2023 New York Laws › LEG - Legislative › Article 5-A - Legislative Commissions › 83-N - Legislative Commission on the Future of the Long Island Power Authority.

* §  83-n.  Legislative  commission  on  the future of the Long Island
  Power Authority. 1. The  legislature  hereby  finds  and  declares  that
  chapter  517 of the laws of 1986 created the Long Island Power Authority
  (LIPA). Said authority was created, in part, because  the  decisions  by
  LILCO,  the private utility that provided electricity to Long Island and
  part of Queens, "to commence construction of the Shoreham nuclear  power
  plant  and  thereafter  to  continue  such construction were imprudent".
  Further, the legislature found in chapter 517 of the laws of  1986  that
  "a  situation  threatening  the economy, health and safety exists in the
  service area". One of the two  express  purposes  of  the  act  was  the
  closure  of  the  Shoreham nuclear power plant. In 1992, LIPA bought the
  Shoreham nuclear power plant. The  plant  was  fully  decommissioned  in
  1994.
The  second  purpose  of  such chapter 517 was to replace LILCO with a
  publicly owned power authority. The legislature found that "There  is  a
  lack  of  confidence that the needs of the residents and of commerce and
  industry in the service area  for  electricity  can  be  supplied  in  a
  reliable,  efficient  and  economic  manner  by the Long Island lighting
  company (hereinafter referred to as "LILCO")" and "Such matters of state
  concern best can be dealt with by replacing such investor owned  utility
  with a publicly owned power authority."
In  1995,  LIPA replaced LILCO as the electric company for its service
  area. However, LIPA was never established  as  a  true  "publicly  owned
  power  authority"  as  originally  envisioned  by the State Legislature.
  Rather, since 1995, LIPA has opted for a  third-party  management  model
  whereby  LIPA  contracts  its  responsibility to manage the utility to a
  private, investor owned utility company.
LIPA is the only utility in  the  nation  that  is  operated  under  a
  third-party  management  model.  This  model  has  repeatedly failed its
  customers. There  has  been  a  lack  of  transparency,  oversight,  and
  accountability. This failure has been most dramatically evidenced in the
  unacceptable  storm  response  by  LIPA  and its third-party contractors
  during Superstorm Sandy in 2012 and Tropical Storm Isaias in 2020.
After more than  25  years  of  unsatisfactory  management  under  the
  third-party  management model, a better alternative must be implemented.
  That inquiry must begin with the original intent of chapter 517  of  the
  laws  of  1986,  whereby  LIPA  was  to  directly manage and operate the
  utility as a true public power utility. Initial investigations  by  LIPA
  after  Tropical  Storm  Isaias in 2020-2021 indicate that both ratepayer
  savings and increased management efficiencies could be achieved  through
  the public power model.
Consequently,  it  is  the  purpose  of  this section to implement the
  original vision for LIPA intended by chapter 517 of the laws of 1986, as
  a publicly  owned  power  company.  The  legislature  hereby  creates  a
  commission  to  provide  the  legislature  with  the  specific  actions,
  legislation, and timeline necessary to  restructure  LIPA  into  a  true
  publicly  owned  power  authority.  The  public must participate in that
  process so that the new LIPA becomes transparent with  proper  oversight
  and  accountability.  The  legislative commission shall submit its final
  report to the legislature no later than November thirtieth, two thousand
  twenty-three.
2. A legislative commission is hereby established to  investigate  and
  report  to  the legislature on the establishment of a public power model
  for the operation of LIPA, whereby the authority would directly  operate
  the  utility  as  a  true  public  power authority. The commission shall
  report to the legislature on  the  specific  actions,  legislation,  and
  timeline  necessary to restructure LIPA into a true publicly owned power
  authority. The commission shall consider: (a) the method  of  governance

