 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6010
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 21, 2017
                                       ___________
 
        Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
          tee on Corporations, Authorities and Commissions
 
        AN  ACT to amend the public authorities law, in relation to the creation
          of the downstate New York power authority
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Article  5  of  the  public authorities law is amended by
     2  adding a new title 6-E to read as follows:
     3                                   TITLE 6-E
     4                     DOWNSTATE NEW YORK POWER AUTHORITY
     5  Section 1148. Short title.
     6          1148-a. Establishment of authority.
     7          1148-b. Establishment of downstate New York power
     8                    authority.
     9          1148-c. Members of the authority.
    10          1148-d. Powers and duties of the authority.
    11          1148-e. Deposit for temporary possession of property.
    12          1148-f. Application of public service law.
    13          1148-g. Furnishing service within the authority.
    14          1148-h. Liabilities for bonds.
    15          1148-i. Bonds and notes of the authority.
    16          1148-j. Rights of redemption.
    17          1148-k. Bonds and obligations legal investments of fiduciaries.
    18          1148-l. Exemption from taxation; payments in lieu of taxes.
    19          1148-m. The city of New York and counties of Westchester,
    20                    Rockland and Orange may levy taxes within the authority.
    21          1148-n. Examination by comptroller.
    22          1148-o. Reports of the authority.
    23    § 1148. Short title. This title may be cited  as  the  "downstate  New
    24  York power authority act".
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07587-01-7

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     1    §  1148-a. Establishment of authority. There is hereby established and
     2  defined a public authority to be known as the "downstate New York  power
     3  authority",  which  shall  embrace  the service territory of the Consol-
     4  idated Edison Company, including that portion of  Westchester,  Rockland
     5  and Orange counties served by the aforesaid company.
     6    §  1148-b. Establishment of downstate New York power authority.  There
     7  is hereby created a public utility district corporation, to be known  as
     8  the "downstate New York power authority", hereinafter referred to as the
     9  authority.  The  authority shall be a body corporate and politic consti-
    10  tuting a public benefit corporation, the objects of which, in the  judg-
    11  ment  of  the  legislature,  cannot  be obtained under general laws. The
    12  corporation shall have the power to sue and be  sued,  and  to  adopt  a
    13  seal. It shall have the power to acquire real and other forms of proper-
    14  ty by purchase, eminent domain or otherwise, to incur debts, liabilities
    15  and  obligations,  to  issue  bonds and notes and to exercise all powers
    16  authorized by this title and reasonably necessary for accomplishing  its
    17  purposes,  or  properly  incidental thereto, subject to the constitution
    18  and laws of the United States and the state of  New  York.  Such  powers
    19  shall be exercised in the name of the authority.
    20    §  1148-c.  Members  of  the  authority. The members, constituting the
    21  board of directors of the authority, shall consist  of  eleven  persons,
    22  seven  of  whom  shall  reside  within the city of New York and shall be
    23  appointed by the mayor of the city of New York and confirmed by the city
    24  council.  Two persons shall reside in Westchester county  and  shall  be
    25  appointed by the county executive of Westchester county and confirmed by
    26  the  county legislature.  One person shall reside in Rockland county and
    27  shall be appointed by  the  county  executive  of  Rockland  county  and
    28  confirmed  by  the county legislature. One person shall reside in Orange
    29  county and shall be appointed by the county executive of  Orange  county
    30  and confirmed by the county legislature.
    31    The  term  of  office  of  each member shall be four years, but in the
    32  first instance the mayor shall appoint two members  each  for  terms  of
    33  one,  two  and three years, respectively, and one member for a four-year
    34  term.  The Westchester county executive shall, in  the  first  instance,
    35  appoint members for one and two years, respectively.
    36    Upon  resignation  of  a  member,  or a vacancy occurring in any other
    37  manner, it shall be filled by  the  officer  previously  appointing  the
    38  member  to  that  office to fill the remainder of the term.  Each member
    39  before entering upon the duties of his office shall take  the  constitu-
    40  tional  oath of office, which shall be filed in the office of the secre-
    41  tary of state. Seven directors shall constitute a quorum for the  trans-
    42  action of business, provided, however, that at least one member shall be
    43  from  Westchester,  and, notwithstanding any other provision of law, the
    44  concurrence of a majority of those present at a meeting shall be  neces-
    45  sary  for  the  passage  of  any resolution, order or determination. Any
    46  member may be removed by the attorney general for inefficiency,  neglect
    47  of  duty  or  misconduct  in  office after a hearing upon charges and an
    48  opportunity to be heard in person or by counsel upon not less  than  ten
    49  days notice. No director shall receive a salary, but each shall be enti-
    50  tled  to  reimbursement  for  any ordinary and necessary actual expenses
    51  related directly to the business of the authority.  They may  elect  one
    52  of  the members as president and may elect or appoint other officers and
    53  determine their powers.
    54    § 1148-d. Powers and duties of the authority. The  powers  and  duties
    55  conferred  by this title shall be exercised by the board of directors of
    56  the authority, subject to the terms of this title. In  the  exercise  of

