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History
- Referred to energy and telecommunications
- Referred to energy and telecommunications
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Provides that a customer may switch electric service from a person, corporation or municipality to a rural electric cooperative in certain instances
In Senate Committee · Energy And Telecommunications · Sponsor William Parment
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the rural electric cooperative law and the public service law, in relation to the powers of rural electric cooperatives
Purpose or general idea of bill
The purpose of this legislation is to remove inequitable restrictions upon competition placed upon rural cooperatives and foster economic efficiency and lower cost to electric customers.
Summary of specific provisions
Subdivision (d) of section 14 of the Rural Electric Cooperative Law is amended. Section 66 of the Public Service Law is amended by adding anew subdivision 29.
Justification
The Public Service Commission has directed that the utility industry move towards a more efficient system of competition in New York. A number of municipalities have recently undertaken studies with the goal of lowering energy costs.
New York rural energy cooperatives were created in 1941 to provide electric service in areas not served by private power companies. Each cooperative is a non-profit electric utility own~d by the customers it serves and governed by a board of directors elected by the cooperative membership. There are four rural electric cooperatives based in Steuben, Madison, Otsego, and Delaware counties which serve approximately 15,000 New York Customers.
New York Rural electric cooperatives have successfully demonstrated that they can efficiently provide low cost electricity in rural areas. Cooperatives are able to respond to price, quality, and capacity concerns quickly because they are customer owned. The cooperative structure offers highly attractive rates to business customers as well.
Unfortunately rural residents currently served by other high cost utilities are unable to obtain the benefits of lower cost power provided by rural electric cooperatives.
If the current customer service restrictions are removed, rural electric cooperatives can provide power source choice to additional customers as limited only by their available resources and will be able to compete on a more equitable playing field with investor owned and municipal utilities that are able to solicit customers currently served by other power companies.
The change in section 61 merely brings cooperative practices in line with current law. In the late 1960's federal law regarding rural cooperative borrowing changed to require cooperatives to obtain at least 30% of their borrowing from private, market rate sources rather than solely through obligations of the United States Government. The Federal borrowing restriction in New York was originally passed in 1942 and was never changed when the federal law was amended. This bill will correct that oversight.
Prior legislative history
Formerly A-5058 of 2008, passed Assembly.
Fiscal implications
No cost to the State and Local Government.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.