NY State Senate Bill 2009-S8254

Senate Bill S8254

2009-2010 Legislative Session

Relates to providing oversight and monitoring the operations of an independent system operator

download bill text pdf

Archive: Last Bill Status - In Senate Committee Rules 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 18, 2010	referred to rules

2009-S8254 (ACTIVE) - Details

See Assembly Version of this Bill:: A11500
Current Committee:: Senate Rules
Law Section:: Public Service Law
Laws Affected:: Amd §66, Pub Serv L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S665, S3307, A6035, A5307
2013-2014: S1185, S1179, A1095
2015-2016: S3541, A2113
2017-2018: A7512

2009-S8254 (ACTIVE) - Summary

Relates to providing oversight and monitoring the operations of an independent system operator; authorizes the public service commission to provide oversight and requires annual reports on the independent system operator.

2009-S8254 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S8254

TITLE OF BILL:
An act
to amend the public service law, in relation to providing oversight and
monitoring the operations of an independent system operator

PURPOSE OR GENERAL IDEA OF BILL:
This legislation intended to provide
consumer representation at an independent system operator approved by
the United States federal energy regulatory commission to operate in
the state and to administer and monitor wholesale electricity
markets. The bill addresses issues related to the makeup of the Board
of Directors, consumer participation in the ISO functioning process,
market transparency and monitoring by the Public Service Commission.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1(a) provides definitions for "independent systems operator"
and "end use sector member".

Section 1(b) authorizes and directs the Public Service Commission to
provide oversight and monitor the market operations of an independent
system operator.

Section 1(c) requires bid disclosure and bidder identification no
later than three months after transactions in each of the markets

facilitated by an independent systems operator.

Section 1(d) provides for appointments to an independent system
operator's board of directors. The Governor and the respective
leaders of the majority parties in the State Senate and Assembly will
each have the authority to appoint one consumer representative to the
board.

Section 1(e) requires an independent system operator to retain the
services of a consumer liaison. The consumer liaison will be
responsible for communicating with consumer representatives on the
Board and market participants on a regular basis for the purposes of
providing information on developments in working
groups/sub-committees and proposals that may have ramifications on
consumers. The liaison will also be responsible for communicating
consumer concerns in internal independent system operator meetings.

Section 1(f) will require the Public Service Commission to monitor and
assess independent system operator finances, market performance,
market reliability, competition and the extent to which the markets
are advancing the state's goals for fuel diversity and efficiency.
The Commission will be required to report to the Legislature and the
Executive at least annually.

JUSTIFICATION:

The health, welfare, and prosperity of all New York residents require
the provision of adequate, efficient, reliable, environmentally
sound, and lowest-cost electric service at affordable prices.
Many of the decisions that govern the sale, purchase and transmission
of electricity in New York State are made by a federally approved
independent system operator with limited input from New York consumers.

The intent of this legislation is to recognize and remedy the fact
that individual action by residential consumers, small businesses and
farmers for the purposes of participating in independent system
operator processes and communicating their views is rendered
impracticable by reason of the disproportionate expense of taking
such action.

Independent system operator proceedings are offered in a way that
minimizes public participation. It is incredibly difficult for
typical New Yorkers to remain on top of the day to-today activities of
an independent system operator. In many instances, the only people
who can attend and participate in the decision making processes of an
independent system operator are most likely those whose job depends
on it, representatives of generators, transmission owners, utilities
and other special interests.

Requiring consumer representation on the board of directors, a
consumer liaison and increased transparency will spur a more open and
accountable independent system operator processes that may yield
creative socially responsible solutions to the difficult issues
associated with electricity markets in New York State.

PRIOR LEGISLATIVE HISTORY:
None.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.

EFFECTIVE DATE:
This act shall take effect immediately.

