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BILL NUMBER:S4081

TITLE OF BILL: An act to repeal Part NN of chapter 59 of the laws of 2009, amending the public service law relating to financing the operations of the department of public service, the public service commission, department support and energy management services provided by other state agencies, to increasing the utility assessment cap and the minimum threshold for collection thereunder, to establishing a temporary state energy and utility service conservation assessment and providing for the collection thereof

PURPOSE OR GENERAL IDEA OF BILL: To repeal part NN of Chapter 59 of the Laws of 2009 of Article VII-A.159-B (Transportation, Economic Development and Environmental Conservation) 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 part NN of Chapter 59 of the laws of 2009 relating to the amendment of the Public Service Law in relation to financing the operations of the department through increasing the utility assessment cap and the minimum threshold for collection and establish a temporary state energy and utility service conservation assessment and provide for the collection.

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

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.

Text

STATE OF NEW YORK
________________________________________________________________________

4081

2011-2012 Regular Sessions

IN SENATE

March 16, 2011
___________

Introduced by Sens. RANZENHOFER, DeFRANCISCO, LARKIN, MAZIARZ, SALAND --
  read  twice  and  ordered printed, and when printed to be committed to
  the Committee on Energy and Telecommunications

AN ACT to repeal Part NN of chapter 59 of the laws of 2009, amending the
  public service law relating to financing the operations of the depart-
  ment of public service,  the  public  service  commission,  department
  support  and  energy management services provided by other state agen-
  cies, to increasing the utility assessment cap and the minimum thresh-
  old for collection thereunder, to establishing a temporary state ener-
  gy and utility service conservation assessment and providing  for  the
  collection thereof

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Part NN of chapter 59 of the laws  of  2009,  amending  the
public  service  law relating to financing the operations of the depart-
ment of  public  service,  the  public  service  commission,  department
support and energy management services provided by other state agencies,
to  increasing  the utility assessment cap and the minimum threshold for
collection thereunder, to establishing  a  temporary  state  energy  and
utility service conservation assessment and providing for the collection
thereof is REPEALED.
  S 2. This act shall take effect immediately.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02533-01-1