2019 New York Laws
PBS - Public Service
Article 4 - Provisions Relating to Gas and Electric Corporations; Regulation of Price of Gas and Electricity
66 - General Powers of Commission in Respect to Gas and Electricity.

Universal Citation: NY Pub Serv L § 66 (2019)
§ 66. General  powers of commission in respect to gas and electricity.
The commission shall:
  1. Have general supervision  of  all  gas  corporations  and  electric
corporations  having authority under any general or special law or under
any charter or franchise to lay down, erect or  maintain  wires,  pipes,
conduits,  ducts  or  other  fixtures  in,  over  or  under the streets,
highways and public places  of  any  municipality  for  the  purpose  of
furnishing   or  distributing  gas  or  of  furnishing  or  transmitting
electricity  for  light,  heat  or  power,  or  maintaining  underground
conduits  or  ducts  for  electrical  conductors, and all gas plants and
electric plants owned, leased or operated  by  any  gas  corporation  or
electric corporation.
  1-a. Review the annual capital expenditure of each combination gas and
electric  corporation and may order such improvement in the manufacture,
conveying,  transportation,  distribution  or  supply  of  gas,  in  the
manufacture,  transmission  or  supply of electricity, or in the methods
employed  by  such  corporation  as  in  the  commission's  judgment  is
adequate, just and reasonable.
  2.  Investigate  and  ascertain, from time to time, the quality of gas
supplied  by  persons,  corporations  and  municipalities;  examine   or
investigate  the  methods  employed  by  such  persons, corporations and
municipalities in  manufacturing,  distributing  and  supplying  gas  or
electricity  for  light, heat or power and in transmitting the same, and
have power to order such reasonable improvements as  will  best  promote
the  public interest, preserve the public health and protect those using
such gas or electricity  and  those  employed  in  the  manufacture  and
distribution  thereof,  and  have power to order reasonable improvements
and extensions of the works, wires, poles, lines,  conduits,  ducts  and
other  reasonable  devices,  apparatus and property of gas corporations,
electric corporations  and  municipalities;  and  have  power  after  an
investigation  and  a  hearing to order any corporation having authority
under any general or special law or under any charter or  franchise,  to
lay  down,  erect  or  maintain  wires,  pipes, conduits, ducts or other
fixtures in, over or under the streets, highways and  public  places  of
any  municipality  for the purpose of supplying, selling or distributing
natural gas,  to  augment  its  supply  of  natural  gas,  whenever  the
commission deems necessary and whenever artificial gas can be reasonably
obtained,  by  acquiring  by purchase, manufacture or otherwise a supply
thereof to be mixed with such natural gas, in order to  render  adequate
service to the customers of such corporation or to maintain a proper and
uniform pressure; and have power after an investigation and a hearing to
order  any corporation having authority under any general or special law
or under any charter or franchise, to lay down, erect or maintain wires,
pipes, conduits, ducts or other fixtures in, over or under the  streets,
highways  and  public  places  of  any  municipality  for the purpose of
supplying, selling or distributing artificial gas, to augment its supply
of artificial gas, whenever the commission deems necessary and  whenever
natural  gas  can  be  reasonably  obtained, by acquiring by purchase or
otherwise a supply thereof to be mixed  with  such  artificial  gas,  in
order to render adequate service to the customers of such corporation or
to  maintain a proper and uniform pressure; and to fix such rate for the
supplying of mixed gas as  shall  secure  to  such  corporation  a  fair
return;  and  may  order the curtailment or discontinuance of the use of
natural gas  for  manufacturing  or  industrial  purposes,  for  periods
aggregating  not  to  exceed  four months in any calendar year, if it is
established to the satisfaction of the commission  that  the  supply  of
natural  gas  is not adequate to meet the reasonable demands of domestic

