The Peru Gazette

State Senator Dan Stec said he is pleased the Public Service Commission (PSC) updated its guidance for small Internet Service Provider (ISPs) companies seeking an exemption from providing low-income broadband, which was enacted as part of this year’s state budget.

The 2021-22 state budget mandates companies offer $15 per month broadband to low-income-qualified New Yorkers.  The budget also included language to provide a means of requesting an exemption for small companies (less than 20,000 subscribers) whose financial viability would be threatened because they serve so few customers and their profit margins are so narrow.

“When the budget was adopted, this was a big concern of mine because the last thing I want to see is broadband service disappear as a result of a new state mandate,” said Stec.  “After reviewing the language and talking with companies, I raised the red flag because the financial information that was going to be required by the PSC was far more extensive than the budget language suggested would be necessary to qualify for an exemption.”

Stec had a meeting with PSC staff on Friday, April 30 to discuss the matter and sent a May 5 follow-up letter objecting to their initial guidance, writing: “My point is that requiring a copy of the company’s audited income statement, balance sheet and statement of cash flows for the company’s most recent fiscal year; and a pro forma income statement, balance sheet and statement of cash flows assuming no impact from the requirement to offer the Low-Income Broadband Service, is too intrusive.”

While debating the budget with Stec, Senator Liz Krueger, chair of the Senate Finance Committee, had offered her assistance to address concerns he had raised about the low-income broadband program.
 
“Senator Krueger and I had a meeting with the PSC on May 14,” said Stec.  “We made the point that the intent of the law is to protect, not hurt, the small companies who are filling a critical high-speed broadband need in rural communities,” said Stec.  “What was being asked wasn’t necessary, far too onerous and would be counterproductive. I was relieved and grateful that the exemption guidelines were updated that day.”

Stec said more than 30 companies have contacted the PSC seeking an exemption.  The PSC will make a determination prior to June 16, 2021, when the low-income broadband program takes effect.