S2435-2013 Actions

• Jan 17, 2013: REFERRED TO ENERGY AND TELECOMMUNICATIONS

S2435-2013 Memo

BILL NUMBER:S2435

TITLE OF BILL:  An act to amend the public service law, in relation to
reducing the amount a utility can be assessed and to repeal certain
provisions of such law relating to a temporary state energy and
utility service conservation assessment

PURPOSE OR GENERAL IDEA OF BILL: To repeal subdivision 6 of section
18-A of the Public Service Law which establishes a "utility service
conservation assessment" on specified utility entities of 2% of gross
intrastate revenues, and a 1% of gross intrastate revenues for Long
Island Power Authority.

SUMMARY OF SPECIFIC PROVISIONS: Repeals subdivision 6 of section 18-A
of the Public Service Law

JUSTIFICATION: The Service Conservation Assessment is a fee placed on
utility companies including municipally owned utilities of 2 percent.
The tax creates a condition requiring utility companies to raise more
revenue to cover the assessment fee. Utility company's financial
resources are strained and to raise the mandated fee they have placed
the surcharge directly on customer's utility bills. The assessment
fees are scheduled to be deposited directly into the state's general
fund and only a portion will be passed on to the Public Service
Commission within each budget season. This legislation would provide a
direct savings to utility consumers.

PRIOR LEGISLATIVE HISTORY:  2010 - S.6132/A.9098 --
ENERGY/Corporations 2011-2012 - S.4081-B -- ENERGY

FISCAL IMPLICATIONS: Consumers will save money from this unnecessary
tax. A $520 million loss of projected revenue to the State's General
Fund over the next 5 years by repealing the utility service
conservation assessment.

EFFECTIVE DATE: This act shall take effect immediately.

S2435-2013 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         2435
 2013-2014 Regular Sessions
 I N  SENATE
 January 17, 2013
 
 Introduced  by  Sens.  RANZENHOFER, DeFRANCISCO, LARKIN, MAZIARZ -- read
 twice and ordered printed, and when printed to  be  committed  to  the
 Committee on Energy and Telecommunications
 AN  ACT  to  amend  the  public service law, in relation to reducing the
 amount a utility can be assessed and to repeal certain  provisions  of
 such  law  relating  to  a  temporary state energy and utility service
 conservation assessment
 THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section  1. Subdivision 6 of section 18-a of the public service law is
 REPEALED.
 

S 2. Paragraph (g) of subdivision 2 of  section  18-a  of  the  public
 service  law,  as  amended  by section 2 of part NN of chapter 59 of the
 laws of 2009, is amended to read as follows:

 (g) The total amount which may be charged to any public utility compa
 ny under authority of this subdivision for any state fiscal  year  shall
 not  exceed ONE-THIRD OF one per centum of such public utility company's
 gross operating revenues derived from intrastate utility  operations  in
 the last preceding calendar year, or other twelve month period as deter
 mined  by the chairman; provided, however, that no corporation or person
 that is subject to the jurisdiction of the commission only with  respect
 to  safety,  or  the  power authority of the state of New York, shall be
 subject to the general assessment provided for under this subdivision.
 

S 3. This act shall take effect immediately.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD00165-02-3

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