Establishes the North Country power authority and provides for its powers and duties

2 Co-sponsors

• Joseph A. Griffo
• Betty Little

BILL NUMBER:S2813C

Title of bill

An act to amend the public authorities law, in relation to establishing the North Country power authority, and providing for its powers and duties

Purpose of bill

To create a public benefit corporation, a political subdivision of the state, to provide electric power services to designated municipalities in St. Lawrence and Franklin Counties.

Summary of provisions

Establishes the North Country Power Authority to provide electric power services to designated municipalities in St. Lawrence and Franklin Counties, to be governed by a board of directors with overlapping terms, with enumerated powers to acquire, own, operate and finance facilities to provide electric power services, to issue bonds of up to 50 years and notes and other debt obligations of up to 5 years, which securities are to be general obligations of the authority without any state or municipal liability, permitting sale of surplus power and establishment of subsidiaries, subjecting the authority to conflict of interest prohibitions, deposit and investment controls, annual auditing and reporting to state and local officials and the public, and mandating periodic legislative reviews starting in 2050 and discretionary termination through statute after each such review subject to terms of the authority's securities, together with attendant provisions for implementing and conducting its financing and operating responsibilities.

Justification

Enabling legislation is essential to establish a public power utility to finance and operate a municipal electric system serving a group of 24 municipalities in St. Lawrence and Franklin Counties, all of which have endorsed the creation of the authority and the proposed legislation. These counties in the North Country constitute an area where economic growth has been lagging for years and one that faces very high rates for electric services to residential and commercial consumers. The affected municipalities are committed to securing lower electricity rates, greater service reliability, local public control and future emphasis on energy, conservation and sustainability through this new public power utility, built on a model common in this country. The public authority is necessary to provide financing, which would be stand-alone revenue bonding without any recourse to the state or the municipalities. The act, is replete with good governance provisions, financial discipline measures, transparency and reporting requirements, and accountability to the governor, the legislature, the municipalities and the public to beserved.

Legislative history

S.8257-A - 2008

Fiscal implications

None.

Local fiscal implications

None.

Effective date

Immediate.