Gianaris: No tax help for Big Electric
This article in the Times Ledger was written just after tax abatement legislation that hurt ratepayers passed in the Senate on Monday. On Wednesday, however, legislation that helps prevent drastic rate hikes was passed by the Senate. I am happy my fellow Senators and I were able to stand up for ratepayers across the state.
State Sen. Michael Gianaris (D-Astoria) condemned a bill passed in the Senate Monday to give tax abatements to power generators, saying it would provide them with an unfair tax benefit.
“I think they’re trying to use the excuse of rate payer relief to give a tax break to their friends in the energy industry,” Gianaris said of the Senate Republicans, all of whom voted for the bill along with three Queens Democrats.
Gianaris has been critical of potential increases to electric rates. The bill, sponsored by state Sen. George Maziarz (R-Newfane), offers property tax abatements to power generators on the grounds that the Federal Energy Regulatory Commission did not take into account the increased peak demand expected from New York City between 2011 and 2014 when setting the tax benefits for the power generators. The bill has been sent to the state Assembly, but has not been passed.
Maziarz did not respond for comment by press time Tuesday evening.
Gianaris, who supports a bill by Sen. Andrew Lanza (R-Staten Island) that would prevent FERC’s increase in energy capacity prices for power generators from being passed on to city residents, said Maziarz’s measure would give a windfall to the energy industry and Lanza’s bill should have been passed instead.
FERC had originally planned to increase capacity prices to offset city property taxes, even though the city already offers property tax credits to power generators. Mayor Michael Bloomberg, U.S. Sen. Charles Schumer (D-N.Y.) and Gov. Andrew Cuomo have come out against FERC’s decision.
Read the full article here.