NY State Senate Bill 2015-S6024A

Senate Bill S6024A

2015-2016 Legislative Session

Relates to providing a program to extend natural gas delivery to unserved or underserved areas

download bill text pdf

Archive: Last Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 22, 2016	referred to energy delivered to assembly passed senate
Mar 07, 2016	advanced to third reading
Mar 02, 2016	2nd report cal.
Mar 01, 2016	1st report cal.250
Feb 22, 2016	print number 6024a
Feb 22, 2016	amend and recommit to energy and telecommunications
Jan 06, 2016	referred to energy and telecommunications
Aug 03, 2015	referred to rules

Votes

- Mar 22, 2016 - Floor Vote
  S6024A
  
  56
  
  Aye
  
  4
  
  Nay
  
  0
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Mar 22, 2016
      
      aye (56)
      
      Addabbo Jr.
      
      Akshar
      
      Amedore
      
      Avella
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Carlucci
      
      Croci
      
      DeFrancisco
      
      Diaz
      
      Espaillat
      
      Farley
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Hassell-Thompson
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Latimer
      
      Little
      
      Marcellino
      
      Marchione
      
      Martins
      
      Montgomery
      
      Murphy
      
      Nozzolio
      
      O'Mara
      
      Ortt
      
      Panepinto
      
      Parker
      
      Peralta
      
      Persaud
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Savino
      
      Serino
      
      Serrano
      
      Seward
      
      Squadron
      
      Stavisky
      
      Stewart-Cousins
      
      Valesky
      
      Venditto
      
      Young
      
      nay (4)
      
      Dilan
      
      Hoylman-Sigal
      
      Perkins
      
      Sanders Jr.
      
      excused (2)
      
      Comrie
      
      Larkin
  Mar 1, 2016 - Energy And Telecommunications Committee Vote
  S6024A
  
  9
  
  Aye
  
  0
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Energy And Telecommunications Committee Vote: Mar 1, 2016
      
      aye (9)
      
      Carlucci
      
      Croci
      
      Griffo
      
      Hamilton
      
      Kennedy
      
      Little
      
      O'Mara
      
      Parker
      
      Ritchie
      
      aye wr (2)
      
      Dilan
      
      Martins

Bill Amendments

Original

A (Active)

2015-S6024 - Details

Current Committee:: Assembly Energy
Law Section:: Public Service Law
Laws Affected:: Add §65-c, Pub Serv L

2015-S6024 - Summary

Relates to providing a program to extend natural gas delivery to unserved or underserved areas; establishes petition, program and commission requirements.

2015-S6024 - Sponsor Memo

                                BILL NUMBER:S6024

TITLE OF BILL:  An act to amend the public service law, in relation to
providing a program to extend natural gas delivery to unserved or
underserved areas

PURPOSE:  To establish a program in each natural gas service
territory, including any necessary tariffs, to extend natural gas
distribution service for end-users to un-served or underserved areas

SUMMARY OF PROVISIONS:  This bill would add a new Section 65-c to the
Public Service Law to direct each natural gas distribution company to
file a petition with the Public Service Commission proposing a pilot
or permanent program, including any necessary tariffs, to extend
natural gas distribution to end-users in un-served or underserved
areas within each certificated service territory. The PSC would review
each petition and either approve, disapprove or modify the filings
pursuant to its procedural rules.

Program requirements would include a process for managing and
prioritizing customer requests from end-users for extensions of the
natural gas distribution system; a cost-benefit analysis to determine
if a customer contribution is required; a method for determining the
amount of a required customer contribution in aid of construction and
a program to enhance the affordability of required contributions in
aid of construction to customers.

This affordability program would allow on-bill financing for a term of
no less than five years and a customer shall be able to pay a required
customer contribution in full at any time without incurring penalties
or fees. In addition, the form of financing may include a surcharge,
third-party financing or any other method of recovery approved by the
PSC.

