BILL NUMBER:  S6611

 TITLE OF BILL :  An act relating to prohibiting certain charges to
residential consumers in connection with the purchase of zero
emissions credits

 PURPOSE :

This bill would cap the monthly cost assessed to residential utility
consumers as a result of the Zero-Emissions Credit (ZEC) program, part
of the Public Service Commission's Clean Energy Standard (CES).

 SUMMARY OF PROVISIONS :

Section 1 prohibits a utility from charging residential consumers more
than 25 cents per month for costs related to the purchase of zero
emissions credit from NYSERDA or any other entity

 JUSTIFICATION :

On August 1, 2016, the New York State Public Service Commission
approved the Clean Energy Standard (CES) (Case 15-E-0302), which
established the goal of obtaining 50% of the state's electricity from
renewable sources by 2030. A component of the CES is the twelve-year
"Zero-Emissions Credit" (ZEC) requirement. As a result of such
requirement, in the first two years, 2017-2019, all New York energy
              

consumers will pay a rate increase of $965 million to subsidize four
upstate nuclear powered generating facilities (Fitzpatrick, Ginna, and
Nine Mile units 1 and 2), with rates increasing as high as 10% for
each two-year interval through the end of program.

On April 1, 2017, the New York State Energy Research and Development
Authority (NYSERDA) entered into a 12 year contract with the owner of
the four nuclear powered generating facilities. Pursuant to the order,
NYSERDA has purchased "Zero-Emissions Credits" (ZECs) from the
facilities' owner. According to the order, a ZEC is a credit for the
zero-emissions attributes of one-megawatt hour of electricity produced
by such facilities. Utilities are then required to purchase a
proportional share of the ZECs from NYSERDA, inevitably passing on the
costs to their customers.

The Department of Public Service proposed the version of the ZEC
requirement that was adopted (with small modifications) by the Public
Service Commission on July 8, 2016. Approximately three weeks later,
on August 1, 2016, the CES order, which included the ZEC requirement,
was adopted.

Similar legislation in Illinois included a cap of the cost being
passed on to rate payers. Illinois is the home state of the
beneficiary of the ZEC program. This bill would provide a similar
consumer protection afforded to Illinois rate payers. The Illinois cap
was touted by the nuclear powered generating facility owners following
passage of the legislation.

 LEGISLATIVE HISTORY :

New Bill.

 FISCAL IMPLICATIONS :

None to the state

 EFFECTIVE DATE :
This act shall take effect immediately.