S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         2113
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 15, 2015
                                      ___________
       Introduced  by  M.  of A. CAHILL -- Multi-Sponsored by -- M. of A. COOK,
         GLICK, GUNTHER, JAFFEE, LUPARDO, MARKEY, MOYA,  RUSSELL,  SCARBOROUGH,
         SCHIMEL,  WRIGHT, ZEBROWSKI -- read once and referred to the Committee
         on Corporations, Authorities and Commissions
       AN ACT to amend the public service law, in relation to  providing  over-
         sight and monitoring the operations of an independent system operator
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Section 66 of the public service law is amended by adding a
    2  new subdivision 29 to read as follows:
    3    29. (A) FOR THE PURPOSES OF THIS SUBDIVISION:
    4    (I) "INDEPENDENT SYSTEM OPERATOR" SHALL MEAN ANY ENTITY  OPERATING  IN
    5  THE STATE THAT IS APPROVED BY THE UNITED STATES FEDERAL ENERGY REGULATO-
    6  RY  COMMISSION  TO OPERATE IN THE STATE TO ADMINISTER AND MONITOR WHOLE-
    7  SALE ELECTRICITY MARKETS; AND
    8    (II) "END USE SECTOR MEMBER" SHALL INCLUDE ANY ENTITY  THAT  PURCHASES
    9  ELECTRICITY FOR ITS OWN CONSUMPTION AND NOT FOR RESALE.
   10    (B)  THE  COMMISSIONER IS AUTHORIZED AND DIRECTED TO PROVIDE OVERSIGHT
   11  AND MONITOR THE MARKET OPERATIONS OF  AN  INDEPENDENT  SYSTEM  OPERATOR,
   12  INCLUDING  BUT NOT LIMITED TO THE EXTENT TO WHICH IT:
   13    (I)  SERVES THE NEEDS OF ALL CUSTOMER CLASSES AND OPERATES IN A MANNER
   14  THAT IS IN THE BEST INTEREST OF THE PUBLIC;
   15    (II) ENSURES RELIABILITY, QUALITY AND MAINTENANCE OF THE  TRANSMISSION
   16  SYSTEM;
   17    (III)  MEETS THE REQUIREMENTS OF THE NEW YORK STATE OPEN MEETING LAWS;