consumption and may prohibit the use of natural gas in wasteful  devices
and practices.
  2-a. Have power, after an investigation and hearing held on notice and
upon  a finding that as a result of a shortage of gas a public emergency
exists, to determine whether any gas corporation has available,  or  may
be  made  available by the operation of its facilities, gas in excess of
an amount necessary to supply its consumers for purposes for  which  gas
may  properly  be  used during such emergency. Upon the making of such a
determination it shall have power to order such  a  gas  corporation  to
transfer  and  make  available  to  any  other  gas  corporation where a
shortage of gas exists, for the duration of the emergency, any or all of
such excess gas for which the transferring company  shall  receive  just
compensation.  Such  order may require the installation and operation of
all  necessary  connections  and  facilities  at  the  expense  of   the
purchasing  gas  corporation  and require the selling and purchasing gas
corporation to adopt appropriate regulations and practices to carry  out
the transfer of gas as ordered.
  3.  Have  power by order to fix and change from time to time standards
of the purity, illuminating power and heating power, and  standards  for
the  measurement thereof, of gas to be manufactured, distributed or sold
by persons, corporations or  municipalities  for  lighting,  heating  or
power  purposes,  notwithstanding  that  other  standards of the purity,
illuminating power and heating  power  of  gas  and  standards  for  the
measurement  thereof,  may have been fixed by general or special statute
and to prescribe from time to time the efficiency of the electric supply
system, of the current supplied  and  of  the  lamps  furnished  by  the
persons,  corporations or municipalities generating and selling electric
current, and by order to require the gas so manufactured, distributed or
sold to equal the standards so fixed by it, and to prescribe  from  time
to  time  the reasonable minimum and maximum pressure at which gas shall
be delivered by said persons, corporations or  municipalities.  For  the
purpose of determining whether the gas manufactured, distributed or sold
by such persons, corporations or municipalities for lighting, heating or
power  purposes conforms to the standards of illuminating power, heating
power, purity and pressure, and for the purpose of  determining  whether
the  efficiency  of  the electric supply system, of the current supplied
and of the  lamps  furnished  conforms  to  the  orders  issued  by  the
commission,  the  commission  shall  have  power  of  its own motion, to
examine  and  investigate   the   plants   and   methods   employed   in
manufacturing,  delivering  and  supplying gas or electricity, and shall
have access through its members or persons employed and authorized by it
to make such  examinations  and  investigations  to  all  parts  of  the
manufacturing  plants  owned,  used  or  operated  by  the  manufacture,
transmission or distribution of gas or electricity by any  such  person,
corporation or municipality.
  4.  Have  power,  in  its  discretion, to prescribe uniform methods of
keeping accounts, records and books, to be observed by gas  corporations
and   electric   corporations  and  by  municipalities  engaged  in  the
manufacture, sale and distribution of gas  and  electricity  for  light,
heat  or power. It may also in its discretion prescribe, by order, forms
of  accounts,  records  and  memoranda  to  be  kept  by  such  persons,
corporations and municipalities. Notice of alterations by the commission
in  the required method or form of keeping a system of accounts shall be
given to such persons or corporations by the  commission  at  least  six
months before the same shall take effect. Any other and additional forms
of  accounts,  records  and memoranda kept by such corporations shall be
subject to examination by the commission.

  5. Examine all persons,  corporations  and  municipalities  under  its
supervision  and keep informed as to the methods, practices, regulations
and property employed by them in  the  transaction  of  their  business.
Whenever  the  commission  shall be of opinion, after a hearing had upon
its   own   motion  or  upon  complaint,  that  the  rates,  charges  or
classifications  or  the  acts  or  regulations  of  any  such   person,
corporation   or   municipality   are   unjust,  unreasonable,  unjustly
discriminatory or unduly preferential or in anywise in violation of  any
provision  of  law,  the commission shall determine and prescribe in the
manner provided by and subject to the provisions of section  seventy-two
of   this   chapter   the   just   and  reasonable  rates,  charges  and
classifications thereafter  to  be  in  force  for  the  service  to  be
furnished  notwithstanding  that  a  higher  or lower rate or charge has
heretofore been prescribed by  general  or  special  statute,  contract,
grant, franchise condition, consent or other agreement, and the just and
reasonable  acts  and  regulations to be done and observed; and whenever
the commission shall be of opinion, after a hearing  had  upon  its  own
motion  or upon complaint, that the property, equipment or appliances of
any such person, corporation or municipality are unsafe, inefficient  or
inadequate,  the  commission  shall  determine  and  prescribe the safe,
efficient and adequate property, equipment and appliances thereafter  to
be  used,  maintained and operated for the security and accommodation of
the public and in compliance with the provisions of  law  and  of  their
franchises and charters.
  6.  Require  every person and corporation under its supervision and it
shall be the duty of every such person and corporation to file with  the
commission  an  annual  report,  verified  by the oath of the president,
vice-president, treasurer, secretary, general manager, or  receiver,  if
any,  thereof,  or  by  the  person  required  to  file  the  same.  The
verification shall be made by said official holding office at  the  time
of  the filing of said report, and if not made upon the knowledge of the
person verifying the same shall set forth the sources of his information
and the grounds of his belief  as  to  any  matters  not  stated  to  be
verified  upon  his  knowledge.  The report shall show in detail (a) the
amount of its authorized capital stock and the amount thereof issued and
outstanding; (b) the amount of its authorized  bonded  indebtedness  and
the  amount  of  its  bonds  and other forms of evidence of indebtedness
issued and outstanding; (c) its receipts  and  expenditures  during  the
preceding  year;  (d) the amount paid as dividends upon its stock and as
interest upon its bonds; (e) the names of its officers and the aggregate
amount paid as salaries to them and the amount  paid  as  wages  to  its
employees;  (f)  the  location of its plant or plants and system, with a
full description of its property and franchises, stating in  detail  how
each franchise stated to be owned was acquired; and (g) such other facts
pertaining to the operation and maintenance of the plant and system, and
the  affairs  of  such  person  or corporation as may be required by the
commission. Such reports shall be in the form, cover the period  and  be
filed at the time prescribed by the commission. The commission may, from
time  to  time,  make changes and additions in such forms. When any such
report is defective or believed to be erroneous,  the  commission  shall
notify  the  person,  corporation  or municipality making such report to
amend the same within a time prescribed  by  the  commission.  Any  such
person  or  corporation  or municipality which shall neglect to make any
such report or which shall fail to correct any such  report  within  the
time  prescribed  by  the commission shall be liable to a penalty of one
hundred dollars and an additional penalty of  one  hundred  dollars  for
each day after the prescribed time for which it shall neglect to file or
correct  the same, to be sued for in the name of the people of the state

