BILL NUMBER: S1254

SPONSOR: GIANARIS
 
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 emis-
sions credit from NYSERDA or any other entity.

Section 2 sets the effective date.
              

 
EXISTING LAW:

 
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 Cred-
it" (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 facili-
ties' owner. According to the order, a ZEC is a credit for the zero-em-
issions 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:

2020: Died in Energy and Telecommunications/Died in Energy (Assembly)
2019: Died in Energy and Telecommunications/Died in Energy (Assembly)
2018: Died in Energy and Telecommunications
2017: Died in Rules

 
FISCAL IMPLICATIONS:

None to the state.

 
LOCAL FISCAL IMPLICATIONS:

 
EFFECTIVE DATE:
Immediately.