Section 66. General powers of commission in respect to gas and electricity  


Latest version.
  • The commission shall:
        1. Have general supervision  of  all  gas  corporations  and  electric
      corporations  having authority under any general or special law or under
      any charter or franchise to lay down, erect or  maintain  wires,  pipes,
      conduits,  ducts  or  other  fixtures  in,  over  or  under the streets,
      highways and public places  of  any  municipality  for  the  purpose  of
      furnishing   or  distributing  gas  or  of  furnishing  or  transmitting
      electricity  for  light,  heat  or  power,  or  maintaining  underground
      conduits  or  ducts  for  electrical  conductors, and all gas plants and
      electric plants owned, leased or operated  by  any  gas  corporation  or
      electric corporation.
        2.  Investigate  and  ascertain, from time to time, the quality of gas
      supplied  by  persons,  corporations  and  municipalities;  examine   or
      investigate  the  methods  employed  by  such  persons, corporations and
      municipalities in  manufacturing,  distributing  and  supplying  gas  or
      electricity  for  light, heat or power and in transmitting the same, and
      have power to order such reasonable improvements as  will  best  promote
      the  public interest, preserve the public health and protect those using
      such gas or electricity  and  those  employed  in  the  manufacture  and
      distribution  thereof,  and  have power to order reasonable improvements
      and extensions of the works, wires, poles, lines,  conduits,  ducts  and
      other  reasonable  devices,  apparatus and property of gas corporations,
      electric corporations  and  municipalities;  and  have  power  after  an
      investigation  and  a  hearing to order any corporation having authority
      under any general or special law or under any charter or  franchise,  to
      lay  down,  erect  or  maintain  wires,  pipes, conduits, ducts or other
      fixtures in, over or under the streets, highways and  public  places  of
      any  municipality  for the purpose of supplying, selling or distributing
      natural gas,  to  augment  its  supply  of  natural  gas,  whenever  the
      commission deems necessary and whenever artificial gas can be reasonably
      obtained,  by  acquiring  by purchase, manufacture or otherwise a supply
      thereof to be mixed with such natural gas, in order to  render  adequate
      service to the customers of such corporation or to maintain a proper and
      uniform pressure; and have power after an investigation and a hearing to
      order  any corporation having authority under any general or special law
      or under any charter or franchise, to lay down, erect or maintain wires,
      pipes, conduits, ducts or other fixtures in, over or under the  streets,
      highways  and  public  places  of  any  municipality  for the purpose of
      supplying, selling or distributing artificial gas, to augment its supply
      of artificial gas, whenever the commission deems necessary and  whenever
      natural  gas  can  be  reasonably  obtained, by acquiring by purchase or
      otherwise a supply thereof to be mixed  with  such  artificial  gas,  in
      order to render adequate service to the customers of such corporation or
      to  maintain a proper and uniform pressure; and to fix such rate for the
      supplying of mixed gas as  shall  secure  to  such  corporation  a  fair
      return;  and  may  order the curtailment or discontinuance of the use of
      natural gas  for  manufacturing  or  industrial  purposes,  for  periods
      aggregating  not  to  exceed  four months in any calendar year, if it is
      established to the satisfaction of the commission  that  the  supply  of
      natural  gas  is not adequate to meet the reasonable demands of domestic
      consumption and may prohibit the use of natural gas in wasteful  devices
      and practices.
        2-a. Have power, after an investigation and hearing held on notice and
      upon  a finding that as a result of a shortage of gas a public emergency
      exists, to determine whether any gas corporation has available,  or  may
      be  made  available by the operation of its facilities, gas in excess of
      an amount necessary to supply its consumers for purposes for  which  gas
    
      may  properly  be  used during such emergency. Upon the making of such a
      determination it shall have power to order such  a  gas  corporation  to
      transfer  and  make  available  to  any  other  gas  corporation where a
      shortage of gas exists, for the duration of the emergency, any or all of
      such  excess  gas  for which the transferring company shall receive just
      compensation. Such order may require the installation and  operation  of
      all   necessary  connections  and  facilities  at  the  expense  of  the
      purchasing gas corporation and require the selling  and  purchasing  gas
      corporation  to adopt appropriate regulations and practices to carry out
      the transfer of gas as ordered.