The bill would also authorize the PSC to establish periodic reporting
requirements to review the performance and effectiveness of an
end-user natural gas extension program. The PSC would not be able to
require a natural gas distribution company to extend it distribution
system to any area or customer that does not provide the opportunity
to earn a reasonable rate of return.

JUSTIFICATION:  There are 550,000 households in New York located
within 100 feet of an existing gas distribution line that do not heat
with natural gas. An additional 580,000 households exist beyond 100
feet from an existing gas distribution line but nonetheless within an
existing natural gas utility franchise. In other words, 33% out of
roughly 3 million New York households that currently heat with fuels
other than natural gas live within an existing natural gas franchise
area.

Under current price conditions, the typical homeowner who converts
from No. 2 oil to natural gas could save about $1,3000 per year,
although it could be more if they convert to a high efficiency furnace
or boiler. Assuming approximate installation costs for such a system
between $3,000 and $5,000, a homeowner's payback period could be less
than four years.


Expanding the availability of natural gas has the potential to help
low-income programs and customers and also is likely to have important
implications for economic development and the job market within New
York. According to the PSC, the ready availability of a lower cost
energy source will substantially enhance the viability of existing
businesses as well as enhance the State's ability to attract new
businesses and industries. Moreover, expansion of the natural gas
system itself will likely create and/or retain in-state construction
jobs.

LEGISLATIVE HISTORY: New Bill.

FISCAL IMPLICATIONS:  No cost to the State but significant economic
benefits for natural gas residential customers and businesses.

EFFECTIVE DATE:  This act shall take effect on the sixtieth day after
it shall have become a law.

2015-S6024 - Bill Text download pdf

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

                                  6024

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             August 3, 2015
                               ___________

Introduced  by  Sen.  GRIFFO -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the public service  law,  in  relation  to  providing  a
  program  to  extend  natural  gas  delivery to unserved or underserved
  areas

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

  Section  1.  The public service law is amended by adding a new section
65-c to read as follows:
  S 65-C. EXTENDING NATURAL GAS DELIVERIES TO UNSERVED  AND  UNDERSERVED
AREAS.  1.  PETITION. NO LATER THAN JANUARY FIRST, TWO THOUSAND SIXTEEN,
OR SIXTY DAYS AFTER THE EFFECTIVE DATE OF  THIS  SECTION,  WHICHEVER  IS
LATER,  EACH NATURAL GAS DISTRIBUTION COMPANY SHALL FILE A PETITION WITH
THE COMMISSIONER PROPOSING A PILOT OR PERMANENT PROGRAM,  INCLUDING  ANY
NECESSARY  TARIFFS,  TO  EXTEND  NATURAL  GAS  DISTRIBUTION  SERVICE FOR
END-USERS TO UNSERVED  OR  UNDERSERVED  AREAS  WITHIN  ITS  CERTIFICATED
SERVICE TERRITORY.
  2. PROGRAM REQUIREMENTS. A PROPOSED PROGRAM SHALL INCLUDE:
  (A)  A  PROCESS  FOR  MANAGING AND PRIORITIZING CUSTOMER REQUESTS FROM
END-USERS FOR EXTENSIONS OF THE NATURAL GAS DISTRIBUTION SYSTEM;
  (B) A COST-BENEFIT ANALYSIS TO DETERMINE IF A CUSTOMER CONTRIBUTION IS
REQUIRED;
  (C) A METHOD  FOR  DETERMINING  THE  AMOUNT  OF  A  REQUIRED  CUSTOMER
CONTRIBUTION IN AID OF CONSTRUCTION;
  (D)  A  PROGRAM TO ENHANCE THE AFFORDABILITY OF REQUIRED CONTRIBUTIONS
IN AID OF CONSTRUCTION TO CUSTOMERS, INCLUDING THE FOLLOWING PROVISIONS:
  (I) THE PROGRAM SHALL PROVIDE FOR ON-BILL FINANCING FOR A TERM  OF  NO
LESS THAN FIVE YEARS;
  (II)  A CUSTOMER SHALL BE ABLE TO PAY A REQUIRED CUSTOMER CONTRIBUTION
IN FULL AT ANY TIME, WITHOUT INCURRING PENALTIES OR FEES; AND

