N.Y. PBS Law § 66-C — New York Code / Act PBS / Article 4 / Section 66-C
Conservation of energy
Status: in_force

§ 66-c. Conservation of energy. 1. It is hereby declared to be the\npolicy of this state that it is in the public interest to encourage, at\nrates just and reasonable to electric and steam corporation ratepayers,\nthe development of alternate energy production facilities, co-generation\nfacilities and small hydro facilities in order to conserve our finite\nand expensive energy resources and to provide for their most efficient\nutilization when such facilities are needed to fulfill the energy,\ncapacity or other electric system needs of this state, as determined by\nthe most recent state energy plan. In furtherance of this declared\npolicy, the commission shall encourage the participation of utilities in\nco-generation, small hydro and alternate energy production facilities\neither directly or through subsidiaries formed pursuant to the\nprovisions of subdivisions three and four of this section. In addition,\nthe commission shall require any electric corporation or steam\ncorporation (a) to enter into long-term contracts to purchase or wheel\nelectricity or useful thermal energy from any alternate energy\nproduction, small hydro or co-generation facility, with an electric\ngenerating capacity of up to eighty megawatts, under such rates, terms\nand conditions as the commission shall find just and economically\nreasonable to the corporation's ratepayers, non-discriminatory to\nco-generators, small hydro producers and alternate energy producers and\nfurther the public policy set forth herein; and (b) to provide\nsupplemental or back-up power to any alternate energy production, small\nhydro or co-generation facility on a non-discriminatory basis and at\njust and reasonable rates; provided, however, that nothing contained in\nthis section shall require any such electric or steam corporation to\nconstruct any additional facilities for such purposes unless such\nfacilities are paid for in full by the owner or operator of the\nco-generation, small hydro or alternate energy production facility.\n  2. Notwithstanding any other provision of law, the minimum sales price\nfor purchased electricity from any alternate energy production facility,\nco-generation facility or small hydro facility of  six cents per\nkilowatt hour for each utility, as established by chapter eight hundred\nforty-three of the laws of nineteen hundred eighty-one, shall remain in\nfull force and effect (a) for any contract fully executed by the parties\nand filed with the commission on or before June twenty-sixth, nineteen\nhundred ninety-two and (i) providing for the purchase of electricity at\nsuch minimum sales price, or (ii) providing for the purchase of\nelectricity at a utility tariff rate referencing a statutory minimum\nsales price, or (iii) providing for the reconciliation or recalculation\nof such contract's purchase price by comparison to such statutory\nminimum sales price or tariff rate, for the duration of any such\ncontract and subject to the terms and conditions of such contract and\nperformance thereunder, provided, however, that such minimum sales price\nshall be implemented in accordance with the policies and conditions\nestablished by the commission, and (b) for any such facility concerning\nwhich a final and unappealable judgment of a court of New York state,\nrendered prior to January first, nineteen hundred eighty-seven,\ndetermined that such facility was entitled to receive such minimum sales\nprice, provided that such minimum sales price shall be applicable to all\npurchased electricity from such facility irrespective of any\nmodifications or additions to such facility that may be necessary to\nenable such facility to achieve the electric power production capacity\nof such facility as set forth in an order of the Federal Energy\nRegulatory Commission issued prior to January first, nineteen hundred\neighty-seven granting an application for certification of such facility\nas a qualifying facility, and (c) for any such facility which has been\nproducing electricity in addition to the electricity which is the\nsubject of a contract previously entered into with an electric\ncorporation for such facility, which contract provides for the purchase\nof electricity in accordance with subdivision (a) of this section;\nprovided, however, that the minimum sales price shall only be paid for\nelectricity that does not exceed the maximum annual amount of\nelectricity produced by such facility as of the effective date of this\nsubdivision and does not exceed the amount of electricity provided for\nin the contract by more than ten percent, and provided, however, that\nsuch minimum sale price shall be implemented for the duration of the\ncontract in accordance with policies and conditions established by the\ncommission.