        3. Have power by order to fix and change from time to  time  standards
      of  the  purity, illuminating power and heating power, and standards for
      the measurement thereof, of gas to be manufactured, distributed or  sold
      by  persons,  corporations  or  municipalities  for lighting, heating or
      power purposes, notwithstanding that  other  standards  of  the  purity,
      illuminating  power  and  heating  power  of  gas  and standards for the
      measurement thereof, may have been fixed by general or  special  statute
      and to prescribe from time to time the efficiency of the electric supply
      system,  of  the  current  supplied  and  of  the lamps furnished by the
      persons, corporations or municipalities generating and selling  electric
      current, and by order to require the gas so manufactured, distributed or
      sold  to  equal the standards so fixed by it, and to prescribe from time
      to time the reasonable minimum and maximum pressure at which  gas  shall
      be  delivered  by  said persons, corporations or municipalities. For the
      purpose of determining whether the gas manufactured, distributed or sold
      by such persons, corporations or municipalities for lighting, heating or
      power purposes conforms to the standards of illuminating power,  heating
      power,  purity  and pressure, and for the purpose of determining whether
      the efficiency of the electric supply system, of  the  current  supplied
      and  of  the  lamps  furnished  conforms  to  the  orders  issued by the
      commission, the commission shall  have  power  of  its  own  motion,  to
      examine   and   investigate   the   plants   and   methods  employed  in
      manufacturing, delivering and supplying gas or  electricity,  and  shall
      have access through its members or persons employed and authorized by it
      to  make  such  examinations  and  investigations  to  all  parts of the
      manufacturing  plants  owned,  used  or  operated  by  the  manufacture,
      transmission  or  distribution of gas or electricity by any such person,
      corporation or municipality.
        4. Have power, in its discretion,  to  prescribe  uniform  methods  of
      keeping  accounts, records and books, to be observed by gas corporations
      and  electric  corporations  and  by  municipalities  engaged   in   the
      manufacture,  sale  and  distribution  of gas and electricity for light,
      heat or power. It may also in its discretion prescribe, by order,  forms
      of  accounts,  records  and  memoranda  to  be  kept  by  such  persons,
      corporations and municipalities. Notice of alterations by the commission
      in the required method or form of keeping a system of accounts shall  be
      given  to  such  persons  or corporations by the commission at least six
      months before the same shall take effect. Any other and additional forms
      of accounts, records and memoranda kept by such  corporations  shall  be
      subject to examination by the commission.
        5.  Examine  all  persons,  corporations  and municipalities under its
      supervision and keep informed as to the methods, practices,  regulations
      and  property  employed  by  them  in the transaction of their business.
      Whenever the commission shall be of opinion, after a  hearing  had  upon
      its   own   motion  or  upon  complaint,  that  the  rates,  charges  or
      classifications  or  the  acts  or  regulations  of  any  such   person,
      corporation   or   municipality   are   unjust,  unreasonable,  unjustly
      discriminatory or unduly preferential or in anywise in violation of  any
    
      provision  of  law,  the commission shall determine and prescribe in the
      manner provided by and subject to the provisions of section  seventy-two
      of   this   chapter   the   just   and  reasonable  rates,  charges  and
      classifications  thereafter  to  be  in  force  for  the  service  to be
      furnished notwithstanding that a higher or  lower  rate  or  charge  has
      heretofore  been  prescribed  by  general  or special statute, contract,
      grant, franchise condition, consent or other agreement, and the just and
      reasonable acts and regulations to be done and  observed;  and  whenever
      the  commission  shall  be  of opinion, after a hearing had upon its own
      motion or upon complaint, that the property, equipment or appliances  of
      any  such person, corporation or municipality are unsafe, inefficient or
      inadequate, the commission  shall  determine  and  prescribe  the  safe,
      efficient  and adequate property, equipment and appliances thereafter to
      be used, maintained and operated for the security and  accommodation  of
      the  public  and  in  compliance with the provisions of law and of their
      franchises and charters.
