Clarifies provisions of the Long Island Power Authority Act regarding whether such act preempts certain powers granted to any municipality located in whole or in part in the service area of the Long Island Power Authority by providing that it does not preempt such municipalities from exercising their authority to establish municipal power agencies and to acquire facilities through eminent domain.
TITLE OF BILL: An act to amend the public authorities law, in relation to powers granted to municipalities concerning public utility services
PURPOSE: To clarify the Long Island Power Authority Act by providing that it does not preempt municipalities from exercising their authority to establish municipal power agencies under the General Municipal Law.
SUMMARY OF PROVISIONS: Adds two new subdivisions (12) and (13) to § 1020(h) of the public authorities law.
JUSTIFICATION: Local governments across Long Island are exploring alternatives to LILCO with regard to the preparation of electric power. LILCO has the highest electric rates in the United States. One of the options to LILCO would be for a local government to set up their own power agency under the General Municipal Law, acquiring LILCO's distribution system and acquire power from cheaper sources than LILCO.
However, existing law is unclear as to whether local governments on Long Island still have this option or whether they have been preempted by the LIPA Act.
This law would make it clear that no preemption is in effect. It would also benefit any local government attempting municipalization by making the LIP A findings concerning valuation applicable to local government.
LEGISLATIVE HISTORY: 2009-10, S.3646/A.7200; 2007-08, S.666/A.1282; 2005-06, S.1367/A.2536; 2003-04, S.752/A.1402; 2001-02 S.2105/A.3605; 1999-00 S.1628/A.2826; 1997-98, S.1376/A.2126; 1995-96, S.5047/A.7267
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ S. 3447 A. 5494 2011-2012 Regular Sessions S E N A T E - A S S E M B L Y February 22, 2011 ___________IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print- ed, and when printed to be committed to the Committee on Energy and Telecommunications IN ASSEMBLY -- Introduced by M. of A. THIELE -- read once and referred to the Committee on Corporations, Authorities and Commissions AN ACT to amend the public authorities law, in relation to powers grant- ed to municipalities concerning public utility services THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 1020-h of the public authorities law, as added by chapter 517 of the laws of 1986, is amended by adding two new subdivi- sions 12 and 13 to read as follows: 12. NOTHING IN THIS TITLE SHALL BE CONSTRUED AS PREEMPTING, OR OTHER- WISE LIMITING, THE RIGHTS OF ANY MUNICIPALITY LOCATED IN WHOLE OR IN PART IN THE SERVICE AREA FROM EXERCISING ANY POWER OR AUTHORITY GRANTED TO IT BY ARTICLE FOURTEEN-A OF THE GENERAL MUNICIPAL LAW, INCLUDING THE RIGHT TO ACQUIRE FACILITIES THROUGH EMINENT DOMAIN AS SET FORTH IN SUBDIVISION SIX OF SECTION THREE HUNDRED SIXTY OF THE GENERAL MUNICIPAL LAW. 13. IN CONJUNCTION WITH THE EXERCISE OF THE POWER OF EMINENT DOMAIN SPECIFICALLY RESERVED TO MUNICIPALITIES LOCATED IN WHOLE OR IN PART IN THE SERVICE AREA, THE LEGISLATIVE FINDINGS WITH RESPECT TO THE APPROPRI- ATE VALUATION OF LILCO'S PROPERTY, AS SET FORTH IN PARAGRAPHS (F) THROUGH (M) OF SUBDIVISION ONE OF THIS SECTION, SHALL BE CONSIDERED BY THE COURT IN ESTABLISHING JUST COMPENSATION FOR ANY PROPERTY TAKEN BY ANY SUCH MUNICIPALITY. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03818-01-1