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

Title of bill

An act to amend the public service law, in relation to providing oversight and monitoring the operations of an independent system operator

Purpose

To require the Public Service Commission to monitor and report on the operations of the independent system operator (ISO) that operates in this State.

Summary of provisions

Section one of the bill defines the independent system operator, its board members, requires disclosure of information it must make available to the public, the appointment of a consumer liaison, and makes it subject to the open meetings law.

Section 2 would require the PSC to oversee and monitor the wholesale electricity market, as well as the operations of the ISO that operates in this State. The PSC is also required to issue a report annually on, among other things, an analysis of the bids made in the ISO market auctions; whether the energy markets are maintaining minimum levels of reliability; whether the markets are achieving energy efficiency and fuel diversity goals; and the ISO's financial information.

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.

Legislative history

2013-14 - S. 1337b - Energy Committee/A. 6255-a - Corporations, Authorities and Commissions Committee.

Fiscal implications

None.

Effective date

immediate.