  HOWEVER, AT NO TIME WILL THE  DEPARTMENT  AUTHORIZE  A  RATE
 INCREASE  TO  OFFSET  REVENUE LOSS DUE TO ENERGY CONSERVATION EFFORTS BY
 CONSUMERS.
   (ii) The department's [recommendations] APPROVAL shall be designed  to
 be  consistent  with  ensuring  that the revenue requirements related to
 such rate review are sufficient to satisfy the  authority's  obligations
 with respect to its bonds, notes and all other contracts.
   (iii)  [In the context of such review, the department may not make any
 recommendation that would  modify  the  compensation  or  fee  structure
 included  within  the  operations services agreement.] IN THE CONTEXT OF
 SUCH REVIEW, THE DEPARTMENT MAY MAKE RECOMMENDATIONS WITH REGARD TO  THE
 COMPENSATION  OR  FEE  STRUCTURE INCLUDED WITHIN THE OPERATIONS SERVICES
 AGREEMENT.
   (iv) In undertaking such review and [in making recommendations related
 to] APPROVAL OF the proposed rates and  charges,  the  department  shall
 establish standards, policies and procedures that, at a minimum, provide
 for  public  statement  and  evidentiary  hearings  and participation of
 intervenors and other parties, and ensure that  any  final  [recommenda-
 tions]  APPROVALS related to the proposed rates and charges are provided
 to the authority within two hundred forty days of the  filing  with  the
 department of such plan.
   (v)  The parties to any such rate review proceeding shall include, but
 not be limited to, department staff, the authority, the service provider
 and, to the extent it deems necessary or appropriate, the utility inter-
 vention unit.

 S. 4116                             6                            A. 4757
 
   § 9.  Severability. If any provision of this act  or  the  application
 thereof  shall  for  any  reason  be  adjudged by any court of competent
 jurisdiction to be invalid, such judgment shall not  affect,  impair  or
 invalidate the remainder of this act, but shall be confined in its oper-
 ation  to  the provision thereof directly involved in the controversy in
 which the judgement shall have been rendered.
   § 10.  This act shall take effect immediately.