Significance New Yorkers pay among the nation's highest energy bills; the average retail price for electricity in 2005 was more than 13 cents per kilowatt hour, the second-highest in the nation. Natural gas costs are also high for residential (11th highest in the nation) and commercial users (15th).
Impact In Upstate, where the economy is anchored by manufacturing industries and other large energy users, the sting of those high costs is especially strong. Other parts of the nation have used lower energy rates to entice existing Upstate companies to move, and site selectors, who might have brought new jobs and investment to our regions of the state, are similarly lured away.
Solutions Unshackle makes five specific policy recommendations to the Governor and state legislature:
State agencies that administer low-cost power programs should ensure that low-cost energy awards yield the maximum economic benefit. Current New York State programs should be centralized, with a focus on streamlining the application process for greater ease, consistency and transparency. Power programs should have one common application and be judged with one set of progressive, pro-business selection criteria to include increases in payroll, job retention, job creation and capital investment.
Reduce taxes and other statutory and regulatory costs on energy.
Support the continued operation of existing, economically viable, base-load nuclear and coalgenerating facilities, particularly the nuclear facilities at Indian Point, as a means of ensuring stable and competitive prices and supply diversity.
Renew Article X of the New York Public Service Law. Additionally, encourage the construction of new electric generating capacity, electric and natural gas transmission and distribution facilities and other energy infrastructure, with a focus on building generation facilities where demand is greatest -- particularly in downstate New York. The goal should be to keep more Upstate power Upstate -- to stabilize supply and costs -- and to avoid transmission construction projects that would impart unfair burden on Upstate communities such as the proposed NYRI (New York Regional Interconnect).
Promote competitive markets and additional sources of generation (including exploring allowing utilities to be generators) for all fuels, including renewable and alternative fuels. The state's energy policy should urge a safe, secure, reasonably priced, reliable and diverse supply of energy with an emphasis on pricing competitive with lower-cost states.