New York Laws
Title 1-A - Long Island Power Authority
1020-F - General Powers of the Authority.

(a) To sue and be sued in all courts and to participate in actions and
proceedings, whether judicial, administrative, arbitrative or otherwise;
(b) To have a corporate seal, and to alter such seal at pleasure, and
to use it by causing it or a facsimile to be affixed or impressed or
reproduced in any other manner;
(c) To appoint officers, agents and employees, without regard to any
personnel or civil service law, rule or regulation of the state and in
accordance with guidelines adopted by the authority, prescribe their
duties and qualifications and fix and pay their compensation. By January
first, two thousand fourteen, the authority, through its governance
committee, shall amend such guidelines to require that staffing at the
authority is kept at levels only necessary to ensure that the authority
is able to meet obligations with respect to its bonds and notes and all
applicable statutes and contracts, and oversee the activities of the
service provider;
(d) To purchase, receive, take by grant, gift, devise, bequest or
otherwise, lease, or otherwise acquire, own, hold, improve, employ, use
and otherwise deal in and with, real or personal property whether
tangible or intangible, or any interest therein, within the state;
(e) To acquire real or personal property, whether tangible or
intangible, including without limitation property rights, interests in
property, franchises, obligations, contracts, and debt and equity
securities, by the exercise of the power of eminent domain; provided,
however, that any real property acquired by the exercise of the power of
eminent domain must be located within the service area;
(f) To sell, convey, lease, exchange, transfer, abandon or otherwise
dispose of, or mortgage, pledge or create a security interest in, all or
any of its assets, properties or any interest therein, wherever
situated;
(g) To purchase, take, receive, subscribe for, or otherwise acquire,
hold, make a tender offer for, vote, employ, sell, lend, lease,
exchange, transfer, or otherwise dispose of, mortgage, pledge or grant a
security interest in, use and otherwise deal in and with, bonds and
other obligations, shares or other securities (or interests therein)
issued by others, whether engaged in a similar or different business or
activity;
(h) To make and execute agreements, contracts and other instruments
necessary or convenient in the exercise of the powers and functions of
the authority under this title, including contracts with any person,
firm, corporation, municipality, state agency or other entity in
accordance with the provisions of section one hundred three of the
general municipal law, and all state agencies and all municipalities are
hereby authorized to enter into and do all things necessary to perform
any such agreement, contract or other instrument with the authority;
(i) To borrow money at such rate or rates of interest as the authority
may determine, issue its notes, bonds or other obligations to evidence
such indebtedness, and secure any of its obligations by mortgage or
pledge of all or any of its property or any interest therein, wherever
situated;
(j) To arrange for guarantees of its bonds, notes or other obligations
by the federal government or by any private insurer or otherwise, and to
pay any premiums therefor;
(k) To issue such bonds or notes or other obligations whether or not
the income therefrom is exempt from federal income taxation;
(l) To purchase bonds, notes or other obligations of the authority at
such price or prices as the authority may determine;
(m) To lend money, invest and reinvest its funds, and take and hold
real and personal property as security for the payment of funds so
loaned or invested;
(n) To procure insurance against any loss in connection with its
properties or operations in such amount or amounts and from such
insurers, including the federal government, as it may deem necessary or
desirable, and to pay any premiums therefor;
(o) To create or acquire one or more wholly owned subsidiaries in
accordance with section one thousand twenty-i of this title to carry out
all or any part of the purposes of this title;
(p) To negotiate and enter into agreements with trustees or receivers
appointed by United States bankruptcy courts or federal district courts
or in other proceedings involving adjustment of debts and authorize
legal counsel for the authority to appear in any such proceedings;
(q) To file a petition under chapter nine of title eleven of the
United States bankruptcy code or take other similar action for the
adjustment of its debts;
(r) To enter into agreements to purchase power from the power
authority of the state of New York, the state, any state agency, any
municipality, any private entity, or any other available source at such
price or prices as may be negotiated; provided, however, that the
authority shall not have the power to enter into any agreement or any
negotiation for the purchase of power from the dominion of Canada, or
any political subdivision, public authority or private corporation
therein; but may enter into an agreement with the power authority of the
state of New York for the purchase of such power;
(s) To enter into management agreements for the operation of all or
any of the property or facilities owned by the authority;
(t) To transfer any asset of the authority to one or more (i) private
utility or (ii) municipal gas or electric agency established pursuant to
article fourteen-A of the general municipal law, for such consideration
and upon such terms as the authority may determine to be in the best
interest of the gas and electric ratepayers in the service area;
(u) Rate plans. Subject to subdivision six of section one thousand
twenty-k of this title to fix rates and charges for the furnishing or
rendition of gas or electric power or of any related service at the
lowest level consistent with sound fiscal and operating practices of the
authority and which provide for safe and adequate service. In
implementing this power:
1. The authority and the service provider shall, on or before February
first, two thousand fifteen, submit for review to the department of
public service a three-year rate proposal for rates and charges to take
effect on or after January first, two thousand sixteen.
