BCW and others rally to defeat energy fee extension

A 2009 energy fee that was set to expire has a host of organizations, including the Business Council of Westchester and a key upstate assemblyman, looking to kill it for good.

Section 18-a of the Public Service Law allowed New York state to impose a fee on electric bills from public utilities to fund the operations of energy-related agencies and authorities, according to Assembly Minority Leader Brian Kolb (R-Canandaigua) who is rallying forces to defeat the fee”™s extension.

Gov. Andrew M. Cuomo has included some $200 million from the fee in his proposed budget. The fiscal year 2013-2014 budget, which passed in the state Senate March 24, is currently in limbo in the Assembly, which has a reduced holiday schedule this week.

In 2009, then-Gov. David Paterson signed legislation authorizing increasing the fee from 0.33 of a percent to 2 percent for most ratepayers. This fee was scheduled to sunset this year.

“Rising energy costs are one of the key burdens that businesses in New York state continue to face,” said John Ravitz, executive vice president of The Business Council of Westchester, in a prepared statement. “I urge all of the members of the Westchester delegation in the New York State Assembly to oppose the 18-a tax extension and not include it in this year’s budget. We need each of them to understand the negative ramifications this tax continues to have on businesses in their districts.”

Opponents say failing to repeal the fee would cost small users thousands per year and large users potentially hundreds of thousands.

A report by the Public Policy Institute of New York found that one quarter out of every dollar paid on electric bill goes toward state and local taxes, according to the Business Council of New York State, which said, “For the state”™s economy to improve, we must take steps to reduce energy taxes, not add or extend additional assessments that increase costs to businesses.”