NY Pub Serv L § 66 (2021)
2021 New York Laws PBS - Public Service Article 4 - Provisions Relating to Gas and Electric Corporations; Regulation of Price of Gas and Electricity 66 - General Powers of Commission in Respect to Gas and Electricity.

§ 66. General  powers of commission in respect to gas and electricity. The commission shall:   1. Have general supervision  of  all  gas  corporations  and  electric corporations  having authority under any general or special law or under any charter or franchise to lay down, erect or  maintain  wires,  pipes, conduits,  ducts  or  other  fixtures  in,  over  or  under the streets, highways and public places  of  any  municipality  for  the  purpose  of furnishing   or  distributing  gas  or  of  furnishing  or  transmitting electricity  for  light,  heat  or  power,  or  maintaining  underground conduits  or  ducts  for  electrical  conductors, and all gas plants and electric plants owned, leased or operated  by  any  gas  corporation  or electric corporation.   1-a. Review the annual capital expenditure of each combination gas and electric  corporation and may order such improvement in the manufacture, conveying,  transportation,  distribution  or  supply  of  gas,  in  the manufacture,  transmission  or  supply of electricity, or in the methods employed  by  such  corporation  as  in  the  commission's  judgment  is adequate, just and reasonable.   2.  Investigate  and  ascertain, from time to time, the quality of gas supplied  by  persons,  corporations  and  municipalities;  examine   or investigate  the  methods  employed  by  such  persons, corporations and municipalities in  manufacturing,  distributing  and  supplying  gas  or electricity  for  light, heat or power and in transmitting the same, and have power to order such reasonable improvements as  will  best  promote the  public interest, preserve the public health and protect those using such gas or electricity  and  those  employed  in  the  manufacture  and distribution  thereof,  and  have power to order reasonable improvements and extensions of the works, wires, poles, lines,  conduits,  ducts  and other  reasonable  devices,  apparatus and property of gas corporations, electric corporations  and  municipalities;  and  have  power  after  an investigation  and  a  hearing to order any corporation having authority under any general or special law or under any charter or  franchise,  to lay  down,  erect  or  maintain  wires,  pipes, conduits, ducts or other fixtures in, over or under the streets, highways and  public  places  of any  municipality  for the purpose of supplying, selling or distributing natural gas,  to  augment  its  supply  of  natural  gas,  whenever  the commission deems necessary and whenever artificial gas can be reasonably obtained,  by  acquiring  by purchase, manufacture or otherwise a supply thereof to be mixed with such natural gas, in order to  render  adequate service to the customers of such corporation or to maintain a proper and uniform pressure; and have power after an investigation and a hearing to order  any corporation having authority under any general or special law or under any charter or franchise, to lay down, erect or maintain wires, pipes, conduits, ducts or other fixtures in, over or under the  streets, highways  and  public  places  of  any  municipality  for the purpose of supplying, selling or distributing artificial gas, to augment its supply of artificial gas, whenever the commission deems necessary and  whenever natural  gas  can  be  reasonably  obtained, by acquiring by purchase or otherwise a supply thereof to be mixed  with  such  artificial  gas,  in order to render adequate service to the customers of such corporation or to  maintain a proper and uniform pressure; and to fix such rate for the supplying of mixed gas as  shall  secure  to  such  corporation  a  fair return;  and  may  order the curtailment or discontinuance of the use of natural gas  for  manufacturing  or  industrial  purposes,  for  periods aggregating  not  to  exceed  four months in any calendar year, if it is established to the satisfaction of the commission  that  the  supply  of natural  gas  is not adequate to meet the reasonable demands of domestic  consumption and may prohibit the use of natural gas in wasteful  devices and practices.   2-a. Have power, after an investigation and hearing held on notice and upon  a finding that as a result of a shortage of gas a public emergency exists, to determine whether any gas corporation has available,  or  may be  made  available by the operation of its facilities, gas in excess of an amount necessary to supply its consumers for purposes for  which  gas may  properly  be  used during such emergency. Upon the making of such a determination it shall have power to order such  a  gas  corporation  to transfer  and  make  available  to  any  other  gas  corporation where a shortage of gas exists, for the duration of the emergency, any or all of such excess gas for which the transferring company  shall  receive  just compensation.  Such  order may require the installation and operation of all  necessary  connections  and  facilities  at  the  expense  of   the purchasing  gas  corporation  and require the selling and purchasing gas corporation to adopt appropriate regulations and practices to carry  out the transfer of gas as ordered.   3.  Have  power by order to fix and change from time to time standards of the purity, illuminating power and heating power, and  standards  for the  measurement thereof, of gas to be manufactured, distributed or sold by persons, corporations or  municipalities  for  lighting,  heating  or power  purposes,  notwithstanding  that  other  standards of the purity, illuminating power and heating  power  of  gas  and  standards  for  the measurement  thereof,  may have been fixed by general or special statute and to prescribe from time to time the efficiency of the electric supply system, of the current supplied  and  of  the  lamps  furnished  by  the persons,  corporations or municipalities generating and selling electric current, and by order to require the gas so manufactured, distributed or sold to equal the standards so fixed by it, and to prescribe  from  time to  time  the reasonable minimum and maximum pressure at which gas shall be delivered by said persons, corporations or  municipalities.  