ALBANY - Southern Tier business leaders came to the Capitol on Wednesday to try to beat back an attempt to impose a new state tax on oil and gas producers.

"We don't want to kill the golden goose before it lays an egg," said Brad Gill, executive director of the state Independent Oil and Gas Association.

The Assembly is considering a plan to impose a tax of possibly 5 percent on the value of gas and oil drilled in the state, even as producers are planning to dramatically increase drilling to tap into the Marcellus Shale formation. The drilling is expected to be an economic boon to the region and a huge producer of energy.

"Our position all along has been that this upstate economic opportunity is one that must be nurtured, and that attempts to overtax and over-regulate will result in non-development of the assets," said Lawrence Brinker of the Greater Binghamton Chamber of Commerce.

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It was 2006 when NYRI officials first came to Oneida County to meet the public.

In October 2006, Governor George Pataki signs a bill, at SUNYIT, stating the power company can not take land through eminent domain.

In February of 2007, NYRI sued Pataki over the bill.

And just a few months ago, some members of the Public Service Commission suggested that the proposed line does not need to be built, and there is no need for extra power.

The project has been in the hands of the Public Service Commission for almost a year.

When the PSC does make their final decision, they will have three options - approve the project as is, reject the project, or they can modify it.

ALBANY — Gov. David A. Paterson this week rushed to protect consumers from the New York Power Authority’s plan to boost electricity rates by $10 million.

But behind closed doors, Paterson this week also is trying to impose higher surcharges on utility companies that would end up costing consumers of electricity, natural gas and telephone service at least an additional $531 million in the coming year.

If the governor’s plan succeeds—and sources Wednesday said the idea is very much alive at the budget negotiating table— industry officials predict it will add 2 percent to every utility bill across the state.

So, consumers won a minor skirmish with the Power Authority’s retreat, critics say, but they are now in line for a much larger pocketbook hit.

Under the legislation, the New York State Office of General Services would administer the Bulk Electricity Purchasing Program and make it available on a voluntary basis to state agencies, municipalities and school districts. OGS will be tasked to ensure that each contract for service entered into is with the lowest responsible bidder, provides for service and maintenance and gives additional amounts of electricity at the bulk rate in sufficient quantities in the event of an emergency.

“Bulk purchasing of electricity will help reduce costs for school districts and local governments and may result in lower property taxes,” O’Mara said. “It is important for the Legislature to encourage bulk buying on state and local levels as a way to lower energy costs, save important tax dollars during these tough economic times and encourage energy conservation.”

The legislation is expected to be brought to the Assembly floor for a vote via the amendment process in the coming days.

U.S. Senator Charles E. Schumer today wrote to the Public Service Commission asking them to reject Energy East's request to raise gas and electric rates on nearly 1.5 million New York ratepayers. In a letter, Schumer outlined a host of reasons for the PSC to dismiss their request, contending that it violated several of the terms established by the PSC in approving Iberdrola's purchase of the utility and also made questionable claims in an attempt to justify the rate increase.

“This rate hike application reeks of profit mongering by a company that promised not to do just this as a condition of the approval of its merger. Just as New Yorkers are struggling to make ends meet, Energy East is trying to pull a fast one on its customers. The PSC should reject this application without any hesitation,” U.S. Senator Charles E. Schumer said.

Iberdrola, a Spanish utility company, recently purchased Energy East, which is the parent company of NYSEG and RG&E, serving over 1.5 million ratepayers, spanning communities across Western NY, the Finger Lakes Region, the Southern Tier and Hudson Valley, the Capital Region and North Country.

During the regulatory approval process, Iberdrola committed to setting aside a $275 million pool of funds -- or Positive Benefits Adjustments (PBA) -- to keep customer rates low. At the time, Schumer said he would only support a deal containing provisions that would keep customer rates low. The final deal stipulated that a rate hike increase could not be requested for 13 months after the merger and that the $275 million Positive Benefits Adjustments be used to reduce rates or offset costs of the merger. Today, Schumer asked the PSC to determine whether the company was planning on using the $275 million in PBAs to offset the proposed rate hike, and if not, to determine how the company intended to use that fund.

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ALBANY — In the course of a year or so, the state will take more than $750 million from the New York Power Authority to help the Paterson administration balance the state’s deficit-ridden general fund.

Power Authority officials say the lost money will not affect operations and that they are happy to help the state during these troubled times.

But critics say the move comes at a terrible time, given the condition of the economy. The authority, the nation’s largest state-owned power company, could have used some of the money to lower electricity rates, especially for struggling upstate companies that have decried the cost of power in New York as a competition killer, these critics say.

“Essentially, they’re using surplus NYPA funds from selling our hydropower on the open market to fund pork-barrel spending in Albany. It’s outrageous,” said Assemblyman James Hayes, R-Amherst, the ranking Republican on the Assembly Ways and Means Committee. He voted against last week’s deficit-reduction package.

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