2023 New York Laws › PBA - Public Authorities › Article 5 - Public Utility Authorities › Title 1-A - Long Island Power Authority › 1020-F - General Powers of the Authority.

* §  1020-f.  General  powers  of  the  authority. Except as otherwise
limited by this title, the  authority  shall  have  all  of  the  powers
necessary or convenient to carry out the purposes and provisions of this
title,  including  without limiting the generality of the foregoing, the
power:
(a) To sue and be sued in all courts and to participate in actions and
proceedings, whether judicial, administrative, arbitrative or otherwise;
(b) To have a corporate seal, and to alter such seal at pleasure,  and
to  use  it  by  causing it or a facsimile to be affixed or impressed or
reproduced in any other manner;
(c) To appoint officers, agents and employees, without regard  to  any
personnel  or  civil service law, rule or regulation of the state and in
accordance with guidelines adopted by  the  authority,  prescribe  their
duties and qualifications and fix and pay their compensation. By January
first,  two  thousand  fourteen,  the  authority, through its governance
committee, shall amend such guidelines to require that staffing  at  the
authority  is kept at levels only necessary to ensure that the authority
is able to meet obligations with respect to its bonds and notes and  all
applicable  statutes  and  contracts,  and oversee the activities of the
service provider;
(d) To purchase, receive, take by  grant,  gift,  devise,  bequest  or
otherwise,  lease, or otherwise acquire, own, hold, improve, employ, use
and otherwise deal in  and  with,  real  or  personal  property  whether
tangible or intangible, or any interest therein, within the state;
(e)  To  acquire  real  or  personal  property,  whether  tangible  or
intangible, including without limitation property rights,  interests  in
property,  franchises,  obligations,  contracts,  and  debt  and  equity
securities, by the exercise of the power of  eminent  domain;  provided,
however, that any real property acquired by the exercise of the power of
eminent domain must be located within the service area;
(f)  To  sell, convey, lease, exchange, transfer, abandon or otherwise
dispose of, or mortgage, pledge or create a security interest in, all or
any  of  its  assets,  properties  or  any  interest  therein,  wherever
situated;
(g)  To  purchase, take, receive, subscribe for, or otherwise acquire,
hold, make  a  tender  offer  for,  vote,  employ,  sell,  lend,  lease,
exchange, transfer, or otherwise dispose of, mortgage, pledge or grant a
security  interest  in,  use  and  otherwise deal in and with, bonds and
other obligations, shares or other  securities  (or  interests  therein)
issued  by others, whether engaged in a similar or different business or
activity;
(h) To make and execute agreements, contracts  and  other  instruments
necessary  or  convenient in the exercise of the powers and functions of
the authority under this title, including  contracts  with  any  person,
firm,  corporation,  municipality,  state  agency  or  other  entity  in
accordance with the provisions of  section  one  hundred  three  of  the
general municipal law, and all state agencies and all municipalities are
hereby  authorized  to enter into and do all things necessary to perform
any such agreement, contract or other instrument with the authority;
(i) To borrow money at such rate or rates of interest as the authority
may determine, issue its notes, bonds or other obligations  to  evidence
such  indebtedness,  and  secure  any  of its obligations by mortgage or
pledge of all or any of its property or any interest  therein,  wherever
situated;
(j) To arrange for guarantees of its bonds, notes or other obligations
by the federal government or by any private insurer or otherwise, and to
pay any premiums therefor;
(k)  To  issue such bonds or notes or other obligations whether or not
the income therefrom is exempt from federal income taxation;
(l)  To purchase bonds, notes or other obligations of the authority at
such price or prices as the authority may determine;
(m) To lend money, invest and reinvest its funds, and  take  and  hold
real  and  personal  property  as  security  for the payment of funds so
loaned or invested;
(n) To procure insurance against  any  loss  in  connection  with  its
properties  or  operations  in  such  amount  or  amounts  and from such
insurers, including the federal government, as it may deem necessary  or
desirable, and to pay any premiums therefor;
(o)  To  create  or  acquire  one or more wholly owned subsidiaries in
accordance with section one thousand twenty-i of this title to carry out
all or any part of the purposes of this title;
(p) To negotiate and enter into agreements with trustees or  receivers
appointed  by United States bankruptcy courts or federal district courts
or in other proceedings involving  adjustment  of  debts  and  authorize
legal counsel for the authority to appear in any such proceedings;
(q)  To  file  a  petition  under  chapter nine of title eleven of the
United States bankruptcy code or  take  other  similar  action  for  the
adjustment of its debts;
(r)  To  enter  into  agreements  to  purchase  power  from  the power
authority of the state of New York, the state,  any  state  agency,  any
municipality,  any private entity, or any other available source at such
