Relates to oversight by the New York state public authorities control board

- an increase in rates, charges, surcharges, assessments, fees, levies, or any other collections, which would increase costs for ratepayers by more than $700,000; collected solely for and directed to NYSERDA the PACB's jurisdiction would apply to these activities that amount to a total of $700,000, regardless of whether they are implemented through a single action or a series of actions, as described in the bill; and/or

- a transfer, repurposing, reprogramming, or any other action that would change the use of money directed to NYSERDA previously designated or intended for a different purpose.

The PSC would conduct a cost-benefit analysis of the public benefit of these actions and would provide the analysis to the PACB, along with the PSC's application to the PACB for approval of the actions.

Section 2 of the bill would require a similar approval process by the PACB of NYSERDA's activities in the area of any transfer, repurposing, reprogramming, or any other action that would change the use of money previously designated or intended for a different purpose.

Section 3 of the bill would add the PSC to the list of entities that are subject to the PACB's jurisdiction.

Section 4 of the bill would expand the PACB's decision-making criteria to include a determination that a cost-benefit analysis of the actions regulated by this bill shows that those actions are in the public interest.

Section 5 of the bill states that these provisions would be effective as of June 25, 2015.

Justification

The Legislature finds that its delegation of ratemaking authority to the PSC would benefit from additional supervision by the PACB in order to provide oversight over the PSC' s actions to impose very large costs on ratepayers or to transfer funds away from their original purposes. Additionally, this PACB oversight should be extended to NYSERDA, as the Authority also is involved in the repurposing of funds.

Through its appointments to the PACB, the Legislature will ensure that these actions by the PSC and NYSERDA are in the public interest. The Legislature has a just role in the approval of transactions that involve very large sums of money in order to ensure the best outcome for ratepayers.

Recently, the PSC approved a $5.322 billion Clean Energy Fund that would be in place for ten years. NYSERD proposed the creation of the Fund on June 25, 2015. Monies in this Fund arise from additional collections from ratepayers and the repurposing of funds originally intended for activities such as promoting investments in large-scale renewables and energy efficiency. Through the PACB, the Legislature maintains its jurisdictional oversight role over these types of transactions to ensure that they are in the public interest.

NYSERDA also is involved in the transfer and repurposing of funds, such as those related to the Regional Greenhouse Gas Initiative. Although the Authority conducts stakeholder meetings on the use of these monies, NYSERDA's actual decision-making process to determine the use of its funds is less than transparent. Additionally, NYSERDA often announces the provision of funds for various purposes without stating from where the funds originate and by which process the funding decision was made. Through the PACB, the Legislature would review these transactions and would ensure that they achieve the best outcome.

Legislative history

New bill

Fiscal implications

Nominal

Effective date

This act shall take effect immediately.