2023 New York Laws › PBS - Public Service › Article 1 - The Department of Public Service › 3-B - Long Island Office of the Department.

§  3-b.  Long  Island  office  of  the  department. 1. There is hereby
established  in  the  department  an   office   to   review   and   make
recommendations  with respect to the operations and terms and conditions
of service of, and rates and budgets established  by,  the  Long  Island
power authority and/or its service provider.
2. Definitions. As used or referred to in this section:
(a) "Authority" means the Long Island power authority.
(b)  "Service  provider"  means  the  entity  under  contract with the
authority to provide management and operation services  associated  with
the  authority's  electric  transmission and distribution system and any
subsidiary of such entity that provides such  services  under  contract.
However,  the service provider and any affiliate of the service provider
with whom  the  authority  or  service  provider  contracts  to  provide
services  associated  with  the  authority's  electric  transmission and
distribution system shall not  be  considered  an  electric  corporation
under this chapter.
(c)  "Operations  services  agreement"  means  an  agreement  and  any
amendments thereto between the Long Island lighting company dba LIPA  or
the  Long  Island  power  authority  and the service provider to provide
management  and  operation  services  associated  with  the  authority's
electric transmission and distribution system.
3.  General  powers.  In undertaking the requirements of this section,
subject to subdivisions  (u)  and  (bb)  through  (hh)  of  section  one
thousand twenty-f of the public authorities law, the department shall be
empowered and authorized to:
(a)  Review  and  make recommendations to the board of the Long Island
power authority with respect to the rates and charges, including charges
related to energy  efficiency  and  renewable  energy  programs,  to  be
established  by  the authority and become applicable on or after January
first, two thousand sixteen pursuant to subdivision (u) of  section  one
thousand twenty-f of the public authorities law.
(i)  The purpose of such review is to make recommendations designed to
ensure that the authority and the  service  provider  provide  safe  and
adequate  transmission  and  distribution  service  at  rates set at the
lowest level consistent with sound fiscal operating practices.
(ii)  The  department's  recommendations  shall  be  designed  to   be
consistent  with  ensuring that the revenue requirements related to such
rate review are sufficient to satisfy the authority's  obligations  with
respect to its bonds, notes and all other contracts.
(iii)  In  the  context  of  such  review,  the  department  may  make
recommendations  with  regard  to  the  compensation  or  fee  structure
included within the operations services agreement.
(iv)  In undertaking such review and in making recommendations related
to the proposed  rates  and  charges,  the  department  shall  establish
standards,  policies  and  procedures  that,  at  a minimum, provide for
public  statement  and  evidentiary  hearings   and   participation   of
intervenors and other parties, and ensure that any final recommendations
related  to the proposed rates and charges are provided to the authority
within two hundred forty days of the filing with the department of  such
plan.
(v)  The parties to any such rate review proceeding shall include, but
not be limited to, department staff, the authority, the service provider
and, to the extent  it  deems  necessary  or  appropriate,  the  utility
intervention unit.
(b)  Review  the  annual  capital expenditures proposed by the service
provider and recommend such improvement in the  manufacture,  conveying,
transportation, distribution or supply of electricity, or in the methods

employed  by  the  the  service provider as in the department's judgment
allows for safe and adequate service.
(c)  Annually  review the emergency response plan of the authority and
the service provider in accordance with the following requirements:
(i) Examine and determine  whether  the  emergency  response  plan  is
consistent  with  the  requirements  of  paragraph  (a)  of  subdivision
twenty-one of section sixty-six of this chapter and any  regulations  or
orders promulgated thereto, and to recommend amendments of same; and
(ii)  Review and make recommendations to the authority with respect to
the  performance  of  the  service  provider  in  restoring  service  or
otherwise meeting the requirements of the emergency response plan during
an  emergency  event,  defined  for purposes of this section 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 its service provider, including making determinations with
respect to whether the service provider is reasonably able to  implement
the  emergency  response plan, whether the length of any outages related
to such emergency were materially longer than they would otherwise  have
been  because  the  service  provider failed to reasonably implement the
emergency response plan, the reasonableness  of  costs  associated  with
such  emergency  response, the costs, if any, that were unreasonably and
imprudently incurred by the service provider, and  whether  the  service
provider  would  be  liable for any such costs pursuant to the terms and
conditions of the operations services agreement.
(d) Upon notification to the Long Island power authority, undertake  a
comprehensive  and  regular  management  and  operations  audit  of  the
authority and service provider pursuant to subdivision (bb)  of  section
one  thousand  twenty-f  of  the  public authorities law. The department
shall have discretion to have such an audit performed by its  staff,  or
by  an  independent  contractor.  In  every  case  in  which an audit is
required pursuant to subdivision (bb) of section one  thousand  twenty-f
of  the  public authorities law performed by an independent auditor, the
department shall have the  authority  to  select  the  auditor,  and  to
require  the authority to enter into a contract with the auditor that is
consistent  with  the  contracting-related  requirements  specified   in
subdivision  nineteen  of  section  sixty-six  of  this  chapter and the
requirements of subdivision (bb) of section one thousand twenty-f of the
public authorities law. Such contract shall  provide  further  that  the
auditor  shall  work  for  and  under  the  direction  of the department
according to such terms as the department may  determine  are  necessary
and reasonable.
(e)  Accept,  investigate, mediate to resolve and make recommendations
to the Long Island power authority and/or the service provider regarding
the resolution of complaints from consumers in the  authority's  service
territory  relating  to,  among  other things, the provision of electric
service provided by the service provider and/or the authority.
(f) Review the net metering program implemented under subdivision  (h)
of  section one thousand twenty-g of the public authorities law and make
recommendations designed to ensure consistency with the requirements  of
sections   sixty-six-j   and   sixty-six-l  of  this  chapter,  and  any
regulations and orders adopted thereto.
(g) Review and make recommendations with respect to any proposed  plan
submitted by the Long Island power authority and/or the service provider
related  to  implementation  of  energy efficiency measures, distributed
generation or advanced grid technology programs having  the  purpose  of
providing  customers  with  tools  to  more  efficiently and effectively
manage their energy  usage  and  utility  bills,  and  improving  system
reliability and power quality.
(h)  Review  the  data,  information and reports submitted pursuant to
subdivision  (hh)  of  section  one  thousand  twenty-f  of  the  public
authorities  law  and other pertinent information related to the metrics
in the operations services agreement, the Long Island power  authority's
evaluation   of   such   data,   information   and   reports,  and  make
recommendations to the authority with respect to the service  provider's
annual  incentive-based  compensation  within  thirty days of receipt of
such evaluation and information.
4. Review and inspection. To undertake the requirements of subdivision
two of this section, the department shall be authorized to  inspect  all
premises  and  facilities  owned  or  operated  by the authority and the
service provider, review all books and records of the authority and  the
service  provider,  interview  all  appropriate  personnel,  and require
annual reporting consistent with the requirements of subdivision six  of
section sixty-six of this chapter and any regulations and orders adopted
thereto;  provided,  however,  that  this  authority shall not extend to
affiliates of the service provider.