Relates to eliminating certain utility surcharges for certain residential customers

BILL NUMBER:S3640

Title of bill

An act to amend the public service law, in relation to eliminating certain utility surcharges for certain residential customers

Purpose

To lower the electric bills for seniors by eliminating the RPS, SBC, and EEPS surcharges on their electric bills.

Summary of provisions

Section 1 of the bill adds a new section to the public service law that eliminates the RPS, SBC, and EEPS surcharges on the electric bills for seniors that are at least 65 years of age and have an income level consistent with the home energy assistance program eligibility standards.

Section 2 of the bill is the effective date.

Justification

Historically, utility costs in New York have been higher than in most other states. These costs are have a significant effect on New York consumers especially our seniors. In a recent AARP survey of New Yorkers over age 50, it was revealed that 41 percent, of those surveyed had difficulty paying their monthly electric bill. This figure was even higher among minority populations with 48 percent of African Americans and 56 percent of Hispanics age 50+ in New York indicating that they experienced difficulty paying their electric bills, According to the same AARP survey in 2010, there were 321,995 residential customers who had their utility service shut off for non-payment of bills.

The high utility costs in New York are driven in part by a series of taxes, fees and surcharges such as the renewable portfolio standard (RPS), the system benefit charge (SBC), and the energy efficiency portfolio standard (EEPS). For example, in 2013, New York witnessed the highest. annual cost for these programs to date, as the total collected for the SBC reached almost $13 million and the total for the RPS soared past $243 million. These amounts are paid by New York customers on their utility bills and contribute significantly to the high cost of utility service. In fact, such fees and surcharges are estimated to account for roughly 20% of every electric bill.

Although these surcharges may serve a worthy purpose, the increasing costs of the surcharges are a substantial burden to seniors - especially those on fixed or limited incomes,. As the AARP survey revealed, some relief on electric bills may be appropriate for our seniors in order to ensure that they can maintain adequate utility service. To that end, this legislation provides much needed relief by eliminating these surcharges on the utility bills of seniors that need assistance the most.

In order to effectively help seniors with reducing the burden of high electric bills, direct and tangible benefits must be provided. Other proposed solutions for seniors merely create new (but duplicative) government bureaucracies that raise the cost of government and do not deliver a direct reduction in a senior's monthly electric bill. By eliminating these ever-increasing surcharges for seniors, this bill will lower their monthly electric bills, allow them to better maintain utility service and enhance their ability to acquire other necessities of life.

Legislative history

Passed Senate -- 2014

Fiscal implications

None to the state.

Effective date

On the 90th day after it shall have become a law.