Directs the public service commission to investigate the use of funds from the Systems Benefits Charge to cover costs associated with a new capacity zone

1 Co-sponsor

• George Latimer

BILL NUMBER:S7537

Title of bill

An act directing the public service commission to investigate the use of funds from the Systems Benefits Charge to cover costs associated with a new capacity zone

Purpose

Directs the public service commission to investigate the use of funds from the System Benefits Charge to cover costs associated with a new capacity zone

Summary of provisions

Section 1 compels the public service commission, within 30 days of the effective date of this act to investigate the development of a program to use funds collected for the system benefits charge to pay the portion of consumers bills that results from FERC Docket No. ER13-1380-000 that ordered a new capacity zone to be created in New York State. The Public Service Commission would have to consult with the New York State Energy Research and Development Authority (NYSERDA). The proceeding must be completed within 90 days from the commencement of the proceedings. The PSC must also conduct at least two public hearings within the area that comprises the new capacity zone.

Section 2 sets an immediate effective date

Justification

The Federal Energy Regulatory Commission (FERC) has allowed the New York Independent System Operator (NYISO) to create a new capacity zone in southeastern New York that would mandate local utility providers to purchase energy resources from producers within a specific geographic region. The new capacity zone has the potential to cost residential, commercial, and industrial customers in the lower Hudson Valley up to $350 million in additional electric bills. If unchecked, the new capacity zone will drive families and businesses out of the state due to unbearable costs.

In 1996, the New York State Public Service Commission (PSC) called for the establishment of a System Benefits Charge (SBC) to fund public policy initiatives that could not be adequately addressed directly by New York State's electricity markets. The PSC has used the funds from this charge for energy programs targeting efficiency measures, research and development, and helping to reduce the cost of energy for low-income New Yorkers. The goals of the SBC exactly match the challenges of the new capacity zone for southeastern New York. It is only appropriate that the PSC work with NYSERDA to listen to the public and develop a sensible alternative to prevent a $350 million increase in utility bills for residents of the Hudson Valley and Upstate New York.

Legislative history

This is a new bill.

Local fiscal implications

Using the System Benefits Charge to pay for the increased utility costs will save residents and businesses of the lower Hudson Valley up to $350 million in increased utility costs.

Effective date

This act shall take effect immediately.