For  the purpose of determining whether the gas manufactured, distributed or sold by such persons, corporations or municipalities for lighting, heating or power  purposes conforms to the standards of illuminating power, heating power, purity and pressure, and for the purpose of  determining  whether the  efficiency  of  the electric supply system, of the current supplied and of the  lamps  furnished  conforms  to  the  orders  issued  by  the commission,  the  commission  shall  have  power  of  its own motion, to examine  and  investigate   the   plants   and   methods   employed   in manufacturing,  delivering  and  supplying gas or electricity, and shall have access through its members or persons employed and authorized by it to make such  examinations  and  investigations  to  all  parts  of  the manufacturing  plants  owned,  used  or  operated  by  the  manufacture, transmission or distribution of gas or electricity by any  such  person, corporation or municipality.   4.  Have  power,  in  its  discretion, to prescribe uniform methods of keeping accounts, records and books, to be observed by gas  corporations and   electric   corporations  and  by  municipalities  engaged  in  the manufacture, sale and distribution of gas  and  electricity  for  light, heat  or power. It may also in its discretion prescribe, by order, forms of  accounts,  records  and  memoranda  to  be  kept  by  such  persons, corporations and municipalities. Notice of alterations by the commission in  the required method or form of keeping a system of accounts shall be given to such persons or corporations by the  commission  at  least  six months before the same shall take effect. Any other and additional forms of  accounts,  records  and memoranda kept by such corporations shall be subject to examination by the commission.    5. Examine all persons,  corporations  and  municipalities  under  its supervision  and keep informed as to the methods, practices, regulations and property employed by them in  the  transaction  of  their  business. Whenever  the  commission  shall be of opinion, after a hearing had upon its   own   motion  or  upon  complaint,  that  the  rates,  charges  or classifications  or  the  acts  or  regulations  of  any  such   person, corporation   or   municipality   are   unjust,  unreasonable,  unjustly discriminatory or unduly preferential or in anywise in violation of  any provision  of  law,  the commission shall determine and prescribe in the manner provided by and subject to the provisions of section  seventy-two of   this   chapter   the   just   and  reasonable  rates,  charges  and classifications thereafter  to  be  in  force  for  the  service  to  be furnished  notwithstanding  that  a  higher  or lower rate or charge has heretofore been prescribed by  general  or  special  statute,  contract, grant, franchise condition, consent or other agreement, and the just and reasonable  acts  and  regulations to be done and observed; and whenever the commission shall be of opinion, after a hearing  had  upon  its  own motion  or upon complaint, that the property, equipment or appliances of any such person, corporation or municipality are unsafe, inefficient  or inadequate,  the  commission  shall  determine  and  prescribe the safe, efficient and adequate property, equipment and appliances thereafter  to be  used,  maintained and operated for the security and accommodation of the public and in compliance with the provisions of  law  and  of  their franchises and charters.   6.  Require  every person and corporation under its supervision and it shall be the duty of every such person and corporation to file with  the commission  an  annual  report,  verified  by the oath of the president, vice-president, treasurer, secretary, general manager, or  receiver,  if any,  thereof,  or  by  the  person  required  to  file  the  same.  The verification shall be made by said official holding office at  the  time of  the filing of said report, and if not made upon the knowledge of the person verifying the same shall set forth the sources of his information and the grounds of his belief  as  to  any  matters  not  stated  to  be verified  upon  his  knowledge.  The report shall show in detail (a) the amount of its authorized capital stock and the amount thereof issued and outstanding; (b) the amount of its authorized  bonded  indebtedness  and the  amount  of  its  bonds  and other forms of evidence of indebtedness issued and outstanding; (c) its receipts  and  expenditures  during  the preceding  year;  (d) the amount paid as dividends upon its stock and as interest upon its bonds; (e) the names of its officers and the aggregate amount paid as salaries to them and the amount  paid  as  wages  to  its employees;  (f)  the  location of its plant or plants and system, with a full description of its property and franchises, stating in  detail  how each franchise stated to be owned was acquired; and (g) such other facts pertaining to the operation and maintenance of the plant and system, and the  affairs  of  such  person  or corporation as may be required by the commission. Such reports shall be in the form, cover the period  and  be filed at the time prescribed by the commission. The commission may, from time  to  time,  make changes and additions in such forms. When any such report is defective or believed to be erroneous,  the  commission  shall notify  the  person,  corporation  or municipality making such report to amend the same within a time prescribed  by  the  commission.  