   18  AND
   19    (IV) CONTRIBUTES TO THE ACHIEVEMENT  OF  ENERGY  EFFICIENCY  AND  FUEL
   20  DIVERSITY GOALS OF THE STATE.
   21    (C)  THE  COMMISSION  SHALL ENSURE THAT AN INDEPENDENT SYSTEM OPERATOR
   22  OPERATE IN A MANNER TO PREVENT MARKET MANIPULATION AND OPPORTUNITIES FOR
   23  COLLUSION BY REQUIRING AN INDEPENDENT SYSTEM OPERATOR TO DISCLOSE  PRICE
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD06146-01-5
       A. 2113                             2
    1  DATA  RELATED  TO  ITS  WHOLESALE  MARKET  OPERATIONS INCLUDING, BUT NOT
    2  LIMITED TO, INFORMATION ON REAL-TIME, DAY-AHEAD AND SPOT MARKET BIDS AND
    3  BIDDERS IN AN INDEPENDENT SYSTEM OPERATOR'S WHOLESALE ELECTRICITY MARKET
    4  AUCTIONS, TRANSMISSION CONGESTION CONTRACT AUCTIONS AND INSTALLED CAPAC-
    5  ITY  MARKET  AUCTIONS  TO BE MADE PUBLIC WITH NO MORE THAN A THREE MONTH
    6  DELAY. SUCH INFORMATION SHALL BE MADE IN A FORMAT READILY AVAILABLE  AND
    7  ACCESSIBLE  TO  THE  PUBLIC INCLUDING, BUT NOT LIMITED TO PROVIDING SUCH
    8  DATA IN AGGREGATE HOURLY, DAILY, MONTHLY,  ANNUAL  AND  HISTORICAL  DATA
    9  SETS  FOR  COMPARISON  PURPOSES  AS WELL AS DATA RELATED TO SEASONAL AND
   10  PEAK LOAD VARIATIONS AND AVERAGES.
   11    (D) THE COMMISSION SHALL ENSURE ACCOUNTABILITY BY  REQUIRING  THAT  AN
   12  INDEPENDENT SYSTEM OPERATOR'S BOARD OF DIRECTORS INCLUDES AT LEAST THREE
   13  NON-GOVERNMENTAL  APPOINTMENTS  THAT DIRECTLY REPRESENT THE INTERESTS OF
   14  RESIDENTIAL SMALL BUSINESS AND FARM ELECTRICITY USERS.    THE  GOVERNOR,
   15  THE  SPEAKER  OF  THE ASSEMBLY AND THE TEMPORARY PRESIDENT OF THE SENATE
   16  SHALL EACH APPOINT ONE REPRESENTATIVE TO THE BOARD.
   17    (E) THE COMMISSION SHALL REQUIRE AN  INDEPENDENT  SYSTEM  OPERATOR  TO
   18  CREATE  THE  POSITION OF CONSUMER LIAISON WHOSE PRIMARY ROLE SHALL BE TO
   19  INTERACT WITH MEMBERS OF THE END-USE SECTOR FOR THE PURPOSES OF:
   20    (I) KEEPING END-USE SECTOR  MEMBERS  INFORMED  ABOUT  DEVELOPMENTS  IN
   21  WORKING GROUPS/SUB-COMMITTEES THAT MAY AFFECT THEIR INTERESTS;
   22    (II) EXPLAINING THE ISSUES AND PROPOSALS UNDER DISCUSSION AT THE WORK-
   23  ING  GROUP/SUB-COMMITTEE  MEETINGS AND PROPOSED FOR CONSIDERATION AT THE
   24  OPERATING COMMITTEE, BUSINESS ISSUES COMMITTEE AND MANAGEMENT  COMMITTEE
   25  AS WELL AS THE RAMIFICATIONS OF THOSE PROPOSALS ON CONSUMERS;
   26    (III)  LISTENING  AND  RESPONDING  TO  THE  QUESTIONS  AND CONCERNS OF
   27  MEMBERS OF THE END-USE SECTOR; AND
   28    (IV) SERVING AS THE LIAISON BETWEEN THE END-USE SECTOR AND THE  DIREC-
   29  TORS DESIGNATED OR ASSIGNED TO PAY PARTICULAR ATTENTION TO THE INTERESTS
   30  OF THE RESIDENTIAL, SMALL BUSINESS AND FARM ELECTRICITY USERS.
   31    (F)  THE  COMMISSION  SHALL  REQUIRE AN INDEPENDENT SYSTEM OPERATOR TO
   32  ESTABLISH AND  FUND  AN  END-USE  CONSUMER  SECTOR  CONSULTANT  FOR  THE
   33  PURPOSES OF:
   34    (I)  PARTICIPATING IN TASK FORCE, WORKING GROUP AND COMMITTEE MEETINGS
   35  AS WELL AS IN OTHER MEETINGS ADDRESSING MATTERS AFFECTING MARKETS ADMIN-
   36  ISTERED BY AN INDEPENDENT SYSTEM OPERATOR;
   37    (II) ANALYZING EXISTING OR PROPOSED MARKET RULES  REGARDING  WHOLESALE
   38  SERVICE; AND
