Establishes the capacity zone task force

BILL NUMBER:S7507

Title of bill

An act to establish the "capacity zone" task force and providing for the repeal of such provisions upon expiration thereof

Purpose

Establishes the capacity zone task force to develop and implement a conservation plan for Westchester, NYC and LI to alleviate the need for the new capacity zone

Summary of provisions

Section 1 establishes the capacity zone task force and outlines its composition

Section 2 details the role of the task force and that it includes, but is not limited to, creating and implementing a conservation plan to reduce electricity demand in Nassau, Suffolk, Westchester, and the City of New York

Section 3 states that the funding for the capacity zone task force and implementation of the plan will come from the system benefits charge

Section 4 sets into statute that the task force must complete the conservation plan within ninety days of the effective date and the implementation of the plan shall begin one hundred eighty days after the effective date and be completed within one and a half years of the effective date

Section 5 sets an immediate effective date and sets an expiration for the task force of three years from the effective date

Justification

After failing to thoroughly study the development and implementation of a comprehensive statewide conservation program, FERC has allowed NYSIO to create a new capacity zone in southeastern New York that would mandate local utility providers to purchase energy resources from producers within a specific geographic region. The new capacity zone has the potential to cost residential, commercial, and industrial customers in the lower Hudson Valley up to $350 million in additional electric bills. If unchecked, the new capacity zone will drive families and businesses out of the state due to unbearable costs.

One of the biggest failures of the new capacity zone is the lack of consideration for energy conservation. The justification for the capacity zone is the 894 megawatts (MW) bottleneck in the electric transmission system located north of the Mid-Hudson Valley that constrains electric supply to Westchester and greater New York City area; comes from a transmission bottleneck of in New York City and Long Island. An effective and sustainable energy conservation plan that saves 1,200 megawatts or more will eliminate the need for new energy resources to cover this impending shortage. Other states such as California, they have faced this challenge and responded through comprehensive conservation and efficiency efforts. If New York State took similar measures, our savings could be from 1,100 to 2,100 megawatts of generating capacity. With newer, more efficient technologies, New York would certainly be able to eliminate the 894 MW

bottleneck through conservation without the need for a new capacity zone.

The capacity zone task force has defined goals and deadlines for real action to provide a comprehensive conservation plan that will prevent utility bill increases for many New Yorkers. The state must work with Nassau, Suffolk, Westchester, and the City of New York to reduce energy consumption instead of raising the cost of energy for residents of the Hudson Valley and Upstate New York.

Legislative history

This is a new bill.

Effective date

This act shall take effect immediately.