Any  such person  or  corporation  or municipality which shall neglect to make any such report or which shall fail to correct any such  report  within  the time  prescribed  by  the commission shall be liable to a penalty of one hundred dollars and an additional penalty of  one  hundred  dollars  for each day after the prescribed time for which it shall neglect to file or correct  the same, to be sued for in the name of the people of the state  of New York. The amount recovered in any such action shall be paid  into the  state  treasury and be credited to the general fund. The commission may extend the time prescribed for cause shown.   7. Require each municipality engaged in operating any works or systems for  the  manufacture  and  supplying  of  gas or electricity to make an annual report to the commission, verified by the  oath  of  the  general manager  or superintendent thereof, showing in detail, (a) the amount of its authorized bonded indebtedness and the amount of its bonds and other forms of evidence of indebtedness issued and  outstanding  for  lighting purposes;  (b)  its receipts and expenditures during the preceding year; (c) the amount paid as interest upon its bonds and upon other  forms  of evidence  of  indebtedness;  (d) the name of and the amount paid to each person receiving a yearly or monthly salary,  and  the  amount  paid  as wages to employees; (e) the location of its plant and system with a full description  of the property; and (f) such other facts pertaining to the operation and maintenance of the plant and system as may be required  by the  commission.  Such report shall be in the form, cover the period and be filed at the time prescribed by the commission.   8. Have power, either through its members or inspectors  or  employees duly  authorized by it, to enter in or upon and to inspect the property, buildings, plants, factories, power houses, ducts, conduits and  offices of any of such corporations, persons or municipalities.   9.  Have  power  to  examine  the accounts, books, contracts, records, documents and papers of any such corporation,  person  or  municipality, and  have  power,  after  hearing, to prescribe by order the accounts in which particular outlays and  receipts  shall  be  entered,  charged  or credited.  At  any  such  hearing  the  burden  of proof shall be on the person, corporation or municipality to establish the correctness of  the accounts  in  which such outlays and receipts have been entered, and the commission may suspend a charge or credit pending submission of proof by such person, corporation or municipality.   10. Have power to compel, by subpoena duces tecum, the  production  of any  accounts,  books,  contracts,  records,  documents,  memoranda  and papers. In lieu of requiring production of originals by  subpoena  duces tecum the commission or any commissioner may require sworn copies of any such  books, records, contracts, documents and papers, or parts thereof, to  be  filed  with  it.  The  commission  may  require  of   all   such corporations,  persons  or municipalities, specific answers to questions upon which the commission may need information,  and  may  also  require such corporations, persons or municipalities to file periodic reports in the  form,  covering  the period and filed at the time prescribed by the commission. If such corporation, person or municipality  shall  fail  to make  specific  answer  to any question or shall fail to make a periodic report when required by the commission as  herein  provided  within  the time  and  in  the  form prescribed by the commission for the making and filing of any such report or answer, such  corporation,  person  or  the officer  of  the  municipality shall forfeit to the state the sum of one hundred dollars for each and every  day  it  shall  continue  to  be  in default  with respect to such report or answer. Such forfeiture shall be recovered in an action brought by the commission  in  the  name  of  the people of the state of New York. The amount recovered in any such action shall  be  paid  into  the state treasury and be credited to the general fund.   11. Have power in all parts of the state, either as  a  commission  or through  its  members,  or  through  an  officer  or  employee specially authorized to conduct an investigation or hearing to subpoena witnesses, take testimony and administer oaths to witnesses in  any  proceeding  or  examination instituted before it, or conducted by it in reference to any matter within its jurisdiction under this article.   12.  (a)  Have  power  to  require  every  gas  corporation,  electric corporation and municipality hereinafter in this  subdivision  called  a utility to file with the commission and to print and keep open to public inspection  schedules showing all rates and charges made, established or enforced or to  be  charged  or  enforced,  all  forms  of  contract  or agreement  and  all  rules and regulations relating to rates, charges or service used or to be used, and all general  privileges  and  facilities granted or allowed by such utility; but this subdivision shall not apply to  state,  municipal  or  federal  contracts, except to the extent such contracts relate to transportation of electricity.  (b) No change shall be made in any rate or charge, or in any  form  of contract  or  agreement  or any rule or regulation relating to any rate, charge or service, or in any general privilege or facility, which  shall have  been  filed  by  a  utility  in  compliance  with  an order of the commission, except after thirty days' notice to the  commission  and  to each  county,  city,  town  and village served by such utility which had filed with such utility, within the prior twelve months, a  request  for such  notice  and which shall be affected by such change and publication of a notice to the public of such proposed change once in each week  for four  successive weeks in a newspaper having general circulation in each county containing territory  affected  by  the  proposed  change,  which notice shall plainly state the changes proposed and when the change will go  into  effect. The commission for good cause shown may, except in the case of major changes, allow changes to take effect prior to the end  of such  thirty-day  period and without publication of notice to the public under such conditions as it may prescribe. The commission  may  delegate to  the secretary of the commission its authority to approve a change to a schedule postponing the effective date  of  such  schedule  previously filed  with  the  commission  and  to  allow  for  good  cause shown the postponement to take effect prior to the end of such  thirty-day  period and without publication of notice to the public.  (c) For the purpose of this subdivision, "major changes" shall mean an increase  in  the  rates  and charges which would increase the aggregate revenues of the  applicant  more  than  the  greater  of  three  hundred thousand  dollars  or  two  and  one-half percent, but shall not include changes in rates, charges or rentals (i) allowed to go  into  effect  by the  commission  or  made  by  the  utility  pursuant to an order of the commission after hearings held  upon  notice  to  the  public,  or  (ii) proposed by a municipality.  (d)  No  utility shall charge, demand, collect or receive a greater or less or different  compensation  for  any  service  rendered  or  to  be rendered  than the rates and charges specified in its schedule filed and in effect; nor shall any utility refund or remit in any manner or by any device any portion of the rates or charges so specified, nor  extend  to any person any form of contract or agreement, or any rule or regulation, or any privilege or facility, except such as are regularly and uniformly extended to all persons under like circumstances.  (e)  The  commission  shall  have power to prescribe the form of every such schedule, and from time to time prescribe by order such changes  in the  form  thereof as may be deemed wise. The commission shall also have power to establish such rules and regulations to carry into effect  this subdivision  as it may deem necessary, and to modify or amend such rules or regulations from time to time. Nothing in this chapter shall be taken to prohibit a utility from  establishing  sliding  scale  upward  rates, beginning  at  a  fixed  price per unit for a small consumption and then increasing the price per unit as the consumption is increased.  (f) Whenever there shall be filed with the commission by  any  utility any  schedule stating a new rate or charge, or any change in any form of contract or agreement or any rule or regulation relating  to  any  rate, charge  or  service,  or  in  any  general  privilege  or  facility, the commission  may,  at  any time within sixty days from the date when such schedule would or has become effective, either upon  complaint  or  upon its own initiative, and, if it so orders, without answer or other formal pleading  by  the  utility,  but  upon reasonable notice, hold a hearing concerning the propriety of a change proposed by  the  filing.  If  such change  is  a  major  change,  the commission shall hold such a hearing. Pending such hearing and decision thereon, the commission,  upon  filing with such schedule and delivering to the utility, a statement in writing of its reasons therefor, may suspend the operation of such schedule, but not for a longer period than one hundred and twenty days beyond the time when  it  would  otherwise  go  into effect. After full hearing, whether completed before or after the schedule goes into effect, the  commission may  make  such  order  in  reference  thereto  as  would be proper in a proceeding begun after the rate, charge, form of contract or  agreement, rule,  regulation,  service,  general  privilege  or facility had become effective. If any such hearing cannot be concluded within the period  of suspension as above stated, the commission may extend the suspension for a further period, not exceeding six months.  (g)  The  commission shall review all filings to determine if they are in compliance with section seventy-two-a of this article. The commission shall have the power to hold public hearings concerning the propriety of any increased rate or charge for fuel costs. At  any  hearing  involving such  an  increase,  the  burden  of  proof  as  to  the correctness and reasonableness of the charge shall be upon the utility.  (h) The commission may, as authorized by section seventy-two  of  this article,  establish  temporary  rates  or  charges  for  any  period  of suspension under this section.  (i) At any hearing involving a rate, the burden of proof to show  that the  change  or  proposed change if proposed by the utility, or that the existing rate, if it is  proposed  to  reduce  the  rate,  is  just  and reasonable shall be upon the utility; and the commission may give to the hearing  and  decision  of  such  questions  preference  over  all other questions pending before it.  (j) The schedule, rates, charges, form of contract or agreement, rule, regulation, service, general privilege or facility in force when the new schedule, rate, charge, form of  contract,  rule,  regulation,  service, general  privilege  or facility was filed shall continue in force during the period of the suspension unless the  commission  shall  establish  a temporary  rate  or  charge as authorized by section seventy-two of this article.  (k) In any case in which the commission determines that the  whole  or any  part  of any increased rate or charge imposed by a utility pursuant to any automatic adjustment, including  but  not  limited  to  any  fuel adjustment, was not just and reasonable, because of a lack of reasonable care  on  the  part of the utility in providing gas or electric service, the commission may order the  utility  to  refund,  with  interest,  any moneys  collected  by the utility pursuant to such whole or part of such increased rate or charge. In determining  whether  a  utility  exercised reasonable  care  in  providing  gas or electric service, the commission shall take into account the public health and safety  consequences,  and the economic consequences to ratepayers, of the utility's actions.   12-a.  