S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   11115
 
                           I N  A S S E M B L Y
 
                             November 6, 2020
                                ___________
 
 Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Paulin) --
   read once and referred to the Committee on  Corporations,  Authorities
   and Commissions
 
 AN  ACT to amend the public service law, in relation to  storm hardening
   and system resiliency plans
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Legislative findings. 1. The Legislature hereby finds and
 declares that, due to the rise in storm intensity, dedicated storm hard-
 ening programs need to be developed and implemented throughout New  York
 State to reduce damage and costs from future weather events. Storm hard-
 ening  is the process of constructing new, or upgrading old, infrastruc-
 ture to increase  resiliency  and  overall  reliability  during  weather
 events.  In  2018,  Winter  Storm  Riley  and Winter Storm Quinn greatly
 impacted New York's electric distribution  system  with  nearly  500,000
 customers  losing  power.  In August 2020, Tropical Storm Isaias brought
 high winds, downed trees and widespread power outages  to  much  of  the
 state; hundreds of thousands of customers in Long Island, New York City,
 Westchester  and  Rockland counties experienced extensive power outages,
 some lasting for more than a week. Legislative hearings following  these
 storms made it clear that storm hardening efforts are needed to mitigate
 some of the impacts to the distribution infrastructure and customers.
   2.  An  investigation  by the Department of Public Service recommended
 New York's major electrical utilities create and implement storm harden-
 ing and system resiliency plans by July 2019. Plans should detail future
 storm hardening measures and  include  a  budget,  timeline,  and  major
 performance benchmarks.
   (a)  It  is  in  the  state's  interest to strengthen electric utility
 infrastructure to withstand extreme weather conditions by promoting  the
 hardening  of  electrical  transmission and distribution facilities, the
 undergrounding of certain electrical distribution lines, and  vegetation
 management;
   (b)  Protecting  and strengthening transmission and distribution elec-
 trical utility infrastructure from extreme weather conditions can effec-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD17527-03-0

