S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5503
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 13, 2019
                                ___________
 
 Introduced  by M. of A. THIELE, ENGLEBRIGHT, MONTESANO, RAIA, RA, RAMOS,
   MCDONOUGH, 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"

   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 and a
 new subdivision 1-a is added 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
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
 A                                                          LBD07496-03-9
              

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 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-TWO, SUCH
 AUTHORITY SHALL CONSIST OF NINE TRUSTEES. ONE TRUSTEE, WHO SHALL BE  THE
 CHAIRPERSON, 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 TWENTY-ONE, 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-FIVE  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 TWENTY-ONE, AND THE TRUSTEES SO ELECTED SHALL TAKE
 OFFICE ON JANUARY FIRST, TWO THOUSAND TWENTY-TWO. 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] THE CHAIRPERSON appointed under  this  section  shall
 have relevant utility, corporate board or financial experience.
   § 3. Paragraphs 2, 3 and 4 of 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, are amended to read as follows:
   2. The authority and the service provider shall thereafter submit  for
 review  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  prospec-
 tive  rate  adjustment; provided, further, that a final rate plan issued

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 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  to  such
 department any rate proposal irrespective of its effect on revenues.
   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 IN each [in the] county [of Suffolk and the
 county of Nassau] WITHIN THE SERVICE AREA  UPON  AT  LEAST  THIRTY  DAYS
 NOTICE  TO  THE PUBLIC. THE AUTHORITY AND SERVICE PROVIDER SHALL PROVIDE
 TO THEIR CUSTOMERS ADVANCE WRITTEN NOTICE OF THE DATE AND PLACE  OF  ANY
 PUBLIC HEARINGS CONCERNING PROPOSED INCREASES IN RATES.
   4.  Any  recommendations  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  imme-
 diately  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 obli-
 gations, or the provision of safe and adequate service, the board  shall
 implement  such  recommendations as part of its final rate plan and 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 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 department 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.] THE BOARD SHALL  NOT
 APPROVE A FINAL RATE PLAN UNTIL IT HOLDS A PUBLIC HEARING IN EACH COUNTY
 WITHIN  THE SERVICE AREA UPON AT LEAST THIRTY DAYS NOTICE TO THE PUBLIC.
 AT SUCH HEARING, THE DEPARTMENT OF  PUBLIC  SERVICE  SHALL  PRESENT  THE
 BASIS  FOR  ITS RECOMMENDATIONS. WITHIN NINETY DAYS OF THE CONCLUSION OF
 THE PUBLIC HEARING, THE BOARD SHALL RENDER A FINAL DETERMINATION ON  THE
 RATE  PROPOSAL. IN MAKING A FINAL DETERMINATION, THE BOARD SHALL PROTECT
 THE ECONOMIC INTERESTS OF ITS RATEPAYERS AND THE SERVICE AREA. THE BOARD
 SHALL ALSO CONSIDER THE RECOMMENDATIONS OF THE DEPARTMENT  AND  CRITERIA
 IN  PARAGRAPH  (A) OF SUBDIVISION THREE OF SECTION THREE-B OF THE PUBLIC
 SERVICE LAW. THE BOARD SHALL NOT  BE  AUTHORIZED  TO  APPROVE  ANY  RATE
 INCREASE  TO  OFFSET  REVENUE LOSS DUE TO ENERGY CONSERVATION EFFORTS BY

 A. 5503                             4

 CONSUMERS. SUCH FINAL DETERMINATION SHALL BE CONSIDERED  FINAL  FOR  THE
 PURPOSES OF REVIEW UNDER ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW
 AND RULES.
   § 4. Subparagraph (v) of paragraph (a) of subdivision 3 of section 3-b
 of  the  public  service  law,  as amended by chapter 479 of the laws of
 2017, is amended and a  new  subparagraph  (vi)  is  added  to  read  as
 follows:
   (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
 intervention unit.
   (VI)  THE  DEPARTMENT  SHALL  NOT  RECOMMEND A RATE INCREASE TO OFFSET
 REVENUE LOSS DUE TO ENERGY CONSERVATION EFFORTS BY CONSUMERS.
   § 5. 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 judgment shall have been rendered.
   § 6. This act shall take effect immediately.