        6. Require every person and corporation under its supervision  and  it
      shall  be the duty of every such person and corporation to file with the
      commission an annual report, verified by  the  oath  of  the  president,
      vice-president,  treasurer,  secretary, general manager, or receiver, if
      any,  thereof,  or  by  the  person  required  to  file  the  same.  The
      verification  shall  be made by said official holding office at the time
      of the filing of said report, and if not made upon the knowledge of  the
      person verifying the same shall set forth the sources of his information
      and  the  grounds  of  his  belief  as  to  any matters not stated to be
      verified upon his knowledge. The report shall show  in  detail  (a)  the
      amount of its authorized capital stock and the amount thereof issued and
      outstanding;  (b)  the  amount of its authorized bonded indebtedness and
      the amount of its bonds and other  forms  of  evidence  of  indebtedness
      issued  and  outstanding;  (c)  its receipts and expenditures during the
      preceding year; (d) the amount paid as dividends upon its stock  and  as
      interest upon its bonds; (e) the names of its officers and the aggregate
      amount  paid  as  salaries  to  them and the amount paid as wages to its
      employees; (f) the location of its plant or plants and  system,  with  a
      full  description  of its property and franchises, stating in detail how
      each franchise stated to be owned was acquired; and (g) such other facts
      pertaining to the operation and maintenance of the plant and system, and
      the affairs of such person or corporation as  may  be  required  by  the
      commission.  Such  reports shall be in the form, cover the period and be
      filed at the time prescribed by the commission. The commission may, from
      time to time, make changes and additions in such forms.  When  any  such
      report  is  defective  or believed to be erroneous, the commission shall
      notify the person, corporation or municipality  making  such  report  to
      amend  the  same  within  a  time prescribed by the commission. Any such
      person or corporation or municipality which shall neglect  to  make  any
      such  report  or  which shall fail to correct any such report within the
      time prescribed by the commission shall be liable to a  penalty  of  one
      hundred  dollars  and  an  additional penalty of one hundred dollars for
      each day after the prescribed time for which it shall neglect to file or
      correct the same, to be sued for in the name of the people of the  state
      of  New York. The amount recovered in any such action shall be paid into
      the state treasury and be credited to the general fund.  The  commission
      may extend the time prescribed for cause shown.
        7. Require each municipality engaged in operating any works or systems
      for  the  manufacture  and  supplying  of  gas or electricity to make an
      annual report to the commission, verified by the  oath  of  the  general
      manager  or superintendent thereof, showing in detail, (a) the amount of
      its authorized bonded indebtedness and the amount of its bonds and other
    
      forms of evidence of indebtedness issued and  outstanding  for  lighting
      purposes;  (b)  its receipts and expenditures during the preceding year;
      (c) the amount paid as interest upon its bonds and upon other  forms  of
      evidence  of  indebtedness;  (d) the name of and the amount paid to each
      person receiving a yearly or monthly salary,  and  the  amount  paid  as
      wages to employees; (e) the location of its plant and system with a full
      description  of the property; and (f) such other facts pertaining to the
      operation and maintenance of the plant and system as may be required  by
      the  commission.  Such report shall be in the form, cover the period and
      be filed at the time prescribed by the commission.
        8. Have power, either through its members or inspectors  or  employees
      duly  authorized by it, to enter in or upon and to inspect the property,
      buildings, plants, factories, power houses, ducts, conduits and  offices
      of any of such corporations, persons or municipalities.
        9.  Have  power  to  examine  the accounts, books, contracts, records,
      documents and papers of any such corporation,  person  or  municipality,
      and  have  power,  after  hearing, to prescribe by order the accounts in
      which particular outlays and  receipts  shall  be  entered,  charged  or
      credited.  At  any  such  hearing  the  burden  of proof shall be on the
      person, corporation or municipality to establish the correctness of  the
      accounts  in  which such outlays and receipts have been entered, and the
      commission may suspend a charge or credit pending submission of proof by
      such person, corporation or municipality.
        10. Have power to compel, by subpoena duces tecum, the  production  of
      any  accounts,  books,  contracts,  records,  documents,  memoranda  and
      papers. In lieu of requiring production of originals by  subpoena  duces
      tecum the commission or any commissioner may require sworn copies of any
      such  books, records, contracts, documents and papers, or parts thereof,
      to  be  filed  with  it.  The  commission  may  require  of   all   such
      corporations,  persons  or municipalities, specific answers to questions
      upon which the commission may need information,  and  may  also  require
      such corporations, persons or municipalities to file periodic reports in
      the  form,  covering  the period and filed at the time prescribed by the
      commission. If such corporation, person or municipality  shall  fail  to
      make  specific  answer  to any question or shall fail to make a periodic
      report when required by the commission as  herein  provided  within  the
      time  and  in  the  form prescribed by the commission for the making and
      filing of any such report or answer, such  corporation,  person  or  the
      officer  of  the  municipality shall forfeit to the state the sum of one
      hundred dollars for each and every  day  it  shall  continue  to  be  in
      default  with respect to such report or answer. Such forfeiture shall be
      recovered in an action brought by the commission  in  the  name  of  the
      people of the state of New York. The amount recovered in any such action
      shall  be  paid  into  the state treasury and be credited to the general
      fund.
