§ 3-B — Long Island office of the department

§ 3-b. Long Island office of the department. 1. There is hereby\nestablished in the department an office to review and make\nrecommendations with respect to the operations and terms and conditions\nof service of, and rates and budgets established by, the Long Island\npower authority and/or its service provider.\n 2. Definitions. As used or referred to in this section:\n (a) "Authority" means the Long Island power authority.\n (b) "Service provider" means the entity under contract with the\nauthority to provide management and operation services associated with\nthe authority's electric transmission and distribution system and any\nsubsidiary of such entity that provides such services under contract.\nHowever, the service provider and any affiliate of the service provider\nwith whom the authority or service provider contracts to provide\nservices associated with the authority's electric transmission and\ndistribution system shall not be considered an electric corporation\nunder this chapter.\n (c) "Operations services agreement" means an agreement and any\namendments thereto between the Long Island lighting company dba LIPA or\nthe Long Island power authority and the service provider to provide\nmanagement and operation services associated with the authority's\nelectric transmission and distribution system.\n 3. General powers. In undertaking the requirements of this section,\nsubject to subdivisions (u) and (bb) through (hh) of section one\nthousand twenty-f of the public authorities law, the department shall be\nempowered and authorized to:\n (a) Review and make recommendations to the board of the Long Island\npower authority with respect to the rates and charges, including charges\nrelated to energy efficiency and renewable energy programs, to be\nestablished by the authority and become applicable on or after January\nfirst, two thousand sixteen pursuant to subdivision (u) of section one\nthousand twenty-f of the public authorities law.\n (i) The purpose of such review is to make recommendations designed to\nensure that the authority and the service provider provide safe and\nadequate transmission and distribution service at rates set at the\nlowest level consistent with sound fiscal operating practices.\n (ii) The department's recommendations shall be designed to be\nconsistent with ensuring that the revenue requirements related to such\nrate review are sufficient to satisfy the authority's obligations with\nrespect to its bonds, notes and all other contracts.\n (iii) In the context of such review, the department may make\nrecommendations with regard to the compensation or fee structure\nincluded within the operations services agreement.\n (iv) In undertaking such review and in making recommendations related\nto the proposed rates and charges, the department shall establish\nstandards, policies and procedures that, at a minimum, provide for\npublic statement and evidentiary hearings and participation of\nintervenors and other parties, and ensure that any final recommendations\nrelated to the proposed rates and charges are provided to the authority\nwithin two hundred forty days of the filing with the department of such\nplan.\n (v) The parties to any such rate review proceeding shall include, but\nnot be limited to, department staff, the authority, the service provider\nand, to the extent it deems necessary or appropriate, the utility\nintervention unit.\n (b) Review the annual capital expenditures proposed by the service\nprovider and recommend such improvement in the manufacture, conveying,\ntransportation, distribution or supply of electricity, or in the methods\nemployed by the the service provider as in the department's judgment\nallows for safe and adequate service.\n (c) Annually review the emergency response plan of the authority and\nthe service provider in accordance with the following requirements:\n (i) Examine and determine whether the emergency response plan is\nconsistent with the requirements of paragraph (a) of subdivision\ntwenty-one of section sixty-six of this chapter and any regulations or\norders promulgated thereto, and to recommend amendments of same; and\n (ii) Review and make recommendations to the authority with respect to\nthe performance of the service provider in restoring service or\notherwise meeting the requirements of the emergency response plan during\nan emergency event, defined for purposes of this section as an event\nwhere widespread outages have occurred in the authority's service\nterritory due to a storm or other causes beyond the control of the\nauthority and its service provider, including making determinations with\nrespect to whether the service provider is reasonably able to implement\nthe emergency response plan, whether the length of any outages related\nto such emergency were materially longer than they would otherwise have\nbeen because the service provider failed to reasonably implement the\nemergency response plan, the reasonableness of costs associated with\nsuch emergency response, the costs, if any, that were unreasonably and\nimprudently incurred by the service provider, and whether the service\nprovider would be liable for any such costs pursuant to the terms and\nconditions of the operations services agreement.\n (d) Upon notification to the Long Island power authority, undertake a\ncomprehensive and regular management and operations audit of the\nauthority and service provider pursuant to subdivision (bb) of section\none thousand twenty-f of the public authorities law. The department\nshall have discretion to have such an audit performed by its staff, or\nby an independent contractor. In every case in which an audit is\nrequired pursuant to subdivision (bb) of section one thousand twenty-f\nof the public authorities law performed by an independent auditor, the\ndepartment shall have the authority to select the auditor, and to\nrequire the authority to enter into a contract with the auditor that is\nconsistent with the contracting-related requirements specified in\nsubdivision nineteen of section sixty-six of this chapter and the\nrequirements of subdivision (bb) of section one thousand twenty-f of the\npublic authorities law. Such contract shall provide further that the\nauditor shall work for and under the direction of the department\naccording to such terms as the department may determine are necessary\nand reasonable.\n (e) Accept, investigate, mediate to resolve and make recommendations\nto the Long Island power authority and/or the service provider regarding\nthe resolution of complaints from consumers in the authority's service\nterritory relating to, among other things, the provision of electric\nservice provided by the service provider and/or the authority.\n (f) Review the net metering program implemented under subdivision (h)\nof section one thousand twenty-g of the public authorities law and make\nrecommendations designed to ensure consistency with the requirements of\nsections sixty-six-j and sixty-six-l of this chapter, and any\nregulations and orders adopted thereto.\n (g) Review and make recommendations with respect to any proposed plan\nsubmitted by the Long Island power authority and/or the service provider\nrelated to implementation of energy efficiency measures, distributed\ngeneration or advanced grid technology programs having the purpose of\nproviding customers with tools to more efficiently and effectively\nmanage their energy usage and utility bills, and improving system\nreliability and power quality.\n (h) Review the data, information and reports submitted pursuant to\nsubdivision (hh) of section one thousand twenty-f of the public\nauthorities law and other pertinent information related to the metrics\nin the operations services agreement, the Long Island power authority's\nevaluation of such data, information and reports, and make\nrecommendations to the authority with respect to the service provider's\nannual incentive-based compensation within thirty days of receipt of\nsuch evaluation and information.\n 4. Review and inspection. To undertake the requirements of subdivision\ntwo of this section, the department shall be authorized to inspect all\npremises and facilities owned or operated by the authority and the\nservice provider, review all books and records of the authority and the\nservice provider, interview all appropriate personnel, and require\nannual reporting consistent with the requirements of subdivision six of\nsection sixty-six of this chapter and any regulations and orders adopted\nthereto; provided, however, that this authority shall not extend to\naffiliates of the service provider.\n