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11599-02-5

S. 6024                             2

  (III) THE FORM OF  FINANCING  MAY  INCLUDE  A  SURCHARGE,  THIRD-PARTY
FINANCING OR ANY OTHER METHOD OF RECOVERY APPROVED BY THE COMMISSION;
  (E)  A  PROVISION OUTLINING WHETHER AND HOW REFUNDS OR CREDITS WILL BE
PROVIDED  TO  CUSTOMERS  AS  OTHER  CUSTOMERS  RECEIVE  SERVICE  FROM  A
COMPLETED DISTRIBUTION SYSTEM EXTENSION PROJECT;
  (F)  A PROVISION ADDRESSING THE TREATMENT AND ELIGIBILITY OF CUSTOMERS
PARTICIPATING IN A CUSTOMER ASSISTANCE PROGRAM WHO REQUEST  AND  RECEIVE
SERVICE FROM A DISTRIBUTION SYSTEM EXTENSION PROJECT;
  (G)  A PROVISION ADDRESSING SITUATIONS WHERE A CUSTOMER FAILS TO PAY A
REQUIRED SURCHARGE OR OTHER ON-BILL FINANCING MECHANISM;
  (H) A CUSTOMER'S NATURAL GAS DISTRIBUTION SERVICE SHALL NOT BE  TERMI-
NATED  SOLELY  FOR  NONPAYMENT OF A SURCHARGE OR OTHER ON-BILL FINANCING
MECHANISM; AND
  (I) ANY OTHER  PROVISIONS  THAT  WILL  PROMOTE  ECONOMIC  DISTRIBUTION
SYSTEM  EXTENSION  TO  END-USERS  IN UNSERVED AND UNDERSERVED AREAS IN A
MANNER THAT IS AFFORDABLE TO CUSTOMERS.
  3. COMMISSION REVIEW. THE COMMISSION:
  (A) SHALL REVIEW A PETITION FILED PURSUANT TO SUBDIVISION ONE OF  THIS
SECTION,  AFTER  PROVIDING NOTICE AND AN OPPORTUNITY TO BE HEARD AND MAY
APPROVE, DISAPPROVE OR MODIFY THE  FILING  PURSUANT  TO  ITS  PROCEDURAL
RULES;
  (B)  MAY  ESTABLISH  PERIODIC  REPORTING  REQUIREMENTS  TO  REVIEW THE
PERFORMANCE AND EFFECTIVENESS OF A PROGRAM; AND
  (C) SHALL NOT REQUIRE A NATURAL GAS DISTRIBUTION COMPANY TO EXTEND ITS
DISTRIBUTION SYSTEM TO ANY AREA OR CUSTOMER THAT DOES  NOT  PROVIDE  THE
OPPORTUNITY TO EARN A REASONABLE RETURN ON INVESTMENT.
  S  2.  This  act  shall take effect on the sixtieth day after it shall
have become a law.

co-Sponsors

2015-S6024A (ACTIVE) - Details

Current Committee:: Assembly Energy
Law Section:: Public Service Law
Laws Affected:: Add §65-c, Pub Serv L

2015-S6024A (ACTIVE) - Summary

Relates to providing a program to extend natural gas delivery to unserved or underserved areas; establishes petition, program and commission requirements.

2015-S6024A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S6024A

 TITLE OF BILL :  An act to amend the public service law, in relation
to providing a program to extend natural gas delivery to unserved or
underserved areas

 PURPOSE :

To establish a program in each natural gas service territory,
including any necessary tariffs, to extend natural gas distribution
service for end-users to un-served or underserved areas

 SUMMARY OF PROVISIONS :

This bill would add a new Section 65-c to the Public Service Law to
direct each natural gas distribution company to file a petition with
the Public Service Commission proposing a pilot or permanent program,
including any necessary tariffs, to extend natural gas distribution to
end-users in unserved or underserved areas within each certificated
service territory. The PSC would review each petition and either
approve, disapprove or modify the filings pursuant to its procedural
rules.

