School districts across Long Island are being unfairly burdened by utility companies that shorten remittance periods, impose costly late fees, and, in some cases, even threaten to shut off service over accumulated late fees. Our firm works with over 50 school districts, and we see this issue across the board—creating unnecessary financial strain, inefficiencies, and frustration. To push back against these unfair practices, we encourage districts to use the provided letter template—or create their own—to contact local politicians and demand fairer policies. Perhaps, if the schools stand together and speak up, they can drive real change and protect our schools’ financial resources.
[Your Name]
[Your Position]
[Your School District Name]
[Your Contact Information]
[Date]
[Politician’s Name]
[Their Title]
[Office Address]
[City, State, ZIP]
Subject: Urgent Request for Support in Addressing Unfair Utility Company Practices Affecting School Districts
Dear [Politician’s Name],
I am writing to bring to your attention an urgent issue affecting school districts across New York regarding unfair billing practices by utility companies. These companies have refused to acknowledge that public school districts are municipalities and, as a result, are improperly charging New York State sales tax on utility bills. Additionally, they have implemented unreasonably shortened remittance windows, making it nearly impossible for school districts to receive, process, approve, and remit invoices on time. This has led to a growing burden of excessive late fees, which is a waste of taxpayer dollars.
The rushed timelines imposed by utility companies significantly increase the risk of payment errors and duplicate payments. In many instances, utility companies have not even accounted for prior month payments before issuing new bills, which then incorrectly include charges from previous months. This chaotic process not only creates financial strain on school districts but also disrupts administrative efficiency.
Most concerning is that some utility companies have even threatened to shut off essential services to schools due to unpaid late fees—an unconscionable action given that schools serve as critical community institutions. These companies have refused to settle or negotiate outstanding fees, despite the fact that schools operate as public entities with strict financial and procedural oversight. Rather than cooperation, we are facing punitive measures that directly harm students, staff, and school operations.
We strongly urge you to review these unfair practices and advocate on behalf of school districts to ensure utility companies:
1.) Cease improper taxation – Public school districts should not be subjected to New York State sales tax on utilities.
2.) Provide reasonable remittance windows – Schools must have adequate time to process and approve payments before penalties are applied.
3.) End predatory late fees and service threats – Public utilities and public schools should work together in good faith, not in conflict.
As stewards of taxpayer dollars, we strive to operate efficiently and prudently. However, the growing administrative burden and financial waste caused by these practices undermine our ability to focus resources on students and education. We ask for your guidance on what steps school districts should take next and request your leadership in advocating for a fair and collaborative resolution to these issues.
We appreciate your time and attention to this matter and look forward to your response. Please do not hesitate to reach out if further discussion is needed.
Sincerely,
[Your Name]
[Your Position]
[Your School District Name]
Contact:
1.) New York State Public Service Commission (PSC):
The PSC regulates utilities in New York State and addresses service and billing issues. You can file a complaint or express concerns through their official channels.
2.) Local State Senators and Assembly Members:
Engaging with your state legislators can amplify your concerns and prompt legislative action. To identify and contact your representatives:
- New York State Senate: Use the “Find Your Senator” tool
- New York State Assembly: Use the “Find Your Assembly Member” tool
3.) County Legislators:
Local legislators can advocate on behalf of school districts within their jurisdictions.
- For Suffolk County, a list of legislators is available
- For Nassau County, a list of legislators is available
4.) Town Officials:
Town supervisors and council members can also be influential in addressing local utility concerns.
Erin Teta, CIA
Director
Erin is a Director of Cerini & Associates, LLP and works primarily within the firm’s education department. She has a robust background spanning over 15 years in Internal Audit, SOX compliance and Claims Auditing. She has worked with school districts, villages, nonprofit organizations, telecommunications and higher education.
