NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A2015
SPONSOR: Hawley (MS)
 
TITLE OF BILL:
An act to amend the public service law, in relation to reducing the
amount a utility can be assessed for costs and expenses of the depart-
ment of public service and the public service commission
 
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.
 
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 depos-
ited 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.
 
PRIOR LEGISLATIVE HISTORY:
2010 - S.6132/A.9098 -- ENERGY/Corporations
2011-2012 - S.4081-B - ENERGY/Corporations
2013 - S.2435/A382-A -ENERGY/Corporations,
05/20/14 A382B held for consideration in corporations, authorities and
commissions
04/12/16 held for consideration in corporations, authorities and commis-
sions A3435
A1718 - 05/14/18 held for consideration in corporations, authorities and
Commissions
07/12/20 - A.1723 held for consideration in corporations, authorities
and commissions
A5717 - 05/03/22 held for consideration in corporations, authorities and
commissions
 
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.
STATE OF NEW YORK
________________________________________________________________________
2015
2023-2024 Regular Sessions
IN ASSEMBLY
January 23, 2023
___________
Introduced by M. of A. HAWLEY, J. M. GIGLIO, FRIEND, BARCLAY, PALMESANO,
DiPIETRO, BRABENEC, WALSH, MILLER, MANKTELOW, ANGELINO, GALLAHAN,
LEMONDES, DeSTEFANO, NORRIS -- Multi-Sponsored by -- M. of A. McDO-
NOUGH, THIELE -- read once and referred to the Committee on Corpo-
rations, Authorities and Commissions
AN ACT to amend the public service law, in relation to reducing the
amount a utility can be assessed for costs and expenses of the depart-
ment of public service and the public service commission
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph (g) of subdivision 2 of section 18-a of the
2 public service law, as amended by section 2 of part A of chapter 173 of
3 the laws of 2013, is amended to read as follows:
4 (g) The total amount which may be charged to any public utility compa-
5 ny and the Long Island power authority under authority of this subdivi-
6 sion for any state fiscal year shall not exceed one-third of one per
7 centum of such public utility company's or authority's gross operating
8 revenues derived from intrastate utility operations in the last preced-
9 ing calendar year, or other twelve month period as determined by the
10 chairman; provided, however, that no corporation or person that is
11 subject to the jurisdiction of the commission only with respect to safe-
12 ty, or the power authority of the state of New York, shall be subject to
13 the general assessment provided for under this subdivision.
14 Notwithstanding the provisions of subdivision one of this section, for
15 telephone corporations as defined in subdivision seventeen of section
16 two of this article, the total amount which may be charged such corpo-
17 rations for department expenses under the authority of subdivision one
18 of this section for any state fiscal year shall not exceed one-third of
19 one percentum of such corporation's gross operating revenue, over and
20 above five hundred thousand dollars, derived from intrastate utility
21 operations in the last preceding calendar year, or other twelve month
22 period as determined by the chairman.
23 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04310-01-3