Prohibits extra charges on farmers for electric service and prohibits limitations on farmers installing and operating on-site electric generation equipment and related technology.
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 1996 or until September 1, 2016 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: 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EFFECTIVE DATE: This act shall take effect immediately and shall be deemed to be repealed September 1, 2014, except that the provisions of this act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.
STATE OF NEW YORK ________________________________________________________________________ 652 2011-2012 Regular Sessions IN SENATE (PREFILED) January 5, 2011 ___________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.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03506-01-1 S. 652 2
(II) "QUALIFYING FARMER" MEANS A FARMER THAT INSTALLS AN ON-SITE ELEC- TRIC GENERATION SYSTEM TO PROVIDE ELECTRIC SERVICE TO A FARM (WHETHER 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-SIX, AS DETERMINED BY THE DEPART- MENT, OR SEPTEMBER FIRST, TWO THOUSAND SIXTEEN, 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, 2016, 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.