Repeals certain provisions relating to a temporary state energy and utility service conservation assessment; reduces the total amount that can be charged from one percent to one-third of one percent.
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/Corporations 2013 S.2435/A.382-A - ENERGY/Corporations
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.
STATE OF NEW YORK ________________________________________________________________________ 2435--A 2013-2014 Regular Sessions IN SENATE January 17, 2013 ___________Introduced by Sens. RANZENHOFER, AVELLA, DeFRANCISCO, GIPSON, GRIFFO, LARKIN, MAZIARZ, NOZZOLIO -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommuni- cations -- recommitted to the Committee on Energy and Telecommuni- cations in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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 A of chapter 173 of the laws of 2013, is amended to read as follows: (g) The total amount which may be charged to any public utility compa- ny and the Long Island power authority under authority of this subdivi- sion for any state fiscal year shall not exceed ONE-THIRD OF one per centum of such public utility company's or authority's gross operating revenues derived from intrastate utility operations in the last preced- ing calendar year, or other twelve month period as determined by the chairman; provided, however, that no corporation or person that is subject to the jurisdiction of the commission only with respect to safe- ty, or the power authority of the state of New York, shall be subject to the general assessment provided for under this subdivision. Notwithstanding the provisions of subdivision one of this section, for telephone corporations as defined in subdivision seventeen of section two of this article, the total amount which may be charged such corpo-EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00165-04-4 S. 2435--A 2
rations for department expenses under the authority of subdivision one of this section for any state fiscal year shall not exceed one-third of one percentum of such corporation's gross operating revenue, over and above five hundred thousand dollars, derived from intrastate utility operations in the last preceding calendar year, or other twelve month period as determined by the chairman. S 3. This act shall take effect immediately.