 A. 11115                            2
 
 tively reduce restoration  costs  and  outage  times  to  customers  and
 improve overall service reliability for customers;
   (c)  It is in the state's interest for each utility to mitigate resto-
 ration costs and outage times to utility customers when developing tran-
 smission and distribution storm protection plans; and
   (d) All customers benefit from the reduced costs of storm restoration.
   § 2. Section 66 of the public service law is amended by adding  a  new
 subdivision 29 to read as follows:
   29.  (A) EACH ELECTRIC CORPORATION SUBJECT TO SECTION TWENTY-FIVE-A OF
 THIS CHAPTER SHALL, PURSUANT TO REGULATION BY THE COMMISSION,  SUBMIT  A
 STORM  HARDENING  AND  SYSTEM  RESILIENCY PLAN THAT COVERS THE IMMEDIATE
 TEN-YEAR PERIOD TO THE COMMISSION FOR REVIEW AND APPROVAL.    EACH  PLAN
 SHALL  EXPLAIN  THE  SYSTEMATIC  APPROACH THE CORPORATION WILL FOLLOW TO
 ACHIEVE THE OBJECTIVES OF REDUCING RESTORATION COSTS  AND  OUTAGE  TIMES
 ASSOCIATED  WITH  EXTREME  WEATHER  EVENTS AND ENHANCING RELIABILITY, AS
 WELL AS SUCH OTHER ADDITIONAL  OBJECTIVES  THE  COMMISSION  MAY  REQUIRE
 CONSISTENT  WITH ENSURING INCREASED RESILIENCY OF UTILITY INFRASTRUCTURE
 AND OVERALL RELIABILITY DURING EXTREME WEATHER EVENTS.   THE  COMMISSION
 SHALL  ADOPT  RULES  TO  SPECIFY THE ELEMENTS THAT MUST BE INCLUDED IN A
 CORPORATION'S FILING FOR REVIEW OF STORM HARDENING AND SYSTEM RESILIENCY
 PLANS.
   (B) IN ITS REVIEW OF EACH STORM HARDENING AND SYSTEM  RESILIENCY  PLAN
 FILED  PURSUANT  TO  THIS SUBDIVISION, THE COMMISSION SHALL, AT MINIMUM,
 CONSIDER:
   (I) THE EXTENT TO WHICH THE PLAN IS  EXPECTED  TO  REDUCE  RESTORATION
 COSTS  AND  OUTAGE  TIMES  ASSOCIATED  WITH  EXTREME  WEATHER EVENTS AND
 ENHANCE RELIABILITY, INCLUDING WHETHER THE  PLAN  PRIORITIZES  AREAS  OF
 LOWER RELIABILITY PERFORMANCE;
   (II)  THE  EXTENT  TO  WHICH  STORM PROTECTION AND HARDENING OF TRANS-
 MISSION AND DISTRIBUTION  INFRASTRUCTURE  IS  FEASIBLE,  REASONABLE,  OR
 PRACTICAL  IN  CERTAIN  AREAS  OF  THE  CORPORATION'S SERVICE TERRITORY,
 INCLUDING, BUT NOT LIMITED TO, COASTAL AREAS,  FLOOD  ZONES,  AND  RURAL
 AREAS;
   (III)  THE  ESTIMATED  COSTS  AND  BENEFITS TO THE CORPORATION AND ITS
 CUSTOMERS OF MAKING THE IMPROVEMENTS PROPOSED IN THE PLAN;
   (IV) THE TIMELINE FOR IMPLEMENTATION OF THE PLAN;
   (V) WHETHER THE PLAN INCLUDES MAJOR PERFORMANCE BENCHMARKS THAT  MEAS-
 URE THE EFFECTIVENESS OF THE IMPLEMENTATION OF THE PLAN;
   (VI) THE ESTIMATED ANNUAL RATE IMPACT RESULTING FROM IMPLEMENTATION OF
 THE PLAN DURING THE FIRST TWO YEARS ADDRESSED IN THE PLAN; AND
   (VII)  THE EXTENT TO WHICH THE PLAN CONSIDERS A MULTI-PRONGED STRATEGY
 APPROPRIATELY TAILORED TO REDUCING RESTORATION COSTS  AND  OUTAGE  TIMES
 AND ENHANCING INFRASTRUCTURE RELIABILITY, INCLUDING, BUT NOT LIMITED TO,
 VEGETATION  MANAGEMENT,  IMPROVEMENTS  TO  SYSTEM  MANAGEMENT PRACTICES,
 UNDERGROUNDING OF DISTRIBUTION AND TRANSMISSION  LINES,  REPLACEMENT  OF
 OBSOLETE  CABLES,  WIRES  AND POLES, AUTOMATION AND CIRCUIT RECONFIGURA-
 TION, AND FORTIFYING CRITICAL STEAM PRODUCTION FACILITIES.
   (C) NO LATER THAN ELEVEN MONTHS AFTER  A  CORPORATION  FILES  A  STORM
 HARDENING  AND  SYSTEM RESILIENCY PLAN THAT CONTAINS ALL OF THE ELEMENTS
 REQUIRED BY THIS SUBDIVISION AND THE COMMISSION,  THE  COMMISSION  SHALL
 DETERMINE  WHETHER  IT  IS IN THE PUBLIC INTEREST TO APPROVE, MODIFY, OR
 DENY THE PLAN.
   (D) AT LEAST EVERY THREE YEARS AFTER APPROVAL OF A CORPORATION'S STORM
 HARDENING AND SYSTEM RESILIENCY PLAN,  THE  CORPORATION  MUST  FILE  FOR
 COMMISSION  REVIEW AN UPDATED STORM HARDENING AND SYSTEM RESILIENCY PLAN
 THAT ADDRESSES EACH ELEMENT  SPECIFIED  BY  COMMISSION  REGULATION.  THE

