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History
- Referred to energy and telecommunications
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Repeals the authority for sales of electricity and gas by entities other than electric or natural gas distribution companies; repealer
In Assembly Committee · Corporations, Authorities And Commissions · Sponsor Jeffrey Dinowitz
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to repeal certain provisions of the public service law relating to authorization for retail wheeling or delivery of natural gas not purchased from the electric or gas corporation delivering it
Purpose
Prohibits the sale of electricity or natural gas by entities other than utility corporations which deliver it by repealing sections of law authorizing the public service commission to approve retail wheeling of electricity and delivery of natural gas purchased from entities other than the utility delivering the commodity.
Summary of provisions
Sections 1 and 2 of the bill repeal public service law sections 66-12b(b) and 66-d relating to authorization of retail wheeling of electricity and contract carriage of natural gas purchased from sources other than the delivering utility.
Section 3 provides for a 90 day effective date.
Justification
In the physical world it is impossible to separate electricity or natural gas sales from the wires or mains of the utility that actually provides the service. For nearly twenty years the public service commission has at great expense promoted the separate sale of electricity and natural gas by entities other than the utility corporations actually providing the services, through financial contracts with "energy services companies." Despite state and in some areas local sales tax preferences, the commission's effort to unbundle and separate the retail sale of commodity gas or electricity did not succeed in lowering prices. Rather, the introduction of new middlemen selling utility services increased transaction costs not outweighed by any gain in economic efficiency, and generally increased costs for end users.
The advent of poorly supervised new entities selling natural gas and electricity led to predatory, high pressure telephone and door-to door sales tactics, "slamming", excessive charges, and other abuse of customers, many of whom are vulnerable, elderly, and low-income.
Despite large numbers of complaints to utilities, elected officials and the public service commission, the commission is unable to assure the provision of service by the alternative providers on terms that are just and reasonable, and on better economic terms for customers than traditional full service from the distribution utility companies. The commission's emphasis upon individual customer "shopping" for solutions to New York's high prices for utility services diverted customer attention and awareness from increased efficiency and conservation, and commission promotion of unbundled services diverted commission resources from more vigorous regulation of rates, charges, and services of the utilities.
Legislative history
None.
Fiscal implications
State sales tax revenues would increase by $118 million, due to the effective end of a sales tax exemption of utility delivery service to
customers who have switched to an energy services company for commodity purchases.
Effective date
Immediate.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.