| FOR IMMEDIATE RELEASE Date: Monday, July 16, 2001 |
Release #254 -01 |
| Contact: | Sunny Mindel / Sid Dinsay | (212) 788-2958 |
The next bill before me today is Introductory Number 802, sponsored by Council Member Spigner. The bill would grant a J-51 Program tax exemption to cooperatives, condominiums, and housing development fund companies that convert their electricity metering systems from master metering systems to master/sub-metering systems. The J-51 Program provides co-ops and condominiums with a real property tax exemption when they make major capital improvements or institute energy conservation measures.
Currently, many co-ops and condos in the City use master metering systems to measure the usage of electricity. With master metering, the utility sends one master bill to the co-op or condo board. The board then divides the bill equally among the tenants. Since an individual tenant is not billed strictly according to his or her individual electrical use, there is no direct incentive for a tenant to restrict his or her use in order to save money and energy.
On the other hand, with master/sub-metering, each individual tenant is billed according to how much electricity he or she uses. In addition, the master/sub-metering system allows the utility to bill at a slightly higher rate in the summer, when people use more power, and at a slightly lower rate in the winter, when power consumption tends to decrease. This system gives tenants far more of an economic incentive to reduce their electricity usage, especially in the summertime when power can sometimes be scarce.
It is imperative for the City to take every step possible in order to reduce energy costs and consumption. By allowing co-ops and condos to qualify for the J-51 Program exemptions for converting from master metering to master/sub-metering, this legislation should help to reduce energy prices and encourage more energy conservation in co-ops and condominiums in the City.
For the reasons previously
stated, I will now sign the bill.
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