2. The authority and the service provider shall thereafter submit for
review to the department of public service any rate proposal that would
increase the rates and charges and thus increase the aggregate revenues
of the authority by more than two and one-half percent to be measured on
an annual basis; provided, however, that the authority may place such
rates and charges into effect on an interim basis, subject to
prospective rate adjustment; provided, further, that a final rate plan
issued by the authority that would not so increase such rates and
charges shall not be subject to the requirements of paragraph four of
this subdivision and shall be considered final for the purposes of
review under article seventy-eight of the civil practice law and rules.

The authority and/or the service provider may otherwise submit for
review to such department any rate proposal irrespective of its effect
on revenues.
2-a. The authority and the service provider shall not submit any rate
proposal that shall assess any fee, penalty or other charge of any kind
for the voluntary termination of electric service to any residential
customer for the purpose of utilizing alternative sources of electric
generation in excess of that charged to customers who terminate their
electric service for any other reason.
3. The authority shall not fix any final rates and charges proposed
that would not be subject to review by the department of public service
pursuant to paragraphs one and two of this subdivision until after
holding public hearings thereon upon reasonable public notice, with at
least one such hearing to be held each in the county of Suffolk and the
county of Nassau.
4. Any recommendations associated with a rate proposal submitted
pursuant to paragraphs one and two of this subdivision shall be provided
by the department of public service to the board of the authority
immediately upon their finalization by the department. Unless the board
of the authority makes a preliminary determination in its discretion
that any particular recommendation is inconsistent with the authority's
sound fiscal operating practices, any existing contractual or operating
obligations, or the provision of safe and adequate service, the board
shall implement such recommendations as part of its final rate plan and
such final determination shall be deemed to satisfy the requirements of
this subdivision and be considered final for the purposes of review
under article seventy-eight of the civil practice law and rules. The
board shall make any such preliminary determination of inconsistency
within thirty days of receipt of such recommendations, with notice and
the basis of such determination being provided to the department of
public service, and contemporaneously posted on the websites of the
authority and its service provider. The board shall thereafter, within
thirty days of such posting and with due advance notice to the public,
hold a public hearing with respect to its preliminary determination of
inconsistency. At such hearing, the department of public service shall
present the basis for its recommendations, the board shall present the
basis for its determination of inconsistency and the service provider
may present its position. The authority and the service provider may,
during the time period before such public hearing reach agreement with
the department on disputed issues. Within thirty days after such public
hearing, the board of the authority shall announce its final
determination and planned implementation with respect to any such
recommendations. The authority's final determination of inconsistency
shall be subject to any applicable judicial review proceeding, including
review available under article seventy-eight of the civil practice law
and rules.