Program requirements would include a process for managing and
prioritizing customer requests from end-users for extensions of the
natural gas distribution system; a cost-benefit analysis to determine

if a customer contribution is required; a method for determining the
amount of a required customer contribution in aid of construction and
a program to enhance the affordability of required contributions in
aid of construction to customers.

This affordability program would allow on-bill financing for a term of
no less than five years and a customer shall be able to pay a required
customer contribution in full at any time without incurring penalties
or fees. In addition, the form of financing may include a surcharge,
third-party financing or any other method of recovery approved by the
PSC.

The bill would also authorize the PSC to establish periodic reporting
requirements to review the performance and effectiveness of an
end-user natural gas extension program. The PSC would not be able to
require a natural gas distribution company to extend it distribution
system to any area or customer that does not provide the opportunity
to earn a reasonable rate of return.

 JUSTIFICATION :

There are 550,000 households in New York located within 100 feet of an
existing gas distribution line that do not heat with natural gas. An
additional 580,000 households exist beyond 100 feet from an existing
gas distribution line but nonetheless within an existing natural gas
utility franchise. In other words, 33% out of roughly 3 million New
York households that currently heat with fuels other than natural gas
live within an existing natural gas franchise area.

Under current price conditions, the typical homeowner who converts
from No. 2 oil to natural gas could save about $1,3000 per year,
although it could be more if they convert to a high efficiency furnace
or boiler. Assuming approximate installation costs for such a system
between $3,000 and $5,000, a homeowner's payback period could be less
than four years.

Expanding the availability of natural gas has the potential to help
low-income programs and customers and also is likely to have important
implications for economic development and the job market within New
York. According to the PSC, the ready availability of a lower cost
energy source will substantially enhance the viability of existing
businesses as well as enhance the State's ability to attract new
businesses and industries. Moreover, expansion of the natural gas
system itself will likely create and/or retain in-state construction
jobs.

 LEGISLATIVE HISTORY :

New Bill.

 FISCAL IMPLICATIONS :

No cost to the State but significant economic benefits for natural gas
residential customers and businesses.

 EFFECTIVE DATE :
This act shall take effect on the sixtieth day after it shall have
become a law.

2015-S6024A (ACTIVE) - Bill Text download pdf

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

                                 6024--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             August 3, 2015
                               ___________

Introduced  by  Sen.  GRIFFO -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules  --  recommitted  to
  the  Committee  on  Energy  and  Telecommunications in accordance with
  Senate Rule 6, sec. 8 -- committee discharged, bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to  amend  the  public  service law, in relation to providing a
  program to extend natural gas  delivery  to  unserved  or  underserved
  areas

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

  Section 1. The public service law is amended by adding a  new  section
65-c to read as follows:
  S  65-C.  EXTENDING NATURAL GAS DELIVERIES TO UNSERVED AND UNDERSERVED
AREAS. 1. PETITION. NO LATER THAN JANUARY FIRST, TWO THOUSAND SEVENTEEN,
OR SIXTY DAYS AFTER THE EFFECTIVE DATE OF  THIS  SECTION,  WHICHEVER  IS
LATER,  EACH NATURAL GAS DISTRIBUTION COMPANY SHALL FILE A PETITION WITH
THE COMMISSIONER PROPOSING A PILOT OR PERMANENT PROGRAM,  INCLUDING  ANY
NECESSARY  TARIFFS,  TO  EXTEND  NATURAL  GAS  DISTRIBUTION  SERVICE FOR
END-USERS TO UNSERVED  OR  UNDERSERVED  AREAS  WITHIN  ITS  CERTIFICATED
SERVICE TERRITORY.
  2. PROGRAM REQUIREMENTS. A PROPOSED PROGRAM SHALL INCLUDE:
  (A)  A  PROCESS  FOR  MANAGING AND PRIORITIZING CUSTOMER REQUESTS FROM
END-USERS FOR EXTENSIONS OF THE NATURAL GAS DISTRIBUTION SYSTEM;
  (B) A COST-BENEFIT ANALYSIS TO DETERMINE IF A CUSTOMER CONTRIBUTION IS
REQUIRED;
  (C) A METHOD  FOR  DETERMINING  THE  AMOUNT  OF  A  REQUIRED  CUSTOMER
CONTRIBUTION IN AID OF CONSTRUCTION;
  (D)  A  PROGRAM TO ENHANCE THE AFFORDABILITY OF REQUIRED CONTRIBUTIONS
IN AID OF CONSTRUCTION TO CUSTOMERS, INCLUDING THE FOLLOWING PROVISIONS:
  (I) THE PROGRAM SHALL PROVIDE FOR ON-BILL FINANCING FOR A TERM  OF  NO
LESS THAN FIVE YEARS;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11599-03-6