2009-S8254 (ACTIVE) - Bill Text download pdf

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

                                  8254

                            I N  S E N A T E

                              June 18, 2010
                               ___________

Introduced  by  Sen.  C. JOHNSON  -- 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  over-
  sight and monitoring the operations of an independent system operator

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

  Section 1. Section 66 of the public service law is amended by adding a
new subdivision 29 to read as follows:
  29. (A) FOR THE PURPOSES OF THIS SUBDIVISION:
  (I) "INDEPENDENT SYSTEM OPERATOR" SHALL MEAN ANY ENTITY  OPERATING  IN
THE STATE THAT IS APPROVED BY THE UNITED STATES FEDERAL ENERGY REGULATO-
RY  COMMISSION  TO OPERATE IN THE STATE TO ADMINISTER AND MONITOR WHOLE-
SALE ELECTRICITY MARKETS; AND
  (II) "END USE SECTOR MEMBER" SHALL INCLUDE ANY ENTITY  THAT  PURCHASES
ELECTRICITY FOR ITS OWN CONSUMPTION AND NOT FOR RESALE.
  (B)  THE  COMMISSIONER IS AUTHORIZED AND DIRECTED TO PROVIDE OVERSIGHT
AND MONITOR THE MARKET OPERATIONS OF  AN  INDEPENDENT  SYSTEM  OPERATOR,
INCLUDING  BUT NOT LIMITED TO THE EXTENT TO WHICH IT:
  (I)  SERVES THE NEEDS OF ALL CUSTOMER CLASSES AND OPERATES IN A MANNER
THAT IS IN THE BEST INTEREST OF THE PUBLIC;
  (II) ENSURES RELIABILITY, QUALITY AND MAINTENANCE OF THE  TRANSMISSION
SYSTEM;
  (III)  MEETS THE REQUIREMENTS OF THE NEW YORK STATE OPEN MEETING LAWS;
AND
  (IV) CONTRIBUTES TO THE ACHIEVEMENT  OF  ENERGY  EFFICIENCY  AND  FUEL
DIVERSITY GOALS OF THE STATE.
  (C)  THE  COMMISSION  SHALL ENSURE THAT AN INDEPENDENT SYSTEM OPERATOR
OPERATE IN A MANNER TO PREVENT MARKET MANIPULATION AND OPPORTUNITIES FOR
COLLUSION BY REQUIRING AN INDEPENDENT SYSTEM OPERATOR TO DISCLOSE  PRICE
DATA  RELATED  TO  ITS  WHOLESALE  MARKET  OPERATIONS INCLUDING, BUT NOT
LIMITED TO, INFORMATION ON REAL-TIME, DAY-AHEAD AND SPOT MARKET BIDS AND
BIDDERS IN AN INDEPENDENT SYSTEM OPERATOR'S WHOLESALE ELECTRICITY MARKET
AUCTIONS, TRANSMISSION CONGESTION CONTRACT AUCTIONS AND INSTALLED CAPAC-
ITY MARKET AUCTIONS TO BE MADE PUBLIC WITH NO MORE THAN  A  THREE  MONTH

