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Electric Shock’ – NYS Overcharged Utility Customers $250 Million
Jerusalem Post ^ | June 15 2014 | Boruch Shubert

Posted on 06/15/2014 10:48:30 AM PDT by PoloSec

In a shocking report, a member of the Public Service Commission has revealed that utility customers in New York State were overcharged approximately $250 million over the last five years as part of a state-mandated surcharge on energy bills.

In 2009, New York imposed the “18-a energy surcharge” on residents paying utility bills and ordered utilities in the state to collect the extra money. In the time since, a total of $2.9 billion has been collected from ratepayers from the allegedly “temporary” tax. Even more notably, none of this additionally charged amount was actually channeled to energy conservation or energy-saving programs, Public Service Commission member Diane Burman said late last week. Instead, the money was placed into the state’s general fund.

“What I find disturbing is we are having to revisit just how awful the 2009 law was and the devastating effects the collections can have on New Yorkers,” Burman stated at the P.S.C.’s monthly meeting. “We are now first addressing that in some cases the collections may have been significantly over-collected to the tune of close to $250 million dollars.”

In response, P.S.C. spokesman James Denn said it was not accurate to declare that consumers were overcharged. Rather, as he put it, utilities collecting extra charges from customers built “a positive cash balance, which the commission is now requiring them to reconcile to zero.”

Burman, one of the state’s highest-level energy regulators, said that New York State was not doing enough to protect utility customers and save them money, adding that high energy costs end up hurting the state’s economic costs. She insisted that the state needs to do a better job of protecting customers and accounting for the surcharges that are added to their energy bills.

“I continue to remain concerned that our over-reliance on energy-tax surcharges—which extends beyond just 18-a surcharges but also with other non-legislatively enacted State surcharges,” Burman said, “and the way they are being collected and allowed to build up are setting us up for more problems and complications.”

The 18-a assessment was originally scheduled to expire this year, but it was extended by Governor Cuomo as part of last year’s budget. The Business Council of New York estimated the surcharge would cost taxpayers $2.8 billion over the next six years. In reaction, as part of this year’s budget agreement, the governor and the Legislature agreed to phase out the surcharge by the year 2017.

On Thursday, the P.S.C. unanimously approved the accelerated phase out of the 18-a surcharge. Chairwoman Audrey Zibelman said the venue was not the correct forum to determine whether or not the energy surcharge was effective, since it was created by the state Legislature. “I don’t think it’s appropriate for us to debate tax policy here,” she said, before voting to approve the more rapid 18-a phaseout. A spokesman for Governor Cuomo spokesman did not return a request for comment.


TOPICS: Business/Economy; Government; News/Current Events; US: New York
KEYWORDS:

1 posted on 06/15/2014 10:48:31 AM PDT by PoloSec
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To: PoloSec

No problem about reconciling to zero. I’m sure the funds found a way into politician pockets.


2 posted on 06/15/2014 10:51:53 AM PDT by Jim Robinson (Resistance to tyrants is obedience to God!!)
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To: PoloSec

State sanctioned robbery.

NYS has always used public utilities as “tax” collectors. This lets the utility take the heat for a communist state government.


3 posted on 06/15/2014 10:54:09 AM PDT by headstamp 2 (What would Scooby do?)
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To: PoloSec

Under obama’s regime, your electricity rates will skyrocket. The man said so himself. So suck it up and hope you have some change left after getting fleeced.


4 posted on 06/15/2014 10:54:37 AM PDT by factoryrat (We are the producers, the creators. Grow it, mine it, build it.)
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To: Jim Robinson
100%... like the gas taxes that go straight into the general fund do
5 posted on 06/15/2014 10:54:38 AM PDT by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -vvv- NO Pity for the LAZY - 86-44)
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To: PoloSec

You get what you vote for - enjoy NYers.


6 posted on 06/15/2014 10:56:33 AM PDT by Repeat Offender (The VA - same government incompetence as the TSA but with less molestation.)
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To: Repeat Offender

The day I lost my job in Buffalo in mar 2010, I never knew the BLESSING it would be! SO GLAD TO BE BACK IN TEXAS!


7 posted on 06/15/2014 11:13:12 AM PDT by RebelTXRose (SECURE THE BORDER!)
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To: PoloSec

This past winter, a large power plant in Queens had to use aviation fuel to run the plant because of shortages in natural gas supplies. The plant is forbidden to use diesel because the environmental nazis call it harmful to the environment. Aviation fuel cost about five times the amount of natural gas. My power bill in the winter months was three times the normal bill. New Yorkers pay the second highest power rates in the US. The 18-a tax is part of the reason why. Funny how a temporary tax that was used to balance the state budget is still in effect five years later.


8 posted on 06/15/2014 11:14:10 AM PDT by NoKoolAidforMe (I'm clinging to my God and my guns. You can keep the change.)
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To: PoloSec

Isn’t NY one of those states that has more people moving out than in? Gee, I wonder why?


9 posted on 06/15/2014 11:27:28 AM PDT by upchuck (... honesty is the never-ending rehearsal for those who want to be the friends of God...)
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To: Repeat Offender
thx, i appreciate your support... feh
10 posted on 06/15/2014 11:38:30 AM PDT by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -vvv- NO Pity for the LAZY - 86-44)
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To: PoloSec

This crap goes on in virtually every mandated utility or service. Look at phone bills. You cant tell what or who gets the fees, it’s out of control.


11 posted on 06/15/2014 11:50:45 AM PDT by George from New England (escaped CT in 2006, now living north of Tampa)
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To: Chode

LOL!


12 posted on 06/15/2014 11:51:15 AM PDT by SgtHooper (This is not my tag!)
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To: PoloSec

People who live in New York (except conservatives) have NO RIGHT to complain about being overtaxed - THEY DEMAND IT, actually.


13 posted on 06/15/2014 11:55:15 AM PDT by BobL
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To: George from New England

The phone bill thing is getting so ridiculous, that I predict five years from now many people will use universal WiFi and Skype or some similar VOIP technology for phone calls.


14 posted on 06/15/2014 12:01:21 PM PDT by The Antiyuppie ("When small men cast long shadows, then it is very late in the day.")
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To: The Antiyuppie

I have 911 fees extracted and my county is notorious for being unable to route 911 calls period. I won’t call 911 under any condition.


15 posted on 06/15/2014 12:11:21 PM PDT by George from New England (escaped CT in 2006, now living north of Tampa)
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