        A. 6010                             3
 
     1  such  powers  and  duties  the  board  shall  have the following powers,
     2  together with such other powers  as  may  be  reasonably  necessary  for
     3  accomplishing  the  purposes  and  duties declared and set forth in this
     4  title:
     5    1.  To  own and operate electric generating facilities in the New York
     6  City and Westchester, Rockland and Orange county areas for  the  benefit
     7  of the people and businesses of the city of New York and the counties of
     8  Westchester, Rockland and Orange;
     9    2.  To acquire, by purchase, condemnation or otherwise, the facilities
    10  formerly owned by the Consolidated Edison Company for the production  of
    11  electricity;
    12    3.  To  determine  upon the location, type, size, construction, lease,
    13  purchase, ownership, acquisition, use and  operation  of  any  plant  or
    14  plants or other structure or property, within or without the territorial
    15  limits of the authority;
    16    4.  To  appoint and at pleasure discharge a secretary or treasurer and
    17  such clerical, engineering, legal and other professional  assistance  as
    18  it  may  deem  necessary  for  the  purposes of this title and fix their
    19  compensation;
    20    5. To appoint and  at  pleasure  remove  all  employees,  to  transfer
    21  employees  from their positions to other positions and to consolidate or
    22  abolish such positions, except that any collective bargaining agreements
    23  in force between the Consolidated Edison Company or  any  other  company
    24  and any certified collective bargaining representative for any employees
    25  shall  remain  in  full  force  and  effect, and such employees shall be
    26  exempt from the provisions of the public employees fair  employment  act
    27  as set forth in article fourteen of the civil service law;
    28    6.  To  enter  upon  any lands and within any building whenever in its
    29  judgment it may be necessary for the purpose of making surveys and exam-
    30  inations to accomplish any purposes set forth in this title;
    31    7. By the whole, or by any three  or  more,  of  the  members  of  the
    32  authority,  to  make  any  investigation  which it may deem necessary to
    33  enable it effectively to carry out the provisions of this title and, for
    34  that purpose, to take and hear proofs and testimony  and  to  compel  by
    35  subpoena  the  attendance  of  witnesses  and the production of records,
    36  books, papers, accounts and other documents including public records;
    37    8. To execute contracts, borrow money, issue bonds and  other  certif-
    38  icates  of  indebtedness and sell or dispose of same in such amounts and
    39  at such rates of interest as may be advisable. This  shall  include  the
    40  power  to  borrow  money from any state or federal agency, including the
    41  power authority of the state of New York, and to contract with the power
    42  authority of the state of New York for any administrative, legal,  engi-
    43  neering  or other services as may be necessary to effectuate the orderly
    44  transition of operations from the previous owners to the authority;
    45    9. (a) To hold public hearings, on the initiative of any three members
    46  of the board or on the request of any person or persons, upon any matter
    47  the board deems in the public interest;
    48    (b) Further, to develop and adopt by October thirtieth of each  calen-
    49  dar  year  a  capital budget plan for the following calendar year and to
    50  hold at least two public hearings on said budget in each county  in  the
    51  city of New York and in the counties of Westchester, Rockland and Orange
    52  with  both  a  day and an evening session, beginning at least forty-five
    53  days prior to the adoption of said capital budget;
    54    (c)  To  make  such  proposed  capital  budget  available  for  public
    55  inspection  at  all  offices  of the authority, in the main libraries of
    56  both said counties and in  such  other  places  as  the  public  service

