Adjusted     Executive
                             Appropriation       Request               Percent
                                   2001-02       2002-03        Change  Change



AGENCY SUMMARY
  Special Rev.-Fed.              1,445,000     1,145,000     (300,000) -20.76%
  Special Rev.-Other            67,074,000    65,099,000   (1,975,000)  -2.94%
  Total for AGENCY SUMMARY:     68,519,000    66,244,000   (2,275,000)  -3.32%


STATE OPERATIONS
  Special Rev.-Fed.              1,445,000     1,145,000     (300,000) -20.76%
  Special Rev.-Other            66,674,000    64,699,000   (1,975,000)  -2.96%
  Total for STATE OPERATIONS:   68,119,000    65,844,000   (2,275,000)  -3.34%

Administration
  Special Rev.-Other             9,986,000    10,127,000      141,000    1.41%
  Total for Program:             9,986,000    10,127,000      141,000    1.41%

Regulation of Utilities
  Special Rev.-Fed.              1,445,000     1,145,000     (300,000) -20.76%
  Special Rev.-Other            56,688,000    54,572,000   (2,116,000)  -3.73%
  Total for Program:            58,133,000    55,717,000   (2,416,000)  -4.16%

AID TO LOCALITIES
  Special Rev.-Other               400,000       400,000            0    0.00%
  Total for AID TO LOCALITIES:     400,000       400,000            0    0.00%

Regulation of Utilities
  Special Rev.-Other               400,000       400,000            0    0.00%
  Total for Program:               400,000       400,000            0    0.00%





                                                                    
                                                                    
      

                         ALL FUNDS PERSONNEL
                        BUDGETED FILL LEVELS
                                                                    
                                                                    
      
                                   Current     Requested
Program                            2001-02       2002-03   Change
                                                                    
                                                                    
      
Administration                         102           102        0
Regulation of Utilities                499           499        0
Total All Other Funds :                601           601        0

TOTAL:                                 601           601        0
                                                                    
                                                                    
       

                          BUDGET HIGHLIGHTS
                   (Executive Budget: pp. 229-231)

The Department of Public Service (DPS) is the staff arm of the Public
Service Commission (PSC) and has the mandate of ensuring that all New
Yorkers have access to reliable and low-cost utility services.  The
PSC is responsible for regulating rates and services of the State's
public utilities (electric, gas, steam, telephone and water
companies), overseeing the siting of major electric and gas
transmission lines and facilities, and ensuring the safety of natural
gas and liquid petroleum pipelines.  As a result of legislation
enacted in 1996, the Department's mandate was expanded to include the
oversight and regulation of the cable television industry. 
Approximately 98 percent of the Department's staff are financed by
utility and cable assessments pursuant to Section 18-a of the Public
Service Law.  The remaining two percent are financed by Federal grants
and coin-operated customer-owned telephone fees. 

The Department of Public Service is included in the Transportation and
Economic Development appropriation bill.

State Operations

The Governor recommends All Funds State Operations appropriations of
$65,844,000 for State Fiscal Year (SFY) 2002-03, reflecting a
$2,275,000 net decrease from SFY 2001-02.  This net decrease includes
a decrease of $300,000 in Federal Funds.

Funding changes within the Department include the following:
  
--     an increase of $141,000 in Special Revenue Other Funds in the
       Administration Program for contractual services and equipment
       costs;


--     a new $70,000 Special Revenue Other Funds appropriation in the
       Underground Facilities Safety Training Account in the
       Regulation of Utilities Program to provide training and
       education on the protection of underground utility facilities;

--     an increase of $89,000 in Special Revenue Other Funds in the
       Regulation of Utilities Program for contractual services and a
       new $525,000 Maintenance Undistributed appropriation for the
       siting of electric generating facilities pursuant to Article 10
       and Article 7 of the Public Service Law; and 

--     a decrease of $300,000 in Special Revenue Federal Funds in the
       Pipeline Safety Grant Account in the Regulation of Utilities
       Program due to a decrease in the amount of Federal grants
       available for the purpose. 

The SFY 2001-02 includes a recommended deficiency appropriation of
$2,800,000 in the Regulation of Utilities Program.  This Special
Revenue Other Fund appropriation is recommended to fund consultant
contracts related to an investigation of the shutdowns at the Indian
Point II nuclear generating facility operated by Con Edison.

Aid to Localities

The Governor maintains a Special Revenue Fund Other appropriation of
$400,000 from the Electric Generating Intervenor Account.  Pursuant
to Section 164 of Article 10 of the Public Service Law, these monies
are intended to support municipal and other parties' activities
related to proposed electric generation facility sitings.  The
Governor proposes reappropriating $5,819,000 from previous fiscal
years for the same purpose.
 
Article VII Proposals

The Governor proposes Article VII legislation authorizing programs to
be funded through utility assessments for the following agencies: the
Departments of Health, Economic Development, Environmental
Conservation, Agriculture and Markets, the Office of Parks, Recreation
and Historic Preservation, and the Consumer Protection Board.  The
Governor also places this authorizing language directly in the
respective appropriation bills.