Enacts the "Long Island power authority ratepayers protection act"; repealer

Section 2. Amends Section 1020-d of the Public Authorities Law to provide for the replacement of the current appointed Long Island Power Authority (LIPA) board of trustees beginning January 1, 2019. Sets forth new criteria relating the election of the LIPA Board of Trustees which shall consist of a Chairman appointed by the Governor and confirmed by the Senate, and eight other trustees elected by the voters from eight districts of equal population established by the Legislature.

Section 3. Subdivision (u) of Section 1020-f of the Public Authorities Law is amended to provide the LIPA Board with full discretion to consider a rate increase including consideration of the economic impact on ratepayers and the region. The LIPA Board shall not approve a final rate plan until a public hearing is held in each county of the service area.

Section 4. Section 1020-h of the Public Authorities Law is amended to remove any State preemption from the establishment of municipal power companies on Long Island pursuant to Article 14-a of the General Municipal Law.

Section 5. Subdivision 1 of Section 1020-K of the Public Authorities Law is amended to add a new subdivision 1-a requiring a public referendum on the issuance of bonds by LIPA.

Section 6. Section 1020-cc of the Public Authorities Law is amended to restore the oversight authority of the New York State Comptroller over LIPA contract matters.

Section 7. Repeals Section 1020-dd of the Public Authorities Law to remove the prohibition on LIPA from applying and accepting preference hydroelectricity from the NY State Power Authority.

Section 8. Paragraph a of subdivision 3 of Section 3-b of the Public Service Law is amended to empower the Department of Public Service-Long Island (DPS- LI) to approve rate requests and preclude the DPS-LI from authorizing a rate increase to offset revenue losses due to consumer energy conservation efforts.

Section 9. Severability

Section 10. Provides for an immediate effective date.

Justification

The "Long Island Power Authority Ratepayers Protection Act" is designed to restore some degree of transparency and oversight, strengthen the authority the Department of Public Service-Long Island, allow for the establishment of more municipal power companies on Long Island, expand hydroelectric options, and most importantly provide ratepayers a greater voice with respect to the activities of LIPA and PSEG-LI. This begins with the establishment of an elected LIPA as was originally envisioned when LIPA was created in 1986. LIPA. Under this bill, there would continue to be a nine member board with the Chairman still being appointed by the Governor. However, the instead of the remaining eight trustees being appointed by the Governor and Legislature, they would be elected by the people of Long Island from eight districts of equal population covering the LIPA service area of Suffolk, Nassau, and part of Queens in the Rockaways beginning January 1, 2019.

The LIPA Board would be responsible to Long Islanders, not Albany. They would have full discretion to consider a rate increase including consideration of the economic impact on ratepayers and the region. The LIPA Board shall not approve a final rate plan until a public hearing is held in each county of the service area.

This legislation restores the oversight function to the State Comptroller and State Attorney-General over LIPA activities that were stripped by the provisions of Chapter #173 of 2013 relating to contracts, fiscal, and legal issues. The State Comptroller and AG, in addition to an elected Board of Trustees, will provide the oversight and transparency that is needed to ensure that the best interests of Long Island ratepayers are being served.

Legislative history

2016: New Legislation

Fiscal implications

To be determined.

Effective date

This act shall take effect immediately.