Relates to the Long Island power authority; repealer

Summary of specific provisions

Section 1. repeals the existing Section 1020-d of the Public Authorities Law providing for an appointed Board of Trustees for the Long Island Power Authority and replaces said Board with a 17-member Board with 16 trustees to be elected from each town and city within the service area (including a trustee from Queens County), and the Chairman to be appointed by the Governor, who shall have experience in the area of utility management.

Section 2. makes a technical change.

Section 3. clarifies that the Long Island Power Authority Act does not preempt municipalities from exercising their authority to establish municipal power agencies under the General Municipal Law.

section 4. requires LIPA to get PSC approval for rate increases and when petitioning the PSC for a rate increase, to prepare an economic impact statement assessing the impact that such rate increase would have on the Long Island economy and efforts to stimulate economic growth.

Section 5. establishes a minimum 60-day period to allow for public hearings and written comments before LIPA may vote to establish, fix or revise any fee, rate or charge. In addition, Section 5 prohibits LIPA from owning any portion of a nuclear_ generating facility, therefore the sale of LIPA's current 18! interest in the Nine Mile Point Nuclear Facility may be used to defray LIPA's $3.8 billion debt, and to facilitate negotiations for a long term contract for affordable power from such facility.

Section 6. requires LIPA to post any and all contracts of the Authority on its website.

Section 7. authorizes the governing body of any local government to finance the installation of distributed generation renewable energy sources or energy efficiency improvements that are permanently fixed to residential, commercial, industrial, or other real property. These provisions could not be used to finance facilities for parcels which are undergoing development.

Justification

Ten years after LIPA took over LILCO, Long Island continues to have extremely high electricity rates and growing debt with the future promising more of the same. If these trends are permitted to continue, the Long Island economy will be crippled in its efforts to recover from the national recession. These problems are further exacerbated by LIPA's continued practice of conducting its business behind closed doors with no transparency or accountability.

This bill seeks to reform the statute governing LIPA by first providing that LIPA's trustees are elected, rather than appointed, and that members of the Board shall have expertise in an area that is central to the mission of the Authority. The bill further amends LIPA's governing statute to require PSC oversight of LIPA rates, a minimum 60-day public comment period before any rate change, and an economic impact statement. In order to address LIPA's crushing debt from the Shoreham closure, the bill provides that LIPA would be prohibited from owning any portion of a nuclear generating facility, therefore the sale of LIPA's current 18% interest in the Nine Mile Point Nuclear Facility may be used to defray LIPA's $3.8 billion debt, and to facilitate negotiations for a long term contract for affordable power from such facility.

Finally, the bill promotes renewable energy by allowing the formation of municipal utilities for the purpose of producing renewable energy sources, such as solar or wind power; and by authorizes the governing body of any local government to finance the installation of distributed generation renewable energy sources or energy efficiency improvements.

Prior legislative history

New bill.

Fiscal implications

to be determined.

Effective date

This act shall take effect on the one hundred eightieth day after it shall have become a law.