        11. Have power in all parts of the state, either as  a  commission  or
      through  its  members,  or  through  an  officer  or  employee specially
      authorized to conduct an investigation or hearing to subpoena witnesses,
      take testimony and administer oaths to witnesses in  any  proceeding  or
      examination instituted before it, or conducted by it in reference to any
      matter within its jurisdiction under this article.
        12.  (a)  Have  power  to  require  every  gas  corporation,  electric
      corporation and municipality hereinafter in this  subdivision  called  a
      utility to file with the commission and to print and keep open to public
      inspection  schedules showing all rates and charges made, established or
      enforced or to  be  charged  or  enforced,  all  forms  of  contract  or
      agreement  and  all  rules and regulations relating to rates, charges or
      service used or to be used, and all general  privileges  and  facilities
    
      granted or allowed by such utility; but this subdivision shall not apply
      to  state,  municipal  or  federal  contracts, except to the extent such
      contracts relate to transportation of electricity.
        (b)  No  change shall be made in any rate or charge, or in any form of
      contract or agreement or any rule or regulation relating  to  any  rate,
      charge  or service, or in any general privilege or facility, which shall
      have been filed by  a  utility  in  compliance  with  an  order  of  the
      commission,  except  after  thirty days' notice to the commission and to
      each county, city, town and village served by  such  utility  which  had
      filed  with  such utility, within the prior twelve months, a request for
      such notice and which shall be affected by such change  and  publication
      of  a notice to the public of such proposed change once in each week for
      four successive weeks in a newspaper having general circulation in  each
      county  containing  territory  affected  by  the  proposed change, which
      notice shall plainly state the changes proposed and when the change will
      go into effect. The commission for good cause shown may, except  in  the
      case  of major changes, allow changes to take effect prior to the end of
      such thirty-day period and without publication of notice to  the  public
      under  such  conditions as it may prescribe. The commission may delegate
      to the secretary of the commission its authority to approve a change  to
      a  schedule  postponing  the  effective date of such schedule previously
      filed with the  commission  and  to  allow  for  good  cause  shown  the
      postponement  to  take effect prior to the end of such thirty-day period
      and without publication of notice to the public.
        (c) For the purpose of this subdivision, "major changes" shall mean an
      increase in the rates and charges which  would  increase  the  aggregate
      revenues  of  the  applicant  more  than  the  greater  of three hundred
      thousand dollars or two and one-half  percent,  but  shall  not  include
      changes  in  rates,  charges or rentals allowed to go into effect by the
      commission or made by the utility pursuant to an order of the commission
      after hearings held upon notice to the public.
        (d) No utility shall charge, demand, collect or receive a  greater  or
      less  or  different  compensation  for  any  service  rendered  or to be
      rendered than the rates and charges specified in its schedule filed  and
      in effect; nor shall any utility refund or remit in any manner or by any
      device  any  portion of the rates or charges so specified, nor extend to
      any person any form of contract or agreement, or any rule or regulation,
      or any privilege or facility, except such as are regularly and uniformly
      extended to all persons under like circumstances.
        (e) The commission shall have power to prescribe  the  form  of  every
      such  schedule, and from time to time prescribe by order such changes in
      the form thereof as may be deemed wise. The commission shall  also  have
      power  to establish such rules and regulations to carry into effect this
      subdivision as it may deem necessary, and to modify or amend such  rules
      or regulations from time to time. Nothing in this chapter shall be taken
      to  prohibit  a  utility  from  establishing sliding scale upward rates,
      beginning at a fixed price per unit for a  small  consumption  and  then
      increasing the price per unit as the consumption is increased.
        (f)  Whenever  there shall be filed with the commission by any utility
      any schedule stating a new rate or charge, or any change in any form  of
      contract  or  agreement  or any rule or regulation relating to any rate,
      charge or  service,  or  in  any  general  privilege  or  facility,  the
      commission  may,  at  any time within sixty days from the date when such
      schedule would or has become effective, either upon  complaint  or  upon
      its own initiative, and, if it so orders, without answer or other formal
      pleading  by  the  utility,  but  upon reasonable notice, hold a hearing
      concerning the propriety of a change proposed by  the  filing.  If  such
      change  is  a  major  change,  the commission shall hold such a hearing.
