What's happening
This bill reforms the Long Island Power Authority board to include elected trustees and strengthens ratepayer protections against certain rate increases.
Why it matters
Greater local accountability. By transitioning most of the Long Island Power Authority (LIPA) board to elected trustees from population-based districts (rather than political appointees), the bill aims to give ratepayers a stronger, more direct voice in the oversight of their electric utility, potentially leading to decisions that better reflect community priorities.
Stronger transparency and public input. The bill requires public hearings on rate changes in every county within LIPA’s service area, with at least 30 days’ notice and advance written notification to customers, making it harder for significant rate increases to occur without public awareness or feedback.
Limits on rate increases tied to conservation. The legislation specifically prohibits LIPA from raising rates simply to offset revenue losses resulting from customers’ successful energy conservation efforts, incentivizing efficiency and protecting consumers from being penalized for reducing their electricity usage.
Redistricting and fair representation. The mandate that LIPA trustee districts be redrawn every ten years to maintain equal populations ensures ongoing fair representation as demographics shift, potentially reducing political gerrymandering and keeping the board’s structure aligned with the service area’s population.
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Elect Utility Board Trustees
Plain English, a few words. Used as the page title.
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No co-sponsors yet.
History
- Referred to energy and telecommunications
- Referred to energy and telecommunications
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.
Protect Long Island Electric Customers
In Assembly Committee · Energy · Sponsor Fred Thiele
Full text
4 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2983
2019-2020 Regular Sessions
IN SENATE
January 31, 2019
Introduced by Sen. GAUGHRAN -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommunications
AN ACT to amend the public authorities law and the public service law, in relation to enacting the "Long Island power authority ratepayers protection act"
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Short title. This act may be cited as the "Long Island power authority ratepayers protection act".
§ 2. Section 1020-d of the public authorities law, as amended by section 4 of part A of chapter 173 of the laws of 2013, is amended and a new subdivision 1-a is added to read as follows:
§ 1020-d. Board of trustees. 1. Starting on January first, two thousand fourteen, the board of the authority shall be constituted and consist of nine trustees all of whom shall be residents of the service area, five of whom shall be appointed by the governor, one of whom the governor shall designate as chair, and serve at his or her pleasure, two of whom shall be appointed by the temporary president of the senate, and two of whom shall be appointed by the speaker of the assembly. One of the governor's appointees shall serve an initial term of two years; one of the governor's appointees shall serve an initial term of three years; and three of the governor's appointees shall serve an initial term of four years. One of the appointees of the temporary president of the senate and one of the appointees of the speaker of the assembly shall serve initial terms of two years; and one appointee of the temporary president of the senate and one appointee of the speaker of the assembly shall serve initial terms of three years. Thereafter, all terms shall be for a period of four years. In the event of a vacancy occurring in the office of trustee by death, resignation or otherwise, the respective
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07496-03-9
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appointing officer shall appoint a successor who shall hold office for the unexpired portion of the term.
1-a. (a) Beginning January first, two thousand twenty-two, such authority shall consist of nine trustees. One trustee, who shall be the chairperson, shall be a resident of the service area, shall be appointed by the governor subject to confirmation by the senate, and shall serve at the governor's pleasure. Eight trustees shall be elected from districts established by the legislature. Each elected trustee shall be a resident of the district from which he or she is elected. No person who is an elected or appointed official of the state or any municipality or any agency or instrumentality thereof, shall be qualified to serve as an elected trustee. Each elected trustee shall hold office until his or her successor has been elected and qualified. In the event of a vacancy occurring in the office of a trustee by death, resignation or otherwise, a successor shall be chosen to hold office for the unexpired term in the manner prescribed by the election law.
(b) Prior to May first, two thousand twenty-one, the legislature shall establish eight districts, which shall be equal in population as determined by the last federal decennial census. Prior to May first, two thousand twenty-five and each tenth year thereafter, the legislature shall reapportion the eight districts, which shall be equal in population as determined by the last federal decennial census.
(c) Such trustees, shall be elected in elections conducted by the boards of elections pursuant to applicable provisions of the election law. The first such election shall be held on the first Tuesday in December two thousand twenty-one, and the trustees so elected shall take office on January first, two thousand twenty-two. At such election all eight trustees shall be elected for a term of two years. Each such term ending on December thirty-first of the last year thereof. No political party shall be entitled to nominate candidates for the office of trustee at any such election.
(d) Five trustees shall constitute a quorum for the purpose of organizing the authority and conducting the business thereof. The vote of a majority of the trustees shall be required for the purpose of taking action.
2. No trustee shall receive a salary, but each shall be entitled to reimbursement for reasonable expenses in the performance of duties assigned hereunder.
3. [Notwithstanding the provisions of any other law, no trustee, officer or employee of the state, any state agency or municipality appointed a trustee shall be deemed to have forfeited or shall forfeit his or her office or employment by reason of his or her acceptance of a trusteeship on the authority, his or her service thereon or his or her employment therewith.
4. All trustees] The chairperson appointed under this section shall have relevant utility, corporate board or financial experience.
§ 3. Paragraphs 2, 3 and 4 of subdivision (u) of section 1020-f of the public authorities law, as added by section 7 of part A of chapter 173 of the laws of 2013, are amended to read as follows:
2. The authority and the service provider shall thereafter submit for review to the department of public service any rate proposal that would increase the rates and charges and thus increase the aggregate revenues of the authority by more than two and one-half percent to be measured on an annual basis[; provided, however, that the authority may place such rates and charges into effect on an interim basis, subject to prospective rate adjustment; provided, further, that a final rate plan issued
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by the authority that would not so increase such rates and charges shall not be subject to the requirements of paragraph four of this subdivision and shall be considered final for the purposes of review under article seventy-eight of the civil practice law and rules]. The authority and/or the service provider may otherwise submit for review to such department any rate proposal irrespective of its effect on revenues.
