S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         4323
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 30, 2015
                                      ___________
       Introduced  by  M.  of A. BRENNAN, ZEBROWSKI, CAHILL, COLTON, ROSENTHAL,
         ABINANTI, WEPRIN -- Multi-Sponsored by --  M.  of  A.  ABBATE,  CLARK,
         GALEF,  GOTTFRIED,  MAGEE,  MARKEY,  PEOPLES-STOKES  --  read once and
         referred to the Committee on Energy
       AN ACT to amend the public service law, in relation to electric capacity
         and power procurement; and to amend the  public  authorities  law,  in
         relation to powers of the Long Island power authority respecting port-
         folio management services
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1.  The public service law is amended by adding a new  section
    2  66-i to read as follows:
    3    S 66-I. ELECTRIC CAPACITY AND POWER PROCUREMENT. 1. ANY ELECTRIC UTIL-
    4  ITY  CORPORATION, IN MEETING ITS OBLIGATION TO PROVIDE ELECTRIC CAPACITY
    5  AND POWER SERVICES TO CUSTOMERS WHO DO NOT CHOOSE  TO  RECEIVE  ELECTRIC
    6  CAPACITY  AND  POWER  SERVICE  FROM ANOTHER PROVIDER, SHALL CONSIDER ALL
    7  REASONABLY AVAILABLE SUPPLY-SIDE AND DEMAND-SIDE  RESOURCES,  AND  SHALL
    8  SELECT  THE  SOURCE  OR  SOURCES  WHICH  BEST SERVE THE PUBLIC INTEREST,
    9  TAKING INTO CONSIDERATION SUCH  FACTORS  AS  RATEPAYER  IMPACTS,  SYSTEM
   10  RELIABILITY,  ENVIRONMENTAL  IMPACTS,  CONSERVATION OF ENERGY RESOURCES,
   11  PRESERVATION OR CREATION OF  ECONOMIC  OPPORTUNITIES,  FUEL  EFFICIENCY,
   12  FUEL  AVAILABILITY  AND  DIVERSITY, AND PUBLIC HEALTH AND WELFARE.  EACH
   13  ELECTRIC UTILITY CORPORATION SHALL PROVIDE PORTFOLIO MANAGEMENT SERVICES
   14  TO ALL ELECTRIC CUSTOMERS WITHIN ITS SERVICE TERRITORY WHO DO NOT CHOOSE
   15  TO RECEIVE ELECTRIC CAPACITY AND POWER SERVICE  FROM  ANOTHER  PROVIDER.
   16  FOR  PURPOSES OF THIS SECTION, "PORTFOLIO MANAGEMENT SERVICE" SHALL MEAN
   17  THE PROVISION OF RELIABLE ELECTRIC CAPACITY AND POWER  SERVICES  DERIVED
   18  FROM  A MIX OF SUPPLY-SIDE RESOURCES, INCLUDING LONG-TERM CONTRACTS, FOR
   19  SUPPLY DELIVERY DATES GREATER THAN ONE YEAR, SHORT-TERM  CONTRACTS,  FOR
   20  SUPPLY  DELIVERY  DATES  WITHIN ONE YEAR, AND PURCHASES ON THE DAY-AHEAD
   21  AND SPOT WHOLESALE MARKETS; DEMAND-SIDE RESOURCES; AND OTHER  MECHANISMS
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD01802-01-5
       A. 4323                             2
    1  WHICH COLLECTIVELY REDUCE THE VOLATILITY OF WHOLESALE ELECTRICITY PRICES
    2  AND  MINIMIZE CUSTOMER BILLS. FOR PURPOSES OF THIS SECTION, "SUPPLY-SIDE
