What's happening
This bill abolishes the market clearing price for wholesale electricity in New York and requires a pay-as-bid auction process overseen by the Public Service Commission.
Why it matters
Shifts how electricity prices are set. By banning the market clearing price in wholesale auctions and requiring a pay-as-bid system overseen by the Public Service Commission (PSC), the bill could lead to more variable and possibly lower or higher prices for electricity, directly affecting what utilities pay and, ultimately, what customers are charged.
Increases state regulatory power. The PSC gains expanded authority over New York’s electric grid, including oversight of the Independent System Operator (ISO), electricity reliability, generator pricing, and utility conduct, which could lead to tighter controls and changes in market behavior.
Implements consumer protections and market oversight. The bill requires annual (or up to every three years) utility rate reviews, mandates an independent market advisor to detect and address market manipulation, and sets standards to ensure fair practices—potentially increasing transparency and reducing opportunities for price gouging or collusion.
Protects existing utility structures. The legislation forbids the PSC from forcing utilities to divest their generation, transmission, or distribution assets without explicit new legislation, aiming to provide stability for utility companies and potentially prevent disruptive asset sales or structural changes.
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Who cares
Headline styles
Ban Market Clearing Price
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Enacting clause stricken
- Referred to corporations, authorities and commissions
- Referred to corporations, authorities and commissions
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
End Market Price Auctions
In Senate Committee · Energy And Telecommunications · Sponsor Joseph A. Griffo
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5746
2017-2018 Regular Sessions
IN ASSEMBLY
February 15, 2017
Introduced by M. of A. DINOWITZ -- read once and referred to the Committee on Corporations, Authorities and Commissions
AN ACT to amend the public service law, in relation to abolishing the market clearing price
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 66 of the public service law is amended by adding three new subdivisions 29, 30 and 31 to read as follows:
29. Review the rates of any public utility on an annual basis, provided however that upon a determination by the commission that the public interest does not require such annual rate review, a review of rates may be undertaken at no more than three year intervals.
30. (a) Use the fullest extent of its powers to regulate the distribution of retail electric energy to retail customers in the state and, to the extent not prohibited by federal law, the transmission of electric energy in the state.
(b) A market clearing price mechanism for the purchase of power shall be forbidden for purchases made through the wholesale market via a bid procurement or auction process held by the independent system operator ("ISO") of New York, or any successor in law and function to such entity.
(c) Such auction or bid procurement process shall be overseen by the commission, which shall require a descending clock, pay-as-bid auction in which bid amounts will continue to fall until no bidder is willing to supply electricity at a lower price. For the purposes of this article "descending clock auction" shall be defined as an auction in which the prices drop throughout an auction of time-limited duration; starting high and being reduced gradually until the supply bid is just sufficient to meet the electrical load to be procured. Prices that tick down in a round decrease by a decrement; which is a given percentage of the previ-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07504-01-7
A. 5746 2
ous price. Bidders holding the final bids when the auction closes are the winners.
(d) Bidders will be forbidden from knowing when the amount of electricity supply fills requirements.
(e) The commission shall appoint an independent market advisor to review market practices and behavior; that will recommend to the ISO actions that can be taken to mitigate or correct behavior by market participants that was reasonably calculated to, or had the effect of affecting the function of the auction process so that the winning bidder was not the lowest price bidder.
(f) Utilities may buy power from markets other than the ISO, or via contracts with individuals or groups of generating entities, provided that such electrical energy must be offered to customers at just and reasonable rates.
31. (a) The commission shall exercise its full jurisdiction over the ISO of New York.
(b) The commission shall regulate the reliability, quality and maintenance by transmitters and distributors of their transmission and retail distribution systems.
(c) The commission shall regulate the reliability, quality, maintenance, and price of generators.
(d) The commission shall not require any incumbent electric utility to divest itself of any generation, transmission or distribution assets pursuant to any provision of this chapter without specific authorizing legislation for such purpose.
(e) The commission shall develop codes of conduct governing the conduct of incumbent electric utilities and affiliates thereof when any such affiliates provide, or control any entity that provides, generation, distribution, or transmission services to the extent necessary to prevent impairment of competition. Nothing in this chapter shall prevent an incumbent electric utility from offering metering options to its customers.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.