NY A05376

Electric utilities must consider all reasonably available supply-side and demand-side resources when procuring capacity and power, selecting sources that best serve the public interest based on ratepayer impacts, system reliability, environmental impacts, fuel efficiency, and other factors.

Each electric utility corporation must provide portfolio management services to customers who do not choose another power provider, using a mix of long-term contracts, short-term contracts, day-ahead and spot market purchases, demand-side resources, and other mechanisms to reduce wholesale price volatility.

Electric utilities must submit draft portfolio management service plans to the Public Service Commission within six months for approval, which must include long-term and short-term procurement plans and an explanation of how the plan will moderate wholesale price volatility.

The Public Service Commission has authority to establish guidelines, conduct competitive bidding auctions, and allow entities other than the distribution corporation to provide portfolio management services, and must establish performance-based rewards and penalties based on bill minimization and price volatility reduction.

State and municipally-owned utilities remain responsible for their own portfolio management services and customer alternative choice options.