of New York. The amount recovered in any such action shall be paid  into
the  state  treasury and be credited to the general fund. The commission
may extend the time prescribed for cause shown.
  7. Require each municipality engaged in operating any works or systems
for  the  manufacture  and  supplying  of  gas or electricity to make an
annual report to the commission, verified by the  oath  of  the  general
manager  or superintendent thereof, showing in detail, (a) the amount of
its authorized bonded indebtedness and the amount of its bonds and other
forms of evidence of indebtedness issued and  outstanding  for  lighting
purposes;  (b)  its receipts and expenditures during the preceding year;
(c) the amount paid as interest upon its bonds and upon other  forms  of
evidence  of  indebtedness;  (d) the name of and the amount paid to each
person receiving a yearly or monthly salary,  and  the  amount  paid  as
wages to employees; (e) the location of its plant and system with a full
description  of the property; and (f) such other facts pertaining to the
operation and maintenance of the plant and system as may be required  by
the  commission.  Such report shall be in the form, cover the period and
be filed at the time prescribed by the commission.
  8. Have power, either through its members or inspectors  or  employees
duly  authorized by it, to enter in or upon and to inspect the property,
buildings, plants, factories, power houses, ducts, conduits and  offices
of any of such corporations, persons or municipalities.
  9.  Have  power  to  examine  the accounts, books, contracts, records,
documents and papers of any such corporation,  person  or  municipality,
and  have  power,  after  hearing, to prescribe by order the accounts in
which particular outlays and  receipts  shall  be  entered,  charged  or
credited.  At  any  such  hearing  the  burden  of proof shall be on the
person, corporation or municipality to establish the correctness of  the
accounts  in  which such outlays and receipts have been entered, and the
commission may suspend a charge or credit pending submission of proof by
such person, corporation or municipality.
  10. Have power to compel, by subpoena duces tecum, the  production  of
any  accounts,  books,  contracts,  records,  documents,  memoranda  and
papers. In lieu of requiring production of originals by  subpoena  duces
tecum the commission or any commissioner may require sworn copies of any
such  books, records, contracts, documents and papers, or parts thereof,
to  be  filed  with  it.  The  commission  may  require  of   all   such
corporations,  persons  or municipalities, specific answers to questions
upon which the commission may need information,  and  may  also  require
such corporations, persons or municipalities to file periodic reports in
the  form,  covering  the period and filed at the time prescribed by the
commission. If such corporation, person or municipality  shall  fail  to
make  specific  answer  to any question or shall fail to make a periodic
report when required by the commission as  herein  provided  within  the
time  and  in  the  form prescribed by the commission for the making and
filing of any such report or answer, such  corporation,  person  or  the
officer  of  the  municipality shall forfeit to the state the sum of one
hundred dollars for each and every  day  it  shall  continue  to  be  in
default  with respect to such report or answer. Such forfeiture shall be
recovered in an action brought by the commission  in  the  name  of  the
people of the state of New York. The amount recovered in any such action
shall  be  paid  into  the state treasury and be credited to the general
fund.
  11. Have power in all parts of the state, either as  a  commission  or
through  its  members,  or  through  an  officer  or  employee specially
authorized to conduct an investigation or hearing to subpoena witnesses,
take testimony and administer oaths to witnesses in  any  proceeding  or

