Prohibits extra charges on farmers for electric service and prohibits limitations on farmers installing and operating on-site electric generation equipment and related technology.

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S2153-2013 Actions

• Jan 14, 2013: REFERRED TO ENERGY AND TELECOMMUNICATIONS

S2153-2013 Memo

BILL NUMBER:S2153

TITLE OF BILL:  An act to amend the public service law, in relation to
electric service for farmers; and providing for the repeal of such
provisions upon expiration thereof

PURPOSE OR GENERAL IDEA OF BILL:  The purpose of this bill is to allow
farmers to Provide for on-site electric generation without being
forced to pay prohibitive fees to electric providers.

SUMMARY OF SPECIFIC PROVISIONS:  This bill would prohibit electric
utilities from imposing any fee, penalty or charge or any restriction
on a customer that is a farmer when the farmer installs on-site
electric generating capability to serve domestic and farm needs for
electricity. This prohibition would apply whether or not the consumer
continues to be connected to the electric distribution system. This
bill also would ensure that costs for other customers are not
increased as a result of this fee prohibition. The benefits of the
bill would be offered on a first-come-first-serve basis until a
sufficient number of farmers in each service territory installs a
total amount of on-site generating capacity equaling 0.1%, of the
demand of the service utility for the year 1997 or until September 1,
2017 whichever comes first. This bill would add a new subdivision 6-a
to Section 65 of the Public Service Law.

JUSTIFICATION:  Electric energy costs are a significant component of
farm economics.  On-site generation can be effective not only to
reduce energy cost but also to protect farmers from the devastating
costs of natural disasters. Fees, penalties, charges, and other
restrictions imposed by utilities for not buying their electricity
adversely affect the economies of on-site generation and discourage
the use of this technology. This legislation is needed to protect and
encourage cost-effective agriculture and to preserve farm jobs in New
York State.

PRIOR LEGISLATIVE HISTORY:  2011-2012: S.652A 2009-2010: S.1641
2007-2008: S.2205 2005-2006: A.2720 Passed Assembly and S.4824 Died in
Energy Committee 2003-2004: A.9830 Passed Assembly 2001:      A.7214
Passed Assembly 1999-2000: S.5994

FISCAL IMPLICATIONS:  Minimal impact on Gross Receipts Tax
collections.

EFFECTIVE DATE:  This act shall take effect immediately and shall be
deemed to be repealed September 1, 2018, except that the provisions of
this act shall continue to apply to a customer who is a qualifying
farmer as long as such on-site electric generation system remains in
use.

S2153-2013 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    2153

                         2013-2014 Regular Sessions

                              I N  SENATE

                              January 14, 2013
                                 ___________

  Introduced  by  Sen. VALESKY -- 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 electric service
    for farmers; and providing for the  repeal  of  such  provisions  upon
    expiration thereof

    THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section 1. Legislative intent. The legislature finds and declares that
  the installation of on-site electric generation  systems  would  address
  the  high  energy  costs of farmers and would result in the creation and
  retention of jobs in New  York  state.  Barriers  to  such  installation
  should  be removed to encourage private investment in these technologies
  and to stimulate economic growth.
    S 2. Section 65 of the public service law is amended by adding  a  new
  subdivision 6-a to read as follows:

    6-A.  CERTAIN CHARGES PROHIBITED. (A) NO ELECTRIC CORPORATION OR MUNI-
  CIPALITY OWNING ELECTRIC PLANT USEFUL FOR THE DISTRIBUTION OF  ELECTRIC-
  ITY  SHALL  IMPOSE  ON ANY CUSTOMER THAT IS A QUALIFYING FARMER ANY FEE,
  PENALTY OR CHARGE OF ANY KIND OTHER THAN ITS CHARGES BASED UPON THE COST
  OF SERVICES ACTUALLY PROVIDED TO SUCH CUSTOMER, FOR ELECTRICITY,  TRANS-
  MISSION, DISTRIBUTION, METERING, BILLING AND CUSTOMER SERVICES. NO ELEC-
  TRIC  CORPORATION OR MUNICIPALITY SHALL IMPLEMENT POLICIES OR PROCEDURES
  THAT WOULD PREVENT QUALIFYING  FARMERS  FROM  INSTALLING  AND  OPERATING
  ON-SITE GENERATION EQUIPMENT AND RELATED TECHNOLOGY.
    (B) FOR THE PURPOSE OF THIS SUBDIVISION:

    (I)  "FARMER"  MEANS  A  PERSON  WHOSE  FEDERAL GROSS INCOME FROM FARM
  PRODUCTION FOR THE PREVIOUS TAXABLE  YEAR  WAS  AT  LEAST  TEN  THOUSAND
  DOLLARS.
    (II) "QUALIFYING FARMER" MEANS A FARMER THAT INSTALLS AN ON-SITE ELEC-
  TRIC  GENERATION  SYSTEM  TO PROVIDE ELECTRIC SERVICE TO A FARM (WHETHER

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD04733-01-3

 S. 2153                             2

  THE FARMER CONTINUES TO MAINTAIN ACCESS TO TRANSMISSION AND DISTRIBUTION
  SERVICES OR VOLUNTARILY DISCONNECTS ACCESS TO TRANSMISSION AND  DISTRIB-
  UTION  SERVICES)  AND  FILES  A  NOTIFICATION  THEREOF WITH THE ELECTRIC
  CORPORATION OR MUNICIPALITY, WITH A COPY TO THE DEPARTMENT, PRIOR TO THE
  CUT-OFF DATE.
    (III)  "CUT-OFF  DATE"  FOR EACH SERVICE TERRITORY MEANS THE DATE WHEN
  THE ELECTRIC CORPORATION OR MUNICIPALITY SERVING SUCH SERVICE  TERRITORY
  SHALL  HAVE RECEIVED NOTIFICATIONS FROM QUALIFYING FARMERS SUCH THAT THE
  SUM OF THE RATED GENERATING CAPACITY SHOWN ON SUCH  NOTIFICATIONS  SHALL
  EQUAL  OR  EXCEED  ONE-TENTH OF ONE PERCENT OF ITS TOTAL ELECTRIC DEMAND
  FOR THE YEAR NINETEEN HUNDRED NINETY-EIGHT, AS DETERMINED BY THE DEPART-
  MENT, OR SEPTEMBER FIRST, TWO THOUSAND EIGHTEEN, WHICHEVER OCCURS FIRST.
    S 3. Subdivision 28 of section 66 of the public service law, as  added
  by chapter 82 of the laws of 1998, is amended to read as follows:

    28.  No  revenues  foregone by an electric corporation, as a result of
  subjecting certain veterans' organizations [with] TO  rates  or  charges
  applicable to domestic consumers pursuant to section seventy-six of this
  article  OR  AS A RESULT OF PROHIBITING CERTAIN CHARGES RELATED TO ELEC-
  TRIC SERVICE PROVIDED  TO  FARMERS  PURSUANT  TO  SUBDIVISION  SIX-A  OF
  SECTION  SIXTY-FIVE OF THIS ARTICLE, shall be recovered from the custom-
  ers of such corporation.
    S 4. This act shall take effect immediately and shall be deemed to  be
  repealed September 1, 2018, except that the provisions of this act shall
  continue  to  apply  to a customer who is a qualifying farmer as long as
  such on-site electric generation system remains in use.