S665-2011 Actions

• Jan 4, 2012: REFERRED TO ENERGY AND TELECOMMUNICATIONS
• Jan 5, 2011: REFERRED TO ENERGY AND TELECOMMUNICATIONS

S665-2011 Memo

BILL NUMBER:S665

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 OR GENERAL IDEA OF BILL:
This legislation intended to provide consumer representation at an
independent system operator approved by the United States federal
energy regulatory commission to operate in the state and to
administer and monitor wholesale electricity markets. The bill
addresses issues related to the makeup of the Board of Directors,
consumer participation in the ISO functioning process, market
transparency and monitoring by the Public Service Commission.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1(a) provides definitions for "independent systems operator"
and "end use sector member".

Section 1(b) authorizes and directs the Public Service Commission to
provide oversight and monitor the market operations of an independent
system operator.

Section 1(c) requires bid disclosure and bidder identification no
later than three months after transactions in each of the markets
facilitated by an independent systems operator.

Section 1(d) provides for appointments to an independent system
operator's board of directors. The Governor and the respective
leaders of the majority parties in the State Senate and Assembly will
each have the authority to appoint one consumer representative to the
board.

Section 1(e) requires an independent system operator to retain the
services of a consumer liaison. The consumer liaison will be
responsible for communicating with consumer representatives on the
Board and market participants on a regular basis for the purposes of
providing information on developments in working
groups/sub-committees and proposals that may have ramifications on
consumers. The liaison will also be responsible for communicating
consumer concerns in internal independent system operator meetings.

Section 1(f) will require the Public Service Commission to monitor and
assess independent system operator finances, market performance,
market reliability, competition and the extent to which the markets
are advancing the state's goals for fuel diversity and efficiency.
The Commission will be required to report to the Legislature and the
Executive at least annually.

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 decisions that govern the sale, purchase and transmission of


electricity in New York State are made by a federally approved
independent system operator 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 processes 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
minimizes public participation. It is incredibly difficult for
typical New Yorkers to remain on top of the day to-today activities
of an independent 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, representatives 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 electricity markets in New York State.

PRIOR LEGISLATIVE HISTORY:
None.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.

EFFECTIVE DATE:
This act shall take effect immediately.

S665-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                          665
 2011-2012 Regular Sessions
 I N  SENATE
 (PREFILED)
 January 5, 2011
 
 Introduced  by  Sen. MAZIARZ -- read twice and ordered printed, and when
 printed to be committed to the Committee on  Energy  and  Telecommuni
 cations
 AN  ACT  to amend the public service law, in relation to providing over
 sight and monitoring the operations of an independent system operator
 THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section 1.

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 ENTITY OPERATING IN
 THE STATE THAT IS APPROVED BY THE UNITED STATES FEDERAL ENERGY REGULATO
 RY COMMISSION TO OPERATE IN THE STATE TO ADMINISTER AND  MONITOR  WHOLE
 SALE 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  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) MEETS THE REQUIREMENTS OF THE NEW YORK STATE OPEN MEETING  LAWS;
 AND
 (IV)  CONTRIBUTES  TO  THE  ACHIEVEMENT  OF ENERGY EFFICIENCY AND FUEL
 DIVERSITY GOALS OF THE STATE.
 (C) THE COMMISSION SHALL ENSURE THAT AN  INDEPENDENT  SYSTEM  OPERATOR
 OPERATE IN A MANNER TO PREVENT MARKET MANIPULATION AND OPPORTUNITIES FOR
 COLLUSION  BY REQUIRING AN INDEPENDENT SYSTEM OPERATOR TO DISCLOSE PRICE
 DATA RELATED TO ITS  WHOLESALE  MARKET  OPERATIONS  INCLUDING,  BUT  NOT
 LIMITED TO, INFORMATION ON REAL-TIME, DAY-AHEAD AND SPOT MARKET BIDS AND
 BIDDERS IN AN INDEPENDENT SYSTEM OPERATOR'S WHOLESALE ELECTRICITY MARKET
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD04844-01-1
 