examination instituted before it, or conducted by it in reference to any
matter within its jurisdiction under this article.
  12.  (a)  Have  power  to  require  every  gas  corporation,  electric
corporation and municipality hereinafter in this  subdivision  called  a
utility to file with the commission and to print and keep open to public
inspection  schedules showing all rates and charges made, established or
enforced or to  be  charged  or  enforced,  all  forms  of  contract  or
agreement  and  all  rules and regulations relating to rates, charges or
service used or to be used, and all general  privileges  and  facilities
granted or allowed by such utility; but this subdivision shall not apply
to  state,  municipal  or  federal  contracts, except to the extent such
contracts relate to transportation of electricity.

(b) No change shall be made in any rate or charge, or in any form of contract or agreement or any rule or regulation relating to any rate, charge or service, or in any general privilege or facility, which shall have been filed by a utility in compliance with an order of the commission, except after thirty days' notice to the commission and to each county, city, town and village served by such utility which had filed with such utility, within the prior twelve months, a request for such notice and which shall be affected by such change and publication of a notice to the public of such proposed change once in each week for four successive weeks in a newspaper having general circulation in each county containing territory affected by the proposed change, which notice shall plainly state the changes proposed and when the change will go into effect. The commission for good cause shown may, except in the case of major changes, allow changes to take effect prior to the end of such thirty-day period and without publication of notice to the public under such conditions as it may prescribe. The commission may delegate to the secretary of the commission its authority to approve a change to a schedule postponing the effective date of such schedule previously filed with the commission and to allow for good cause shown the postponement to take effect prior to the end of such thirty-day period and without publication of notice to the public.

(c) For the purpose of this subdivision, "major changes" shall mean an increase in the rates and charges which would increase the aggregate revenues of the applicant more than the greater of three hundred thousand dollars or two and one-half percent, but shall not include changes in rates, charges or rentals (i) allowed to go into effect by the commission or made by the utility pursuant to an order of the commission after hearings held upon notice to the public, or (ii) proposed by a municipality.

(d) No utility shall charge, demand, collect or receive a greater or less or different compensation for any service rendered or to be rendered than the rates and charges specified in its schedule filed and in effect; nor shall any utility refund or remit in any manner or by any device any portion of the rates or charges so specified, nor extend to any person any form of contract or agreement, or any rule or regulation, or any privilege or facility, except such as are regularly and uniformly extended to all persons under like circumstances.

(e) The commission shall have power to prescribe the form of every such schedule, and from time to time prescribe by order such changes in the form thereof as may be deemed wise. The commission shall also have power to establish such rules and regulations to carry into effect this subdivision as it may deem necessary, and to modify or amend such rules or regulations from time to time. Nothing in this chapter shall be taken to prohibit a utility from establishing sliding scale upward rates, beginning at a fixed price per unit for a small consumption and then increasing the price per unit as the consumption is increased.

(f) Whenever there shall be filed with the commission by any utility any schedule stating a new rate or charge, or any change in any form of contract or agreement or any rule or regulation relating to any rate, charge or service, or in any general privilege or facility, the commission may, at any time within sixty days from the date when such schedule would or has become effective, either upon complaint or upon its own initiative, and, if it so orders, without answer or other formal pleading by the utility, but upon reasonable notice, hold a hearing concerning the propriety of a change proposed by the filing. If such change is a major change, the commission shall hold such a hearing. Pending such hearing and decision thereon, the commission, upon filing with such schedule and delivering to the utility, a statement in writing of its reasons therefor, may suspend the operation of such schedule, but not for a longer period than one hundred and twenty days beyond the time when it would otherwise go into effect. After full hearing, whether completed before or after the schedule goes into effect, the commission may make such order in reference thereto as would be proper in a proceeding begun after the rate, charge, form of contract or agreement, rule, regulation, service, general privilege or facility had become effective. If any such hearing cannot be concluded within the period of suspension as above stated, the commission may extend the suspension for a further period, not exceeding six months.