Have  power  to  fix  and  alter  the  format and informational requirements of bills utilized by public and private  gas  corporations, electric  corporations  and  gas  and  electric  corporations in levying  charges for service, to assure simplicity and  clarity  and  to  require indication  of any adjustment charges, including but not limited to fuel adjustments, in monetary amounts. The commission  shall  further  ensure periodic  explanation  of  applicable  rates  and rate schedules for the purpose of assisting customers in  making  the  most  efficient  use  of energy.   12-b.  (a)  In consultation with the commissioner of the department of commerce have power 1. to designate as economic incentive areas specific areas   in   which   reduced   economic   activity,   unemployment   and underutilization of utility facilities justifies the approval of reduced incentive  rates  for  utility  services, and to promulgate criteria for identifying such areas and  customers  eligible  for  such  rates.  Upon application  of  a  utility  corporation  the commission shall authorize special economic incentive rates in such areas to such customers and for such periods of time as the commission finds will  best  effectuate  the purposes  of  this  subdivision. The commission may also provide for the gradual elimination of  the  rate  reduction  authorized,  and  for  the elimination  of  such  reduction,  if  any  conditions  imposed  by  the commission are not met. 2. to designate or form classes of customers  as appropriate  for  special  rates or tariffs, in order to prevent loss of such customers, or to attract new customers where necessary to  maintain economic use of utility facilities.   Any such special rate or tariff shall be so designed as to recover the incremental   cost  of  providing  service  to  such  customers  and  to contribute to the common costs which otherwise would be borne  by  other customers.  (b) The commission may also authorize utility corporations to contract with  existing  or  prospective  industrial  and commercial customers to wheel  or  deliver  electricity  or  gas  purchased  directly  by   such customers, provided that the commission finds that such arrangements are in  the overall best interest of the rate payers of the corporation, and that the rates and fees for the services provided adequately  compensate the corporation for the use of its facilities.   12-c.  Notwithstanding any other provision of law, upon application of a gas or electric  corporation,  the  commission  shall  authorize  such corporation   to  charge  a  special  empire  zone  rate  equal  to  the incremental cost of providing service to customers certified as eligible for such rate pursuant to article eighteen-B of  the  general  municipal law.   12-d.  Notwithstanding any other provision of law, upon application of a gas or electric  corporation,  the  commission  shall  authorize  such corporation to charge a special excelsior jobs program rate equal to the incremental  cost  of providing service to participants in the excelsior jobs program as defined in article seventeen of the economic development law.   13. In case any electric corporation or gas corporation is engaged  in carrying  on any business other than owning, operating or managing a gas plant or an electric  plant,  which  other  business  is  not  otherwise subject  to the jurisdiction of the commission, and is so conducted that its operations are to be substantially kept separate and apart from  the owning, operating, managing or controlling of such gas plant or electric plant,  said  corporation in respect of such other business shall not be subject to any of the provisions  of  this  chapter  and  shall  not  be required to procure the assent or authorization of the commission to any act in such other business or to make any report in respect thereof. But this  subdivision  shall  not  restrict  or  limit  the  powers  of  the commission in respect to the owning, operating, managing or  controlling by such corporation of such gas plant or electric plant, and said powers  shall  include  also  the  right  to  inquire  as  to, and prescribe the apportionment of, capitalization, earnings, debts  and  expenses  fairly and  justly  to  be  awarded  to  or  borne by the ownership, operation, management   or   control  of  such  gas  plant  or  electric  plant  as distinguished from such other business. In any such case if the  owning, operating,  managing  or controlling of such gas plant or electric plant by any such corporation is wholly subsidiary and incidental to the other business carried on by it  and  is  inconsiderable  in  amount  and  not general  in  its  character,  the commission may by general rules exempt such corporation from making  full  reports  and  from  the  keeping  of accounts  as  to  such  subsidiary  and  incidental  business. Where the permission granted such corporation pursuant to section  sixty-eight  is to  supply  gas  only  to  less  than  twenty customers specified by the commission, the commission may, if the public interest  permits,  exempt such  corporation  from  compliance with all or any of the provisions of this article except those affecting matters of  public  safety  and  the provisions of sections sixty-five, sixty-eight and seventy-four.   14.  The  commission  shall have power to require each gas corporation and electric corporation to establish classifications of  service  based upon  the quantity used, the time when used, the purpose for which used, the duration of use and upon any other reasonable consideration, and  to establish  in  connection  therewith just and reasonable graduated rates and charges; and it shall have power, either upon complaint or upon  its own  motion,  to require such changes in such classifications, rates and charges as it shall determine to be just  and  reasonable.  Neither  the scheduled  rates nor the minimum charge for residential customers shall, after July first, nineteen hundred thirty-seven, be based in any  manner on  the number of outlets, number of rooms, cubic or square foot area or other such standards.   