Establishes New York state renewable electric generation pilot programs

Summary of specific provisions

Section 1 of the bill requires the PSC to establish the NYS renewable electric generation pilot program to authorize the development of up to 300 megawatts (MW) of renewable electric capacity statewide, in order to stimulate the growth of clean affordable and reliable energy sources and foster partnerships between the utilities, power producers and energy customers.

This section requires the PSC to implement a pilot program that directs electric corporations to build renewable energy facilities which are financed under terms of a commission order. The order will authorize electric corporations to recover capital and operating costs in their rate base and will allow them to earn a reasonable return over a period of time. In order to qualify for these projects a utility must provide the Commission with specific information regarding the pilot project including: a detailed description and economic evaluation of the proposed investment; a discussion of cost benefits, risks, an rate implications to customers; evidence of reasonable efforts to involve local businesses; evidence of compliance with applicable emission limitations; and, copies of customers contracts.

This section also authorizes the renewable generation facilities eligible to be constructed and financed under this pilot program to include electric generation through the use of the following technologies: solar, wind, photovoltaics, tidal, geothermal and fuel cells. These facilities must be manufactured installed and operated according to applicable standards; must connect to the electric system and operate in parallel with an electric corporation's transmission and distribution facilities; must operate in compliance with PSC standards and requirements; and, must be located within the state.

This section also authorizes electric corporations to own an equity interest in these facilities and allows partnerships between independent power producers, developers, and/or customer-owned or leased generators.

Section 2 of the bill requires the PSC to provide an annual report on the progress of the pilot project on or before June first to the Governor, temporary president of the Senate, Speaker of the Assembly, minority leader of the Senate and minority leader of the Assembly.

Justification

As part of the deregulation of the power industry in NYS, utilities were required or agreed to divest themselves of most of their generation facilities. Deregulation was intended to create a more robust retail Power market that would encourage competition and lower energy prices.

Since deregulation, world economic events and concern over global warming have caused governments worldwide to implement public policies that hasten the growth of renewable energy generation. In an effort to establish energy independence from imported fossil fuels and to create green jobs, NYS has established a Renewable Portfolio Standard (RPS) which is a policy that seeks to increase the proportion of renewable electricity used by retail customers. To accomplish this, the PSC has instituted a charge on all private utility customers' monthly electric bills. Yet, public monies will only go so far to reach this goal. Private industry capital is needed to truly encourage viable renewable power sources in the State.

Prior legislative history

2012-13: S.1627/A.1375 - Referred to Energy & Telecommunications 2011-12: S.1061/A.29 - Referred to Energy & Telecommunications 2009-10: S.6722/A.3738A - Referred to Energy & Telecommunications

Fiscal implications

None.

Effective date

This act shall take effect immediately provided that 180 days after the enactment date, the PSC shall have a competitive process in place that shall be open to all electric corporations.