Written on Thursday, July 9th, 2009 at 11:30am by Rus Thompson | 2 Comments

Temporary State Assessment TAX

Where was the press and the partnership on this? did anyone read the budget? Andy Rudnick supported the Stachowski candidacy. Do you think Stachowski even knew this new tax was in the budget bill? And everyone thinks our private sector leadership is just fine. I don’t think so. Neither Margaret SULLIVAN NOR ANDY RUDNICK ARE CAPABLE OF HANDLING THEIR ENORMOUS RESPONSIBILITIES TO OUR COMMUNITY.

Carl Paladino
ellicottdevelopment.com

As you are aware, the Electric and Gas Utilities in New York had been required to respond to a Public service Commission Order regarding a Temporary State Assessment that will result in an impact starting with your next Bill from National Grid. I am including a scanned copy of a key page within the filing that specifies the impact on a Rate Class basis along with some background, derived from our filing letter to the Public Service Commission. As your Account Executive, it is my intention to update you on the background of this State initiated Assessment in an effort to provide as much information as we know currently and to also offer my services to ensure that you are aware of your specific level of impact. I am currently looking at your previous 12 months of Bills and will be prepared to give you my best guess impact of the assessment on your electric bill.

Background – Purpose of Filing

On April 7, 2009, New York State enacted the budget for 2009-2010, which required the Department of Public Service to collect a Temporary State Energy and Utility Service Conservation Act Assessment (Public Service Law (PSL” §18-a(6), effective from April 1, 2009 to March 31, 2014. This Temporary State Assessment is estimated to generate $540 million in additional revenue during the 2009-2010 State Fiscal Year for the support of the State’s General Fund and applicable to electric, gas,

steam and water corporations subject to Commission jurisdiction and the regulated utilities.

On June 19, 2009, an Order was issued in Case No. 09-M-0311, which directed the utilities to file tariff amendments within ten business days of issuance of this Order to become effective July 1, 2009 authorizing collection of the Temporary State Assessment, not recovered in base rates, for the period April 1, 2009 through March 31, 2014. This filing complies with this directive and proposes Rule No. 56 – Incremental State Assessment Surcharge (“ISAS”) to PSC No. 220 Electricity and Statement of Incremental State Assessment Surcharge No. 1.

The Incremental State Assessment will be allocated to each service classification based on the percentage of each service classification’s contribution to the total projected Intrastate Revenue (both delivery and supply) and delivery revenue associated with NYPA hydro sales under SC No. 4, Replacement and Expansion Power, Economic Development Power, and Power for Jobs. Also included in the total revenues is estimated sales revenue for the electricity supply sold to end-use customers by ESCos.

Beginning July 1, 2009 and each July 1st thereafter, the ISAS shall be designed to recover the Incremental State Assessment and other allowable associated costs as determined in the above referenced Order. The ISAS is allocated to customers on a revenue basis and the surcharge is calculated in accordance with the way the Company bills its customers, either on a kW/kWh basis. This ISAS is class level and voltage level specific. In addition, it is applicable to customers’ kW consumption associated with Empire Zone qualifying load and NYPA hydro sales under SC No. 4, Replacement and Expansion Power, Economic Development Power, and Power for Jobs. Customers served under individual contracts may be subject to this surcharge in accordance with the terms of their original agreement.

Some Simplified Bill Specifics

The tax will appear as a separate line item on the customer bill. It will be called Incremental State Assessment Surcharge (ISAS)
GRT will be applied to the ISAS charge.
For demand customers, the peak demand will be multiplied by the ISAS charge for their rate class and delivery voltage to determine the surcharge amount.
For RP & EP customers, the charge is $.04 per KW on hydropower allocations. The customer will also pay the charge on the Historic Demand and Additional at S.C. 4 based upon their service classification and delivery voltage.

Kevin S. McQuiggan, CEM
Lead Account Executive
Energy Solution Services
Nationalgrid
144 Kensington Ave
Buffalo, New York 14214 – 2799
716.831.7754 – Office
716.831.5251 – Fax
716.445.8759 – Cell

2 Comments

  1. Mark says:
    July 9, 2009 at 12:19 pm

    As voters and the people of New York we need to come together and unite and vote all of these incumbents in all levels of NYS and local Government out of Office. Maybe as a show of force and strength we should all swing to the Libertarians Party. We need to say enough is enough. I for one have had enough!

  2. Comet069 says:
    July 10, 2009 at 12:35 am

    Mark, your preaching to the existing choir. The choir needs to get bigger with those that are not currently like-minded. I saw Carl, Rus, Lenny, et al on 7-4 and admire their passion in identifying some of the injustices and in attempting to initiate reform. A message campaign needs to be created in the direction of those that do not perceive of any immediate or potentially long term personal consequences of the NYS or federal actions. The target groups include the tax dependent parts of society, namely government employees and recipients of government benefits. They need to have a fear instilled in them that they may lose what they have or be benefited at a reduced level. You need look no farther than California’s current economic crisis and Gov. Arnold threats of withholding payments to welfare recipients, among others. Is NYS next in issuing paper IOU’s to it’s vendors? Also, how does NY state hire 38,000 employees, since Aug. 2008, under a hiring freeze? The tax paying middle class is being taxed into submission. There is no sympathy, no empathy for them. When they are diminished, who pays for government services, welfare, medicaid/medicare? Who is there to pay for government pensions or the recent pension shortfalls that taxpayers will start paying next year? Health care services will also not see the same level of funding reimbursement. It was a symbiotic relationship that had existed in the past between the private and public sectors and the less fortunate in society . It is now extremely parasitic, but the host is not dead. The eye opener issues and vested interests need to be formulated and propagandized. Or maybe, property, sewer, and school taxes and trash, water, and sewer fees can collectively, en mass, be paid with IOU’s. Of course, this can be preceded with an informational poll to demonstrate intent.

 

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