NY State Senate Bill 2011-S1068

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications 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
Jan 04, 2012	referred to energy and telecommunications
Jan 05, 2011	referred to energy and telecommunications

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2011-S1068 (ACTIVE) - Details

Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Service Law
Laws Affected:: Amd §65, Pub Serv L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S2164
2013-2014: S1621

2011-S1068 (ACTIVE) - Summary

Relates to automatic rate adjustments for natural gas or electric service; permits such rate adjustment only when associated with and reflective of changes in the reasonable costs of fuel purchased for the production of electricity by such electric corporation or changes in the reasonable costs of gas or electricity purchased by such gas corporation or electric corporation for resale to residential customers; limits gas and electric corporation to no more than one rate adjustment in any six month period; makes related provisions.

2011-S1068 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S1068

TITLE OF BILL:
An act
to amend the public service law, in relation to the utilization of
automatic rate adjustments for natural gas or electric service
and providing for the repeal of such provisions upon expiration
thereof

PURPOSE OR GENERAL IDEA OF BILL:
This bill would require increased
oversight by the Public Service Commission (PSC) regarding the types
of costs that are recovered through automatic adjustments to gas and
electric rates.

SUMMARY OF SPECIFIC PROVISIONS:
This bill would:

* permit automatic rate adjustments only when costs are reflective of
the reasonable costs of fuel

* limit a gas or electric corporation to one automatic rate adjustment
in any six-month period and limits annualized increases associated
with automatic rate adjustments to the lesser of $300,000 or 2.5% of
the gas or electric corporation's revenues during a 12-month period

* require the PSC to determine if automatic adjustments and utility
efforts to control costs are prudent

* if the PSC finds that such provisions would create a substantial
impairment of financial impairment to a gas or electric corporation,
the commission shall modify the provisions to protect the financial
integrity of such corporation.

JUSTIFICATION:
Restructuring the electric industry,
as implemented
administratively by the PSC, was supposed to result in price
decreases, not price increases. Since deregulation, electric prices
have in fact increased and most industry experts predict higher
prices for the next several years. Many are concerned about the
potential for extreme price volatility, especially during peak summer
demand, because power prices vary with market conditions. Also,
demand for electricity is increasing, and the supply of generation
seems to be limited, both of which cause
upward pressure on power prices. During the summer of 2000, wholesale
electricity prices rose to over $1,000 per megawatt-hour. On a normal
weather day, this price would be about $30 per megawatt-hour.

Utilities can pass these higher costs on to ratepayers through
automatic adjustments, such as "market supply charges" or fuel
adjustment charges. This bill would require the PSC to examine the
effect of higher prices that are passed on to consumers through these
automatic adjustments on customer bills and to ensure that utilities
are acting appropriately to provide just and reasonable rates to
retail consumers.


PRIOR LEGISLATIVE HISTORY:
2009-20:  S.2164 - Referred to Energy & Telecommunications
2001-02:  A.8980 - Passed Assembly
1999-2000 A.11386 Ways & Means

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined.

EFFECTIVE DATE:
Immediate and shall expire and be deemed repealed
January 31, 2014.

2011-S1068 (ACTIVE) - Bill Text download pdf

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

                                  1068

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             January 5, 2011
                               ___________

Introduced  by  Sens.  PARKER,  DIAZ,  DUANE, HASSELL-THOMPSON, KRUEGER,
  PERKINS, SAMPSON, SERRANO -- 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  the  utilization
  of  automatic rate adjustments for natural gas or electric service 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.  Subdivision 4 of section 65 of the public service law, as
amended by chapter 789 of the laws  of  1930,  is  amended  to  read  as
follows:
  4.  Nothing  in  this  chapter shall be taken to prohibit a gas corpo-
ration or electric corporation from establishing a sliding scale  for  a
fixed period for the automatic adjustment [or] OF charges for gas, elec-
tricity  or  any  RELATED service rendered or to be rendered [and] BY OR
the dividends to be paid to stockholders  of  such  gas  corporation  or
electric corporation, provided that:
  (A) the sliding scale shall first have been filed with and approved by
the commission; [but]
  (B)  WITH  RESPECT TO THE AUTOMATIC ADJUSTMENT OF CHARGES FOR THE SALE
OF GAS OR ELECTRICITY TO RESIDENTIAL CONSUMERS, PURSUANT TO  THIS  CHAP-
TER:
  (I) ANY AUTOMATIC RATE ADJUSTMENT SHALL BE PERMITTED ONLY WHEN ASSOCI-
ATED  WITH  AND  REFLECTIVE  OF  CHANGES IN THE REASONABLE COSTS OF FUEL
PURCHASED FOR THE PRODUCTION OF ELECTRICITY BY SUCH ELECTRIC CORPORATION
OR CHANGES IN THE REASONABLE COSTS OF GAS OR  ELECTRICITY  PURCHASED  BY
SUCH  GAS  CORPORATION OR ELECTRIC CORPORATION FOR RESALE TO RESIDENTIAL
CONSUMERS;
  (II) SUCH GAS CORPORATION OR ELECTRIC CORPORATION SHALL MAKE  NO  MORE
THAN ONE SUCH ADJUSTMENT IN ANY SIX MONTH PERIOD; AND