        A. 6010                             4

     1  commission  may  require  so  that  the same may be available for public
     2  inspection; the public shall be  notified  of  said  hearings  in  bills
     3  rendered  for service at least thirty days prior to the first such hear-
     4  ing.
     5    §  1148-e.  Deposit for temporary possession of property. Whenever the
     6  authority, in any proceedings instigated by it for  the  acquisition  of
     7  any existing plant or plants by condemnation, shall make application for
     8  temporary  possession  pursuant  to the provisions of the eminent domain
     9  procedure law, the sum to be fixed by the court for deposit as a  condi-
    10  tion  for granting such application need not exceed twenty per centum of
    11  the assessed valuation of the real property sought  to  be  acquired  in
    12  such  proceeding  as  such  assessed  valuation  appeared  upon the last
    13  assessment rolls for state and city taxes prior to the  commencement  of
    14  such proceeding.
    15    §  1148-f.  Application  of  public  service  law. The rates, charges,
    16  services, practices and finances of the authority shall  remain  subject
    17  to  the jurisdiction of the public service commission and the provisions
    18  of the public service law, including the provisions of the  home  energy
    19  fair  practices act, the home insulation and energy conservation act and
    20  the provisions related to the siting and certification of major generat-
    21  ing plants and transmission lines.  Notwithstanding the aforesaid appli-
    22  cation of the provisions  of  the  public  service  law,  the  following
    23  provisions  shall  govern  with respect to the rates, charges, services,
    24  practices and finances of the authority and, where such  provisions  are
    25  inconsistent  with  the public service law, shall be deemed to supersede
    26  it:
    27    1. The amount of consideration paid and the issuance of securities  by
    28  the  authority for the acquisition of the aforesaid facilities shall not
    29  require the approval of the public service commission.
    30    2. The cost of acquisition of said facilities, including the costs  of
    31  the  issuance  of  bonds  and  notes related to such acquisition such as
    32  legal and engineering fees, underwriters' discount and other  reasonable
    33  and  necessary  fees  related  to  such issuance, shall be deemed by the
    34  public service commission to be the original  cost  of  said  facilities
    35  upon  which the rate base shall be determined. Any contingency funds and
    36  any debt service reserve funds raised as a result  of  the  issuance  of
    37  bonds  and notes shall be deemed cash assets and capital surplus liabil-
    38  ities, respectively, and any income  from  such  cash  assets  shall  be
    39  determined to be other than operating income for the authority.
    40    3.  Any rate increases or decreases resulting from the creation of the
    41  authority shall be uniform among all classes of customers. In  addition,
    42  the authority shall not seek any changes, other than the uniform changes
    43  for  all  classes  of  customers, in any tariff, rate or schedule for at
    44  least two years after the acquisition of the  aforementioned  generating
    45  facilities.    After  such  period, all changes among rates, tariffs and
    46  schedules among classes of customers shall be subject to the approval of
    47  the public service commission.
    48    4. The board of directors shall annually make the report  required  by
    49  subdivision  seven of section sixty-six of the public service law to the
    50  public service commission, which report shall be verified by the oath of
    51  the president of the authority.
    52    § 1148-g. Furnishing service within the authority.   It shall  be  the
    53  obligation of the authority to furnish safe and reliable electric gener-
    54  ation service to the persons and businesses in the authority at just and
    55  reasonable  rates.    The authority shall have the power to construct or
    56  acquire, within or without the territorial limits of the authority, such