   39    (III)  PROVIDING  TECHNICAL  ASSISTANCE, AND SUPPORTING END-USE SECTOR
   40  PARTICIPATION  IN  PROCEEDINGS  BEFORE  THE  FEDERAL  ENERGY  REGULATORY
   41  COMMISSION,  THE  PUBLIC  SERVICE COMMISSION, OR OTHER REGULATORY AND/OR
   42  ADJUDICATIVE BODIES IN MATTERS  AFFECTING  MARKETS  ADMINISTERED  BY  AN
   43  INDEPENDENT SYSTEM OPERATOR.
   44    (G) (I) THE COMMISSION SHALL REQUIRE AN INDEPENDENT SYSTEM OPERATOR TO
   45  FILE  A  TARIFF  AMENDMENT  CREATING A RATE SCHEDULE TO ALLOW ALL MARKET
   46  PARTICIPANTS SERVING INTERNAL NEW YORK LOAD TO FUND COSTS OF  HIRING  AN
   47  END-USE CONSUMER SECTOR CONSULTANT.
   48    (II)  COSTS  AND  FEES  ELIGIBLE FOR RECOVERY THROUGH THE TARIFF WOULD
   49  INCLUDE THOSE ASSOCIATED WITH THE  END-USE  CONSUMER  SECTOR  CONSULTANT
   50  PERFORMING THE TASKS OUTLINED IN PARAGRAPH (F) OF THIS SUBDIVISION.
   51    (III)  COSTS AND FEES NOT ELIGIBLE FOR RECOVERY SHALL INCLUDE, BUT NOT
   52  BE LIMITED TO, GOVERNMENTAL LOBBYING, PUBLIC OUTREACH  (MEDIA,  SPEAKING
   53  ENGAGEMENTS, ETC.), AND CONDUCT NOT AUTHORIZED BY THE END-USE SECTOR.
   54    (H) THE COMMISSIONER SHALL ANNUALLY ISSUE A REPORT RELATING THE MARKET
   55  OPERATION  OF  AN  INDEPENDENT  SYSTEM  OPERATOR.    SUCH  REPORTS SHALL
   56  INCLUDE, BUT NOT BE LIMITED TO:
       A. 2113                             3
    1    (I) ANALYSES BY AN INDEPENDENT SYSTEM OPERATOR  AND  OTHER  SUCH  DATA
    2  COLLECTED  AND  ANALYZED  BY  THE  COMMISSION  INFORMATION ON REAL-TIME,
    3  HOUR-AHEAD AND DAY-AHEAD MARKET  BIDS  AND  BIDDERS  IN  AN  INDEPENDENT
    4  SYSTEM  OPERATOR'S  WHOLESALE  ELECTRICITY MARKET AUCTIONS, TRANSMISSION
    5  CONGESTION CONTRACT AUCTIONS AND INSTALLED MARKET AUCTIONS;
    6    (II)  A  DETERMINATION  OF  THE EXTENT TO WHICH THE ENERGY MARKETS ARE
    7  MAINTAINING NECESSARY LEVELS OF RELIABILITY;
    8    (III) A DETERMINATION OF WHETHER OR NOT ALL CUSTOMER CLASSES ARE BEING
    9  ADEQUATELY SERVED BY COMPETITIVE ENERGY MARKETS;
   10    (IV) A DETERMINATION OF THE COMPETITIVENESS OF ENERGY MARKETS; INCLUD-
   11  ING A DETERMINATION WHETHER OR NOT THE ELECTRIC  INDUSTRY  IS  PROVIDING
   12  CONSUMERS WITH THE LOWEST PRICES POSSIBLE WITHIN A RESTRUCTURED, COMPET-
   13  ITIVE RETAIL MARKETPLACE;
   14    (V)  A  DETERMINATION  OF  THE  EXTENT TO WHICH THE ENERGY MARKETS ARE
   15  ACHIEVING THE ENERGY EFFICIENCY AND FUEL DIVERSITY GOALS OF THE STATE;
   16    (VI) THE NAME AND TERMS OF THE BOARDS OF DIRECTORS AND AN  INDEPENDENT
   17  SYSTEM OPERATOR MANAGEMENT, OPERATING AND BUSINESS COMMITTEE MEMBERS;
   18    (VII) AN INDEPENDENT SYSTEM OPERATOR'S FINANCIAL INFORMATION; AND
   19    (VIII) RECOMMENDATIONS FOR IMPROVING ANY DEFICIENCIES SO IDENTIFIED IN
   20  ELECTRICITY  ENERGY  MARKETS,  INCLUDING  NON-COMPETITIVE  PRICING SITU-
   21  ATIONS. THE COMMISSION SHALL SUBMIT SUCH REPORT  TO  THE  GOVERNOR,  THE
   22  PRESIDENT PRO TEM OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE MINOR-
   23  ITY  LEADERS  OF  THE  SENATE AND THE ASSEMBLY, THE CHAIRS OF THE ENERGY
   24  COMMITTEES OF THE SENATE AND THE ASSEMBLY, NO LATER  THAN  APRIL  FIRST,
   25  TWO THOUSAND FIFTEEN AND ANNUALLY THEREAFTER.
   26    S 2. This act shall take effect immediately.