Senate Bill S5484A

                                BILL NUMBER:S5484A

TITLE OF BILL:  An act to amend the public service law, in relation to
limiting increases in the amount of the surcharge of the system
benefit charge or the surcharge for the renewable portfolio standard

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.

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 at the 2014 level, 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
non-payment 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:

This is a new bill

FISCAL IMPLICATIONS:

None

EFFECTIVE DATE:

This act shall take effect immediately.