        A. 6010                             5
 
     1  additional facilities beyond the former facilities of  the  Consolidated
     2  Edison  Company  as  shall  reasonably  be  necessary to meet such obli-
     3  gations.  The authority may purchase power and energy from any  persons,
     4  and  sell power and energy to any person, within or without the territo-
     5  rial limits of the authority, where the board of  directors  deems  such
     6  sales  or  purchases  to be in the best interest of the people and busi-
     7  nesses of the authority.
     8    § 1148-h. Liabilities for bonds. The bonds or other obligations of the
     9  authority shall not be debts of the state of New York, the city  of  New
    10  York or the county of Westchester, and the board of directors shall have
    11  no power to make them payable except out of revenues of the authority.
    12    §  1148-i.  Bonds  and  notes of the authority. 1. The authority shall
    13  have the power, and is hereby authorized, from time to time to issue its
    14  negotiable bonds or notes, in conformity with the applicable  provisions
    15  of  the  local finance law, for the purpose of financing the acquisition
    16  of the former electric generating facilities of the Consolidated  Edison
    17  Company and for the financing of any further projects authorized by this
    18  title, including the acquisition of any real or personal property deemed
    19  necessary by the authority.
    20    2.  In  anticipation of the sale of such bonds the authority may issue
    21  negotiable bond anticipation notes in  conformity  with  the  applicable
    22  provisions  of the local finance law and may renew the same from time to
    23  time but the maximum maturity of any such note, including renewals ther-
    24  eof, shall not exceed five years from the date of issue of such original
    25  notes. Such notes shall be paid from any moneys of the authority  avail-
    26  able  therefor and not otherwise pledged or from the proceeds of sale of
    27  the bonds of the authority in anticipation of which  they  were  issued.
    28  Such  notes shall not be issued in any amount in excess of the amount of
    29  bonds which the authority is authorized to issue less the amount of  any
    30  bonds or other notes theretofore issued and outstanding. The notes shall
    31  be issued in the same manner as the bonds. Such notes and the resolution
    32  authorizing  the  same may contain any provisions, conditions or limita-
    33  tions which a bond resolution of the authority may contain.
    34    3. The authority shall have power from time to time, whenever it deems
    35  refunding expedient, to refund any bonds by the issuance of  new  bonds,
    36  whether the bonds to be refunded have or have not matured, and may issue
    37  bonds  and  notes  partly to refund bonds and notes then outstanding and
    38  partly for any other purpose authorized by this title.  Refunding  bonds
    39  and  notes may be exchanged for the bonds and notes to be refunded, with
    40  such cash adjustments as may be agreed, or may be sold with the proceeds
    41  applied to the purchase  or  payment  of  the  bonds  and  notes  to  be
    42  refunded.
    43    4. The bonds and notes may be issued payable in annual installments or
    44  as  term bonds of the authority or the authority may, in its discretion,
    45  issue bonds and notes of both types.   Such bonds  and  notes  shall  be
    46  authorized  by  resolution of the board of directors and shall bear such
    47  date or dates, mature at such time or times not  exceeding  fifty  years
    48  from their respective dates, bear interest at such rate or rates payable
    49  annually  or  semi-annually,  be in such denominations, be in registered
    50  form only, be executed in such manner, be payable in lawful money of the
    51  United States of America at such place or places and be subject to  such
    52  terms  of  redemption as such resolution or resolutions may provide.  In
    53  the event that term bonds are issued, the  resolution  authorizing  same
    54  may  make  such  provisions  for  the  establishment  and  management of
    55  adequate sinking funds for the payment thereof as the authority may deem
    56  necessary.  The bonds or notes shall be sold at public sale and  may  be

        A. 6010                             6
 
     1  sold  for  such  price  or  prices  as  the  authority  shall determine.
     2  Announcements of such public sale may appear in any bills  rendered  for
     3  service  by the authority. The resolution or resolutions authorizing any
     4  such  obligations  may  contain  provisions,  which shall be part of the
     5  contract with the holders thereof, which provisions may:
     6    (a) pledge the revenues of the authority to secure the payment of such
     7  bonds and agree to maintain schedules  of  rates,  tariffs  and  charges
     8  adequate to pay the interest and principal of such obligations;
     9    (b)  give to the holders of such bonds and other obligations, or their
    10  authorized representatives, a lien upon such revenues and maintain  such
    11  accounts as may be required by such holders, subject to agreement by the
    12  public service commission and the state comptroller;
    13    (c)  require  such  revenues  to  be  set  aside for sinking funds and
    14  reserve funds, safeguarding the deposit, use and investment thereof;
    15    (d) limit or restrict the power of the  authority  under  this  title,
    16  insofar  as  the  same may be deemed advisable, to secure the payment of
    17  such bonds and notes, including the authority to issue additional  obli-
    18  gations or the disposition of the proceeds of revenues of the authority;
    19    (e)  authorize  the  appointment of a trustee or receiver as provided,
    20  limit the rights of the bondholders to enforce their bonds or  notes  by
    21  independent  action  and,  in  the  event of a receivership, require the
    22  return of all properties to the authority when the bonds  or  notes  are
    23  paid or redeemed and all costs paid;
    24    (f) contain any other provisions reasonably necessary or deemed advis-
    25  able to secure and provide for the payment of said bonds and obligations
    26  and the rights and remedies of the holders thereof;
    27    (g) provide that the authority, the state of New York, the counties of
    28  Westchester,  Rockland and Orange and the city of New York may purchase,
    29  pledge, cancel, hold or redeem such bonds and notes;
    30    (h) provide for the amendment of any such resolution  in  any  respect
    31  and  the  amount  of  bonds  or  obligations the holders of which, after
    32  published or written notice, must consent or  object  thereto  in  order
    33  that such amendment may or may not become effective.
    34    §  1148-j. Rights of redemption. The authority, the state of New York,
    35  the city of New York, and the  counties  of  Westchester,  Rockland  and
    36  Orange  shall  have the right to redeem the bonds and obligations of the
    37  authority, may acquire such bonds and notes and may cancel,  hold,  sell
    38  or otherwise dispose of such bonds and obligations.
    39    §  1148-k.  Bonds and obligations legal investments of fiduciaries. On
    40  or before January first of each year, commencing with January first, two
    41  thousand eighteen, the comptroller of the state of New York  shall  file
    42  with  the  public service commission his certificate stating the average
    43  annual revenues of the authority, or of the properties acquired or to be
    44  acquired by the authority, for the then preceding  five  years,  as  the
    45  case  may be, and the maximum amount required in any future year to meet
    46  the interest and maturing principal of the  outstanding  obligations  of
    47  the authority. If in his opinion the obligations of the authority are on
    48  the  facts  so determined and in his judgment sufficiently secured so as
    49  to constitute a suitable investment for the public funds of  the  state,
    50  he  shall  so certify, but such certification may later be withdrawn. So
    51  long as such certification remains in effect, the  comptroller  and  all
    52  other  public  officers  and bodies of the state, all municipalities and
    53  other political subdivisions, all insurance companies and  associations,
    54  all  savings  banks and savings institutions, including savings and loan
    55  officers, associations, administrators, guardians, executors  and  trus-

