State renewable energy credits penalize BPU for early adoption of hydropower
State renewable energy credits penalize BPU for early adoption of hydropower
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]Long before it was the fashionable thing to do, the city of Jamestown – through its Board of Public Utilities – invested heavily in renewable energy in the form of hydropower generated by Niagara Falls.
That investment provides 90% of the power routed through the BPU into homes and businesses throughout the utility's service territory. None of that matters a bit to New York state – and the state's broken give a darn is taking money out of your bank account every month.
Recently, the BPU board approved new Clean Energy Standard agreements with NYSERDA, as required by law. While the BPU board will meet the state's requirements, they're not happy about it.
The protest this year is similar to the protest last year when the BPU had to sign on to the state’s new Bulk Energy Storage Program and associated Index Storage Credit mechanisms. Just as the BPU protested the Renewable Energy Credit program, BPU officials protested what is essentially a double payment by BPU ratepayers into funds that don’t really help BPU ratepayers.
One reason for that is the BPU’s investment in the Niagara Power Project and the ensuing New York Power Authority contract to provide hydropower to Jamestown. Jamestown is now paying for the state’s push to develop clean energy and storage when the utility largely achieved 90% decarbonization of its power grid on its own decades ago.
The BPU’s microgrid should meet the state’s energy storage goals. That project, too, comes with a mix of federal and local BPU ratepayer investment. And let’s not forget that new credit programs are added to the existing Tier 1 Renewable Energy Credits to support new renewable power generation, Zero Emissions Credits to support existing nuclear power plants, hydropower-related renewable energy credits, offshore wind renewable energy credits to support offshore wind development and transmission charges to support new transmission development that largely benefits New York City. Not only are BPU ratepayers paying for local non-carbon emitting generation for its own hydropower and solar projects, but to support statewide projects that don’t benefit local ratepayers.
“These state-directed projects do not benefit the Jamestown community with jobs or tax value and only serve to further harm its economic circumstances,” the BPU wrote in its 2025 protest letter to NYSERDA.
There are ways the state could accommodate municipally owned utilities or utility cooperatives. State officials have chosen not to do so. Some of the BPU’s suggestions include adjusted obligations that reflect decisions made locally that meet the state’s clean energy goals, opt-out provisions, self-procurement or alternative compliance measures that work with smaller, municipally owned utilities like the BPU. BPU officials aren’t asking the state to operate outside of the state’s climate goals. Instead, the BPU wants to pursue the transition toward cleaner energy without the added cost of state-imposed charges that drive up the cost you pay with no benefit to you.
It's a fight worth fighting, even if it's a fight we're destined to lose.