N.Y. Public Service Law § 66-a: Conservation of gas, declaration of policy, delegation of power

§ 66-a. Conservation of gas, declaration of policy, delegation of

power. 1. It is hereby declared to be the policy of this state that

when there develops in any area a situation under which a gas

corporation supplying gas to such area is unable to meet the reasonable

needs of its consumers and of persons or corporations applying for new

or additional gas service, the available supply of gas shall be

allocated among the customers of such gas corporation, in such manner as

may be necessary to protect public health and safety and to avoid undue

hardship, pursuant to rules and regulations as may be adopted by the

commission, and that to carry out this declared policy the jurisdiction

of the public service commission should be clarified.

2. Notwithstanding the provisions of any statute or any franchise held

by a gas corporation, the commission shall have power, upon the finding

that there exists such a shortage of gas in any area in the state, that

the gas corporation supplying such area is unable and will be unable to

secure or produce sufficient gas to meet the reasonable needs of its

customers and of persons or corporations applying for new or additional

gas service, to require such corporation to immediately discontinue the

supplying of gas to additional customers or of supplying additional

service to present customers, for such purpose or purposes as may be

designated by the commission, or to customers using gas for a purpose

prohibited by the commission pursuant to this act, and that upon the

finding that the supply of gas available is and will be insufficient to

supply the demands of all consumers receiving service, to require such

gas corporation to curtail or discontinue service to any or all classes

of customers of such gas corporation. In imposing such a direction or

requirement, the commission shall give consideration first to existing

domestic uses and uses deemed to be necessary by the commission to

protect public health and safety and to avoid undue hardship and shall

be limited to the period of the emergency provided that the gas

corporation affected shall make such restriction, curtailing or

discontinuance applicable to all customers or applicants for service in

a like class. If the commission determines that good cause exists for

supplying service to additional customers or for supplying additional

service to some existing customers, notwithstanding the curtailment or

discontinuance of service to other existing customers, it shall, to the

extent feasible, allocate gas with equal priority to new or additional

domestic uses of gas and commercial or industrial processes which

require gas because there is no practical substitute for it in such

proportion as the commission determines to be reasonable. Provided that

the commission shall be permitted, after public hearing, to authorize

any natural gas produced from lands under the waters of Lake Erie to be

used for process or feedstock requirements. The commission is authorized

to adopt such rules, regulations and orders as are necessary or

appropriate to carry out these delegated powers.

3. In carrying out the delegated powers provided for in this section,

the commission shall, to the extent practicable, determine and establish

gas conservation measures or standards. The commission may require

compliance with such measures or standards as a condition of receiving

service.