(g) The commission shall review all filings to determine if they are in compliance with section seventy-two-a of this article. The commission shall have the power to hold public hearings concerning the propriety of any increased rate or charge for fuel costs. At any hearing involving such an increase, the burden of proof as to the correctness and reasonableness of the charge shall be upon the utility.

(h) The commission may, as authorized by section seventy-two of this article, establish temporary rates or charges for any period of suspension under this section.

(i) At any hearing involving a rate, the burden of proof to show that the change or proposed change if proposed by the utility, or that the existing rate, if it is proposed to reduce the rate, is just and reasonable shall be upon the utility; and the commission may give to the hearing and decision of such questions preference over all other questions pending before it.

(j) The schedule, rates, charges, form of contract or agreement, rule, regulation, service, general privilege or facility in force when the new schedule, rate, charge, form of contract, rule, regulation, service, general privilege or facility was filed shall continue in force during the period of the suspension unless the commission shall establish a temporary rate or charge as authorized by section seventy-two of this article.

(k) In any case in which the commission determines that the whole or any part of any increased rate or charge imposed by a utility pursuant to any automatic adjustment, including but not limited to any fuel adjustment, was not just and reasonable, because of a lack of reasonable care on the part of the utility in providing gas or electric service, the commission may order the utility to refund, with interest, any moneys collected by the utility pursuant to such whole or part of such increased rate or charge. In determining whether a utility exercised reasonable care in providing gas or electric service, the commission shall take into account the public health and safety consequences, and the economic consequences to ratepayers, of the utility's actions. 12-a. Have power to fix and alter the format and informational requirements of bills utilized by public and private gas corporations, electric corporations and gas and electric corporations in levying charges for service, to assure simplicity and clarity and to require indication of any adjustment charges, including but not limited to fuel adjustments, in monetary amounts. The commission shall further ensure periodic explanation of applicable rates and rate schedules for the purpose of assisting customers in making the most efficient use of energy. 12-b. (a) In consultation with the commissioner of the department of commerce have power 1. to designate as economic incentive areas specific areas in which reduced economic activity, unemployment and underutilization of utility facilities justifies the approval of reduced incentive rates for utility services, and to promulgate criteria for identifying such areas and customers eligible for such rates. Upon application of a utility corporation the commission shall authorize special economic incentive rates in such areas to such customers and for such periods of time as the commission finds will best effectuate the purposes of this subdivision. The commission may also provide for the gradual elimination of the rate reduction authorized, and for the elimination of such reduction, if any conditions imposed by the commission are not met. 2. to designate or form classes of customers as appropriate for special rates or tariffs, in order to prevent loss of such customers, or to attract new customers where necessary to maintain economic use of utility facilities. Any such special rate or tariff shall be so designed as to recover the incremental cost of providing service to such customers and to contribute to the common costs which otherwise would be borne by other customers.