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 COMMISSION  SHALL APPROVE, MODIFY, OR DENY EACH UPDATED PLAN PURSUANT TO
 THE CRITERIA USED TO REVIEW THE INITIAL PLAN.
   (E) THE COMMISSION SHALL CONDUCT AN ANNUAL PROCEEDING TO DETERMINE THE
 CORPORATION'S STORM HARDENING AND SYSTEM RESILIENCY PLAN COSTS AND ALLOW
 THE  CORPORATION  TO  RECOVER  SUCH  COSTS THROUGH A CHARGE SEPARATE AND
 APART FROM ITS BASE RATES, TO BE REFERRED TO AS THE STORM HARDENING PLAN
 COST RECOVERY CLAUSE. IF THE COMMISSION DETERMINES THAT SUCH  COSTS  ARE
 JUST  AND  REASONABLE, AND WERE PRUDENTLY INCURRED, THOSE COSTS WILL NOT
 BE SUBJECT TO DISALLOWANCE OR FURTHER REASONABLENESS OR PRUDENCE  REVIEW
 EXCEPT FOR FRAUD, PERJURY, OR INTENTIONAL WITHHOLDING OF KEY INFORMATION
 BY  THE  CORPORATION.  THE  ANNUAL  STORM  HARDENING  PLAN COSTS MAY NOT
 INCLUDE COSTS RECOVERED THROUGH THE CORPORATION'S BASE RATES AND MUST BE
 ALLOCATED TO CUSTOMER CLASSES PURSUANT TO THE RATE DESIGN MOST  RECENTLY
 APPROVED  BY THE COMMISSION.  IF A CAPITAL EXPENDITURE IS RECOVERABLE AS
 A STORM HARDENING PLAN COST, THE  CORPORATION  MAY  RECOVER  THE  ANNUAL
 DEPRECIATION  ON  THE  COST,  CALCULATED  AT  THE  CORPORATION'S CURRENT
 APPROVED DEPRECIATION RATES, AND A RETURN ON THE  UNDEPRECIATED  BALANCE
 OF  THE  COSTS  CALCULATED AT THE CORPORATION'S WEIGHTED AVERAGE COST OF
 CAPITAL USING THE LAST APPROVED RETURN ON EQUITY.
   (F) EACH CORPORATION SHALL FILE WITH THE COUNTY EXECUTIVE OR THE CHIEF
 ELECTED OFFICIAL OF A COUNTY FOR EACH COUNTY WITHIN ITS SERVICE TERRITO-
 RY THE MOST RECENT APPROVED COPY OF THE STORM HARDENING AND SYSTEM RESI-
 LIENCY PLAN REQUIRED PURSUANT TO THIS SUBDIVISION. FOR THE  PURPOSES  OF
 AN  ELECTRIC  CORPORATION  OPERATING  WITHIN  THE CITY OF NEW YORK, SUCH
 CORPORATION SHALL FILE THE MOST  RECENT  APPROVED  STORM  HARDENING  AND
 SYSTEM  RESILIENCY  PLAN  WITH  BOTH  THE  MAYOR'S  OFFICE AND EMERGENCY
 MANAGEMENT OFFICE OF THE CITY OF NEW YORK.
   (G) THE COMMISSION SHALL PROVIDE ACCESS TO SUCH  STORM  HARDENING  AND
 SYSTEM  RESILIENCY  PLANS PURSUANT TO ARTICLE SIX OF THE PUBLIC OFFICERS
 LAW.
   (H) BEGINNING DECEMBER FIRST OF THE YEAR AFTER THE FIRST FULL YEAR  OF
 IMPLEMENTATION OF A STORM HARDENING AND SYSTEM RESILIENCY PLAN AND ANNU-
 ALLY  THEREAFTER,  THE  COMMISSION  SHALL SUBMIT TO THE GOVERNOR AND THE
 LEGISLATURE  A  REPORT  ON  THE  STATUS  OF  EACH  CORPORATION'S   STORM
 PROTECTION  ACTIVITIES. THE REPORT SHALL INCLUDE, BUT IS NOT LIMITED TO,
 IDENTIFICATION  OF  ALL  STORM  PROTECTION  AND  RESILIENCY   ACTIVITIES
 COMPLETED  OR  PLANNED FOR COMPLETION, THE ACTUAL COSTS AND RATE IMPACTS
 ASSOCIATED WITH COMPLETED ACTIVITIES AS COMPARED TO THE ESTIMATED  COSTS
 AND  RATE IMPACTS FOR THOSE ACTIVITIES, AND THE ESTIMATED COSTS AND RATE
 IMPACTS ASSOCIATED WITH ACTIVITIES PLANNED FOR COMPLETION.
   (I) THE COMMISSION SHALL PROMULGATE  ANY  NECESSARY  RULES  AND  REGU-
 LATIONS TO IMPLEMENT AND ADMINISTER THE PROVISIONS OF THIS SUBDIVISION.
   § 3. This act shall take effect on the one hundred eightieth day after
 it  shall have become a law.  Effective immediately, the promulgation of
 any rules or regulations by the Public Service Commission necessary  for
 the  implementation  of this act on its effective date are authorized to
 be made and completed on or before such effective date.