Senate Bill S4081B

                                BILL NUMBER:S4081

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:
2010 - S.6132/A.9098 -- ENERGY/Corporations

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.

                                BILL NUMBER:S4081A

TITLE OF BILL:
An act
to repeal certain provisions of the public service law relating to
a temporary state energy and
utility service conservation assessment

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 deposited directly into the state's general