(b) The commission may also authorize utility corporations to contract with existing or prospective industrial and commercial customers to wheel or deliver electricity or gas purchased directly by such customers, provided that the commission finds that such arrangements are in the overall best interest of the rate payers of the corporation, and that the rates and fees for the services provided adequately compensate the corporation for the use of its facilities. 12-c. Notwithstanding any other provision of law, upon application of a gas or electric corporation, the commission shall authorize such corporation to charge a special empire zone rate equal to the incremental cost of providing service to customers certified as eligible for such rate pursuant to article eighteen-B of the general municipal law. 12-d. Notwithstanding any other provision of law, upon application of a gas or electric corporation, the commission shall authorize such corporation to charge a special excelsior jobs program rate equal to the incremental cost of providing service to participants in the excelsior jobs program as defined in article seventeen of the economic development law. 13. In case any electric corporation or gas corporation is engaged in carrying on any business other than owning, operating or managing a gas plant or an electric plant, which other business is not otherwise subject to the jurisdiction of the commission, and is so conducted that its operations are to be substantially kept separate and apart from the owning, operating, managing or controlling of such gas plant or electric plant, said corporation in respect of such other business shall not be subject to any of the provisions of this chapter and shall not be required to procure the assent or authorization of the commission to any act in such other business or to make any report in respect thereof. But this subdivision shall not restrict or limit the powers of the commission in respect to the owning, operating, managing or controlling by such corporation of such gas plant or electric plant, and said powers shall include also the right to inquire as to, and prescribe the apportionment of, capitalization, earnings, debts and expenses fairly and justly to be awarded to or borne by the ownership, operation, management or control of such gas plant or electric plant as distinguished from such other business. In any such case if the owning, operating, managing or controlling of such gas plant or electric plant by any such corporation is wholly subsidiary and incidental to the other business carried on by it and is inconsiderable in amount and not general in its character, the commission may by general rules exempt such corporation from making full reports and from the keeping of accounts as to such subsidiary and incidental business. Where the permission granted such corporation pursuant to section sixty-eight is to supply gas only to less than twenty customers specified by the commission, the commission may, if the public interest permits, exempt such corporation from compliance with all or any of the provisions of this article except those affecting matters of public safety and the provisions of sections sixty-five, sixty-eight and seventy-four. 14. The commission shall have power to require each gas corporation and electric corporation to establish classifications of service based upon the quantity used, the time when used, the purpose for which used, the duration of use and upon any other reasonable consideration, and to establish in connection therewith just and reasonable graduated rates and charges; and it shall have power, either upon complaint or upon its own motion, to require such changes in such classifications, rates and charges as it shall determine to be just and reasonable. Neither the scheduled rates nor the minimum charge for residential customers shall, after July first, nineteen hundred thirty-seven, be based in any manner on the number of outlets, number of rooms, cubic or square foot area or other such standards. 15. Receive, and any gas corporation may at any time submit to the commission for its approval, one or more contracts proposed to be made by it for the purchase from the producer of by-product gas, to be used in its service to its consumers, in which said proposed contract the price of gas shall be based on the then market price of coal, and to vary therewith whenever the market price of coal shall vary to the extent of ten per centum for a period of not less than thirty days, and which said contract shall state the efficiency of said gas, and upon the approval of said contract by the commission, or said contract as the same may be amended, altered or changed, and upon the application of said gas corporation, the commission shall make an order fixing the rate or rates to be charged to consumers for the service of such gas, which said rate shall thereafter remain unchanged during the term of said contract in so far as said rate shall be based on the cost of gas to said corporation, except as such cost shall vary with the variations in the price of coal as in said contract provided. The commission shall have like powers and duties with reference to existing contracts made prior to January first, nineteen hundred and twenty-two, by a gas corporation for a supply of by-product gas where the price of gas varies as the price of coal varies. By-product, as used in this section, is defined to mean one of the several products obtained by treatment of coal by some process other than the customary distillation in retorts. 16. The commission shall have power after a hearing on its own motion, upon complaint or upon the application of a gas corporation or electric corporation to prescribe rates and charges for gas, electricity or other service rendered or to be rendered, embodying the automatic adjustment of such rates and charges, over a fixed period not exceeding four years, based on the relation between the net income from such rates and charges available for return and the fair value of the property of the corporation used and useful in said service; but nothing in this subdivision shall operate to prevent the commission after the expiration of such fixed period from fixing proper, just and reasonable rates and charges to be made for gas, electricity or service as authorized in this article. 17. Notwithstanding the provisions of this article, any gas corporation which transports natural gas through the state of New York but which does not deliver, sell or furnish any such gas to any person or corporation within the state of New York, shall be subject to regulation by the commission only insofar as the construction and operation of such facilities shall affect matters of public safety. 19. (a) The commission shall have power to provide for management and operations audits of gas corporations and electric corporations. Such audits shall be performed at least once every five years for combination gas and electric corporations, as well as for straight gas corporations having annual gross revenues in excess of two hundred million dollars. The audit shall include, but not be limited to, an investigation of the company's construction program planning in relation to the needs of its customers for reliable service, an evaluation of the efficiency of the company's operations, recommendations with respect to same, and the timing with respect to the implementation of such recommendations. The commission shall have discretion to have such audits performed by its staff, or by independent auditors. In every case in which the commission chooses to have the audit provided for in this subdivision or pursuant to subdivision fourteen of section sixty-five of this article performed by independent auditors, it shall have authority to select the auditors, and to require the company being audited to enter into a contract with the auditors providing for their payment by the company. Such contract shall provide further that the auditors shall work for and under the direction of the commission according to such terms as the commission may determine are necessary and reasonable.

(b) Each corporation subject to an audit under this subdivision shall file a report with the commission within thirty days after issuance of such audit detailing its plan to implement the recommendations made in the audit. After review of such plan, the commission may require each combined electric and gas corporation amend its plan in a particular manner. Such plan shall thereafter become enforceable upon approval by the commission. The commission shall have power to commence a proceeding to examine any such corporation's compliance with the recommendations of such audit.