(v) To enter upon any lands and within any building whenever in its
judgment it may be necessary for the purpose of making surveys and
examinations to accomplish any purpose authorized by this title;
(w) To enter into agreements to pay annual sums in lieu of taxes to
any municipality with respect to any real property which is owned by the
authority and is located in such municipality;
(x) To maintain an office or offices at such place or places in the
state as it may determine;
(y) To make any inquiry, investigation, survey or study which the
authority may deem necessary to enable it effectively to carry out the
provisions of this title and, for that purpose, to take and hear proofs
and testimony, and with the prior vote of a majority of the board which

majority vote shall include the vote of the chairman to compel the
attendance of witnesses and to require the production of records, books,
papers, accounts and other documents, including public records, and to
make copies thereof or extracts therefrom; and
(z) To adopt, revise, amend and repeal rules and regulations with
respect to its operations, properties and facilities as may be necessary
or convenient to carry out the purposes of this title, subject to the
provisions of the state administrative procedure act.
(aa) Notwithstanding any other provision of law to the contrary the
authority shall not undertake any project without the approval of the
public authorities control board created pursuant to article one-A of
this chapter. Each application to the public authorities control board
shall contain a project description and an explanation of why the
project meets the standards for project approval set forth in this
subdivision. The public authorities control board shall only approve a
project proposed by the authority upon its determination that:
1. the project is financially feasible as the standard is defined in
article one-A of this chapter;
2. the project does not materially adversely affect overall real
property taxes in the service area;
3. the project is anticipated to result generally in lower utility
rates in the service area; and
4. the project will not materially adversely affect overall real
property taxes or utility rates in other areas of the state of New York.
(bb) Comprehensive and regular management and operations audits. 1.
The authority and the service provider shall cooperate in the
undertaking and completion of a regular and comprehensive management and
operations audit conducted pursuant to the requirements of this
subdivision and paragraph (d) of subdivision three of section three-b of
the public service law. Such audit shall review and evaluate the overall
operations and management of the authority and service provider,
including such operations and management in the context of the
authority's duty to set rates at the lowest level consistent with
standards and procedures provided in subdivision (u) of this section,
and include, but not be limited to: (i) the service provider's
construction and capital program planning in relation to the needs of
customers for reliable service; (ii) the overall efficiency of the
authority's and service provider's operations; (iii) the manner in which
the authority is meeting its debt service obligations; (iv) the
authority's Fuel and Purchased Power Cost Adjustment clause and recovery
of costs associated with such clause; (v) the authority's and service
provider's annual budgeting procedures and process; (vi) the
application, if any, of the performance metrics designated in the
operations services agreement and the accuracy of the data relied upon
with respect to such application; and (vii) the authority's compliance
with debt covenants.
2. The department of public service shall notify the authority that
said department is in the process of initiating a comprehensive
management and operations audit as described in paragraph one of this
subdivision in a manner that ensures the timeliness of such audit, and
in accordance with the following timeframe: the first comprehensive
management and operations audit shall be initiated as of the effective
date of chapter eight of the laws of two thousand twelve and undertaken
in a manner and to an extent that is practicable in the context of the
authority's transition to a new management service structure; the second
comprehensive management and operations audit shall be initiated no
later than December fifteenth, two thousand sixteen; and all additional
comprehensive management and operations audits shall be initiated at

least once every five years thereafter. Within a reasonable time after
such notification to the authority, said department or the independent
auditor retained by the authority to undertake such audit shall hold
public statement hearings, with proper notice, in both Nassau and
Suffolk counties for the purpose of receiving both oral and written
comments from the public on matters related to such audit as described
in paragraph one of this subdivision.
3. Each such audit shall be completed within eighteen months of
initiation absent an extension for good cause shown by the department of
public service or the independent auditor under contract with the
authority with notice of such extension to the governor, the temporary
president of the senate, the speaker of the assembly, and the chairs of
the authority and the department of public service. Such audit shall be
provided to the board of the authority immediately upon its completion.
The department of public service shall provide notice of completion of
such audit to the governor, the temporary president of the senate, the
speaker of the assembly, and the minority leaders of the senate and
assembly, and the authority, upon receipt of such audit, shall post a
copy of such audit, including findings and recommendations, on its
website and the website of the service provider. Unless the board of the
authority makes a preliminary determination that any particular finding
or recommendation contained in such audit is inconsistent with the
authority's sound fiscal operating practices, any existing contractual
or operating obligation, or the provision for safe and adequate service,
the board shall implement or cause its service provider to implement
such findings and recommendations in accordance with the timeframe
specified under such audit.