    
      Pending such hearing and decision thereon, the commission,  upon  filing
      with such schedule and delivering to the utility, a statement in writing
      of its reasons therefor, may suspend the operation of such schedule, but
      not for a longer period than one hundred and twenty days beyond the time
      when  it  would  otherwise  go  into effect. After full hearing, whether
      completed before or after the schedule goes into effect, the  commission
      may  make  such  order  in  reference  thereto  as  would be proper in a
      proceeding begun after the rate, charge, form of contract or  agreement,
      rule,  regulation,  service,  general  privilege  or facility had become
      effective. If any such hearing cannot be concluded within the period  of
      suspension as above stated, the commission may extend the suspension for
      a further period, not exceeding six months.
        (g)  The  commission shall review all filings to determine if they are
      in compliance with section seventy-two-a of this article. The commission
      shall have the power to hold public hearings concerning the propriety of
      any increased rate or charge for fuel costs. At  any  hearing  involving
      such  an  increase,  the  burden  of  proof  as  to  the correctness and
      reasonableness of the charge shall be upon the utility.
        (h) The commission may, as authorized by section seventy-two  of  this
      article,  establish  temporary  rates  or  charges  for  any  period  of
      suspension under this section.
        (i) At any hearing involving a rate, the burden of proof to show  that
      the  change  or  proposed change if proposed by the utility, or that the
      existing rate, if it is  proposed  to  reduce  the  rate,  is  just  and
      reasonable shall be upon the utility; and the commission may give to the
      hearing  and  decision  of  such  questions  preference  over  all other
      questions pending before it.
        (j) The schedule, rates, charges, form of contract or agreement, rule,
      regulation, service, general privilege or facility in force when the new
      schedule, rate, charge, form of  contract,  rule,  regulation,  service,
      general  privilege  or facility was filed shall continue in force during
      the period of the suspension unless the  commission  shall  establish  a
      temporary  rate  or  charge as authorized by section seventy-two of this
      article.
        (k) In any case in which the commission determines that the  whole  or
      any  part  of any increased rate or charge imposed by a utility pursuant
      to any automatic adjustment, including  but  not  limited  to  any  fuel
      adjustment, was not just and reasonable, because of a lack of reasonable
      care  on  the  part of the utility in providing gas or electric service,
      the commission may order the  utility  to  refund,  with  interest,  any
      moneys  collected  by the utility pursuant to such whole or part of such
      increased rate or charge. In determining  whether  a  utility  exercised
      reasonable  care  in  providing  gas or electric service, the commission
      shall take into account the public health and safety  consequences,  and
      the economic consequences to ratepayers, of the utility's actions.
        12-a.  Have  power  to  fix  and  alter  the  format and informational
      requirements of bills utilized by public and private  gas  corporations,
      electric  corporations  and  gas  and  electric  corporations in levying
      charges for service, to assure simplicity and  clarity  and  to  require
      indication  of any adjustment charges, including but not limited to fuel
      adjustments, in monetary amounts. The commission  shall  further  ensure
      periodic  explanation  of  applicable  rates  and rate schedules for the
      purpose of assisting customers in  making  the  most  efficient  use  of
      energy.
        12-b.  (a)  In consultation with the commissioner of the department of
      commerce have power 1. to designate as economic incentive areas specific
      areas   in   which   reduced   economic   activity,   unemployment   and
      underutilization of utility facilities justifies the approval of reduced
    
      incentive  rates  for  utility  services, and to promulgate criteria for
      identifying such areas and  customers  eligible  for  such  rates.  Upon
      application  of  a  utility  corporation  the commission shall authorize
      special economic incentive rates in such areas to such customers and for
      such  periods  of  time as the commission finds will best effectuate the
      purposes of this subdivision. The commission may also  provide  for  the
      gradual  elimination  of  the  rate  reduction  authorized,  and for the
      elimination  of  such  reduction,  if  any  conditions  imposed  by  the
      commission  are not met. 2. to designate or form classes of customers as
      appropriate for special rates or tariffs, in order to  prevent  loss  of
      such  customers, or to attract new customers where necessary to maintain
      economic use of utility facilities.
        Any such special rate or tariff shall be so designed as to recover the
      incremental  cost  of  providing  service  to  such  customers  and   to
      contribute  to  the common costs which otherwise would be borne by other
      customers.
        (b) The commission may also authorize utility corporations to contract
      with existing or prospective  industrial  and  commercial  customers  to
      wheel   or  deliver  electricity  or  gas  purchased  directly  by  such
      customers, provided that the commission finds that such arrangements are
      in the overall best interest of the rate payers of the corporation,  and
      that  the rates and fees for the services provided adequately compensate
      the corporation for the use of its facilities.