(c) Upon the application of a gas or electric corporation for a major change in rates as defined in subdivision twelve of this section, the commission shall review that corporation's compliance with the directions and recommendations made previously by the commission, as a result of the most recently completed management and operations audit. The commission shall incorporate the findings of such review in its opinion or order, and such findings shall be enforceable by the commission. 20. Notwithstanding any general or special law, rule or regulation, the commission shall have the power to provide for the refund of any revenues received by any gas or electric corporation which cause the corporation to have revenues in the aggregate in excess of its authorized rate of return for a period of twelve months. The commission may initiate a proceeding with respect to such a refund after the conclusion of any such twelve month period. 21. (a) Each electric corporation subject to section twenty-five-a of this chapter shall annually, on or before December fifteenth, submit to the commission an emergency response plan for review and approval. The emergency response plan shall be designed for the reasonably prompt restoration of service in the case of an emergency event, defined for purposes of this subdivision as an event where widespread outages have occurred in the service territory of the company due to storms or other causes beyond the control of the company. The emergency response plan shall include, but need not be limited to, the following: (i) the identification of management staff responsible for company operations during an emergency; (ii) a communications system with customers during an emergency that extends beyond normal business hours and business conditions; (iii) identification of and outreach plans to customers who had documented their need for essential electricity for medical needs; (iv) identification of and outreach plans to customers who had documented their need for essential electricity to provide critical telecommunications, critical transportation, critical fuel distribution services or other large-load customers identified by the commission; (v) designation of company staff to communicate with local officials and appropriate regulatory agencies; (vi) provisions regarding how the company will assure the safety of its employees and contractors; (vii) procedures for deploying company and mutual aid crews to work assignment areas; (viii) identification of additional supplies and equipment needed during an emergency; (ix) the means of obtaining additional supplies and equipment; (x) procedures to practice the emergency response plan; (xi) appropriate safety precautions regarding electrical hazards, including plans to promptly secure downed wires within thirty-six hours of notification of the location of such downed wires from a municipal emergency official; and (xii) such other additional information as the commission may require. Each such corporation shall, on an annual basis, undertake drills implementing procedures to practice its emergency management plan. The commission may adopt additional requirements consistent with ensuring the reasonably prompt restoration of service in the case of an emergency event.

(b) After review of a corporation's emergency response plan, the commission may require such corporation to amend the plan. The commission may also open an investigation of the corporation's plan to determine its sufficiency to respond adequately to an emergency event. If, after hearings, the commission finds a material deficiency in the plan, it may order the company to make such modifications that it deems reasonably necessary to remedy the deficiency.

(c) The commission is authorized to open an investigation to review the performance of any corporation in restoring service or otherwise meeting the requirements of the emergency response plan during an emergency event. If, after evidentiary hearings or other investigatory proceedings, the commission finds that the corporation failed to reasonably implement its emergency response plan or the length of such corporation's outages were materially longer than they would have been, because of such corporation's failure to reasonably implement its emergency response plan, the commission may deny the recovery of any part of the service restoration costs caused by such failure, commensurate with the degree and impact of the service outage; provided, however, that nothing herein limits the commission's authority to otherwise commence a proceeding pursuant to sections twenty-four, twenty-five and twenty-five-a of this chapter.

(d) The commission shall certify to the department of homeland security and emergency services that each such corporation's emergency response plan is sufficient to ensure to the greatest extent feasible the timely and safe restoration of energy services after an emergency in compliance with the requirements of this chapter.

(e) The filing of each emergency response plan required under paragraph (a) of this subdivision shall also include a copy of all written mutual assistance agreements among utilities.

(f) Each electric corporation shall file with the county executive or the chief elected official of a county for each county within its service territory the most recent approved copy of the emergency response plan required pursuant to this section. For the purposes of an electric corporation operating within the city of New York, such corporation shall file the most recent approved emergency response plan with the emergency management office of the city of New York.

