* § 1020-h. Acquisition of property, including the exercise of the\npower of eminent domain. 1. The legislature hereby expressly finds and\ndetermines:\n (a) The acquisition by the authority, through purchase or the exercise\nof the power of eminent domain, of either the securities or assets of\nLILCO whichever is less expensive for the ratepayers, as the authority\nmay determine will be just to the ratepayers in the service area, is the\nmost appropriate means of dealing with the emergency involving the\neconomy, health and safety of the residents and the industry and\ncommerce in the service area, notwithstanding the fact that LILCO\npresently may be devoted to a public use, since the public use of such\nproperty by the authority is hereby deemed to be superior to the public\nuse of such property by any other person, association, or corporation.\n (b) The authority, prior to exercising its power of eminent domain to\nacquire the stock or assets of LILCO, shall enter into negotiations with\nLILCO for the purpose of acquiring such stock or assets upon such terms\nas the authority, in its sole discretion, determines will result in\nrates equal to or less than the rates which would result if LILCO were\nto continue in operation.\n (c) The situs of all stock issued by LILCO, a New York corporation, is\nthe state of New York.\n (d) The compensation paid by the authority to LILCO shall be just to\nthe ratepayers in the service area who must pay such compensation.\n (e) If the authority determines that it is the stock of LILCO that\nshould be taken, the proper measure of damages shall be the fair market\nvalue thereof as evidenced by the price of such stock on the exchange on\nwhich they are traded on the valuation date since there is an\nestablished market for such stock that is reflective of its value. In no\nevent, however, shall consequential or severance damages be awarded if\ncontrol of LILCO shall have been taken by the authority.\n (f) If the authority determines that it is the assets of LILCO that\nshould be taken, fair market value would not constitute just\ncompensation to LILCO since there is an insufficient market in the usual\nsense for its assets to ascertain the value thereof from the market. In\ndetermining the compensation payable for such assets, there shall be\ntaken into consideration the capitalization of LILCO's expected future\nearnings.\n (g) LILCO has no reasonable expectation of realizing actual earnings\nfrom the Shoreham plant or of giving effect to any earnings or returns\nwhich may have been reflected on the books of LILCO for accounting\npurposes. Moreover, it would not be reasonable, under current and\nreasonably foreseeable circumstances, to expect that the Shoreham plant\nwould be reproduced by a public or private utility in LILCO's present\nposition.\n (h) LILCO would have to phase in over a long period of time any rate\nincreases based on the costs of the Shoreham plant.\n (i) The public service commission has imposed a limitation on the\nearnings which LILCO may realize on its interest in the Nine Mile Point\nnuclear power facility.\n (j) The public service commission has imposed on LILCO imprudence\npenalties with respect to the Shoreham plant.\n (k) In determining just compensation, the following factors shall be\nevaluated in deciding whether OCLD or RCNLD or neither constitutes the\nproper basis:\n (i) LILCO is a regulated utility. Under the laws of the state\nproviding for the regulation of utilities, LILCO's future earnings are\nrestricted to the permitted rate of return times LILCO's OCLD.\n (ii) LILCO presently is being operated as an enterprise the economic\nviability of which is dependent upon extraordinary financial stability\nadjustments by the public service commission. Such extraordinary and\nunprecedented rate relief was granted by the public service commission\nin order to provide cash flow relief to prevent LILCO's bankruptcy with\nthe expectation that ratepayers wo
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