§ 83-N — Legislative commission on the future of the Long Island Power Authority

* § 83-n. Legislative commission on the future of the Long Island\nPower Authority. 1. The legislature hereby finds and declares that\nchapter 517 of the laws of 1986 created the Long Island Power Authority\n(LIPA). Said authority was created, in part, because the decisions by\nLILCO, the private utility that provided electricity to Long Island and\npart of Queens, "to commence construction of the Shoreham nuclear power\nplant and thereafter to continue such construction were imprudent".\nFurther, the legislature found in chapter 517 of the laws of 1986 that\n"a situation threatening the economy, health and safety exists in the\nservice area". One of the two express purposes of the act was the\nclosure of the Shoreham nuclear power plant. In 1992, LIPA bought the\nShoreham nuclear power plant. The plant was fully decommissioned in\n1994.\n The second purpose of such chapter 517 was to replace LILCO with a\npublicly owned power authority. The legislature found that "There is a\nlack of confidence that the needs of the residents and of commerce and\nindustry in the service area for electricity can be supplied in a\nreliable, efficient and economic manner by the Long Island lighting\ncompany (hereinafter referred to as "LILCO")" and "Such matters of state\nconcern best can be dealt with by replacing such investor owned utility\nwith a publicly owned power authority."\n In 1995, LIPA replaced LILCO as the electric company for its service\narea. However, LIPA was never established as a true "publicly owned\npower authority" as originally envisioned by the State Legislature.\nRather, since 1995, LIPA has opted for a third-party management model\nwhereby LIPA contracts its responsibility to manage the utility to a\nprivate, investor owned utility company.\n LIPA is the only utility in the nation that is operated under a\nthird-party management model. This model has repeatedly failed its\ncustomers. There has been a lack of transparency, oversight, and\naccountability. This failure has been most dramatically evidenced in the\nunacceptable storm response by LIPA and its third-party contractors\nduring Superstorm Sandy in 2012 and Tropical Storm Isaias in 2020.\n After more than 25 years of unsatisfactory management under the\nthird-party management model, a better alternative must be implemented.\nThat inquiry must begin with the original intent of chapter 517 of the\nlaws of 1986, whereby LIPA was to directly manage and operate the\nutility as a true public power utility. Initial investigations by LIPA\nafter Tropical Storm Isaias in 2020-2021 indicate that both ratepayer\nsavings and increased management efficiencies could be achieved through\nthe public power model.\n Consequently, it is the purpose of this section to implement the\noriginal vision for LIPA intended by chapter 517 of the laws of 1986, as\na publicly owned power company. The legislature hereby creates a\ncommission to provide the legislature with the specific actions,\nlegislation, and timeline necessary to restructure LIPA into a true\npublicly owned power authority. The public must participate in that\nprocess so that the new LIPA becomes transparent with proper oversight\nand accountability. The legislative commission shall submit its final\nreport to the legislature no later than November thirtieth, two thousand\ntwenty-three.\n 2. A legislative commission is hereby established to investigate and\nreport to the legislature on the establishment of a public power model\nfor the operation of LIPA, whereby the authority would directly operate\nthe utility as a true public power authority. The commission shall\nreport to the legislature on the specific actions, legislation, and\ntimeline necessary to restructure LIPA into a true publicly owned power\nauthority. The commission shall consider: (a) the method of governance\nof the public authority; (b) improved transparency, accountability, and\npublic involvement; (c) improved reliability of the system; (d) the\nimpact on electric rates; (e) improved storm response; (f) the powers\nrequired by LIPA to more effectively operate the utility; (g) the\noversight role of the department of public service and the public\nservice commission over LIPA's operation; (h) the impact on existing\nbonded indebtedness; (i) improved long term energy planning; (j)\ncompliance with the goals of the New York state climate leadership and\ncommunity protection act; (k) increased reliance on renewable energy\nsources to produce electricity; (l) taxation and payments in lieu of\ntaxes; (m) the special needs of communities that are or have been\nimpacted by the siting of power generating facilities; and (n) any other\nmatter relevant to the establishment of a public power model for the\noperation of LIPA. In its report to the legislature, the commission\nshall provide for the implementation of the public power model by LIPA\nno later than December thirty-first, two thousand twenty-five.