Authorizes the Long Island power authority to propose certain rate changes to the public service commission

3 Co-sponsors

• Charles J. Fuschillo Jr.
• Kemp Hannon
• Carl L. Marcellino

Title of bill

An act to amend the public service law, in relation to the Long Island power authority

Purpose

To codify and clarify the requirement that LIPA rates may not be increased an average of two and one half percent over a twelve month period without the approval of the Public Service Commission (PSC).

Summary of provisions

Section 1 requires average customer rate increases by the Long Island Power authority exceeding 2.5% in a twelve month period to be approved by the Public Service Commission after a full evidentiary hearing.

Section 2 requires LIPA to notify the Public Service Commission of any rate increase exceeding 2.5% over a twelve month period.

Section 3 establishes the effective date.

Justification

LIPA rates have been raised seven times since 2001 increasing more than 34% without ever going before the Public Service Commission as required in the agreement authorizing LIPA to issue debt. LIPA has included costs within its fuel surcharge that are not part of the industry standard and which the PSC would not allow other utilities to include in a fuel surcharge. Long Island rate payers will benefit from the comprehensive review of its practices by the professional staff of the public service commission on rate requests of LIPA. LIPA's businesses and home owners have suffered due to the lack of strong oversight of the practices and ratemaking of LIPA.

Legislative history

2007-08, S.3410; 2005-06, S.6827.

Fiscal implications

None.

Effective date

180 days after it shall have become law; provided that effective immediately the Public Service Commission shall institute the proceedings necessary to review and/or amend the Long Island Power Authority's ongoing tariff filings to ensure charges for the furnishing or rendition of electric power or of any related service at the lowest level consistent with sound fiscal operating practices which provide for safe and adequate service; such proceedings shall be completed on or before such effective date; provided further, effective immediately the Public Service Commission and the Long Island Power Authority shall amend and/or repeal any rule or regulation necessary for the implementation of this act on its effective date and are authorized and directed to be made and completed on or before such effective date.