3. The authority shall not fix any final rates and charges proposed that would not be subject to review by the department of public service pursuant to paragraphs one and two of this subdivision until after holding public hearings thereon upon reasonable public notice, with at least one such hearing to be held in each [in the] county [of Suffolk and the county of Nassau] within the service area upon at least thirty days notice to the public. The authority and service provider shall provide to their customers advance written notice of the date and place of any public hearings concerning proposed increases in rates.
4. Any recommendations associated with a rate proposal submitted pursuant to paragraphs one and two of this subdivision shall be provided by the department of public service to the board of the authority immediately upon their finalization by the department. [Unless the board of the authority makes a preliminary determination in its discretion that any particular recommendation is inconsistent with the authority's sound fiscal operating practices, any existing contractual or operating obligations, or the provision of safe and adequate service, the board shall implement such recommendations as part of its final rate plan and such final determination shall be deemed to satisfy the requirements of this subdivision and be considered final for the purposes of review under article seventy-eight of the civil practice law and rules. The board shall make any such preliminary determination of inconsistency within thirty days of receipt of such recommendations, with notice and the basis of such determination being provided to the department of public service, and contemporaneously posted on the websites of the authority and its service provider. The board shall thereafter, within thirty days of such posting and with due advance notice to the public, hold a public hearing with respect to its preliminary determination of inconsistency. At such hearing, the department of public service shall present the basis for its recommendations, the board shall present the basis for its determination of inconsistency and the service provider may present its position. The authority and the service provider may, during the time period before such public hearing reach agreement with the department on disputed issues. Within thirty days after such public hearing, the board of the authority shall announce its final determination and planned implementation with respect to any such recommendations. The authority's final determination of inconsistency shall be subject to any applicable judicial review proceeding, including review available under article seventy-eight of the civil practice law and rules.] The board shall not approve a final rate plan until it holds a public hearing in each county within the service area upon at least thirty days notice to the public. At such hearing, the department of public service shall present the basis for its recommendations. Within ninety days of the conclusion of the public hearing, the board shall render a final determination on the rate proposal. In making a final determination, the board shall protect the economic interests of its ratepayers and the service area. The board shall also consider the recommendations of the department and criteria in paragraph (a) of subdivision three of section three-b of the public service law. The board shall not be authorized to approve any rate increase to offset revenue loss due to energy conservation efforts by
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consumers. Such final determination shall be considered final for the purposes of review under article seventy-eight of the civil practice law and rules.
§ 4. Subparagraph (v) of paragraph (a) of subdivision 3 of section 3-b of the public service law, as amended by chapter 479 of the laws of 2017, is amended and a new subparagraph (vi) is added to read as follows:
(v) The parties to any such rate review proceeding shall include, but not be limited to, department staff, the authority, the service provider and[, to the extent it deems necessary or appropriate,] the utility intervention unit.
(vi) The department shall not recommend a rate increase to offset revenue loss due to energy conservation efforts by consumers.
§ 5. Severability. If any provision of this act or the application thereof shall for any reason be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair or invalidate the remainder of this act, but shall be confined in its operation to the provision thereof directly involved in the controversy in which the judgment shall have been rendered.
§ 6. 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 authorities law and the public service law, in relation to enacting the "Long Island power authority ratepayers protection act"
Purpose
Establishes the "Long Island Power Authority Ratepayers Protection Act."
Summary of provisions
Section 1. Cites the "Long Island Power Authority Ratepayers Protection Act."
Read the full memo (658 words)
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, 2022. Addi- tionally, this section 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 estab- lished 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 consid- er 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. Written notice of the date and place of any public hearings concerning proposed rate increases must be sent to customers in advance of such hearing.
Section 4. Amends paragraph a of subdivision 3 of Section 3-b of the Public Service Law to prohibit the Department of Public Service-Long Island from recommending a rate increase to offset revenue loss due to energy conservation efforts by consumers.
Section 5. Severability Clause
Section 6. Provides for an immediate effective date.
Justification
The "Long Island Power Authority Ratepayers Protection Act" is designed to provide ratepayers a greater voice with respect to the activities of LIPA and PSEG-LI. This begins with the establishment of an elected LIPA Board as was originally envisioned when LIPA was created in 1986. Under this bill, there would continue to be a nine member board with the Chairman still being appointed by the Governor and confirmed by the Senate. 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, 2022. The LIPA Board would be responsi- ble 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 it holds a public hearing in each county within the service area with at least 30 days public notice. Notice must be provided in writing in advance of any public hearing concerning rate increases. At such hearing, the Depart- ment of Public Service - Long Island (DPS-LI) shall present the basis for its recommendations. Within 90 days of the conclusion of the public hearing, the LIPA Board shall render a final determination on the rate proposal. In making a final determination, the LIPA Board shall protect the economic interests of its ratepayers and the service area. The LIPA Board shall also consider the recommendations of DPS-LI and the criteria in paragraph a of subdivision 3 of Section 3-b of the Public Service Law. The LIPA Board shall not be authorized to approve any rate increase to offset revenue loss due to energy conservation efforts by consumers. Such final determination shall be considered final for the purposes of review under article seventy-eight of the civil pr actice law and rules.
The enactment of this legislation will provide the oversight and trans- parency that is needed to ensure that the best interests of Long Island ratepayers are being served.
Legislative history
New bill.
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.