price or prices as  may  be  negotiated;  provided,  however,  that  the
authority  shall  not  have the power to enter into any agreement or any
negotiation for the purchase of power from the dominion  of  Canada,  or
any  political  subdivision,  public  authority  or  private corporation
therein; but may enter into an agreement with the power authority of the
state of New York for the purchase of such power;
(s) To enter into management agreements for the operation  of  all  or
any of the property or facilities owned by the authority;
(t)  To transfer any asset of the authority to one or more (i) private
utility or (ii) municipal gas or electric agency established pursuant to
article fourteen-A of the general municipal law, for such  consideration
and  upon  such  terms  as the authority may determine to be in the best
interest of the gas and electric ratepayers in the service area;
(u) Rate plans. Subject to subdivision six  of  section  one  thousand
twenty-k  of  this  title to fix rates and charges for the furnishing or
rendition of gas or electric power or of  any  related  service  at  the
lowest level consistent with sound fiscal and operating practices of the
authority   and   which  provide  for  safe  and  adequate  service.  In
implementing this power:
1. The authority and the service provider shall, on or before February
first, two thousand fifteen, submit for  review  to  the  department  of
public  service a three-year rate proposal for rates and charges to take
effect on or after January first, two thousand sixteen.
2. The authority and the service provider shall thereafter submit  for
review  to the department of public service any rate proposal that would
increase the rates and charges and thus increase the aggregate  revenues
of the authority by more than two and one-half percent to be measured on
an  annual  basis;  provided, however, that the authority may place such
rates  and  charges  into  effect  on  an  interim  basis,  subject   to
prospective  rate  adjustment; provided, further, that a final rate plan
issued by the authority that  would  not  so  increase  such  rates  and
charges  shall  not  be subject to the requirements of paragraph four of
this subdivision and shall be  considered  final  for  the  purposes  of
review  under article seventy-eight of the civil practice law and rules.

The authority and/or the  service  provider  may  otherwise  submit  for
review  to  such department any rate proposal irrespective of its effect
on revenues.
2-a.  The authority and the service provider shall not submit any rate
proposal that shall assess any fee, penalty or other charge of any  kind
for  the  voluntary  termination  of electric service to any residential
customer for the purpose of utilizing alternative  sources  of  electric
generation  in  excess  of that charged to customers who terminate their
electric service for any other reason.
3. The authority shall not fix any final rates  and  charges  proposed
that  would not be subject to review by the department of public service
pursuant to paragraphs one and  two  of  this  subdivision  until  after
holding  public  hearings thereon upon reasonable public notice, with at
least one such hearing to be held each in the county of Suffolk and  the
county of Nassau.
4.  Any  recommendations  associated  with  a  rate proposal submitted
pursuant to paragraphs one and two of this subdivision shall be provided
by the department of public  service  to  the  board  of  the  authority
immediately  upon their finalization by the department. Unless the board
of the authority makes a preliminary  determination  in  its  discretion
that  any particular recommendation is inconsistent with the authority's
sound fiscal operating practices, any existing contractual or  operating
obligations,  or  the  provision of safe and adequate service, the board
shall implement such recommendations as part of its final rate plan  and
such  final determination shall be deemed to satisfy the requirements of
this subdivision and be considered final  for  the  purposes  of  review
under  article  seventy-eight  of  the civil practice law and rules. The
board shall make any such  preliminary  determination  of  inconsistency
within  thirty  days of receipt of such recommendations, with notice and
the basis of such determination being  provided  to  the  department  of
public  service,  and  contemporaneously  posted  on the websites of the
authority and its service provider. The board shall  thereafter,  within
thirty  days  of such posting and with due advance notice to the public,
hold a public hearing with respect to its preliminary  determination  of
inconsistency.  At  such hearing, the department of public service shall
present the basis for its recommendations, the board shall  present  the
basis  for  its  determination of inconsistency and the service provider
may present its position. The authority and the  service  provider  may,
during  the  time period before such public hearing reach agreement with
the department on disputed issues. Within thirty days after such  public
hearing,   the   board   of  the  authority  shall  announce  its  final
determination and  planned  implementation  with  respect  to  any  such
recommendations.  The  authority's  final determination of inconsistency
shall be subject to any applicable judicial review proceeding, including
review available under article seventy-eight of the civil  practice  law
and rules.
