N.Y. Public Service Law § 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.