The New York State Public Service Fee has denied petitions filed by a bunch of offshore wind builders and a state renewable power commerce affiliation searching for billions of {dollars} in extra funding for 4 proposed offshore wind initiatives and 86 land-based renewable initiatives.
The petitions submitted by Empire Offshore Wind LLC, Beacon Wind LLC, Dawn Wind LLC and the Alliance for Clear Vitality New York Inc. had been searching for adjustment to renewable power credit score and offshore wind REC buy and gross sales agreements entered with NYSERDA to handle current inflationary pressures which might be impacting undertaking economics.
The fee discovered that the contract amendments weren’t in the very best curiosity of the state’s ratepayers. On a month-to-month invoice foundation, granting the request to amend the executed contracts outdoors the aggressive procurement course of would have resulted in as excessive as 6.7% will increase for residential clients and as excessive as 10.5% for industrial/industrial clients on month-to-month payments, relying on service territory and the extent of aid offered, above what was already dedicated.
“The requested amendments to the contracts would have offered changes outdoors of the aggressive procurement course of; such aid is basically inconsistent with long-standing fee coverage,” mentioned Fee Chair Rory M. Christian.
“The fee has repeatedly said that competitors within the procurement course of is important to guard ratepayers and gives the soundest method to mobilize the business to realize our crucial state targets dependably and cost-effectively, and we achieve this once more.”
In its resolution, the fee harassed that it stays absolutely supportive of the Local weather Management and Neighborhood Safety Act, which codifies decarbonization necessities for varied sectors of the financial system and adopts formidable renewable power deployment targets.
In line with the fee, supporters pointed to the state’s clear power targets and argued that aid is required to remain on monitor towards reaching these targets. Opponents typically expressed concern with the rise in costs that will likely be borne by ratepayers and the disruption of the aggressive course of that was used to award these initiatives.
The petitions typically said that the results of the COVID-19 pandemic have uncovered the initiatives to unprecedented world and regional provide chain bottlenecks, excessive inflation, and will increase in the price of capital, pushed by rising rates of interest. Additional, the petitions recognized impacts related to the battle in Ukraine, together with elevated demand for renewable power and ensuing shortages and worth will increase for key elements and tools.
The American Clear Energy Affiliation (ACP) voiced its objections to the fee’s resolution, noting that “the NYSPSC has thrown New York’s environmental and clear power future into peril.”
“Absent a sturdy offshore wind business, it won’t be doable for New York State to realize its local weather or environmental justice targets,” mentioned ACP CEO Jason Grumet. “Furthermore, crucial financial advantages from new manufacturing services and the revitalization of ports will likely be squandered together with the creation of good-paying union jobs. New York State has been a nationwide chief within the clear power transition. We urge New York State to keep up its clear power dedication and rethink this resolution.”
Picture by Darren McGee – NYSDED; Copyright © NYS Dept. of Financial Dev. (NYSDED)
