Repeals subdivision 6 of section 18-a of the public service law, relating to a temporary state energy and utility service conservation assessment

8 Co-sponsors

• Tony Avella
• John A. DeFrancisco
• Charles J. Fuschillo Jr.
• Joseph A. Griffo
• William J. Larkin Jr.
• George D. Maziarz
• Patty Ritchie
• Stephen M. Saland

BILL NUMBER:S4081B

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, and amend paragraph (g) of subdivision 2 of section 18-A of the Public Service Law, to return this utility tax to its previous level of one third of one percent.

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. In 2009, when the extra utility fee was enacted, the previous tax of one third of one percent also was raised to one percent. This bill will reduce this tax to its previous level.

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.