New York Assembly Members Dean Murray and Fred W. Thiele, Jr. have introduced a bill (A10683) that would provide that the Long Island Power Authority shall not authorize its service provider (e.g. PSEG-LI) to perform any power supply management services, electric resource planning services, or related services for the authority if the service provider or any of its affiliates owns any electric generation that competes with generation located in the authority's service area.

Specifically, LIPA could not use a default supply procurement manager who is affiliated with generation that, "competes, directly or indirectly, with generation located in the authority's service area, including, but not limited to, generation that sells, directly or indirectly, electricity into the authority's service area."

A legislative memo accompanying the bill notes, "PSEG, the parent company of PSEG LI, owns 19 power plants in the North-east and is constructing nearly 1800 MW of new, gas-fired generation in New Jersey, Connecticut and Maryland for operation in 2018 and 2019. Long Island imports approximately 45 percent of electricity it consumes from off Long Island, including from PSEG plants in New Jersey and Connecticut."

"In its 2015 10-K SEC Regulatory filing, PSEG made the following statement: 'New additions of lower-cost or more efficient generation capacity could make our plants less economic in the future. Although it is not clear if this capacity will be built or, if so, what the economic impact will be, such additions would impact market prices and our competitiveness,'" the legislative memo notes

"It is clear that the LIPA Service Provider must not have any financial or other self interest in the outcome of its studies of Long Island's future electric needs or the electric resources to meet those needs, and its recommendations to LIPA regarding the need for new generation. This would undoubtedly bias the results of its studies and recommendations to LIPA, to the significant detriment of Long Island and its ratepayers," the legislative memo notes