Upstate residents only have until Monday, February 7, to register comments with the Public Service Commission (PSC) about the Clean Path New York and Champlain Hudson Power Express projects. While the projects are good for New York City, they come at a potentially high cost to upstate New York.
Low-cost energy has long been an important element of upstate New York’s business climate. Electricity rates for industrial users are below the national average, making the region attractive to electricity-intensive industries, such as electric arc mini-mills that recycle scrap steel.
But while the power from these new multi-billion dollar projects will go directly into the City, all New York utility users will help pay for them through their utilities’ purchases of RECs, or renewable energy credits.
And buried deep in the PSC report on these projects is bad news for upstate energy users – residential prices could increase anywhere from 3.5 percent to nearly 10 percent, with a wide range of uncertainty in each case.
But the worse news is the report’s final sentence, which says that “impacts on large commercial customers may be up to twice” as much. That means industrial users could face electricity price increases of nearly 20 percent, depending on their electricity supplier.
Companies must consider every element of their business costs, especially when they’re considering where to locate new facilities. A large increase in the region’s price of electricity could prompt some businesses to locate elsewhere.
New York’s high taxes and costly regulations make it one of the worst business climates in the country, according to the Tax Foundation, which recently ranked the Empire State less business-friendly than any state other than New Jersey. Higher energy prices will make New York even less attractive to firms.
New York City needs cleaner sources of energy, which these projects will provide. But upstate should not have to risk bleeding business investment to make it happen. New York’s climate activists frequently talk about ensuring a just transition to a low-carbon economy. Where is the justice for upstate New York with this plan?
You may also like
Another battery flop zaps NY taxpayers
Plans to lure a Canadian battery company to the Hudson Valley with a slew of government incentives, including job-creation tax credits, loans, and federal subsidies, appear to be a dud. It’s a reminder that when it comes to picking winners in the energy-storage space, taxpayers are often losers. Read More
NYSERDA’s Roadmap to Nowhere
New York school districts face a multi-billion dollar unfunded mandate to convert to electric school buses. While the transition will cost between $8 and $15 billion above the cost of buying traditional buses, less than $1 billion in state and federal aid is likely to be available to help schools cover the cost. Read More
New Wind Energy Costs Blow the Doors Off Projections
The myth that New York can replace fossil fuel power plants with cheap renewable energy has begun to crumble under renewable developers’ demands for higher prices to offset inflation and supply chain challenges. Read More
Renewable Solar Comes with Recurring Waste Costs
Within 25 years New York will find itself trying to manage the disposal of five million or more waste solar panels every year. Read More
First Annual CLCPA Report Indicates High Costs, Low Benefits
A major deception on emissions reductions lies at the heart of the New York Department of Public Service’s first annual report on implementation of the Climate Leadership and Community Protection Act. Read More
Micron vs. New York Energy Policy
Computer chip manufacturer Micron has revealed that by the 2040s its Onondaga County factories are going to be sucking up enough electricity to power New Hampshire and Vermont combined. Read More
Offshore Wind Lulls Threaten NY Energy Reliability
The volatility of wind off the Atlantic coast will challenge New York's ability to keep the lights on according to a recent analysis from the New York State Reliability Corporation. Read More
Unlikely Pair Tries to Blow Open Secret Wind Deal
Offshore wind developers, citing changing market conditions, are demanding what could be billions of dollars in additional subsidies—but refusing to let the public see how much or explain their reasoning. Read More