(v)  To  enter  upon any lands and within any building whenever in its
judgment it may be necessary for  the  purpose  of  making  surveys  and
examinations to accomplish any purpose authorized by this title;
(w)  To  enter  into agreements to pay annual sums in lieu of taxes to
any municipality with respect to any real property which is owned by the
authority and is located in such municipality;
(x) To maintain an office or offices at such place or  places  in  the
state as it may determine;
(y)  To  make  any  inquiry,  investigation, survey or study which the
authority may deem necessary to enable it effectively to carry  out  the
provisions  of this title and, for that purpose, to take and hear proofs
and testimony, and with the prior vote of a majority of the board  which

majority  vote  shall  include  the  vote  of the chairman to compel the
attendance of witnesses and to require the production of records, books,
papers, accounts and other documents, including public records,  and  to
make copies thereof or extracts therefrom; and
(z)  To  adopt,  revise,  amend  and repeal rules and regulations with
respect to its operations, properties and facilities as may be necessary
or convenient to carry out the purposes of this title,  subject  to  the
provisions of the state administrative procedure act.
(aa)  Notwithstanding  any  other provision of law to the contrary the
authority shall not undertake any project without the  approval  of  the
public  authorities  control  board created pursuant to article one-A of
this chapter. Each application to the public authorities  control  board
shall  contain  a  project  description  and  an  explanation of why the
project meets the standards for  project  approval  set  forth  in  this
subdivision.  The  public authorities control board shall only approve a
project proposed by the authority upon its determination that:
1. the project is financially feasible as the standard is  defined  in
article one-A of this chapter;
2.  the  project  does  not  materially  adversely affect overall real
property taxes in the service area;
3. the project is anticipated to result  generally  in  lower  utility
rates in the service area; and
4.  the  project  will  not  materially  adversely affect overall real
property taxes or utility rates in other areas of the state of New York.
(bb) Comprehensive and regular management and  operations  audits.  1.
The   authority   and  the  service  provider  shall  cooperate  in  the
undertaking and completion of a regular and comprehensive management and
operations  audit  conducted  pursuant  to  the  requirements  of   this
subdivision and paragraph (d) of subdivision three of section three-b of
the public service law. Such audit shall review and evaluate the overall
operations  and  management  of  the  authority  and  service  provider,
including  such  operations  and  management  in  the  context  of   the
authority's  duty  to  set  rates  at  the  lowest level consistent with
standards and procedures provided in subdivision (u)  of  this  section,
and  include,  but  not  be  limited  to:  (i)  the  service  provider's
construction and capital program planning in relation to  the  needs  of
customers  for  reliable  service;  (ii)  the  overall efficiency of the
authority's and service provider's operations; (iii) the manner in which
the  authority  is  meeting  its  debt  service  obligations;  (iv)  the
authority's Fuel and Purchased Power Cost Adjustment clause and recovery
of  costs  associated  with such clause; (v) the authority's and service
provider's  annual  budgeting   procedures   and   process;   (vi)   the
application,  if  any,  of  the  performance  metrics  designated in the
operations services agreement and the accuracy of the data  relied  upon
with  respect  to such application; and (vii) the authority's compliance
with debt covenants.