15. Receive, and any gas corporation may at any  time  submit  to  the commission  for  its approval, one or more contracts proposed to be made by it for the purchase from the producer of by-product gas, to  be  used in  its  service  to  its consumers, in which said proposed contract the price of gas shall be based on the then market price  of  coal,  and  to vary  therewith  whenever  the  market  price  of coal shall vary to the extent of ten per centum for a period of not less than thirty days,  and which said contract shall state the efficiency of said gas, and upon the approval  of  said  contract  by the commission, or said contract as the same may be amended, altered or changed, and  upon  the  application  of said gas corporation, the commission shall make an order fixing the rate or  rates  to be charged to consumers for the service of such gas, which said rate shall thereafter remain unchanged  during  the  term  of  said contract  in  so  far  as said rate shall be based on the cost of gas to said corporation, except as such cost shall vary with the variations  in the  price  of  coal  as in said contract provided. The commission shall have like powers and duties with reference to  existing  contracts  made prior  to  January  first,  nineteen  hundred  and  twenty-two, by a gas corporation for a supply of by-product gas where the price of gas varies as the price of coal varies. By-product, as used  in  this  section,  is defined  to  mean  one  of the several products obtained by treatment of coal by some process other than the customary distillation in retorts.   16. The commission shall have power after a hearing on its own motion, upon complaint or upon the application of a gas corporation or  electric corporation to prescribe rates and charges for gas, electricity or other service  rendered  or to be rendered, embodying the automatic adjustment of such rates and charges, over a fixed period not exceeding four years, based on the relation between the net income from such rates and charges available for  return  and  the  fair  value  of  the  property  of  the  corporation  used  and  useful  in  said  service;  but  nothing in this subdivision shall operate to prevent the commission after the expiration of such fixed period from fixing proper, just and reasonable  rates  and charges to be made for gas, electricity or service as authorized in this article.   17.   Notwithstanding   the   provisions  of  this  article,  any  gas corporation which transports natural gas through the state of  New  York but  which  does not deliver, sell or furnish any such gas to any person or corporation within the  state  of  New  York,  shall  be  subject  to regulation  by  the  commission  only  insofar  as  the construction and operation of such facilities shall affect matters of public safety.   19. (a) The commission shall have power to provide for management  and operations  audits  of  gas corporations and electric corporations. Such audits shall be performed at least once every five years for combination gas and electric corporations, as well as for straight gas  corporations having  annual  gross revenues in excess of two hundred million dollars. The audit shall include, but not be limited to, an investigation of  the company's  construction program planning in relation to the needs of its customers for reliable service, an evaluation of the efficiency  of  the company's  operations,  recommendations  with  respect  to same, and the timing with respect to the implementation of such  recommendations.  The commission  shall  have  discretion to have such audits performed by its staff, or by independent auditors.   In every case in which  the  commission  chooses  to  have  the  audit provided  for in this subdivision or pursuant to subdivision fourteen of section sixty-five of this article performed by independent auditors, it shall have authority to select the auditors, and to require the  company being  audited  to enter into a contract with the auditors providing for their payment by the company. Such contract shall provide  further  that the  auditors  shall  work for and under the direction of the commission according to such terms as the commission may  determine  are  necessary and reasonable.  (b)  Each corporation subject to an audit under this subdivision shall file a report with the commission within thirty days after  issuance  of such  audit  detailing its plan to implement the recommendations made in the audit. After review of such plan, the commission  may  require  each combined  electric  and  gas  corporation amend its plan in a particular manner. Such plan shall thereafter become enforceable upon  approval  by the commission. The commission shall have power to commence a proceeding to examine any such corporation's compliance with the recommendations of such audit.  (c)  Upon the application of a gas or electric corporation for a major change in rates as defined in subdivision twelve of  this  section,  the commission   shall   review   that  corporation's  compliance  with  the directions and recommendations made previously by the commission,  as  a result  of  the most recently completed management and operations audit. The commission shall incorporate the findings  of  such  review  in  its opinion  or  order,  and  such  findings  shall  be  enforceable  by the commission.   20. Notwithstanding any general or special law,  rule  or  regulation, the  commission  shall  have  the power to provide for the refund of any revenues received by any gas or electric  corporation  which  cause  the corporation  to  have  revenues  in  the  aggregate  in  excess  of  its authorized rate of return for a period of twelve months. The  commission may  initiate  a  proceeding  with  respect  to  such a refund after the conclusion of any such twelve month period.   21. (a) Each electric corporation subject to section twenty-five-a  of this  chapter shall annually, on or before December fifteenth, submit to  the commission an emergency response plan for review and  approval.  