New York Utility Restructuring Legislation

Legislation Cite and Date
CASE 94-E-0952: 01/01
PSC Order 98-3 1998

Low-Income Provisions
New York Public Service Commission (PSC) orders have created and continued a broad-based, multi-utility system benefits fund for electric efficiency, including low-income programs. Rate assistance programs have been designed and implemented on a utility-by-utility basis as part of individual utility restructuring settlements or merger/rate case settlements.

Low-Income Rate Assistance
As of 2007, restructuring plans and merger or rate case settlements filed by the major electric and gas companies include nearly $40 million annually for low-income rate assistance programs – mostly consisting of discounts off the basic monthly service charge – funded through utility rates and administered by the utilities. Some of these programs offer arrearage forgiveness and case management as well.

Low-Income Conservation
A February 1998 order by the PSC set into motion collection of a systems benefits charge (SBC) on electricity bills for low-income energy efficiency and other public purpose programs; the charge was in place for three years, July 1, 1998. On January 26, 2001, the PSC approved the continuation and expansion of the SBC for an additional five years through June of 2006. Yearly funding averaged $25 million per year for low-income initiatives. On December 14, 2005, the PSC approved a five-year extension of the SBC and increased the program’s annual funding including an increase of $11 million per year for low-income programs.

Annual Funding (2007)
Rate Assistance: $40
Conservation: $36 million

Funding Mechanism
Rate assistance: Costs recovered through rates.
Conservation: System benefits charge (electric utilities)

Administration
Rate assistance: Utilities
Conservation (SBC programs): New York State Research and Development Authority

Pre-Restructuring Funding
Rate Assistance: $5 million (estimate)
Conservation: $2 million (estimate)

Reports / Evaluations
New York Energy $mart SM Program, (all reports)

Page Last Updated: May 21, 2008