2. The department of public service shall notify  the  authority  that
said  department  is  in  the  process  of  initiating  a  comprehensive
management and operations audit as described in paragraph  one  of  this
subdivision  in  a manner that ensures the timeliness of such audit, and
in accordance with the  following  timeframe:  the  first  comprehensive
management  and  operations audit shall be initiated as of the effective
date of chapter eight of the laws of two thousand twelve and  undertaken
in  a  manner and to an extent that is practicable in the context of the
authority's transition to a new management service structure; the second
comprehensive management and operations  audit  shall  be  initiated  no
later  than December fifteenth, two thousand sixteen; and all additional
comprehensive management and operations audits  shall  be  initiated  at

least  once  every five years thereafter. Within a reasonable time after
such notification to the authority, said department or  the  independent
auditor  retained  by  the  authority to undertake such audit shall hold
public  statement  hearings,  with  proper  notice,  in  both Nassau and
Suffolk counties for the purpose of  receiving  both  oral  and  written
comments  from  the public on matters related to such audit as described
in paragraph one of this subdivision.
3. Each such audit  shall  be  completed  within  eighteen  months  of
initiation absent an extension for good cause shown by the department of
public  service  or  the  independent  auditor  under  contract with the
authority with notice of such extension to the governor,  the  temporary
president  of the senate, the speaker of the assembly, and the chairs of
the authority and the department of public service. Such audit shall  be
provided  to the board of the authority immediately upon its completion.
The department of public service shall provide notice of  completion  of
such  audit  to the governor, the temporary president of the senate, the
speaker of the assembly, and the minority  leaders  of  the  senate  and
assembly,  and  the  authority, upon receipt of such audit, shall post a
copy of such audit,  including  findings  and  recommendations,  on  its
website and the website of the service provider. Unless the board of the
authority  makes a preliminary determination that any particular finding
or recommendation contained in  such  audit  is  inconsistent  with  the
authority's  sound  fiscal operating practices, any existing contractual
or operating obligation, or the provision for safe and adequate service,
the board shall implement or cause its  service  provider  to  implement
such  findings  and  recommendations  in  accordance  with the timeframe
specified under such audit.
4. The board of the authority shall make any preliminary determination
of inconsistency with respect to  any  such  finding  or  recommendation
within thirty days of receipt of the audit, with notice and the basis of
such  determination  being provided to the department of public service.
Such  notice  and  basis  shall  be  posted  contemporaneously  on   the
authority's  website  and  the  website  of the service provider and the
board shall, within thirty days of such posting  and  with  due  advance
notice  to  the  public,  hold  a  public  hearing  with  respect to its
preliminary  determination  of  inconsistency.  At  such   hearing   the
department  of public service or the independent auditor responsible for
undertaking such audit shall present the  basis  for  its  findings  and
recommendations   and   the  board  shall  present  the  basis  for  its
determination of inconsistency and the service provider may  present  is
position.  The  authority,  service  provider and auditor may during the
time period prior to such public hearing  reach  agreement  on  disputed
issues.  Within  thirty days after such public hearing, the board of the
authority  shall  announce   its   final   determination   and   planned
implementations    with    respect   to   any   such   findings   and/or
recommendations. The authority's final  determination  of  inconsistency
shall be subject to any applicable judicial review proceeding, including
review  available  under article seventy-eight of the civil practice law
and rules.
5. Notwithstanding the foregoing, in the event  that  a  comprehensive
and  regular  management and operations audit as conducted in accordance
with  this  subdivision  indicates  a  finding  of   fraud,   abuse   or
mismanagement by a service provider of the authority, and upon a finding
by  the  public  service commission that reasonable cause exists for the
basis of such indication, the public service commission may  order  that
any  recommendations  contained in the regular management and operations
audit be implemented. The public service commission may also provide  in
their order, the date in which the recommendations be fully implemented.

Failure  to comply with any such order can result in the imposition of a
civil penalty by the  public  service  commission  against  the  service
provider.
(cc)   To   prepare  an  emergency  response  plan  pursuant  to  this
subdivision.  1. The service provider shall, in  consultation  with  the
authority, prepare and maintain an emergency response plan (i) to assure
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  authority's  service  territory
due  to  a storm or other causes beyond the control of the authority and
the service provider, (ii) consistent with the requirements of paragraph
(a) of subdivision twenty-one of section sixty-six of the public service
law  and  any  regulations  and  orders  adopted  thereto,   and   (iii)
establishing  the separate responsibilities of the authority and service
provider. Such emergency response plan shall include plans setting forth
how the communication and coordination of efforts between the authority,
service  provider,  authority  employees,  service  provider  employees,
authority  company  crews,  service  provider  company crews, mutual aid
crews, other utilities, local governments and any  service  provider  or
other  entity  performing  services to assist the authority shall occur.