(g) The commission shall provide access to such emergency response plan pursuant to article six of the public officers law. 22. The commission shall permit the recovery through rates established pursuant to this section of all payments made by electric corporations pursuant to section twenty-nine-c of the executive law. 23. Require every gas corporation or electric corporation having equipment containing five hundred parts per million or greater of polychlorinated biphenyls (PCBs), including but not limited to, capacitors and transformers, to submit a report to the commission. The report shall contain (1) a list of such equipment that is in service, each unit's location, size and service age, (2) a list of such equipment that is retired from service after the effective date of this subdivision, the date each unit was retired from service, and the location of the facility where the unit and/or PCBs are processed or stored, (3) the date for shipment of PCBs within or out of New York state, and (4) a description of the New York state portion of the shipping route. The commission shall require the report to be updated and distributed semiannually. In addition, such corporation shall submit to each county and city located in the service territory of the corporation a report containing the information listed above for such equipment and PCBs located in or transported through the county or city receiving the report. For the purposes of this subdivision, capacitors, transformers, and equipment designed to use the PCB-free mineral oil dielectric fluids shall be presumed to contain concentrations below five hundred parts per million of PCBs, unless the unit has been serviced with fluid which contains five hundred parts per million or greater of PCBs, or there is any other reason to believe that the unit contains or was ever mixed with fluid with a concentration level of five hundred parts per million or greater or unless testing has specifically shown otherwise. 24. (a) If a nuclear power plant which is not commercially used and useful in the actual generation of electricity on the effective date of this subdivision and which is owned by a single utility on or after the effective date of this subdivision fails to commence or continue commercial operation after the effective date of this subdivision, the commission shall thereafter remove and exclude from the utility corporation's revenue requirement all amounts, costs, charges, adjustments, or extraordinary cost of capital allowances theretofore made, granted or provided which are attributable, directly or indirectly, to such nuclear power plant or to such plant's failure to commence commercial operation.

(b) The commission shall not thereafter, unless and until such plant commences or recommences commercial operation, include in such utility's revenue requirement any amounts, costs, charges, adjustments or extraordinary cost of capital allowances attributable, directly or indirectly, to such plant or to such plant's failure to commence commerical operation.

(c) Nothing in this subdivision shall be deemed to require a refund of the charges paid by or billed to a customer of such utility prior to a failure to commence or continue commercial operation of such plant.

(d) For the purposes of this subdivision, the failure to commence or continue commercial operation shall mean the abandonment of such plant after the effective date of this subdivision; the denial, including any denial pursuant to or as a result of any administrative or judicial review, of a commercial operating license or other regulatory approval necessary for the plant to become commercially used and useful in the actual generation of electricity; the failure of the plant to become commercially used and useful in the actual generation of electricity within forty-two months of the issuance of the low power testing license for such plant; or the occurrence of any event or the existence of any circumstances (other than customary inspection and maintenance and related repairs or refueling requirements) after the plant becomes commercially used and useful in the actual generation of electricity which renders the plant not commercially used and useful in the actual generation of electricity. 25. Notwithstanding any other provision of law to the contrary, whenever a city having a population of one million or more provides for a deduction from gross receipts of a gas corporation or electric corporation, pursuant to a local law authorized by the provisions of subdivision (k) of section twelve hundred one of the tax law, the rate or charge imposed by any such corporation within such city upon non-residential users of electricity or gas eligible to receive a rebate in accordance with a local law or laws adopted pursuant to article two-G of the general city law shall be set by the commission so as to reflect fully the decrease in tax liability attributable to such deduction. 26. Notwithstanding any other provision of law to the contrary, whenever the gas facility costs of a gas corporation are paid or reimbursed by the city of New York as provided in the gas facility cost allocation act, the rates and charges of such gas corporation within such city shall be set by the commission so as to reflect fully the amount of such payments and reimbursements made by such city. The amount of such payments and reimbursements shall not be reflected directly or indirectly in any rate or charge imposed by such corporation outside such city. 27. (a) Each electric corporation with annual gross revenues in excess of two hundred million dollars shall offer the option of paying charges on the basis of time of use rates for service to its residential customers and to posts and halls owned by a not-for-profit corporation that is a veterans' organization. Such electric corporation shall periodically send a notice explaining the rates and informing such customers and organizations that the rates are available.

(b) Any electric corporation which offers its customers time of use rates shall notify those customers who elect or receive such rate regarding the following:

(1) the hours for which such rates are available for both standard and daylight savings time;

(2) the procedure such customers shall follow in order to have their meter clocks reset following an interruption of service if such resetting is necessary to restore the effective hours of the time of use rates; and

(3) when the utility has knowledge of an outage, a statement within sixty days of such outage that the time of use rates may not be applied at the previously stated times until the meter clock is reset, if such resetting is necessary. 28. No revenues foregone by an electric corporation, as a result of subjecting certain veterans' organizations with rates or charges applicable to domestic consumers pursuant to section seventy-six of this article, shall be recovered from the customers of such corporation.

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