What's happening
This bill increases oversight of New York's independent system operator, requires more public disclosure, and mandates annual state reports on electricity market operations.
Why it matters
Expands public representation on the electricity market board. By requiring seats for small business owners and farmers, the bill aims to ensure that decisions about the power grid better reflect the interests of diverse consumers, not just utilities or large corporations.
Significantly increases market transparency. The bill mandates the release of detailed auction data—including bidder identities and bid amounts—within three months, allowing public scrutiny and independent analysis of how New York’s electricity markets operate and who is influencing prices.
Enhances consumer advocacy. The creation of a dedicated consumer liaison role within the independent system operator means that everyday electricity users (like residential customers and small businesses) will have a clearer line of communication to raise concerns and understand policy changes that may affect their costs.
Strengthens state oversight and accountability. By requiring comprehensive annual reports on market fairness, reliability, and competitiveness, along with compliance with open meeting and information laws, the bill provides tools for identifying and correcting market deficiencies—potentially leading to fairer prices and better service for all New Yorkers.
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Who cares
Headline styles
Monitor NY Power Operators
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Print number 5632a
- Amend and recommit to energy and telecommunications
- Referred to energy and telecommunications
- Referred to energy and telecommunications
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5632--A
2017-2018 Regular Sessions
IN SENATE
April 21, 2017
Introduced by Sen. GRIFFO -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommunications -- recommitted to the Committee on Energy and Telecommunications in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the public service law, in relation to providing oversight and monitoring the operations of an independent system operator
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. 1. Definitions. For the purposes of this section, the terms:
a. "independent system operator" shall mean any not-for-profit corporation formed and operating in the state of New York that is approved by the United States federal energy regulatory commission to operate in the state to administer and monitor wholesale electricity markets.
b. "end use sector member" shall mean any entity that purchases electricity for its own consumption and not for resale.
2. Board members. The board of directors of the independent system operator shall include three members who shall represent the interests of small business owners and farmers. The governor, the speaker of the assembly and the temporary president of the senate shall each appoint one such member.
3. Disclosure of information. a. An independent system operator operating in this state shall disclose price data related to its wholesale market operations including, but not limited to, information on realtime, hour-ahead and day-ahead bids in the independent system operator's wholesale electricity market auctions, transmission congestion contract auctions and installed capacity market auctions with no more than a three month delay. Such data shall be provided in aggregate hourly,
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07555-03-8
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daily, monthly, annual and historical data sets for comparison purposes and shall also reflect seasonal and peak load variations and averages.
b. The independent system operator shall also disclose the names of any bidder that submits a bid in any of the auctions described in paragraph a of this subdivision and the amount of the bid.
c. Such information shall be made in a format readily available and accessible to the public.
4. Consumer liaison. The independent system operator shall appoint an employee to serve as consumer liaison, whose primary duty shall be to interact with members of the end-use sector for the purposes of:
a. keeping end-use sector members informed about developments that may affect their interests;
b. explaining the issues and proposals under discussion and proposed for consideration at the operating committee, business issues committee and management committee as well as the ramifications of those proposals on residential consumers;
c. responding to the questions and concerns of members of the end-use sector; and
d. serving as the liaison between the end-use sector and the members of the operator's board of directors who are designated or assigned to focus on the interests of the residential, small business and farm electricity users.
5. Notwithstanding any other provision of law to the contrary, the independent system operator shall be subject to the provisions of articles 6 and 7 of the public officers law.
§ 2. Section 66 of the public service law is amended by adding a new subdivision 29 to read as follows:
29. (a) For the purposes of this subdivision:
(i) "independent system operator" shall mean any not-for-profit corporation formed and operating in the state that is approved by the United States federal energy regulatory commission to operate in the state to administer and monitor wholesale electricity markets; and
(ii) "end use sector member" shall include any entity that purchases electricity for its own consumption and not for resale.
(b) The commissioner is authorized and directed to provide oversight and monitor the market and corporate operations of an independent system operator, including but not limited to the extent to which it:
(i) serves the needs of all customer classes and operates in a manner that is in the best interest of the public;
(ii) ensures reliability, quality and maintenance of the transmission system;
(iii) complies with the requirements of the New York state open meeting and freedom of information laws; and
(iv) contributes to the achievement of energy efficiency and fuel diversity goals of the state.
(c) The commissioner shall annually issue a report relating the market and corporate operations of the independent system operator. Such reports shall include, but not be limited to:
(i) analyses by an independent system operator and other data collected and analyzed by the commission information on real-time, hourahead and day-ahead market bids and bidders in an independent system operator's wholesale electricity market auctions, transmission congestion contract auctions and installed market auctions;
(ii) a determination of the extent to which the energy markets are maintaining necessary levels of reliability;
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(iii) a determination of whether or not all customer classes are being adequately served by competitive energy markets;
(iv) a determination of the competitiveness of energy markets; including a determination whether or not the electric industry is providing consumers with the lowest prices possible within a restructured, competitive retail marketplace;
(v) a determination of the extent to which the energy markets are achieving the energy efficiency and fuel diversity goals of the state;
(vi) the name and terms of the boards of directors and of the members of the independent system operator's management, operating and business committees;
(vii) an independent system operator's financial information; and
(viii) recommendations for improving any deficiencies so identified in electricity energy markets, including non-competitive pricing situations.
(d) The commission shall submit such report to the governor, the temporary president of the senate, the speaker of the assembly, the minority leaders of the senate and the assembly, the chairs of the energy committees of the senate and the assembly, no later than April first, two thousand eighteen and annually thereafter.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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.
Section 3 provides for an immediate effective date.
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 deci- sions that govern the sale, purchase and transmission of electricity in New York State are made by a federally approved independent system oper- ator 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 proc- esses 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 mini- mizes public participation. It is incredibly difficult for typical New Yorkers to remain on top of the day to-today activities of an independ- ent 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, represen- tatives 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 electric- ity markets in New York State.
Legislative history
2015-16 - S. 3543a - Energy Committee/A. 1928a - Corporations, Authori- ties and Commissions 2013-14 - S. 1337b - Energy Committee/A. 6255-a - Corporations, Author- ities and Commissions.
Fiscal implications
None.
Effective date
Immediate.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.