§ 1020-A — Declaration of legislative findings and declarations

* § 1020-a. Declaration of legislative findings and declarations. The\nlegislature hereby finds and declares that:\n Constantly escalating and excessive costs of electricity in the\ncounties of Suffolk and Nassau and that portion of the county of Queens\nserved by the Long Island lighting company (hereinafter referred to as\nthe "service area") pose a serious threat to the economic well-being,\nhealth and safety of the residents of and the commerce and industry in\nthe service area.\n There is a lack of confidence that the needs of the residents and of\ncommerce and industry in the service area for electricity can be\nsupplied in a reliable, efficient and economic manner by the Long Island\nlighting company (hereinafter referred to as "LILCO").\n Such excessive costs and lack of confidence have deterred commerce and\nindustry from locating in the service area and have caused existing\ncommerce and industry to consider seriously moving out of the service\narea.\n The decisions by LILCO to commence construction of the Shoreham\nnuclear power plant and thereafter to continue such construction were\nimprudent.\n The investment of LILCO in the Shoreham nuclear power plant has\ncreated significant rate increases, straining the economic capabilities\nof ratepayers in the service area, and likely will require further\nsubstantial rate increases if such plant is placed in service.\n It is uncertain whether the Shoreham nuclear plant ever will go into\ncommercial service, or if it does whether its reliability, cost of\nconstruction, operation and maintenance will be such as to provide\nsufficient, reliable and economic electric service to ratepayers in the\nservice area. The very substantial financial strain of the investment in\nthe Shoreham nuclear plant has required LILCO to suspend dividends on\nits common and preferred stock, severely threatening the continued\neconomic viability of LILCO.\n For all the above reasons, a situation threatening the economy, health\nand safety exists in the service area.\n Dealing with such a situation in an effective manner, assuring the\nprovision of an adequate supply of electricity in a reliable, efficient\nand economic manner, and retaining existing commerce and industry in and\nattracting new commerce and industry to the service area, in which a\nsubstantial portion of the state's population resides and which\nencompasses a substantial portion of the state's commerce and industry,\nare hereby expressly determined to be matters of state concern within\nthe meaning of paragraph three of subdivision (a) of section three of\narticle nine of the state constitution.\n Such matters of state concern best can be dealt with by replacing such\ninvestor owned utility with a publicly owned power authority. Such an\nauthority can best accomplish the purposes and objectives of this title\nby implementing, if it then appears appropriate, the results of\nnegotiations between the state and LILCO. In such circumstances, such an\nauthority will provide safe and adequate service at rates which will be\nlower than the rates which would otherwise result and will facilitate\nthe shifting of investment into more beneficial energy demand/energy\nsupply management alternatives, realizing savings for the ratepayers and\ntaxpayers in the service area and otherwise restoring the confidence and\nprotecting the interests of ratepayers and the economy in the service\narea. Moreover, in such circumstances the replacement of such investor\nowned utilities by such an authority will result in an improved system\nand reduction of future costs and a safer, more efficient, reliable and\neconomical supply of electric energy. The legislature further finds that\nsuch an authority shall utilize to the fullest extent practicable, all\neconomical means of conservation, and technologies that rely on\nrenewable energy resources, cogeneration and improvements in energy\nefficiency which will benefit the interests of the ratepayers of the\nservice area.\n * NB There are 2 § 1020-a's\n