        12-c. Notwithstanding any other provision of law, upon application  of
      a  gas  or  electric  corporation,  the  commission shall authorize such
      corporation  to  charge  a  special  empire  zone  rate  equal  to   the
      incremental cost of providing service to customers certified as eligible
      for  such  rate  pursuant to article eighteen-B of the general municipal
      law.
        13. In case any electric corporation or gas corporation is engaged  in
      carrying  on any business other than owning, operating or managing a gas
      plant or an electric  plant,  which  other  business  is  not  otherwise
      subject  to the jurisdiction of the commission, and is so conducted that
      its operations are to be substantially kept separate and apart from  the
      owning, operating, managing or controlling of such gas plant or electric
      plant,  said  corporation in respect of such other business shall not be
      subject to any of the provisions  of  this  chapter  and  shall  not  be
      required to procure the assent or authorization of the commission to any
      act in such other business or to make any report in respect thereof. But
      this  subdivision  shall  not  restrict  or  limit  the  powers  of  the
      commission in respect to the owning, operating, managing or  controlling
      by such corporation of such gas plant or electric plant, and said powers
      shall  include  also  the  right  to  inquire  as  to, and prescribe the
      apportionment of, capitalization, earnings, debts  and  expenses  fairly
      and  justly  to  be  awarded  to  or  borne by the ownership, operation,
      management  or  control  of  such  gas  plant  or  electric   plant   as
      distinguished  from such other business. In any such case if the owning,
      operating, managing or controlling of such gas plant or  electric  plant
      by any such corporation is wholly subsidiary and incidental to the other
      business  carried  on  by  it  and  is  inconsiderable in amount and not
      general in its character, the commission may  by  general  rules  exempt
      such  corporation  from  making  full  reports  and  from the keeping of
      accounts as to  such  subsidiary  and  incidental  business.  Where  the
      permission  granted  such corporation pursuant to section sixty-eight is
      to supply gas only to  less  than  twenty  customers  specified  by  the
      commission,  the  commission may, if the public interest permits, exempt
      such corporation from compliance with all or any of  the  provisions  of
    
      this  article  except  those  affecting matters of public safety and the
      provisions of sections sixty-five, sixty-eight and seventy-four.
        14.  The  commission  shall have power to require each gas corporation
      and electric corporation to establish classifications of  service  based
      upon  the quantity used, the time when used, the purpose for which used,
      the duration of use and upon any other reasonable consideration, and  to
      establish  in  connection  therewith just and reasonable graduated rates
      and charges; and it shall have power, either upon complaint or upon  its
      own  motion,  to require such changes in such classifications, rates and
      charges as it shall determine to be just  and  reasonable.  Neither  the
      scheduled  rates nor the minimum charge for residential customers shall,
      after July first, nineteen hundred thirty-seven, be based in any  manner
      on  the number of outlets, number of rooms, cubic or square foot area or
      other such standards.
        15. Receive, and any gas corporation may at any  time  submit  to  the
      commission  for  its approval, one or more contracts proposed to be made
      by it for the purchase from the producer of by-product gas, to  be  used
      in  its  service  to  its consumers, in which said proposed contract the
      price of gas shall be based on the then market price  of  coal,  and  to
      vary  therewith  whenever  the  market  price  of coal shall vary to the
      extent of ten per centum for a period of not less than thirty days,  and
      which said contract shall state the efficiency of said gas, and upon the
      approval  of  said  contract  by the commission, or said contract as the
      same may be amended, altered or changed, and  upon  the  application  of
      said gas corporation, the commission shall make an order fixing the rate
      or  rates  to be charged to consumers for the service of such gas, which
      said rate shall thereafter remain unchanged  during  the  term  of  said
      contract  in  so  far  as said rate shall be based on the cost of gas to
      said corporation, except as such cost shall vary with the variations  in
      the  price  of  coal  as in said contract provided. The commission shall
      have like powers and duties with reference to  existing  contracts  made
      prior  to  January  first,  nineteen  hundred  and  twenty-two, by a gas
      corporation for a supply of by-product gas where the price of gas varies
      as the price of coal varies. By-product, as used  in  this  section,  is
      defined  to  mean  one  of the several products obtained by treatment of
      coal by some process other than the customary distillation in retorts.
        16. The commission shall have power after a hearing on its own motion,
      upon complaint or upon the application of a gas corporation or  electric
      corporation to prescribe rates and charges for gas, electricity or other
      service  rendered  or to be rendered, embodying the automatic adjustment
      of such rates and charges, over a fixed period not exceeding four years,
      based on the relation between the net income from such rates and charges
      available for  return  and  the  fair  value  of  the  property  of  the
      corporation  used  and  useful  in  said  service;  but  nothing in this
      subdivision shall operate to prevent the commission after the expiration
      of such fixed period from fixing proper, just and reasonable  rates  and
      charges to be made for gas, electricity or service as authorized in this
      article.