The emergency  response  plan  shall  be  designed for the reasonably prompt restoration of service in the case of an emergency  event,  defined  for purposes  of  this subdivision as an event where widespread outages have occurred in the service territory of the company due to storms or  other causes  beyond  the  control of the company. The emergency response plan shall include, but need not  be  limited  to,  the  following:  (i)  the identification  of  management  staff responsible for company operations during an emergency; (ii) a communications system with customers  during an  emergency  that  extends  beyond  normal business hours and business conditions; (iii) identification of and outreach plans to customers  who had  documented  their need for essential electricity for medical needs; (iv)  identification  of  and  outreach  plans  to  customers  who   had documented  their  need  for  essential  electricity to provide critical telecommunications, critical transportation, critical fuel  distribution services or other large-load customers identified by the commission; (v) designation  of  company  staff  to communicate with local officials and appropriate regulatory  agencies;  (vi)  provisions  regarding  how  the company  will  assure the safety of its employees and contractors; (vii) procedures for deploying company and mutual aid crews to work assignment areas; (viii) identification of additional supplies and equipment needed during an emergency; (ix) the means of obtaining additional supplies and equipment; (x) procedures to practice the emergency response plan;  (xi) appropriate  safety  precautions regarding electrical hazards, including plans to  promptly  secure  downed  wires  within  thirty-six  hours  of notification  of  the  location  of  such  downed wires from a municipal emergency official; and (xii) such other additional information  as  the commission may require. Each such corporation shall, on an annual basis, undertake  drills  implementing  procedures  to  practice  its emergency management  plan.  The  commission  may  adopt  additional  requirements consistent with ensuring the reasonably prompt restoration of service in the case of an emergency event.  (b)  After  review  of  a  corporation's  emergency response plan, the commission  may  require  such  corporation  to  amend  the  plan.   The commission  may  also open an investigation of the corporation's plan to determine its sufficiency to respond adequately to an  emergency  event. If,  after  hearings,  the commission finds a material deficiency in the plan, it may order the company to make such modifications that it  deems reasonably necessary to remedy the deficiency.  (c)  The  commission  is authorized to open an investigation to review the performance of any corporation in  restoring  service  or  otherwise meeting  the  requirements  of  the  emergency  response  plan during an emergency event. If, after evidentiary hearings or  other  investigatory proceedings,  the  commission  finds  that  the  corporation  failed  to reasonably implement its emergency response plan or the length  of  such corporation's  outages were materially longer than they would have been, because of  such  corporation's  failure  to  reasonably  implement  its emergency  response  plan,  the  commission may deny the recovery of any part  of  the  service  restoration  costs  caused  by   such   failure, commensurate with the degree and impact of the service outage; provided, however,  that  nothing  herein  limits  the  commission's  authority to otherwise  commence  a  proceeding  pursuant  to  sections  twenty-four, twenty-five and twenty-five-a of this chapter.  (d)  The  commission  shall  certify  to  the  department  of homeland security and emergency services that each such  corporation's  emergency response  plan  is  sufficient to ensure to the greatest extent feasible the timely and safe restoration of energy services after an emergency in compliance with the requirements of this chapter.  (e)  The  filing  of  each  emergency  response  plan  required  under paragraph  (a)  of  this  subdivision  shall  also include a copy of all written mutual assistance agreements among utilities.  (f)  Each electric corporation shall file with the county executive or the chief elected official of  a  county  for  each  county  within  its service  territory  the  most  recent  approved  copy  of  the emergency response plan required pursuant to this section. For the purposes of  an electric  corporation  operating  within  the  city  of  New  York, such corporation shall file the most recent approved emergency response  plan with the emergency management office of the city of New York.  (g)  The  commission  shall  provide access to such emergency response plan pursuant to article six of the public officers law.   22. The commission shall permit the recovery through rates established pursuant to this section of all payments made by  electric  corporations pursuant to section twenty-nine-c of the executive law.   23.  Require  every  gas  corporation  or  electric corporation having equipment containing five  hundred  parts  per  million  or  greater  of polychlorinated   biphenyls   (PCBs),  including  but  not  limited  to, capacitors and transformers, to submit a report to the  commission.  The report  shall  contain  (1) a list of such equipment that is in service, each unit's location, size and service age, (2) a list of such equipment that  is  retired  from  service  after  the  effective  date  of   this subdivision,  the  date  each  unit  was  retired  from service, and the location of the facility where the unit and/or  PCBs  are  processed  or stored,  (3)  the  date  for  shipment of PCBs within or out of New York state, and (4) a description of  the  New  York  state  portion  of  the shipping  route.  