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02119-01-1

S. 1068                             2

  (III)  THE ANNUALIZED INCREASE IN REVENUES FOR SUCH GAS CORPORATION OR
ELECTRIC CORPORATION WHICH IS ASSOCIATED WITH SUCH  ADJUSTMENTS  IN  ANY
TWELVE  MONTH PERIOD SHALL NOT EXCEED THE GREATER OF THREE HUNDRED THOU-
SAND DOLLARS OR TWO AND ONE-HALF PERCENT OF THE  CORPORATION'S  REVENUES
DURING SUCH TWELVE MONTH PERIOD;
  (C)  PROVIDED, HOWEVER, THAT IF THE COMMISSION FINDS THAT THE REQUIRE-
MENTS OF PARAGRAPH (B) OF THIS SUBDIVISION ARE RESULTING OR ARE  REASON-
ABLY  CERTAIN  TO  RESULT  IN  A SUBSTANTIAL IMPAIRMENT OF THE FINANCIAL
INTEGRITY OF A GAS OR ELECTRIC CORPORATION, THE COMMISSION SHALL  INSTI-
TUTE A PROCEEDING, ON AN EMERGENCY BASIS, TO EXAMINE WHETHER SUCH CORPO-
RATION  HAS  PRUDENTLY  CONSIDERED  ALL REASONABLY AVAILABLE SOURCES AND
SUPPLIERS OF NATURAL GAS OR ELECTRICITY, INCLUDING LONG- AND  SHORT-TERM
CONTRACTS,  AND  OTHER COMPETITIVE MARKET PRODUCTS TO SATISFY THE DEMAND
FOR NATURAL GAS OR ELECTRICITY USING THE LEAST COST COMBINATION OF  SUCH
SOURCES  AND SUPPLIERS. IF, UPON THE CONCLUSION OF SUCH EXAMINATION, THE
COMMISSION FINDS THAT A SUBSTANTIAL IMPAIRMENT  OF  FINANCIAL  INTEGRITY
CONTINUES,  THEN  THE  COMMISSION  SHALL  CONDUCT  A HEARING UPON PUBLIC
NOTICE AND MAY MODIFY THE REQUIREMENTS OF PARAGRAPH (B) OF THIS SUBDIVI-
SION TO THE EXTENT NECESSARY TO ELIMINATE THE SUBSTANTIAL IMPAIRMENT  OF
FINANCIAL INTEGRITY; AND
  (D)  nothing  in this subdivision shall operate to prevent the commis-
sion DURING OR after the expiration of such  fixed  period  from  fixing
proper,  just and reasonable rates and charges to be made for service as
authorized in this article.
  S 2. This act shall take effect immediately and shall  expire  and  be
deemed repealed January 31, 2014.

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Senate Bill S1068

Sponsored By

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

co-Sponsors

2011-S1068 (ACTIVE) - Details

2011-S1068 (ACTIVE) - Summary

2011-S1068 (ACTIVE) - Sponsor Memo

2011-S1068 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S1068

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Sponsored By

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

co-Sponsors

2011-S1068 (ACTIVE) - Details

2011-S1068 (ACTIVE) - Summary

2011-S1068 (ACTIVE) - Sponsor Memo

2011-S1068 (ACTIVE) - Bill Text download pdf

Comments