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Energy Committee Update
March 22, 2013

Staff Contact: Darren Suarez

2013-14 State Budget

On Wednesday evening Governor Cuomo and the legislative leaders announced an agreement on the 2013-14 State Budget. At this time the details of the final budget agreement have not been released. Part of the agreement includes an extension and phased reduction of the Temporary State Energy and Utility Service Conservation Assessment (often referred to as “Section 18-a assessments). The 2% assessment was scheduled to expire December 31, 2013.

At this time the budget language detailing 18-a has not yet been published. When it is public, we will share this information with the members of the Energy Committee.

Based upon reports of the agreement 18-a will be extend for three years not five years, additionally the assessment will be reduced starting in 2015-16 to 1.75% then in 2016-17 to 1.5%. There is a stated agreement that 18-a will expire in 2017.

The chart below reflects the terms of the agreement.

chart1

The second chart represents that the proposed agreement saves a projected $181 M over 4 years, or 9.5%.

chart2

 

 

2013-14 2014-15 2015-16 2016-17 Total
Current Law  $    236  $        -    $        -    $        -    $     236
Executive Budget  $    472  $    472  $    472  $    472  $  1,888
Agreement  $    472  $    472  $    404  $    359  $  1,707

 

When the final details of the budget become available, we will provide a complete breakdown of all the new and amended sections of the proposed budget.