Hochul Is 5% Right On Plan To Lower Energy Costs In The Empire State
Gov. Kathy Hochul has heard the pleas from state residents who want something to be done to decrease the cost of living in the Empire State.
Helping lower state residents’ home heating and power bills while, at the same time, making sure the supply of power is plentiful, is a good place to start. So we’re encouraged to hear Hochul is advancing a new initiative, the Nuclear Reliability Backbone, directing state agencies to establish a clear pathway for additional advanced nuclear generation to support grid reliability. The Nuclear Reliability Backbone will be developed by a new Department of Public Service process to consider, review, and facilitate a cost-effective pathway to 4 gigawatts of new nuclear energy that will combine with existing nuclear generation and the New York Power Authority’s (NYPA) previously announced 1 gigawatt project, to create an 8.4 gigawatt “backbone” of reliable energy for New Yorkers.
When it comes to energy policy, that’s the 1% that Hochul gets right, in our opinion. We are glad to see Hochul agreeing with the state Independent System Operator’s assessment – repeated over the past few years – that the state’s power grid is going to struggle without dispatchable power sources as the state transitions to an all-electric power grid. Hochul’s move won’t make many left-leaning state legislators or environmental advocates happy, but it’s a step in the right direction.
Investments in programs that help people upgrade their homes to be more energy efficient – both in terms of electric consumption and home heating costs – also make sense. That’s especially true in cities like Jamestown, which have older housing stock that has suffered from lack of investment over the decades.
When it comes to actually decreasing utility bills, however, Hochul’s plan loses its luster.
The governor is proposing a the NYS Affordable Utilities Omnibus Legislation to modernize the Public Service Law to demand strict fiscal discipline from utilities and giving the state more power to fight more effectively for lower bills by tying executive pay to affordability, require utilities to present a budget constrained option that keeps operating and capital costs below the rate of inflation and remove “hidden” fees for things like corporate advertising, fines and legal fees.
That’s not all bad. But if we’re talking about hidden fees, then the state should allow utility companies to break out for customers the cost of state mandates paid by utilities that are then passed on to consumers in the form of Fuel Adjustment Charges. Legislation to allow such detail on utility bills has been vetoed in the past – and we have a feeling customers already unhappy with the state’s Climate Leadership and Community Protection Act’s costly renewable energy credits and zero energy credits would be really ticked to see how much their utility is spending due to state mandates.
And everyone should be wary of any plan that gives New York state the ability to appoint an “Affordability Monitor” inside of a utility that it deems isn’t doing enough to keep rates low.
Utility bills need to be decreased. We couldn’t agree more. But in our view Hochul’s plan won’t accomplish that unless a utility’s state-required spending is on the chopping block, too.
