Senate Bill S3679B

                                BILL NUMBER:S3679

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 nonpayment 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:

2013-14: S.5484A, Advanced to Third Reading

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect immediately.

                                BILL NUMBER:S3679A

TITLE OF BILL:

An act to amend the public service law, in relation to limiting
increases in the amount of surcharges established by the public
service commission

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, while allowing the
commission to reduce the surcharges below this level.

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 so they do not increase above the 2014 levels 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 nonpayment 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:

2013-14: S.5484A, Advanced to Third Reading

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect immediately.