S. 6024--A                          2

  (II)  A CUSTOMER SHALL BE ABLE TO PAY A REQUIRED CUSTOMER CONTRIBUTION
IN FULL AT ANY TIME, WITHOUT INCURRING PENALTIES OR FEES; AND
  (III)  THE  FORM  OF  FINANCING  MAY  INCLUDE A SURCHARGE, THIRD-PARTY
FINANCING OR ANY OTHER METHOD OF RECOVERY APPROVED BY THE COMMISSION;
  (E) A PROVISION OUTLINING WHETHER AND HOW REFUNDS OR CREDITS  WILL  BE
PROVIDED  TO  CUSTOMERS  AS  OTHER  CUSTOMERS  RECEIVE  SERVICE  FROM  A
COMPLETED DISTRIBUTION SYSTEM EXTENSION PROJECT;
  (F) A PROVISION ADDRESSING THE TREATMENT AND ELIGIBILITY OF  CUSTOMERS
PARTICIPATING  IN  A CUSTOMER ASSISTANCE PROGRAM WHO REQUEST AND RECEIVE
SERVICE FROM A DISTRIBUTION SYSTEM EXTENSION PROJECT;
  (G) A PROVISION ADDRESSING SITUATIONS WHERE A CUSTOMER FAILS TO PAY  A
REQUIRED SURCHARGE OR OTHER ON-BILL FINANCING MECHANISM;
  (H)  A CUSTOMER'S NATURAL GAS DISTRIBUTION SERVICE SHALL NOT BE TERMI-
NATED SOLELY FOR NONPAYMENT OF A SURCHARGE OR  OTHER  ON-BILL  FINANCING
MECHANISM; AND
  (I)  ANY  OTHER  PROVISIONS  THAT  WILL  PROMOTE ECONOMIC DISTRIBUTION
SYSTEM EXTENSION TO END-USERS IN UNSERVED AND  UNDERSERVED  AREAS  IN  A
MANNER THAT IS AFFORDABLE TO CUSTOMERS.
  3. COMMISSION REVIEW. THE COMMISSION:
  (A)  SHALL REVIEW A PETITION FILED PURSUANT TO SUBDIVISION ONE OF THIS
SECTION, AFTER PROVIDING NOTICE AND AN OPPORTUNITY TO BE HEARD  AND  MAY
APPROVE,  DISAPPROVE  OR  MODIFY  THE  FILING PURSUANT TO ITS PROCEDURAL
RULES;
  (B) MAY  ESTABLISH  PERIODIC  REPORTING  REQUIREMENTS  TO  REVIEW  THE
PERFORMANCE AND EFFECTIVENESS OF A PROGRAM; AND
  (C) SHALL NOT REQUIRE A NATURAL GAS DISTRIBUTION COMPANY TO EXTEND ITS
DISTRIBUTION  SYSTEM  TO  ANY AREA OR CUSTOMER THAT DOES NOT PROVIDE THE
OPPORTUNITY TO EARN A REASONABLE RETURN ON INVESTMENT.
  S 2. This act shall take effect on the sixtieth  day  after  it  shall
have become a law.

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