\n 3. The commission shall consist of eight members to be appointed as\nfollows: three members of the senate shall be appointed by the temporary\npresident of the senate; three members of the assembly shall be\nappointed by the speaker of the assembly; one member of the senate shall\nbe appointed by the minority leader of the senate; and one member of the\nassembly shall be appointed by the minority leader of the assembly. Any\nvacancy that occurs in the commission shall be filled in the same manner\nin which the original appointment was made. Co-chairs of the commission\nshall be designated by the temporary president of the senate and the\nspeaker of the assembly, respectively. No member, officer, or employee\nof the commission shall be disqualified from holding any other public\noffice or employment, nor shall he or she forfeit any such office or\nemployment by reason of his or her appointment hereunder,\nnotwithstanding the provisions of any general, special, or local law,\nordinance, or city charter.\n 4. The commission shall establish an advisory committee to actively\nassist and advise the commission in the preparation of the public power\nreport required to be prepared pursuant to this section. The committee\nshall consist of not more than fifteen members which shall include but\nnot be limited to representatives of organizations and institutions\nrepresenting business, labor, local government, Indian nations and\ntribes, economic development, environmental, energy, social justice,\nconsumer, civic, school districts or higher education interests. The\ncommittee by a majority vote shall elect a chairperson. The commission\nshall meet periodically with the advisory committee, make available\nworking draft and other documents, and shall provide services to the\nadvisory committee as are necessary and appropriate to carry out its\nfunctions under this section. Members of the advisory committee shall be\nresidents of the service area.\n 5. The commission may employ and at pleasure remove such personnel as\nit may deem necessary for the performance of the commission's functions\nand fix their compensation within the amount appropriated therefor. The\ncommission may hold public and private hearings and otherwise have all\nof the powers of a legislative committee under this chapter. The members\nof the commission shall receive no compensation for their services,\nexcept as provided pursuant to section five-a of this chapter, but shall\nbe allowed their actual and necessary expenses incurred in the\nperformance of their duties hereunder.\n 6. Employees of the commission shall be considered to be employees of\nthe legislature for all purposes.\n 7. The commission may request and shall receive from any subdivision,\ndepartment, board, bureau, commission, office, agency or other\ninstrumentality of the state or of any political subdivision thereof,\nincluding but not limited to the department of public service and the\npublic service commission, such facilities, assistance and data as it\ndeems necessary or desirable for the proper execution of its powers and\nduties. The office of the state comptroller may, at its discretion,\nprovide to the commission such facilities, assistance, and data as may\nbe requested by the commission.\n 8. The commission is hereby authorized and empowered to make and sign\nany agreements, and to do and perform any acts that may be necessary,\ndesirable or proper to carry out the purposes and objectives set forth\nin this section.\n 9. The commission shall hold at least one public hearing with a public\ncomment period in each of the counties comprising the service area of\nthe Long Island Power Authority on the establishment of public power by\nSeptember thirtieth, two thousand twenty-two and before issuing a draft\nreport.\n 10. No later than May first, two thousand twenty-three, the commission\nshall issue a draft report to the members of the legislature regarding\nthe establishment of a public power model for the Long Island Power\nAuthority. The commission shall hold at least one public hearing with a\npublic comment period in each of the counties comprising the service\narea of the Long Island Power Authority on the draft report no later\nthan October first, two thousand twenty-three and before issuing a final\nreport.\n 11. Within thirty days of the issuance of the commission's draft\nreport, the comptroller shall have the discretion to review the draft\nreport and issue to the legislature any recommendations relative to the\nfindings contained in the draft report which relates to the\nestablishment of a public power model for the Long Island Power\nAuthority.\n 12. No later than November thirtieth, two thousand twenty-three, the\ncommission shall issue a final report to the members of the legislature\nregarding the establishment of a public power model for the Long Island\nPower Authority. Such report shall provide any legislation required to\nimplement the public power model.\n * NB This section survives the repeal of A5-A\n