4. The board of the authority shall make any preliminary determination
of inconsistency with respect to any such finding or recommendation
within thirty days of receipt of the audit, with notice and the basis of
such determination being provided to the department of public service.
Such notice and basis shall be posted contemporaneously on the
authority's website and the website of the service provider and the
board shall, within thirty days of such posting and with due advance
notice to the public, hold a public hearing with respect to its
preliminary determination of inconsistency. At such hearing the
department of public service or the independent auditor responsible for
undertaking such audit shall present the basis for its findings and
recommendations and the board shall present the basis for its
determination of inconsistency and the service provider may present is
position. The authority, service provider and auditor may during the
time period prior to such public hearing reach agreement on disputed
issues. Within thirty days after such public hearing, the board of the
authority shall announce its final determination and planned
implementations with respect to any such findings and/or
recommendations. The authority's final determination of inconsistency
shall be subject to any applicable judicial review proceeding, including
review available under article seventy-eight of the civil practice law
and rules.
5. Notwithstanding the foregoing, in the event that a comprehensive
and regular management and operations audit as conducted in accordance
with this subdivision indicates a finding of fraud, abuse or
mismanagement by a service provider of the authority, and upon a finding
by the public service commission that reasonable cause exists for the
basis of such indication, the public service commission may order that
any recommendations contained in the regular management and operations
audit be implemented. The public service commission may also provide in
their order, the date in which the recommendations be fully implemented.

Failure to comply with any such order can result in the imposition of a
civil penalty by the public service commission against the service
provider.
(cc) To prepare an emergency response plan pursuant to this
subdivision. 1. The service provider shall, in consultation with the
authority, prepare and maintain an emergency response plan (i) to assure
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 authority's service territory
due to a storm or other causes beyond the control of the authority and
the service provider, (ii) consistent with the requirements of paragraph
(a) of subdivision twenty-one of section sixty-six of the public service
law and any regulations and orders adopted thereto, and (iii)
establishing the separate responsibilities of the authority and service
provider. Such emergency response plan shall include plans setting forth
how the communication and coordination of efforts between the authority,
service provider, authority employees, service provider employees,
authority company crews, service provider company crews, mutual aid
crews, other utilities, local governments and any service provider or
other entity performing services to assist the authority shall occur.
Such emergency response plan shall include identification of and
outreach plans for customers who have documented their need for
essential electricity for medical needs, which shall include but not be
limited to, apnea monitors for infants, cuirass respirators,
hemodialysis machines, intravenous feeding machines, intravenous medical
infusion machines, oxygen concentrators, positive pressure respirators,
respirators/ventilators, rocking bed respirators, suction machines, and
tank type respirators.
2. On or before February third, two thousand fourteen, the authority
and service provider shall submit an emergency response plan to the
department of public service for review. Contemporaneously with such
submission, the authority shall provide notice of such proposed plan to
the secretary of state for publication in the state register, the
authority and service provider each shall post such plan on their
websites and otherwise make such plan available for review in-person,
and afford members of the public an opportunity to submit written
comments and oral comments pursuant to at least one hearing to be held
each in the county of Suffolk and the county of Nassau. Such written
comments must be submitted by March fourteenth, two thousand fourteen.
The authority and service provider shall provide a copy of all written
comments they receive and a transcript of such public hearings to the
department of public service for its consideration in reviewing the
emergency response plan. The department shall provide any
recommendations to the authority and service provider with respect to
such plan on or before April fifteenth, two thousand fourteen. Such plan
must be made final by June second, two thousand fourteen. For each year
thereafter, the service provider shall submit an emergency response plan
to the department of public service, and such department shall provide
its recommendations, in accordance with a schedule to be established by
such department and that is consistent with the schedule associated with
such department's review of similar such plans provided by electric
corporations pursuant to subdivision twenty-one of section sixty-six of
the public service law.
