How could the PSC's regulatory actions on utility taxes affect the supreme court?
Supreme court may review disputes over New York City's utility tax burdens The Public Service Commission (PSC) has been critical of Consolidated Edison's high property-tax bills, noting that New York City's tax system allows utilities to absorb a significant portion of the city's tax burden. In response, the PSC gave Con Edison permission to provide greater detail to its New York City customers regarding how much of their delivery charge covers city property taxes. Because the Supreme Court exercises ultimate judicial review over disputes and constitutional applications originating from the PSC, these regulatory actions and the underlying tax structure could become subjects of high-level legal challenge.
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How it reaches supreme court
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The Public Service Commission criticized Consolidated Edison regarding its high property-tax bills, noting that New York City carries a significant tax burden. A large portion of the average customer's electricity bill, 21% of the delivery charge, goes toward paying Consolidated Edison's property taxes. Con Edison's property tax bill for its electric system increased from $1 billion in 2015 to over $2.1 billion last year. This increase is attributed to rising component costs and the state's 2019 climate law requiring grid upgrades.
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The PSC is a specialized administrative body whose functions are constrained by the jurisdiction of New York State. The Supreme Court exercises ultimate judicial review over disputes and constitutional applications originating from the Public Service Commission, meaning regulatory decisions made by the PSC are subject to its oversight.
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The facts so far
As reported. Each one links to where it comes from.
- Con Edison's property tax bill for its electric system jumped from $1 billion in 2015 to more than $2.1 billion last year.nypost.com
- Property tax alone adds roughly 5.4 cents per kilowatt-hour to customer bills in the five boroughs.nypost.com
- The PSC gave Con Edison permission to show its New York City customers just how much of their bill covers city property taxes.nypost.com
Why it matters
The stakes involve the balance of power between municipal governments and state regulators. New York City's property-tax system is described as unique and highly dysfunctional, allowing officials to shift a large tax burden onto utilities like Consolidated Edison. If the Supreme Court were to review these regulatory actions, it would define the limits of local tax shifting and the scope of the PSC's authority.
This situation reflects a broader tension in urban governance where local tax mechanisms are used to fund city operations, often at the expense of consumers. The PSC's inability to prevent the tax burden, despite its criticism, highlights the complex regulatory environment that could lead to constitutional challenges.
What we don't know yet
- Will any legal challenges be filed against the PSC's regulatory decisions regarding utility taxes?
- How might the Supreme Court interpret the constitutional limits of local tax shifting onto utility systems?
What would change this answer
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Reporting
- nypost.comOct 13
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