What's happening
This bill repeals certain public service law provisions related to authorization for retail wheeling or delivery of natural gas.
Why it matters
Eliminating authorization for "retail wheeling" of natural gas. means customers would no longer be able to purchase natural gas from third-party suppliers and have it delivered through a local utility’s pipes, potentially reducing energy market competition and consumer choice.
Repealing these provisions could strengthen the monopoly of local gas utilities. over both the sale and delivery of natural gas, possibly impacting the prices and contract options available to residential and business customers.
The repeal may affect state energy policy goals. , such as fostering competition, encouraging renewable alternatives, or managing greenhouse gas emissions, depending on how retail wheeling previously influenced utility behavior and customer options.
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Who cares
Headline styles
End Third-Party Energy Sales
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to energy and telecommunications
- 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.
End Third-Party Energy Sales
In Assembly Committee · Corporations, Authorities And Commissions · Sponsor Jeffrey Dinowitz
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5290
2017-2018 Regular Sessions
IN SENATE
March 20, 2017
Introduced by Sen. GRIFFO -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommunications
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
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (b) of subdivision 12-b of section 66 of the public service law is REPEALED.
§ 2. Section 66-d of the public service law is REPEALED.
§ 3. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03792-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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
Section 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 an 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 provide the service. For nearly twenty years, the public service commission has promoted, at great expense, 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 intermediaries, 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
2015-16 - S.7341 - Referred to Energy and Telecommunications/A.9753 - Referred to Corporations, Authorities and Commissions
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.
See Division of Budget 2016-17 Report of Tax Expenditures, p. 106.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.