        A. 6010                             7
 
     1  tees,  and  all  other fiduciaries in the state may properly and legally
     2  invest funds in their control in such obligations.
     3    §  1148-l.  Exemption  from  taxation; payments in lieu of taxes.  The
     4  real and personal property of the authority and all  of  its  activities
     5  and operations shall be exempt from taxation provided, however, that the
     6  authority  shall  pay to all units of state and local government amounts
     7  in lieu of taxes equal to the taxes paid or owing by the previous  owner
     8  in  the  fiscal year immediately prior to the acquisition of the facili-
     9  ties of said previous owner by the authority. In addition the board  may
    10  agree  to increase payments in lieu of taxes to the city of New York and
    11  the counties of Westchester, Rockland and Orange.
    12    § 1148-m. The city of New York and counties of  Westchester,  Rockland
    13  and  Orange may levy taxes within the authority. 1. The city of New York
    14  and the county of Westchester may, at  any  time,  levy  a  special  tax
    15  assessment  upon the real property in such city or county, respectively,
    16  benefited by the authority to defray all or any portion of  the  payment
    17  of  interest and principal of bonds or other obligations of the authori-
    18  ty, to provide sinking funds, guaranty funds or  other  funds  for  each
    19  payment  or  to  provide  for  the  redemption of such obligations. Such
    20  assessment or assessments shall be levied in conformance with the appli-
    21  cable provisions of the United States  Internal  Revenue  Code  and  any
    22  regulations  or  rulings  issued  thereunder in order that real property
    23  owners in such city and county be enabled  to  deduct  such  assessments
    24  from federal income taxes.
    25    2.  Such  city and counties shall establish a system of accounts, with
    26  the approval of the state comptroller and the public service commission,
    27  for the transfer of the proceeds of such levies to the authority and for
    28  such reductions in the rates and charges for  electric  service  in  the
    29  amounts  transferred  as shall be required of the authority, except that
    30  amounts transferred for the maintenance of sinking funds, guaranty funds
    31  or funds other than for the payment of interest  or  principal  maturing
    32  within one year shall not presently reduce rates for electric service.
    33    §  1148-n.  Examination  by comptroller. The state comptroller and his
    34  legally authorized representatives are hereby authorized  and  empowered
    35  from  time to time, and in addition to the public service commission, to
    36  examine the accounts and books of the authority, including its receipts,
    37  disbursements, contracts, leases, sinking  funds,  investments  and  any
    38  other matters relating to its financial standing.
    39    §  1148-o.  Reports  of  the  authority.  The authority shall annually
    40  report to the governor, the legislature, the city of New York, the coun-
    41  ty of Westchester, the public service  commission  and  the  comptroller
    42  upon its activities and operations.
    43    § 2. This act shall take effect immediately.
Creates downstate New York power authority

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