The  commission shall require the report to be updated and distributed semiannually. In addition, such corporation shall submit to each county  and  city  located  in  the  service  territory  of  the corporation  a  report  containing the information listed above for such equipment and PCBs located in or transported through the county or  city receiving the report.   For  the  purposes  of this subdivision, capacitors, transformers, and equipment designed to use the PCB-free  mineral  oil  dielectric  fluids shall be presumed to contain concentrations below five hundred parts per million  of  PCBs,  unless  the  unit has been serviced with fluid which contains five hundred parts per million or greater of PCBs, or there  is any  other  reason  to  believe that the unit contains or was ever mixed with fluid with a concentration level of five hundred parts per  million or greater or unless testing has specifically shown otherwise.   24.  (a)  If  a nuclear power plant which is not commercially used and useful in the actual generation of electricity on the effective date  of this  subdivision and which is owned by a single utility on or after the effective date  of  this  subdivision  fails  to  commence  or  continue commercial  operation  after the effective date of this subdivision, the commission  shall  thereafter  remove  and  exclude  from  the   utility corporation's   revenue   requirement   all   amounts,  costs,  charges, adjustments, or extraordinary cost  of  capital  allowances  theretofore made,   granted   or   provided  which  are  attributable,  directly  or indirectly, to such nuclear power plant or to such  plant's  failure  to commence commercial operation.  (b)  The  commission shall not thereafter, unless and until such plant commences or recommences commercial operation, include in such utility's revenue  requirement  any  amounts,  costs,  charges,   adjustments   or extraordinary  cost  of  capital  allowances  attributable,  directly or indirectly, to such  plant  or  to  such  plant's  failure  to  commence commerical operation.  (c) Nothing in this subdivision shall be deemed to require a refund of the  charges  paid by or billed to a customer of such utility prior to a failure to commence or continue commercial operation of such plant.  (d)  For  the purposes of this subdivision, the failure to commence or continue commercial operation shall mean the abandonment of  such  plant after  the effective date of this subdivision; the denial, including any denial pursuant to or as a result  of  any  administrative  or  judicial review,  of  a commercial operating license or other regulatory approval necessary for the plant to become commercially used and  useful  in  the actual  generation  of  electricity;  the failure of the plant to become commercially used and useful in the  actual  generation  of  electricity within forty-two months of the issuance of the low power testing license for  such  plant; or the occurrence of any event or the existence of any circumstances (other  than  customary  inspection  and  maintenance  and related  repairs  or  refueling  requirements)  after  the plant becomes commercially used and useful in the  actual  generation  of  electricity which  renders  the plant not commercially used and useful in the actual generation of electricity.   25. Notwithstanding any  other  provision  of  law  to  the  contrary, whenever  a city having a population of one million or more provides for a deduction from  gross  receipts  of  a  gas  corporation  or  electric corporation,  pursuant  to  a  local law authorized by the provisions of subdivision (k) of section twelve hundred one of the tax law,  the  rate or  charge  imposed  by  any  such  corporation  within  such  city upon non-residential users of electricity or gas eligible to receive a rebate in accordance with a local law or laws adopted pursuant to article two-G of the general city law shall be set by the commission so as to  reflect fully the decrease in tax liability attributable to such deduction.   26.  Notwithstanding  any  other  provision  of  law  to the contrary, whenever the gas facility  costs  of  a  gas  corporation  are  paid  or reimbursed  by the city of New York as provided in the gas facility cost allocation act, the rates and charges of  such  gas  corporation  within such  city  shall  be  set  by the commission so as to reflect fully the amount of such payments and reimbursements made by such city. The amount of such payments and reimbursements shall not be reflected  directly  or indirectly  in  any  rate  or charge imposed by such corporation outside such city.   27. (a) Each electric corporation with annual gross revenues in excess of two hundred million dollars shall offer the option of paying  charges on  the  basis  of  time  of  use  rates  for service to its residential customers and to posts and halls owned by a  not-for-profit  corporation that  is  a  veterans'  organization.  Such  electric  corporation shall periodically send a notice  explaining  the  rates  and  informing  such customers and organizations that the rates are available.  (b) Any  electric  corporation  which offers its customers time of use rates shall notify those  customers  who  elect  or  receive  such  rate regarding the following:  (1) the hours for which such rates are available for both standard and daylight savings time;  (2) the  procedure  such customers shall follow in order to have their meter  clocks  reset  following  an  interruption  of  service  if  such resetting is necessary to restore the effective hours of the time of use rates; and  (3) when  the  utility  has knowledge of an outage, a statement within sixty days of such outage that the time of use rates may not be  applied at  the  previously stated times until the meter clock is reset, if such resetting is necessary.    28. No revenues foregone by an electric corporation, as  a  result  of subjecting   certain  veterans'  organizations  with  rates  or  charges applicable to domestic consumers pursuant to section seventy-six of this article, shall be recovered from the customers of such corporation.