NY A04323

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

Each electric utility must provide portfolio management services to all customers who do not choose alternative providers, defined as reliable electric capacity derived from long-term contracts, short-term contracts, spot market purchases, demand-side resources, and other mechanisms to reduce wholesale price volatility.

Within six months of enactment, each utility must submit a draft portfolio management service plan to the Public Service Commission for approval, including long-term and short-term procurement plans and explanation of how the plan moderates wholesale price volatility; the Commission must provide public notice and hearing opportunities before approval.

The Public Service Commission may require competitive bidding auctions or other procurement programs and has authority to allow entities other than the distribution corporation to provide portfolio management services through competitive bidding, subject to regulations developed after public comment and evidentiary hearing.

The Long Island Power Authority is authorized to develop portfolio management services for customers who do not elect to take generation services from alternate power suppliers, consistent with the Public Service Law requirements.