        17.   Notwithstanding   the   provisions  of  this  article,  any  gas
      corporation which transports natural gas through the state of  New  York
      but  which  does not deliver, sell or furnish any such gas to any person
      or corporation within the  state  of  New  York,  shall  be  subject  to
      regulation  by  the  commission  only  insofar  as  the construction and
      operation of such facilities shall affect matters of public safety.
        19. The commission shall have power  to  provide  for  management  and
      operations  audits  of  gas corporations and electric corporations. Such
      audits shall be performed at least once every five years for combination
      gas and electric companies, as well as  for  straight  gas  corporations
    
      having  annual  gross revenues in excess of two hundred million dollars.
      The audit shall include, but not be limited to, an investigation of  the
      company's  construction program planning in relation to the needs of its
      customers  for  reliable  service and an evaluation of the efficiency of
      the company's operations. The commission shall have discretion  to  have
      such audits performed by its staff, or by independent auditors.
        In  every  case  in  which  the  commission  chooses to have the audit
      provided for in this subdivision performed by independent  auditors,  it
      shall  have authority to select the auditors, and to require the company
      being audited to enter into a contract with the auditors  providing  for
      their  payment  by the company. Such contract shall provide further that
      the auditors shall work for and under the direction  of  the  commission
      according  to  such  terms as the commission may determine are necessary
      and reasonable.
        The commission shall have authority to direct the company to implement
      any recommendations resulting from such  audits  that  it  finds  to  be
      necessary and reasonable.
        Upon  the  application  of  a  gas or electric corporation for a major
      change in rates as defined in subdivision twelve of  this  section,  the
      commission   shall   review   that  corporation's  compliance  with  the
      directions and recommendations made previously by the commission,  as  a
      result  of  the most recently completed management and operations audit.
      The commission shall incorporate the findings  of  such  review  in  its
      opinion or order.
        20.  Notwithstanding  any  general or special law, rule or regulation,
      the commission shall have the power to provide for  the  refund  of  any
      revenues  received  by  any  gas or electric corporation which cause the
      corporation  to  have  revenues  in  the  aggregate  in  excess  of  its
      authorized  rate of return for a period of twelve months. The commission
      may initiate a proceeding with  respect  to  such  a  refund  after  the
      conclusion of any such twelve month period.
        21.  The commission shall require every electric corporation to submit
      storm plans to the commission for review and approval at such times  and
      in  such  detail  and  form  as  the commission shall require, provided,
      however, that the same shall be filed at least annually.
        22. The commission shall permit the recovery through rates established
      pursuant to this section of all payments made by  electric  corporations
      pursuant to section twenty-nine-c of the executive law.
        23.  Require  every  gas  corporation  or  electric corporation having
      equipment containing five  hundred  parts  per  million  or  greater  of
      polychlorinated   biphenyls   (PCBs),  including  but  not  limited  to,
      capacitors and transformers, to submit a report to the  commission.  The
      report  shall  contain  (1) a list of such equipment that is in service,
      each unit's location, size and service age, (2) a list of such equipment
      that  is  retired  from  service  after  the  effective  date  of   this
      subdivision,  the  date  each  unit  was  retired  from service, and the
      location of the facility where the unit and/or  PCBs  are  processed  or
      stored,  (3)  the  date  for  shipment of PCBs within or out of New York
      state, and (4) a description of  the  New  York  state  portion  of  the
      shipping  route.  The  commission shall require the report to be updated
      and distributed semiannually. In addition, such corporation shall submit
      to each county  and  city  located  in  the  service  territory  of  the
      corporation  a  report  containing the information listed above for such
      equipment and PCBs located in or transported through the county or  city
      receiving the report.
        For  the  purposes  of this subdivision, capacitors, transformers, and
      equipment designed to use the PCB-free  mineral  oil  dielectric  fluids
      shall be presumed to contain concentrations below five hundred parts per
    
      million  of  PCBs,  unless  the  unit has been serviced with fluid which
      contains five hundred parts per million or greater of PCBs, or there  is
      any  other  reason  to  believe that the unit contains or was ever mixed
      with  fluid with a concentration level of five hundred parts per million
      or greater or unless testing has specifically shown otherwise.
