Senate Bill S8487

                                 
BILL NUMBER: S8487

SPONSOR: MARTUCCI
 
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, imposing a one year moratorium on the collection of certain
surcharges, and prohibiting new energy taxes and fees; and to repeal
certain provisions of such law relating thereto

 
PURPOSE:

To lower the electric bills by placing a moratorium on utility fees and
limits on future increases of current fees or creation of new ones

 
SUMMARY OF PROVISIONS:

Section 1-short title

Section 2 Places an immediate moratorium on the collection of certain
energy surcharges and fees for one year
              

Section 3-Limits the power of the PSC to increase existing energy
surcharges

Section 4-- Prohibits the PSC from imposing any new energy assessment of
fee

Section 5- 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.

The New York State Department of Public Service reported that more than
1.1 million residential electric and gas customers were more than 60
days past due on utility bills in March, with arrears totaling $1.28
billion. That's an 82 percent increase compared with February 2020.

Older adults, many of whom live on fixed incomes, are particularly
vulnerable.

Nearly 1.3 million New York households were more than $1.7 billion in
arrears on energy bills in December 2021 according to New York State
Public Service Commission ("PSC") data analyzed by PULP. An untold
number of New Yorkers are behind on water, phone and internet bills-fig-
ures not tracked by the PSC.  More recently gigantic spikes in gas pric-
es have made an already pernicious problem much worse.

An AARP survey of New Yorkers from several years ago shows that for
those over age 50, 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 difficul-
ty 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 port-
folio standard (EEPS).

These types of on-bill assessments cost ratepayers almost $600 million
last year according to NYSERDA's annual report. As of December 2021,
more than 1 million New Yorkers risked having their power turned off
because their payments were in arrears. As we come out of the pandemic
and rules aimed at preventing shut offs expire and the winter ends, loss
of utility service will become a clear and present danger for thousands.

Although the surcharges referenced above 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 AARP 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
Utility 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. A one
year moratorium on collection of these fees along with substantial
limits on any future increases will provide a much needed to benefit to
those in need who are struggling to keep their lights and heat on.

 
LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
Immediately provided that section three of this act shall take effect
one year after such effective date