Relates to the repeal of 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 repeal certain provisions of the public service 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
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 ________________________________________________________________________ 4081--A 2011-2012 Regular Sessions IN SENATE March 16, 2011 ___________Introduced by Sens. RANZENHOFER, DeFRANCISCO, GRIFFO, LARKIN, MAZIARZ, SALAND -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommunications -- commit- tee discharged, bill amended, ordered reprinted as amended and recom- mitted to said committee AN ACT to repeal certain provisions of the public service law relating to a temporary state energy and utility service conservation assess- ment 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. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02533-02-1