  of  the public authority; (b) improved transparency, accountability, and
  public involvement; (c) improved reliability  of  the  system;  (d)  the
  impact  on  electric  rates; (e) improved storm response; (f) the powers
  required  by  LIPA  to  more  effectively  operate  the utility; (g) the
  oversight role of the  department  of  public  service  and  the  public
  service  commission  over  LIPA's  operation; (h) the impact on existing
  bonded  indebtedness;  (i)  improved  long  term  energy  planning;  (j)
  compliance  with  the goals of the New York state climate leadership and
  community protection act; (k) increased  reliance  on  renewable  energy
  sources  to  produce  electricity;  (l) taxation and payments in lieu of
  taxes; (m) the special needs  of  communities  that  are  or  have  been
  impacted by the siting of power generating facilities; and (n) any other
  matter  relevant  to  the  establishment of a public power model for the
  operation of LIPA. In its report  to  the  legislature,  the  commission
  shall  provide  for the implementation of the public power model by LIPA
  no later than December thirty-first, two thousand twenty-five.
3. The commission shall consist of eight members to  be  appointed  as
  follows: three members of the senate shall be appointed by the temporary
  president  of  the  senate;  three  members  of  the  assembly  shall be
  appointed by the speaker of the assembly; one member of the senate shall
  be appointed by the minority leader of the senate; and one member of the
  assembly shall be appointed by the minority leader of the assembly.  Any
  vacancy that occurs in the commission shall be filled in the same manner
  in  which the original appointment was made. Co-chairs of the commission
  shall be designated by the temporary president of  the  senate  and  the
  speaker  of  the assembly, respectively. No member, officer, or employee
  of the commission shall be disqualified from holding  any  other  public
  office  or  employment,  nor  shall he or she forfeit any such office or
  employment  by   reason   of   his   or   her   appointment   hereunder,
  notwithstanding  the  provisions  of any general, special, or local law,
  ordinance, or city charter.
4. The commission shall establish an advisory  committee  to  actively
  assist  and advise the commission in the preparation of the public power
  report required to be prepared pursuant to this section.  The  committee
  shall  consist  of not more than fifteen members which shall include but
  not be limited to  representatives  of  organizations  and  institutions
  representing  business,  labor,  local  government,  Indian  nations and
  tribes, economic development,  environmental,  energy,  social  justice,
  consumer,  civic,  school  districts  or higher education interests. The
  committee by a majority vote shall elect a chairperson.  The  commission
  shall  meet  periodically  with  the  advisory committee, make available
  working draft and other documents, and shall  provide  services  to  the
  advisory  committee  as  are  necessary and appropriate to carry out its
  functions under this section. Members of the advisory committee shall be
  residents of the service area.
5. The commission may employ and at pleasure remove such personnel  as
  it  may deem necessary for the performance of the commission's functions
  and fix their compensation within the amount appropriated therefor.  The
  commission  may  hold public and private hearings and otherwise have all
  of the powers of a legislative committee under this chapter. The members
  of the commission shall receive  no  compensation  for  their  services,
  except as provided pursuant to section five-a of this chapter, but shall
  be   allowed  their  actual  and  necessary  expenses  incurred  in  the
  performance of their duties hereunder.
6. Employees of the commission shall be considered to be employees  of
  the legislature for all purposes.
7.  The commission may request and shall receive from any subdivision,
  department,  board,  bureau,  commission,  office,   agency   or   other

  instrumentality  of  the  state or of any political subdivision thereof,
  including but not limited to the department of public  service  and  the
  public  service  commission,  such facilities, assistance and data as it
  deems  necessary or desirable for the proper execution of its powers and
  duties. The office of the state  comptroller  may,  at  its  discretion,
  provide  to  the commission such facilities, assistance, and data as may
  be requested by the commission.
8. The commission is hereby authorized and empowered to make and  sign
  any  agreements,  and  to do and perform any acts that may be necessary,
  desirable or proper to carry out the purposes and objectives  set  forth
  in this section.
9. The commission shall hold at least one public hearing with a public
  comment  period  in  each of the counties comprising the service area of
  the Long Island Power Authority on the establishment of public power  by
  September  thirtieth, two thousand twenty-two and before issuing a draft
  report.
10. No later than May first, two thousand twenty-three, the commission
  shall issue a draft report to the members of the  legislature  regarding
  the  establishment  of  a  public  power model for the Long Island Power
  Authority. The commission shall hold at least one public hearing with  a
  public  comment  period  in  each of the counties comprising the service
  area of the Long Island Power Authority on the  draft  report  no  later
  than October first, two thousand twenty-three and before issuing a final
  report.
11.  Within  thirty  days  of  the  issuance of the commission's draft
  report, the comptroller shall have the discretion to  review  the  draft
  report  and issue to the legislature any recommendations relative to the
  findings  contained  in  the  draft  report   which   relates   to   the
  establishment  of  a  public  power  model  for  the  Long  Island Power
  Authority.
12. No later than November thirtieth, two thousand  twenty-three,  the
  commission  shall issue a final report to the members of the legislature
  regarding the establishment of a public power model for the Long  Island
  Power  Authority.  Such report shall provide any legislation required to
  implement the public power model.
* NB This section survives the repeal of A5-A