Increases the penalties imposed upon gas and electric utilities for failure to file or correct an annual report with the public service commission; such penalties shall not be more than one-tenth of 1% of the utilities' annual net revenue for each day of violation, but not to exceed $25,000 nor be less than $100.
TITLE OF BILL: An act to amend the public service law, in relation to penalties for the failure of gas and electric corporations to file or correct an annual report
PURPOSE: This bill will help ensure compliance with reporting requirements in the Public Service Law by scaling the penalties for failure to file or correct an annual report to the size of a regulated entity.
SUMMARY OF PROVISIONS: This legislation amends subdivision 6 of section 66 of the public service law, as amended by chapter 784 of the laws of 1923.
JUSTIFICATION: In 2006, the western part of Queens suffered a massive power outage that lasted 9 days. The Assembly Queens Power Outage Task Force studied the outage's causes and the inadequate responses by the company responsible for the transmission and distribution system, Consolidated Edison, and by the Public Service Commission, One underlying cause was found to be the reliance by New York's utility regulators on antiquated laws, regulations, and policies that let companies engaged in energy transmission and distribution operate without effective oversight.
The Task Force found that in many cases the sanctions imposed by the PSC are neither timely nor meaningful, The $100 penalty in 66 is a perfect example. The amounts that a major utility could be penalized for being one day, or even one year, late in meeting as deadline would be well beneath its notice. This bill would bring the penalties in line with the realities of today's energy markets.
LEGISLATIVE HISTORY: A.1595-A (2009-2010) A.8623-A (2007-2008)
FISCAL IMPLICATIONS: To be determined.
EFFECTIVE DATE: This act shall take effect on the one hundred twentieth day after it shall have become law; however, the Public Service Commission will be immediately authorized and directed to take any and all actions, including but not limited to the promulgation of rules, necessary to fully implement the provisions of this act on its effective date.
STATE OF NEW YORK ________________________________________________________________________ 4230 2011-2012 Regular Sessions IN SENATE March 24, 2011 ___________Introduced by Sen. GIANARIS -- 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 penalties for the failure of gas and electric corporations to file or correct an annual report THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 6 of section 66 of the public service law, as amended by chapter 784 of the laws of 1923, is amended to read as follows: 6. Require every person and corporation under its supervision and it shall be the duty of every such person and corporation to file with the commission an annual report, verified by the oath of the president, vice-president, treasurer, secretary, general manager, or receiver, if any, thereof, or by the person required to file the same. The verifica- tion shall be made by said official holding office at the time of the filing of said report, and if not made upon the knowledge of the person verifying the same shall set forth the sources of his information and the grounds of his belief as to any matters not stated to be verified upon his knowledge. The report shall show in detail (a) the amount of its authorized capital stock and the amount thereof issued and outstand- ing; (b) the amount of its authorized bonded indebtedness and the amount of its bonds and other forms of evidence of indebtedness issued and outstanding; (c) its receipts and expenditures during the preceding year; (d) the amount paid as dividends upon its stock and as interest upon its bonds; (e) the names of its officers and the aggregate amount paid as salaries to them and the amount paid as wages to its employees; (f) the location of its plant or plants and system, with a full description of its property and franchises, stating in detail how each franchise stated to be owned was acquired; and (g) such other factsEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05106-01-1 S. 4230 2
pertaining to the operation and maintenance of the plant and system, and the affairs of such person or corporation as may be required by the commission. Such reports shall be in the form, cover the period and be filed at the time prescribed by the commission. The commission may, from time to time, make changes and additions in such forms. When any such report is defective or believed to be erroneous, the commission shall notify the person, corporation or municipality making such report to amend the same within a time prescribed by the commission. Any such person or corporation or municipality which shall neglect to make any such report or which shall fail to correct any such report within the time prescribed by the commission shall be liable to a penalty of NOT MORE THAN ONE-TENTH OF ONE PERCENT OF THE ANNUAL NET REVENUES OF SUCH PERSON, CORPORATION OR MUNICIPALITY FOR THE PAST YEAR, BUT NOT MORE THAN TWENTY-FIVE THOUSAND DOLLARS NOR LESS THAN one hundred dollars and an additional penalty of
[one hundred dollars]NOT MORE THAN THE SAME AMOUNT for each day after the prescribed time for which it shall neglect to file or correct the same, to be sued for in the name of the people of the state of New York. The amount recovered in any such action shall be paid into the state treasury and be credited to the general fund. The commission may extend the time prescribed for cause shown. S 2. This act shall take effect on the one hundred twentieth day after it shall have become a law. Provided, that the public service commission is immediately authorized and directed to take any and all actions, including but not limited to the promulgation of any necessary rules, necessary to fully implement the provisions of this act on its effective date.