3. By June second, two thousand fourteen, and by June first annually
thereafter, the authority and service provider shall jointly certify to
the department of homeland security and emergency services that the
emergency response plan ensures, to the greatest extent feasible, the
timely and safe restoration of energy services after an emergency

consistent with the requirements of paragraph (a) of subdivision
twenty-one of the public service law and the department's
recommendations. The filing of such emergency response plan shall also
include a copy of all written mutual assistance agreements among
utilities. The authority and service provider shall file with the county
executives of Nassau and Suffolk county and the mayor of the city of New
York the most recent version of the emergency response plan, and make
sure that such amended versions are timely filed.
4. Starting in calendar year two thousand fourteen, the service
provider annually shall undertake at least one drill to implement
procedures to practice its emergency response plan. The service provider
shall notify and allow participation in such drill of all appropriate
municipal emergency responders and officials.
5. If, during an emergency event, electric service is not restored in
three days, the service provider shall within sixty days from the date
of full restoration file with the department a report constituting a
review of all aspects of the preparation and system restoration
performance during the event, and shall thereafter take into
consideration any recommendations made by the department associated with
such review.
(dd) On or before January first, two thousand fifteen, and by January
first of each calendar year thereafter, to submit for review to the
department of public service a report detailing the service provider's
planned capital expenditures.
(ee) On or before July first, two thousand fourteen, and annually
thereafter, to submit for review to the department of public service any
proposed plan related to implementing energy efficiency measures,
distributed generation or advanced grid technology programs for the
purpose provided pursuant to paragraph (g) of subdivision three of
section three-b of the public service law.
(ff) To assist and cooperate with the department of public service
with respect to any review undertaken pursuant to section three-b of the
public service law, including providing the department with reasonable
access to all facilities and premises owned or operated by the authority
or its service provider, allowing review of all books and records of the
authority and its service provider, providing copies of requested
documents, allowing interviews of all appropriate personnel, and
responding in a reasonable and timely manner to any inquiries or
reporting requests made by the department; provided, however, that the
obligations set forth in this subdivision shall not extend to affiliates
of the service provider.
(gg) Renewable generation and energy efficiency programs. 1. The
authority in coordination with the service provider, the power authority
of the state of New York and the New York state energy research and
development authority shall, to the extent the authority's rates are
sufficient to provide safe and adequate transmission and distribution
service, and the measures herein, undertake actions to design and
administer renewable energy and energy efficiency measures in the
service area, with the goal of continuing and expanding such measures
that cost-effectively reduce system-wide peak demand, minimize long-term
fuel price risk to rate payers, lower emissions, improve environmental
quality, and seek to meet New York state climate change and
environmental goals. Such actions shall also include implementation of
any renewable energy competitive procurement or feed-in-tariff programs
that were approved by the authority as of the effective date of the
chapter of the laws of two thousand thirteen which added this
subdivision.

2. The service provider shall consider, consistent with maintaining
system reliability, renewable generation and energy efficiency program
results and options in establishing capital plans.
(hh) Starting in calendar year two thousand fifteen, the authority and
the service provider shall submit to the department of public service
for review, any and all data, information and reports which set forth
the service provider's actual performance related to the metrics in the
operations services agreement, including the authority's evaluation
thereof, no less than forty-five days prior to the authority's
determination of the service provider's annual incentive compensation.
(ii) The service provider shall assist and cooperate with the
department of public service with respect to providing any data or
information necessary for the department to post a compensation
statement for the service provider in accordance with subdivision three
of section one hundred eleven-a of the public service law.
(jj) As deemed feasible and advisable by the trustees, to enter into
contracts with the power authority of the state of New York for the
provision of bill credits generated by the production of renewable
energy by a renewable energy system developed, constructed, owned, or
contracted for by the power authority of the state of New York under the
renewable energy access and community help program established pursuant
to subdivision twenty-seven-b of section one thousand five of this
article and, unless such end-use electricity consumers opt out, to
provide such bill credits to low-income or moderate-income end-use
electricity consumers in disadvantaged communities, including such
end-use electricity customers who have or who reside in buildings that
have on-site net-metered generation or who participate in a community
choice aggregation or community distributed generation project.
* NB There are 2 § 1020-f's

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