NY A08872

Amends public service law to require the Public Service Commission to develop a mechanism eliminating or minimizing competitive advantages that out-of-state power generators have over in-state generators due to New York's participation in the Regional Greenhouse Gas Initiative (RGGI).

Directs the Commission to establish a stakeholder proceeding within one month of enactment and issue a report within six months describing the proposed mechanism, its functions, attributes, and potential negative consequences.

Requires a three-month public comment period on the report, after which the Commission shall revise the mechanism as needed and issue an implementing order by July 1, 2016.

Defines "competitive advantage" to include avoided costs such as infrastructure improvements, taxes, penalties, environmental compliance costs, and administrative reporting costs that out-of-state generators escape by operating in non-RGGI states.

States legislative intent that out-of-state fossil fuel generators gain unfair pricing advantages by avoiding RGGI carbon dioxide emission allowance costs while importing pollution-intensive power to New York.