    3  RESOURCES" SHALL INCLUDE  CAPACITY  AND  ENERGY  DERIVED  FROM  EXISTING
    4  CENTRAL-STATION  POWER  PLANTS  OR  FROM  PROPOSED CENTRAL-STATION POWER
    5  PLANTS OR OTHER  ELECTRIC  GENERATING  FACILITIES,  INCLUDING  RENEWABLE
    6  ENERGY  RESOURCES,  WHICH  DELIVER  POWER  TO  THE  TRANSMISSION  AND/OR
    7  DISTRIBUTION  GRID.    FOR  PURPOSES  OF  THIS   SECTION,   "DEMAND-SIDE
    8  RESOURCES" SHALL INCLUDE CAPACITY AND ENERGY DERIVED FROM CLEAN DISTRIB-
    9  UTED  GENERATION  SOURCES,  INCLUDING  RENEWABLE  ENERGY RESOURCES, LOAD
   10  MANAGEMENT ACTIVITIES  THAT  CAN  BE  MONITORED  THROUGH  ACTIVITIES  IN
   11  ACCORDANCE WITH PROCEDURES ESTABLISHED BY THE NEW YORK POWER POOL OR ANY
   12  SUCCESSOR  ORGANIZATION,  AND  OTHER ENERGY EFFICIENCY ACTIVITIES, ABOVE
   13  AND BEYOND ANY PROGRAMS FUNDED BY ELECTRIC UTILITY RATEPAYERS MANAGED BY
   14  THE NEW YORK STATE  ENERGY  RESEARCH  AND  DEVELOPMENT  AUTHORITY.  THIS
   15  SERVICE  DOES  NOT  INCLUDE  OWNERSHIP AND OPERATION OF TRANSMISSION AND
   16  DISTRIBUTION SYSTEMS.
   17    2. WITHIN SIX MONTHS OF THE EFFECTIVE DATE OF THIS SECTION, EACH ELEC-
   18  TRIC UTILITY CORPORATION SHALL SUBMIT TO THE COMMISSION FOR  APPROVAL  A
   19  DRAFT  PORTFOLIO  MANAGEMENT  SERVICE  PLAN  CONSISTING OF LONG-TERM AND
   20  SHORT-TERM PLANS FOR ELECTRIC CAPACITY AND ENERGY  PROCUREMENT  AND  THE
   21  MIX  OF  SUPPLY-SIDE AND DEMAND-SIDE RESOURCES TO MEET FORECAST CAPACITY
   22  AND ENERGY NEEDS. EACH ELECTRIC UTILITY CORPORATION SHALL  ALSO  PROVIDE
   23  AN EXPLANATION HOW SUCH PLAN IS DESIGNED TO MODERATE POTENTIAL WHOLESALE
   24  PRICE  VOLATILITY.  THE  COMMISSION  SHALL PROVIDE PUBLIC NOTICE OF EACH
   25  DRAFT PORTFOLIO MANAGEMENT SERVICE PLAN AND SHALL PROVIDE  OPPORTUNITIES
   26  FOR  PUBLIC  COMMENT  AND  PUBLIC  HEARING ON THE PLAN. FOLLOWING PUBLIC
   27  COMMENT AND HEARING, THE COMMISSION SHALL APPROVE  THE  DRAFT  PORTFOLIO
   28  MANAGEMENT SERVICE PLAN UPON A FINDING THAT SUCH PLAN MEETS THE REQUIRE-
   29  MENTS FOR PORTFOLIO MANAGEMENT SERVICE PLANS AS DESCRIBED IN SUBDIVISION
   30  ONE  OF  THIS  SECTION.   THE COMMISSION SHALL HAVE AUTHORITY TO REQUIRE
   31  EACH ELECTRIC CORPORATION TO CONDUCT  COMPETITIVE  BIDDING  AUCTIONS  OR
   32  OTHER  PROCUREMENT  PROGRAMS  FOR  THE  PURPOSE  OF SATISFYING PORTFOLIO
   33  MANAGEMENT SERVICE PLANS.
   34    3. THE COMMISSION SHALL HAVE AUTHORITY TO PRESCRIBE GUIDELINES,  RULES
   35  AND  REGULATIONS REGARDING THE PARTICIPATION OF UTILITY COMPANIES, THEIR
   36  AFFILIATES, SUBSIDIARIES AND ANY OTHER CORPORATION OR PERSON IN  PORTFO-
   37  LIO  MANAGEMENT  SERVICES,  INCLUDING  COMPETITIVE  BIDDING AUCTIONS, OR
