Relates to the use of monies from certain funds or accounts

BILL NUMBER:S6963

Title of bill

An act to amend the public authorities law, in relation to the use of monies from certain funds or accounts

Purpose:

To ensure that the any monies in the possession of the New York Power Authority or any such funds that may be transferred from the Authority are used only for energy related purposes and further that any ratepayer funds collected for programs administered by NYSERDA are used only for their intended purpose.

Summary of Provisions:

Section 1. Requires that any and all funds of the Authority may only be used for purposes expressly related in section one thousand one of this title and that such funds may not be swept for any other use, unless the use is for an "energy project" as defined in this section.

Section 2. Requires that any ratepayer's funds collected by order of the Public Service Commission to support programs at NYSERDA, must be used only for the intended purposes of that program. Further this section requires that any money that is not spent on its intended purpose by the end of the calendar year, will be refunded to ratepayers

Section 3: Sets forth the effective date

Justification:

The New York Power Authority (NYPA) and The New York Energy Research and Development Authority (NYSERDA) provide valuable resources and programs that benefit all fo the citizens of the State of New York. In the case of NYPA any additional money that may be produced is gained through the sale of excess power into the market, and also other financial investments of the Authority. This revenue is produced by and for the energy sector and the purposes outlined in section 1001 of the Public Authorities law are directly tied to energy related purposes. Therefore it is important to ensure that Authority resources are only used for these purposes and that transfer of this revenue are prohibited unless the transfer is to support a qualified energy project. NYSERDA collects around $1 billion a year from ratepayers to support various energy related programs. These include the Renewable Portfolio Standard (RPS) the Energy Efficiency Portfolio Standard (EEPS) and the Systems Benefit Charge (SBC). These programs provide significant investments in renewable energy projects, energy efficiency and other important infrastructure. It is vitally important that this money only be used for the direct purpose associated with the surcharge itself which h as been imposed by the Public Service Commission. Similarly, if money is left at the close of a calendar year and is not spent on that intended purpose, it should be refunded to ratepayers. This will provide pressure to ensure that projects are funded and contracted in a timely way, and that the Commission exercises robust oversight to protect ratepayers.

Fiscal Implications:

None

History:

This is a new bill

Effective Date:

This bill shall take effect immediately