\n  3. Notwithstanding any other provision of law, any gas, electric or\nsteam corporation shall, upon application to the commission and the\ncommission's approval thereof, be authorized to establish, and to\nfinance out of retained earnings, a subsidiary corporation, which\ncorporation shall have as its sole purpose, except as provided in\nsubdivision five of this section, the ownership and/or operation, in\nwhole or in part, of one or more co-generation, small hydro or alternate\nenergy production facilities. Within a reasonable time after its receipt\nof a complete application to establish such subsidiary or to finance\nsuch subsidiary out of retained earnings, the commission shall approve\nsuch application unless it shall find that the proposed subsidiary or\nfinancing may affect the corporation's ability to meet its obligation to\nprovide safe and adequate service at just and reasonable charges to its\nown customers. Any such subsidiary corporation shall be exempt from any\nregulation by the commission under this chapter and the commission shall\nhave no authority to regulate any rates, charges, service terms or\nservice practices relating to any electricity, gas or steam produced by\nany such subsidiary corporation at any such facility except as\nspecifically provided in subdivision one of this section.\n  4. (a) Any subsidiary corporation established by an electric, gas or\nsteam corporation pursuant to the authorization of subdivision three of\nthis section shall comply with the following criteria:\n  (1) If any such subsidiary shall obtain the use of transmission\nfacilities or any services necessary for the sale or purchase of the\nenergy generated from its co-generation, small hydro or alternate energy\nproduction facilities from any affiliated gas, electric or steam\ncorporation, it shall do so only pursuant to a tariff filed with the\ncommission by such gas, electric or steam corporation;\n  (2) Any such subsidiary corporation shall operate independently from\nany affiliated gas, electric or steam corporation in the establishment\nand operation of co-generation, small hydro or alternate energy\nproduction facilities and in the sale of energy produced from such\nfacilities. It shall maintain its own books of account, have separate\nofficers, utilize separate operating, marketing, installation, and\nmaintenance personnel, and utilize separate computer facilities;\n  (3) Any such subsidiary corporation shall deal with any affiliated\ngas, electric or steam corporation only on an arm's length basis;\n  (4) All transactions between such a subsidiary corporation and an\naffiliated gas, electric or steam corporation which involve the\ntransfer, either directly or by accounting or other record entries, of\nmoney, personnel, resources, other assets or anything of value, shall be\nreduced to writing. A copy of any contract, agreement, or other\narrangement entered into between such entities shall be filed by the\naffiliated gas, electric or steam corporation with the commission within\nthirty days after the contract, agreement, or other arrangement is made.\nThis provision shall not apply to any transaction governed by the\nprovision of any existing state or federal law, regulation or tariff.\n  (b) Any gas, electric or steam corporation affiliated with such a\nsubsidiary corporation shall:\n  (1) not engage in promoting the sale of energy from the subsidiary's\nco-generation, small hydro or alternate energy production facilities;\nand\n  (2) not provide to any such subsidiary corporation any customer\nproprietary information, unless such information is made available to\nany member of the public upon request on the same terms and conditions\nunder which such information is made available to the subsidiary.\n  (c) The rate of return for any gas, electric or steam corporation\naffiliated with any such subsidiary corporation shall not be based in\nwhole or in part on the capitalization of such subsidiary nor shall the\nrevenue requirements for any such gas, electric or steam corporation be\nbased on any transactions between the gas, electric or steam corporation\nand its subsidiary which are not in compliance with paragraph a of this\nsubdivision.\n  5. A subsidiary corporation established pursuant to the authorization\nof subdivision three of this section may have as an additional purpose\nthe ownership and/or operation, in whole or in part, of one or more\nfacilities located outside this state for the production of electric\npower and/or thermal energy, together with any land, work, system,\nbuilding, improvement, instrumentality or thing necessary or convenient\nto the construction, completion or operation of any such facility,\nincluding also such transmission or distribution facilities located\noutside this state as may be necessary to conduct electricity or useful\nthermal energy to users located at or near a project site. Except as\nexpressly provided herein, nothing in this subdivision shall be\nconstrued to modify, alter, limit, restrict, abrogate or enlarge the\napplication of any other provision of this section. For the purposes of\nthis subdivision, the term "facilities located outside this state for\nthe production of electrical power and/or thermal energy" shall mean and\ninclude each of the following:\n  (i) Any "small hydro facility" as defined in subdivision two-c of\nsection two of this chapter;\n  (ii) Any solar, wind turbine, waste management resource recovery,\nrefuse-derived fuel or wood-burning facility which produces electricity,\ngas or useful thermal energy;\n  (iii) Any facility which is fueled by coal, gas, wood, alcohol, solid\nwaste refuse-derived fuel, water or oil to the extent oil is used as a\nbackup fuel for such facility, and which simultaneously or sequentially\nproduces either electrical or shaft horsepower and useful thermal energy\nwhich is used solely for industrial and/or commercial purposes; and\n  (iv) Any facility which is fueled by coal, gas, wood, alcohol, solid\nwaste refuse-derived fuel, water or oil, and which produces electrical\npower, shaft horsepower or thermal energy which is used solely for\nindustrial and/or commercial purposes.\n