Memo in Support, S7448 (Skelos)
S. 7448 (Skelos)
2012 New Jobs-NY Job Creation Act (Part C)
MEMORANDUM IN SUPPORT
The Energy Coalition New York strongly supports Part C of the subject legislation which would repeal the 2% temporary state energy and utility service conservation assessment on March 31, 2013.
Energy Coalition New York consists of New York State’s major gas and electric utility companies – Central Hudson Gas & Electric Corporation, Consolidated Edison Inc., National Fuel Gas Distribution Corporation, National Grid, New York State Electric & Gas Corporation, and Rochester Gas & Electric Corporation. Coalition companies collectively employ more than 32,000 people, service more than 8.5 million customers, and pay more than $3 billion in state and local taxes, assessments and fees. The member companies annually invest billions of dollars to make capital improvements to the electric and natural gas infrastructure located in New York State.
The net effect of this legislation would be a 1.6% reduction on the typical residential gas and electric customer’s bill. The assessment increase of 1.6% was enacted in the 2010 state budget and has added approximately $600 million annually to utility bills which amounts to over a 500% increase in utility bills paid by customers. These funds far exceed the .3% needed to fund the Public Service Commission to achieve regulatory oversight.
Energy taxes are regressive in their nature. This tax not only negatively impacts the public, but also commercial users of energy with negative impact on economic recovery efforts.
Utility costs are already subject to multiple assessments which impact energy policy including RPS, EEPS, SBC and costs related to CO2 emission allowances. All of these additional costs, which together add between 10% and 15%, are separate from the normal fluctuation in utility costs based on fuel prices, infrastructure investment or energy utility delivery costs.
Energy Coalition New York despite supporting these policy driven assessments is concerned with the increasing cost impact on consumers, which is exacerbated by the current Public Service Law 18-A assessment. The repeal of the Section 18-A assessment will have a positive impact on gas and electric customers and the economy.
Based on the foregoing, it is respectfully requested that the additional Section 18-A assessment be repealed.