BILL NUMBER:  S546

 TITLE OF BILL :  An act to amend the public service law, in relation
to eliminating certain utility surcharges for certain residential
customers

 PURPOSE :

To lower the electric bills for seniors by eliminating the RPS, SBC,
and EEPS surcharges on their electric bills.

 SUMMARY OF PROVISIONS :

Section 1 of the bill adds a new section to the public service law
that eliminates the RPS, SBC, and EEPS surcharges on the electric
bills for seniors that are at least 65 years of age and have an income
level consistent with the home energy assistance program eligibility
standards.

Section 2 of the bill is the effective date.

 JUSTIFICATION :

Historically, utility costs in New York have been higher than in most
other states. These costs are have a significant effect on New York
consumers especially our seniors. In a recent AARP survey of New
              

Yorkers over age 50, it was revealed that 41 percent, of those
surveyed 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
bills, 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 in part by a series of
taxes, fees and surcharges such as the renewable portfolio standard
(RPS), the system benefit charge (SBC), and the energy efficiency
portfolio standard (EEPS). For example, in 2013, New York witnessed
the highest. annual cost for these programs to date, as the total
collected for the SBC reached almost $13 million and the total for the
RPS soared past $243 million. These amounts are paid by New York
customers on their utility bills and contribute significantly to the
high cost of utility service. In fact, such fees and surcharges are
estimated to account for roughly 20% of every electric bill.

Although these surcharges may serve a worthy purpose, the increasing
costs of the surcharges are a substantial burden to seniors -
especially those on fixed or limited incomes,. As the AARP survey
revealed, some relief on electric bills may be appropriate for our
seniors in order to ensure that they can maintain adequate utility
service. To that end, this legislation provides much needed relief by
eliminating these surcharges on the utility bills of seniors that need
assistance the most.

In order to effectively help seniors with reducing the burden of high
electric bills, direct and tangible benefits must be provided. Other
proposed solutions for seniors merely create new (but duplicative)
government bureaucracies that raise the cost of government and do not
deliver a direct reduction in a senior's monthly electric bill. By
eliminating these ever-increasing surcharges for seniors, this bill
will lower their monthly electric bills, allow them to better maintain
utility service and enhance their ability to, acquire other
necessities of life.

 LEGISLATIVE HISTORY :
S.3640/ A.6547 of 2015-2016; Referred to Energy and Telecommunications
S.6195/A.8507 of 2014; Reported to Finance

 FISCAL IMPLICATIONS :

None to the state.

 EFFECTIVE DATE :
On the 90th day after it shall have become a law.