What's happening
This bill prevents the New York Public Service Commission from increasing or creating new energy surcharges, taxes, or fees above 2016 levels.
Why it matters
Caps consumer costs from state-mandated energy programs. By freezing surcharges like the System Benefits Charge and Renewable Portfolio Standard at 2016 levels, the bill directly limits how much New Yorkers can be charged for state energy initiatives, potentially offering relief from rising utility bills.
Restricts future funding for clean energy and efficiency programs. The bill prevents the Public Service Commission from increasing or creating new surcharges or similar funds for renewable energy, energy efficiency, or related programs, which could slow expansion or maintenance of these efforts unless alternative funding is found.
Allows reductions, but not increases, in existing surcharges. The legislation explicitly permits the Commission to lower these charges, making it easier for future administrations to reduce, but not raise, surcharges associated with state energy policies.
Makes exceptions for energy reliability emergencies. The only scenario where a new charge could be created is if a power plant closure threatens grid reliability, allowing the Commission to impose fees to address urgent reliability needs—potentially protecting consumers from blackouts but not general policy goals.
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Who cares
Headline styles
Cap Utility Surcharge Increases
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 55
1 Co-sponsor
History
- Referred to energy and telecommunications
- Referred to energy and telecommunications
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
543
2017-2018 Regular Sessions
IN SENATE (Prefiled)
January 4, 2017
Introduced by Sen. FUNKE -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommunications
AN ACT to amend the public service law, in relation to limiting increases in the amount of surcharges established by the public service commission
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. This act shall be known and may be cited as the "Energy assessment cap and consumer cost relief act of 2017".
§ 2. The public service law is amended by adding a new section 18 to read as follows:
§ 18. Limit on surcharge increases. Notwithstanding any law, rule, regulation or order to the contrary, the commission shall not increase the amount of the surcharge of the system benefit charge or the surcharge for the renewable portfolio standard or the surcharge for the energy efficiency portfolio standard or any similar fund that may be created by order of the commission before the effective date of this section, whether such fund is new or is a result of combining all or some of the surcharges referenced herein. Nothing in this section shall be construed as to prevent the commission from lowering the amount of any surcharge either individually or collectively from the amount collected in two thousand sixteen, except that under no circumstances shall the total cost of those charges exceed the total aggregate amounts in two thousand sixteen.
§ 3. Moratorium on new energy taxes and fees. Notwithstanding any law, rule, regulation or order to the contrary, the public service commission shall not establish any new surcharge assessment, tax or fee on energy consumers, excepting those fees which may arise from an electric gener-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04221-01-7
S. 543 2
ating facility that provides notice of closure to such commission and a reliability need is identified by the bulk system operator.
§ 4. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the public service law, in relation to limiting increases in the amount of surcharges established by the public service commission
Purpose
To cap the impacts of these three surcharges in order to encourage efficiencies in the application of the RPS SBC and EEPS programs, while protecting ratepayers from increases on their utility bills through a moratorium on any new energy related surcharges, fees or taxes that may be promulgated by the Public Service Commission.
Summary of provisions
Section 2: Amends the public service law by adding a new section 18 that caps the surcharges associated with the system benefit charge and renewable portfolio standard at 2014 levels, while allowing the commission to reduce the surcharges below this level.
Read the full memo (614 words)
Section 3: Places a moratorium on the PSC's ability to impose any new surcharge, tax or fee on utility ratepayers.
Section 4: Sets forth the effective date.
Justification
Energy efficiency and renewable energy programs have increasingly contributed positively to both our State's environmental and economic development Goals. Specifically, we have seen large expansions in the field of first wind energy and now solar energy development, with the ultimate goal as set by the Public Service Commission of meeting 30% of the state's electricity demand from renewable sources. In 2013 we witnessed the highest annual cost for these programs to date, as the total collected for the System Benefit Charge reaches $12,710,140 and for the Renewable Portfolio Standard $243,944,012. Capping these programs so they do not increase above the 2014 levels continues to provide surety to the renewable energy sector by providing consistent and significant funding, while limiting the impact on captive ratepayers. In addition, section two of this bill places a moratorium on any further energy surcharges being added to a customer's bill by the Public Service Commission. The commission has over the years imposed fees on ratepayers without legislative approval, thereby increasing the cost of utility delivery service without legislative approval. Moving forward, increases on your utility bill, like potential increases in other taxes, would become the purview of the Legislature solely. Managing the cost of electricity is vitally important, because access to affordable electricity and home heating fuel is a necessity for all New Yorkers, and one that more and more of our citizens are struggling with. Historically, utility costs in New York have been higher than most other states - and consumers have felt the effects. A recent AARP survey of New Yorkers over age 50 revealed 41 percent reported that they 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 bill. According to the same AARP survey in 2010, there were 321,995 residential customers who had their utility service shut off for nonpayment of bills. The high utility costs in New York are driven by elevated delivery charges that are largely made up of taxes and surcharges. This nexus is even clearer when measured against the fact that wholesale energy commodity prices in New York reached their lowest level in recent history in 2012. All of this argues for a policy change that preserves our commitment to building clean, renewable energy capacity in New York, while taking actions to ensure greater efficiency in each program, so that any impacts on ratepayer s can be mitigated and controlled.
Legislative history
S.3679B of 2015-2016; Referred to Energy and Telecommunications S.5484A/A.8515 of 2013-2014; Advanced to Third Reading
Fiscal implications
None.
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.