N.Y. Public Authorities Law § 1020-a: Declaration of legislative findings and declarations

* § 1020-a. Declaration of legislative findings and declarations. The

legislature hereby finds and declares that:

Constantly escalating and excessive costs of electricity in the

counties of Suffolk and Nassau and that portion of the county of Queens

served by the Long Island lighting company (hereinafter referred to as

the "service area") pose a serious threat to the economic well-being,

health and safety of the residents of and the commerce and industry in

the service area.

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").

Such excessive costs and lack of confidence have deterred commerce and

industry from locating in the service area and have caused existing

commerce and industry to consider seriously moving out of the service

area.

The decisions by LILCO to commence construction of the Shoreham

nuclear power plant and thereafter to continue such construction were

imprudent.

The investment of LILCO in the Shoreham nuclear power plant has

created significant rate increases, straining the economic capabilities

of ratepayers in the service area, and likely will require further

substantial rate increases if such plant is placed in service.

It is uncertain whether the Shoreham nuclear plant ever will go into

commercial service, or if it does whether its reliability, cost of

construction, operation and maintenance will be such as to provide

sufficient, reliable and economic electric service to ratepayers in the

service area. The very substantial financial strain of the investment in

the Shoreham nuclear plant has required LILCO to suspend dividends on

its common and preferred stock, severely threatening the continued

economic viability of LILCO.

For all the above reasons, a situation threatening the economy, health

and safety exists in the service area.

Dealing with such a situation in an effective manner, assuring the

provision of an adequate supply of electricity in a reliable, efficient

and economic manner, and retaining existing commerce and industry in and

attracting new commerce and industry to the service area, in which a

substantial portion of the state's population resides and which

encompasses a substantial portion of the state's commerce and industry,

are hereby expressly determined to be matters of state concern within

the meaning of paragraph three of subdivision (a) of section three of

article nine of the state constitution.

Such matters of state concern best can be dealt with by replacing such

investor owned utility with a publicly owned power authority. Such an

authority can best accomplish the purposes and objectives of this title

by implementing, if it then appears appropriate, the results of

negotiations between the state and LILCO. In such circumstances, such an

authority will provide safe and adequate service at rates which will be

lower than the rates which would otherwise result and will facilitate

the shifting of investment into more beneficial energy demand/energy

supply management alternatives, realizing savings for the ratepayers and

taxpayers in the service area and otherwise restoring the confidence and

protecting the interests of ratepayers and the economy in the service

area. Moreover, in such circumstances the replacement of such investor

owned utilities by such an authority will result in an improved system

and reduction of future costs and a safer, more efficient, reliable and

economical supply of electric energy. The legislature further finds that

such an authority shall utilize to the fullest extent practicable, all

economical means of conservation, and technologies that rely on

renewable energy resources, cogeneration and improvements in energy

efficiency which will benefit the interests of the ratepayers of the

service area.

* NB There are 2 § 1020-a's