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

                                                           LBD17751-03-0

S. 8254                             2

DELAY.  SUCH INFORMATION SHALL BE MADE IN A FORMAT READILY AVAILABLE AND
ACCESSIBLE TO THE PUBLIC INCLUDING, BUT NOT LIMITED  TO  PROVIDING  SUCH
DATA  IN  AGGREGATE  HOURLY,  DAILY, MONTHLY, ANNUAL AND HISTORICAL DATA
SETS  FOR  COMPARISON  PURPOSES  AS WELL AS DATA RELATED TO SEASONAL AND
PEAK LOAD VARIATIONS AND AVERAGES.
  (D) THE COMMISSION SHALL ENSURE ACCOUNTABILITY BY  REQUIRING  THAT  AN
INDEPENDENT SYSTEM OPERATOR'S BOARD OF DIRECTORS INCLUDES AT LEAST THREE
NON-GOVERNMENTAL  APPOINTMENTS  THAT DIRECTLY REPRESENT THE INTERESTS OF
RESIDENTIAL SMALL BUSINESS AND FARM ELECTRICITY USERS.    THE  GOVERNOR,
THE  SPEAKER  OF  THE ASSEMBLY AND THE TEMPORARY PRESIDENT OF THE SENATE
SHALL EACH APPOINT ONE REPRESENTATIVE TO THE BOARD.
  (E) THE COMMISSION SHALL REQUIRE AN  INDEPENDENT  SYSTEM  OPERATOR  TO
CREATE  THE  POSITION OF CONSUMER LIAISON WHOSE PRIMARY ROLE SHALL BE TO
INTERACT WITH MEMBERS OF THE END-USE SECTOR FOR THE PURPOSES OF:
  (I) KEEPING END-USE SECTOR  MEMBERS  INFORMED  ABOUT  DEVELOPMENTS  IN
WORKING GROUPS/SUB-COMMITTEES THAT MAY AFFECT THEIR INTERESTS;
  (II) EXPLAINING THE ISSUES AND PROPOSALS UNDER DISCUSSION AT THE WORK-
ING  GROUP/SUB-COMMITTEE  MEETINGS AND PROPOSED FOR CONSIDERATION AT THE
OPERATING COMMITTEE, BUSINESS ISSUES COMMITTEE AND MANAGEMENT  COMMITTEE
AS WELL AS THE RAMIFICATIONS OF THOSE PROPOSALS ON CONSUMERS;
  (III)  LISTENING  AND  RESPONDING  TO  THE  QUESTIONS  AND CONCERNS OF
MEMBERS OF THE END-USE SECTOR; AND
  (IV) SERVING AS THE LIAISON BETWEEN THE END-USE SECTOR AND THE  DIREC-
TORS DESIGNATED OR ASSIGNED TO PAY PARTICULAR ATTENTION TO THE INTERESTS
OF THE RESIDENTIAL, SMALL BUSINESS AND FARM ELECTRICITY USERS.
  (F) THE COMMISSIONER SHALL ANNUALLY ISSUE A REPORT RELATING THE MARKET
OPERATION  OF  AN  INDEPENDENT  SYSTEM  OPERATOR.    SUCH  REPORTS SHALL
INCLUDE, BUT NOT BE LIMITED TO:
  (I) ANALYSES BY AN INDEPENDENT SYSTEM OPERATOR  AND  OTHER  SUCH  DATA
COLLECTED  AND  ANALYZED  BY  THE  COMMISSION  INFORMATION ON REAL-TIME,
HOUR-AHEAD AND DAY-AHEAD MARKET  BIDS  AND  BIDDERS  IN  AN  INDEPENDENT
SYSTEM  OPERATOR'S  WHOLESALE  ELECTRICITY MARKET AUCTIONS, TRANSMISSION
CONGESTION CONTRACT AUCTIONS AND INSTALLED MARKET AUCTIONS;
  (II) A DETERMINATION OF THE EXTENT TO WHICH  THE  ENERGY  MARKETS  ARE
MAINTAINING NECESSARY LEVELS OF RELIABILITY;
  (III) A DETERMINATION OF WHETHER OR NOT ALL CUSTOMER CLASSES ARE BEING
ADEQUATELY SERVED BY COMPETITIVE ENERGY MARKETS;
  (IV) A DETERMINATION OF THE COMPETITIVENESS OF ENERGY MARKETS; INCLUD-
ING  A  DETERMINATION  WHETHER OR NOT THE ELECTRIC INDUSTRY IS PROVIDING
CONSUMERS WITH THE LOWEST PRICES POSSIBLE WITHIN A RESTRUCTURED, COMPET-
ITIVE RETAIL MARKETPLACE;
  (V) A DETERMINATION OF THE EXTENT TO  WHICH  THE  ENERGY  MARKETS  ARE
ACHIEVING THE ENERGY EFFICIENCY AND FUEL DIVERSITY GOALS OF THE STATE;
  (VI)  THE NAME AND TERMS OF THE BOARDS OF DIRECTORS AND AN INDEPENDENT
SYSTEM OPERATOR MANAGEMENT, OPERATING AND BUSINESS COMMITTEE MEMBERS;
  (VII) AN INDEPENDENT SYSTEM OPERATOR'S FINANCIAL INFORMATION; AND
  (VIII) RECOMMENDATIONS FOR IMPROVING ANY DEFICIENCIES SO IDENTIFIED IN
ELECTRICITY ENERGY  MARKETS,  INCLUDING  NON-COMPETITIVE  PRICING  SITU-
ATIONS.  THE  COMMISSION  SHALL  SUBMIT SUCH REPORT TO THE GOVERNOR, THE
PRESIDENT PRO TEM OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE MINOR-
ITY LEADERS OF THE SENATE AND THE ASSEMBLY, THE  CHAIRS  OF  THE  ENERGY
COMMITTEES  OF  THE  SENATE AND THE ASSEMBLY, NO LATER THAN APRIL FIRST,
TWO THOUSAND ELEVEN AND ANNUALLY THEREAFTER.
  S 2. This act shall take effect immediately.

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