Such  emergency  response  plan  shall  include  identification  of  and
outreach  plans  for  customers  who  have  documented  their  need  for
essential electricity for medical needs, which shall include but not  be
limited   to,   apnea   monitors   for   infants,  cuirass  respirators,
hemodialysis machines, intravenous feeding machines, intravenous medical
infusion machines, oxygen concentrators, positive pressure  respirators,
respirators/ventilators,  rocking bed respirators, suction machines, and
tank type respirators.
2. On or before February third, two thousand fourteen,  the  authority
and  service  provider  shall  submit  an emergency response plan to the
department of public service for  review.  Contemporaneously  with  such
submission,  the authority shall provide notice of such proposed plan to
the secretary of state  for  publication  in  the  state  register,  the
authority  and  service  provider  each  shall  post  such plan on their
websites and otherwise make such plan available  for  review  in-person,
and  afford  members  of  the  public  an  opportunity to submit written
comments and oral comments pursuant to at least one hearing to  be  held
each  in  the  county  of Suffolk and the county of Nassau. Such written
comments must be submitted by March fourteenth, two  thousand  fourteen.
The  authority  and service provider shall provide a copy of all written
comments they receive and a transcript of such public  hearings  to  the
department  of  public  service  for  its consideration in reviewing the
emergency   response   plan.   The   department   shall   provide    any
recommendations  to  the  authority and service provider with respect to
such plan on or before April fifteenth, two thousand fourteen. Such plan
must be made final by June second, two thousand fourteen. For each  year
thereafter, the service provider shall submit an emergency response plan
to  the  department of public service, and such department shall provide
its recommendations, in accordance with a schedule to be established  by
such department and that is consistent with the schedule associated with
such  department's  review  of  similar  such plans provided by electric
corporations pursuant to subdivision twenty-one of section sixty-six  of
the public service law.
3.  By  June second, two thousand fourteen, and by June first annually
thereafter, the authority and service provider shall jointly certify  to
the  department  of  homeland  security  and emergency services that the
emergency response plan ensures, to the greatest  extent  feasible,  the
timely  and  safe  restoration  of  energy  services  after an emergency

consistent  with  the  requirements  of  paragraph  (a)  of  subdivision
twenty-one   of   the   public   service   law   and   the  department's
recommendations. The filing of such emergency response plan  shall  also
include  a  copy  of  all  written  mutual  assistance  agreements among
utilities. The authority and service provider shall file with the county
executives of Nassau and Suffolk county and the mayor of the city of New
York the most recent version of the emergency response  plan,  and  make
sure that such amended versions are timely filed.
4.  Starting  in  calendar  year  two  thousand  fourteen, the service
provider annually shall  undertake  at  least  one  drill  to  implement
procedures to practice its emergency response plan. The service provider
shall  notify  and  allow participation in such drill of all appropriate
municipal emergency responders and officials.
5. If, during an emergency event, electric service is not restored  in
three  days,  the service provider shall within sixty days from the date
of full restoration file with the department  a  report  constituting  a
review  of  all  aspects  of  the  preparation  and  system  restoration
performance  during  the  event,  and   shall   thereafter   take   into
consideration any recommendations made by the department associated with
such review.
(dd)  On or before January first, two thousand fifteen, and by January
first of each calendar year thereafter, to  submit  for  review  to  the
department  of  public service a report detailing the service provider's
planned capital expenditures.
(ee) On or before July first,  two  thousand  fourteen,  and  annually
thereafter, to submit for review to the department of public service any
proposed  plan  related  to  implementing  energy  efficiency  measures,
distributed generation or advanced  grid  technology  programs  for  the
purpose  provided  pursuant  to  paragraph  (g)  of subdivision three of
section three-b of the public service law.