   38  REGARDING ANY OTHER METHOD OF ACQUIRING  ELECTRIC  CAPACITY  AND  POWER.
   39  THE  COMMISSION  MAY,  AFTER  PUBLIC  COMMENT  AND  EVIDENTIARY HEARING,
   40  PROVIDE FOR PROVISION OF PORTFOLIO MANAGEMENT SERVICE TO CUSTOMERS IN AN
   41  ELECTRIC UTILITY CORPORATION SERVICE TERRITORY BY AN ENTITY  OTHER  THAN
   42  THE  ELECTRIC  DISTRIBUTION  CORPORATION,  THROUGH A COMPETITIVE BIDDING
   43  AUCTION, SO LONG AS THE ENTITY SELECTED CAN  MEET  THE  REQUIREMENTS  OF
   44  THIS  SECTION.    ANY  RULES, REGULATIONS, GUIDELINES AND DETERMINATIONS
   45  ADOPTED OR ISSUED BY THE COMMISSION PERTAINING TO ACQUISITION  OF  ELEC-
   46  TRIC CAPACITY SHALL BE CONSISTENT WITH THE POLICY STATED IN THIS SECTION
   47  SHALL  ALSO  REQUIRE  ACQUISITIONS OF ELECTRIC CAPACITY TO BE REASONABLY
   48  CONSISTENT WITH THE FORECASTS, POLICIES AND LONG-RANGE  PLANNING  OBJEC-
   49  TIVES  AND  STRATEGIES  CONTAINED  IN THE MOST RECENT FINAL STATE ENERGY
   50  PLAN OR ANY SUBSEQUENT UPDATE, PROVIDED, HOWEVER, THAT ANY DETERMINATION
   51  MADE BY THE  COMMISSION  UNDER  THIS  SECTION  THAT  IS  NOT  REASONABLY
   52  CONSISTENT  WITH  THE  PLAN  SHALL  BE  DEEMED  IN  COMPLIANCE WITH THIS
   53  SECTION, PROVIDED THAT SUCH DETERMINATION BY THE COMMISSION  INCLUDES  A
   54  FINDING THAT THE ELEMENT OF THE PLAN IS NO LONGER REASONABLE OR PROBABLE
   55  BASED  ON A MATERIAL AND SUBSTANTIAL CHANGE IN FACT OR CIRCUMSTANCE, AND
   56  A STATEMENT EXPLAINING THE BASIS FOR THIS FINDING.
       A. 4323                             3
    1    4.  THE COMMISSION SHALL ESTABLISH, AFTER PUBLIC COMMENT AND EVIDENTI-
    2  ARY HEARINGS, REGULATIONS FOR PERFORMANCE-BASED  REWARDS  AND  PENALTIES
    3  THAT  REFLECT  THE EXTENT TO WHICH THE PORTFOLIO MANAGEMENT SERVICE PLAN
    4  PROVIDED BY EACH ELECTRIC UTILITY MINIMIZES CUSTOMER ELECTRIC BILLS  AND
    5  THE VOLATILITY OF ELECTRICITY PRICES.
    6    5.  BOARDS OF STATE OR MUNICIPALLY OWNED UTILITIES WILL REMAIN RESPON-
    7  SIBLE FOR PORTFOLIO MANAGEMENT  SERVICES  AND  ANY  ALTERNATIVE  CHOICES
    8  AVAILABLE TO CUSTOMERS OF THESE UTILITIES.
    9    S 2. Section 1020-f of the public authorities law, as added by chapter
   10  517  of the laws of 1986, is amended by adding a new subdivision (ii) to
   11  read as follows:
   12    (II) TO DEVELOP, WITH PUBLIC COMMENT AND HEARING, PORTFOLIO MANAGEMENT
   13  SERVICES, FOR ALL CUSTOMERS WHO DO NOT ELECT TO TAKE GENERATION SERVICES
   14  FROM AN ALTERNATE POWER SUPPLIER, IN ACCORDANCE WITH THE  PROVISIONS  OF
   15  SUBDIVISION ONE OF SECTION SIXTY-SIX-I OF THE PUBLIC SERVICE LAW.
   16    S 3. This act shall take effect immediately.