Senate Bill S6132

                                 BILL NUMBER:  S6132

 TITLE OF BILL :
An act to repeal Part NN of chapter 59 of the laws of 2009, amending
the public service law relating to financing the operations of the
department of public service, the public service commission,
department support and energy management services provided by other
state agencies, to increasing the utility assessment cap and the
minimum threshold for collection thereunder, to establishing a
temporary state energy and utility service conservation assessment and
providing for the collection thereof


 PURPOSE OR GENERAL IDEA OF BILL :
To repeal part NN of Chapter 59 of the Laws of 2009 of Article VII-A.
159-B (Transportation, Economic Development and Environmental
Conservation) 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 Part NN of Chapter 59 of the laws of 2009 relating to the
amendment of the Public Service Law in relation to financing the
operations of the department through increasing the utility assessment
cap and the minimum threshold for collection and establish a temporary
              

state energy and utility service conservation assessment and provide
for the collection.

 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 deposited 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 :
None.

 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.