(ff) To assist and cooperate with the  department  of  public  service
with respect to any review undertaken pursuant to section three-b of the
public  service  law, including providing the department with reasonable
access to all facilities and premises owned or operated by the authority
or its service provider, allowing review of all books and records of the
authority and  its  service  provider,  providing  copies  of  requested
documents,   allowing  interviews  of  all  appropriate  personnel,  and
responding in a  reasonable  and  timely  manner  to  any  inquiries  or
reporting  requests  made by the department; provided, however, that the
obligations set forth in this subdivision shall not extend to affiliates
of the service provider.
(gg) Renewable generation  and  energy  efficiency  programs.  1.  The
authority in coordination with the service provider, the power authority
of  the  state  of  New  York and the New York state energy research and
development authority shall, to the extent  the  authority's  rates  are
sufficient  to  provide  safe and adequate transmission and distribution
service, and the  measures  herein,  undertake  actions  to  design  and
administer  renewable  energy  and  energy  efficiency  measures  in the
service area, with the goal of continuing and  expanding  such  measures
that cost-effectively reduce system-wide peak demand, minimize long-term
fuel  price  risk to rate payers, lower emissions, improve environmental
quality,  and  seek  to  meet  New  York  state   climate   change   and
environmental  goals.  Such actions shall also include implementation of
any renewable energy competitive procurement or feed-in-tariff  programs
that  were  approved  by  the  authority as of the effective date of the
chapter  of  the  laws  of  two  thousand  thirteen  which  added   this
subdivision.
2.  The  service  provider shall consider, consistent with maintaining
system reliability, renewable generation and energy  efficiency  program
results and options in establishing capital plans.
(hh) Starting in calendar year two thousand fifteen, the authority and
the  service  provider  shall submit to the department of public service
for review, any and all data, information and reports  which  set  forth
the  service provider's actual performance related to the metrics in the
operations services  agreement,  including  the  authority's  evaluation
thereof,   no  less  than  forty-five  days  prior  to  the  authority's
determination of the service provider's annual incentive compensation.
(ii)  The  service  provider  shall  assist  and  cooperate  with  the
department  of  public  service  with  respect  to providing any data or
information  necessary  for  the  department  to  post  a   compensation
statement  for the service provider in accordance with subdivision three
of section one hundred eleven-a of the public service law.
* (jj) As deemed feasible and advisable by the trustees, to enter into
contracts with the power authority of the state  of  New  York  for  the
provision  of  bill  credits  generated  by  the production of renewable
energy by a renewable energy system developed,  constructed,  owned,  or
contracted for by the power authority of the state of New York under the
renewable  energy access and community help program established pursuant
to subdivision twenty-seven-b of  section  one  thousand  five  of  this
article  and,  unless  such  end-use  electricity  consumers opt out, to
provide such bill  credits  to  low-income  or  moderate-income  end-use
electricity  consumers  in  disadvantaged  communities,  including  such
end-use electricity customers who have or who reside in  buildings  that
have  on-site  net-metered  generation or who participate in a community
choice aggregation or community distributed generation project.
* NB There are 2 sb (jj)'s
* (jj)  The  authority  and  its  service  provider  shall  permit   a
residential customer to designate a third party to receive notice of the
total  amount  due or past due on all bills, the amounts of any payments
paid by or on behalf of such residential customer,  and  copies  of  all
notices  relating  to  termination  of  service  and notices relating to
collection of amounts due sent to such  residential  customer,  provided
that  the  designated  third party indicates in writing a willingness to
receive such notices, and provided further, where a residential customer
opts for third-party notifications, such residential customer may opt to
continue to receive such notices.
* NB There are 2 sb (jj)'s
* NB Effective June 19, 2024
* (kk) The authority and its service provider shall permit a landlord,
upon written request of both the landlord and  tenant,  to  designate  a
third party to be notified of all requests for discontinuance of service
to  units  occupied  by  such tenant, provided that the designated third
party indicates in writing a willingness to receive  such  notices,  and
provided  further,  where  the  tenant  and  landlord  customers opt for
third-party notifications, such tenant and landlord customers may opt to
continue to receive such notices.
* NB Effective June 19, 2024
* NB There are 2 § 1020-f's