Reduces the total amount that a utility can be assessed from one percent to one-third of one percent.
Ayes (60): Adams, Addabbo, Alesi, Ball, Bonacic, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Duane, Espaillat, Farley, Flanagan, Fuschillo, Gallivan, Gianaris, Golden, Griffo, Grisanti, Hannon, Hassell-Thomps, Huntley, Johnson, Kennedy, Klein, Kruger, Lanza, Larkin, LaValle, Libous, Little, Marcellino, Martins, Maziarz, McDonald, Montgomery, Nozzolio, O'Mara, Oppenheimer, Parker, Peralta, Perkins, Ranzenhofer, Ritchie, Rivera, Robach, Saland, Sampson, Savino, Serrano, Seward, Skelos, Smith, Squadron, Stavisky, Stewart-Cousin, Valesky, Young, Zeldin
Nays (2): Avella, Krueger
TITLE OF BILL:
An act to amend the public service law, in relation to reducing the amount a utility can be assessed
The purpose of this legislation is to allow the 18-A utility assessment to revert back to the original one third of one percent when the two percent surcharge sunsets in 2014.
SUMMARY OF PROVISIONS:
Section 1 amends paragraph (g) of subdivision 2 of section 18-a of the public service law reducing the base assessment from one percent to one third of one percent.
Presently, the base assessment is one percent and the surcharge is two percent minus the amount of the base assessment; effectively a two percent total. The two percent surcharge is scheduled to sunset on March 31, 2014 at which time the 18-A assessment will be one percent.
In 2009, the 18-A assessment was raised from one third of one percent to two percent, six times the prior rate. This increase of nearly $600 million is not used for the purpose of funding the public service commission but rather is swept into the General Fund. This surcharge was enacted for five years at which time the two percent surcharge will expire. However, the assessment rate will not revert back to the original one third of one percent, it will revert back to one percent creating a permanent tax increase on New Yorkers utility bills.
None in the current fiscal year.
LOCAL FISCAL IMPLICATIONS:
STATE OF NEW YORK ________________________________________________________________________ 5736 2011-2012 Regular Sessions IN SENATE June 14, 2011 ___________Introduced by Sen. RANZENHOFER -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the public service law, in relation to reducing the amount a utility can be assessed THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. 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 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD13077-01-1