       S. 665                              2
 AUCTIONS, TRANSMISSION CONGESTION CONTRACT AUCTIONS AND INSTALLED CAPAC
 ITY  MARKET  AUCTIONS  TO BE MADE PUBLIC WITH NO MORE THAN A THREE MONTH
 DELAY. SUCH INFORMATION SHALL BE MADE IN A FORMAT READILY AVAILABLE  AND
 ACCESSIBLE  TO  THE  PUBLIC INCLUDING, BUT NOT LIMITED TO PROVIDING SUCH
 DATA IN AGGREGATE HOURLY, DAILY, MONTHLY,  ANNUAL  AND  HISTORICAL  DATA
 SETS  FOR  COMPARISON  PURPOSES  AS WELL AS DATA RELATED TO SEASONAL AND
 PEAK LOAD VARIATIONS AND AVERAGES.
 (D) THE COMMISSION SHALL ENSURE ACCOUNTABILITY BY  REQUIRING  THAT  AN
 INDEPENDENT SYSTEM OPERATOR'S BOARD OF DIRECTORS INCLUDES AT LEAST THREE
 NON-GOVERNMENTAL  APPOINTMENTS  THAT DIRECTLY REPRESENT THE INTERESTS OF
 RESIDENTIAL SMALL BUSINESS AND FARM ELECTRICITY USERS.    THE  GOVERNOR,
 THE  SPEAKER  OF  THE ASSEMBLY AND THE TEMPORARY PRESIDENT OF THE SENATE
 SHALL EACH APPOINT ONE REPRESENTATIVE TO THE BOARD.
 (E) THE COMMISSION SHALL REQUIRE AN  INDEPENDENT  SYSTEM  OPERATOR  TO
 CREATE  THE  POSITION OF CONSUMER LIAISON WHOSE PRIMARY ROLE SHALL BE TO
 INTERACT WITH MEMBERS OF THE END-USE SECTOR FOR THE PURPOSES OF:

 (I) KEEPING END-USE SECTOR  MEMBERS  INFORMED  ABOUT  DEVELOPMENTS  IN
 WORKING GROUPS/SUB-COMMITTEES THAT MAY AFFECT THEIR INTERESTS;
 (II) EXPLAINING THE ISSUES AND PROPOSALS UNDER DISCUSSION AT THE WORK
 ING  GROUP/SUB-COMMITTEE  MEETINGS AND PROPOSED FOR CONSIDERATION AT THE
 OPERATING COMMITTEE, BUSINESS ISSUES COMMITTEE AND MANAGEMENT  COMMITTEE
 AS WELL AS THE RAMIFICATIONS OF THOSE PROPOSALS ON CONSUMERS;
 (III)  LISTENING  AND  RESPONDING  TO  THE  QUESTIONS  AND CONCERNS OF
 MEMBERS OF THE END-USE SECTOR; AND
 (IV) SERVING AS THE LIAISON BETWEEN THE END-USE SECTOR AND THE  DIREC
 TORS DESIGNATED OR ASSIGNED TO PAY PARTICULAR ATTENTION TO THE INTERESTS
 OF THE RESIDENTIAL, SMALL BUSINESS AND FARM ELECTRICITY USERS.
 (F) THE COMMISSIONER SHALL ANNUALLY ISSUE A REPORT RELATING THE MARKET
 OPERATION  OF  AN  INDEPENDENT  SYSTEM  OPERATOR.    SUCH  REPORTS SHALL
 INCLUDE, BUT NOT BE LIMITED TO:

 (I) ANALYSES BY AN INDEPENDENT SYSTEM OPERATOR  AND  OTHER  SUCH  DATA
 COLLECTED  AND  ANALYZED  BY  THE  COMMISSION  INFORMATION ON REAL-TIME,
 HOUR-AHEAD 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;
 (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; INCLUD
 ING  A  DETERMINATION  WHETHER OR NOT THE ELECTRIC INDUSTRY IS PROVIDING
 CONSUMERS WITH THE LOWEST PRICES POSSIBLE WITHIN A RESTRUCTURED, COMPET
 ITIVE 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 AN INDEPENDENT
 SYSTEM OPERATOR MANAGEMENT, OPERATING AND BUSINESS COMMITTEE MEMBERS;
 (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  SITU
 ATIONS.  THE  COMMISSION  SHALL  SUBMIT SUCH REPORT TO THE GOVERNOR, THE
 PRESIDENT PRO TEM OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE MINOR
 ITY 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 TWELVE AND ANNUALLY THEREAFTER.
 

S 2. This act shall take effect immediately.

*By contributing or voting you agree to the Terms of Participation and Privacy Policy and verify you are over 13.

Discuss!