        24. (a) If a nuclear power plant which is not  commercially  used  and
      useful  in the actual generation of electricity on the effective date of
      this subdivision and which is owned by a single utility on or after  the
      effective  date  of  this  subdivision  fails  to  commence  or continue
      commercial operation after the effective date of this  subdivision,  the
      commission   shall  thereafter  remove  and  exclude  from  the  utility
      corporation's  revenue  requirement   all   amounts,   costs,   charges,
      adjustments,  or  extraordinary  cost  of capital allowances theretofore
      made,  granted  or  provided  which  are   attributable,   directly   or
      indirectly,  to  such  nuclear power plant or to such plant's failure to
      commence commercial operation.
        (b) The commission shall not thereafter, unless and until  such  plant
      commences or recommences commercial operation, include in such utility's
      revenue   requirement   any  amounts,  costs,  charges,  adjustments  or
      extraordinary cost  of  capital  allowances  attributable,  directly  or
      indirectly,  to  such  plant  or  to  such  plant's  failure to commence
      commerical operation.
        (c) Nothing in this subdivision shall be deemed to require a refund of
      the charges paid by or billed to a customer of such utility prior  to  a
      failure to commence or continue commercial operation of such plant.
        (d)  For  the purposes of this subdivision, the failure to commence or
      continue commercial operation shall mean the abandonment of  such  plant
      after  the effective date of this subdivision; the denial, including any
      denial pursuant to or as a result  of  any  administrative  or  judicial
      review,  of  a commercial operating license or other regulatory approval
      necessary for the plant to become commercially used and  useful  in  the
      actual  generation  of  electricity;  the failure of the plant to become
      commercially used and useful in the  actual  generation  of  electricity
      within forty-two months of the issuance of the low power testing license
      for  such  plant; or the occurrence of any event or the existence of any
      circumstances (other  than  customary  inspection  and  maintenance  and
      related  repairs  or  refueling  requirements)  after  the plant becomes
      commercially used and useful in the  actual  generation  of  electricity
      which  renders  the plant not commercially used and useful in the actual
      generation of electricity.
        25. Notwithstanding any  other  provision  of  law  to  the  contrary,
      whenever  a city having a population of one million or more provides for
      a deduction from  gross  receipts  of  a  gas  corporation  or  electric
      corporation,  pursuant  to  a  local law authorized by the provisions of
      subdivision (k) of section twelve hundred one of the tax law,  the  rate
      or  charge  imposed  by  any  such  corporation  within  such  city upon
      non-residential users of electricity or gas eligible to receive a rebate
      in accordance with a local law or laws adopted pursuant to article two-G
      of the general city law shall be set by the commission so as to  reflect
      fully the decrease in tax liability attributable to such deduction.
        26.  Notwithstanding  any  other  provision  of  law  to the contrary,
      whenever the gas facility  costs  of  a  gas  corporation  are  paid  or
      reimbursed  by the city of New York as provided in the gas facility cost
      allocation act, the rates and charges of  such  gas  corporation  within
      such  city  shall  be  set  by the commission so as to reflect fully the
      amount of such payments and reimbursements made by such city. The amount
      of such payments and reimbursements shall not be reflected  directly  or
    
      indirectly  in  any  rate  or charge imposed by such corporation outside
      such city.
        27. (a) Each electric corporation with annual gross revenues in excess
      of  two hundred million dollars shall offer the option of paying charges
      on the basis of time  of  use  rates  for  service  to  its  residential
      customers  and  to posts and halls owned by a not-for-profit corporation
      that is  a  veterans'  organization.  Such  electric  corporation  shall
      periodically  send  a  notice  explaining  the  rates and informing such
      customers and organizations that the rates are available.
        (b) Any electric corporation which offers its customers  time  of  use
      rates  shall  notify  those  customers  who  elect  or receive such rate
      regarding the following:
        (1) the hours for which such rates are available for both standard and
      daylight savings time;
        (2) the procedure such customers shall follow in order to  have  their
      meter  clocks  reset  following  an  interruption  of  service  if  such
      resetting is necessary to restore the effective hours of the time of use
      rates; and
        (3) when the utility has knowledge of an outage,  a  statement  within
      sixty  days of such outage that the time of use rates may not be applied
      at the previously stated times until the meter clock is reset,  if  such
      resetting is necessary.
        28.  No  revenues  foregone by an electric corporation, as a result of
      subjecting  certain  veterans'  organizations  with  rates  or   charges
      applicable to domestic consumers pursuant to section seventy-six of this
      article, shall be recovered from the customers of such corporation.