Relates to providing oversight and monitoring the operations of an independent system operator

Summary of specific provisions

Section 1(a) provides definitions for "independent systems operator" and "end use sector member".

Section 1(b) authorizes and directs the Public Service Commission to provide oversight and monitor the market operations of an independent system operator.

Section 1(c) requires bid disclosure and bidder identification no later than three months after transactions in each of the markets facilitated by an independent systems operator.

Section 1(d) provides for appointments to an independent system operator's board of directors. The Governor and the respective leaders of the majority parties in the State Senate and Assembly will each have the authority to appoint one consumer representative to the board.

Section 1(e) requires an independent system operator to retain the services of a consumer liaison. The consumer liaison will be responsible for communicating with consumer representatives on the Board and market participants on a regular basis for the purposes of providing information on developments in working groups/sub-committees and proposals that may have ramifications on consumers. The liaison will also be responsible for communicating consumer concerns in internal independent system operator meetings.

Section 1(f) Requires the independent system operator to establish and fund an end use consumer sector consultant for the purposes of participating in task force, working group and committee meetings as well as in other meetings addressing matters affecting market's administered by the independent service operator. As well as analyzing existing or proposed market rules, providing technical assistance and supporting end-use consumer participation in federal and state proceedings.

Section 1 (G) Requires the independent service operator to file a tariff before the commission creating a rate schedule to allow all market participants to fund the costs of hiring an end use consumer consultant.

Section 1 (H) Requires the Commissioner to issue an annual report relating the market operation of an independent system operator. The report will include an analysis of real-time hour ahead and day ahead markets, determinations on market reliability, a determination of the effect on all customer classes, to what extent the energy markets are contributing to efficiency and fuel diversity goals, and independent system operator's financial information and recommendations for improving any deficiencies.

Justification

The health, welfare, and prosperity of all New York residents require the provision of adequate, efficient, reliable, environmentally sound, and lowest-cost electric service at affordable prices. Many of the decisions that govern the sale, purchase and transmission of electricity in New York State are made by a federally approved independent system operator with limited input from New York consumers.

The intent of this legislation is to recognize and remedy the fact that individual action by residential consumers, small businesses and farmers for the purposes of participating in independent system operator processes and communicating their views is rendered impracticable by reason of the disproportionate expense of taking such action.

Independent system operator proceedings are offered in a way that minimizes public participation. It is incredibly difficult for typical New Yorkers to remain on top of the day to-today activities of an independent system operator. In many instances, the only people who can attend and participate in the decision making processes of an independent system operator are most likely those whose job depends on it, representatives of generators, transmission owners, utilities and other special interests.

Requiring consumer representation on the board of directors, a consumer liaison and increased transparency will spur a·more open and accountable independent system operator processes that may yield creative socially responsible solutions to the difficult issues associated with electricity markets in New York State.

Prior legislative history

S3307/A5307 of 2011-12; Referred to Energy & Telecommunications

Fiscal implications for state and local governments

None.

Effective date

This act shall take effect immediately.