BILL NUMBER: S1629
SPONSOR: BORRELLO
 
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
03/22/23REFERRED TO ENERGY AND TELECOMMUNICATIONS
01/03/24REFERRED TO ENERGY AND TELECOMMUNICATIONS
 
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.

Statutes affected:
S1629: 18-a public service law, 18-a(2) public service law