NY S05861

Authorizes the Power Authority of the State of New York and the Long Island Power Authority to form subsidiary companies and participate in public-private partnerships (called "transco companies") to repair, replace, reinforce, modernize, and expand the state's electric transmission grid.

Permits the authorities to transfer transmission assets or interests in transmission assets to subsidiary companies and transco companies, issue bonds and notes to finance these operations, and enter into transco master agreements defining the rights and obligations of all participating members.

Exempts transco master agreements from certain regulatory requirements under Section 2879-a of the Public Authorities Law, while making transco ancillary and project agreements exempt only if substantially negotiated forms are annexed to a valid transco master agreement.

Prohibits transco companies from financing or constructing new electric generating facilities; limits their purpose to repairing, replacing, reinforcing, modernizing, and expanding transmission assets.

Allows the authorities to own interests in transmission assets located wholly or partially outside their service areas and exempts the authorities' participation in transco companies from environmental review requirements under Article 8 of the Environmental Conservation Law.