By Blake Jackson
The Affordable Clean Power Alliance (ACPA) has released a report by FTI Consulting, presented at the Independent Power Producers of New York’s (IPPNY) Spring Conference, highlighting the benefits of competitive wholesale electricity markets in New York.
The report asserts that these markets have reduced consumer costs, accelerated environmental progress, and improved reliability.
These findings support Governor Kathy Hochul’s focus on energy affordability, particularly in light of rising utility rates.
The report argues that while independent power producers have lowered electricity costs, regulated utilities continue to increase charges despite insufficient investment in transmission and distribution infrastructure needed for renewable energy transition.
Key findings include consumer savings of over 35%, with independent generation significantly reducing power supply costs compared to utility-owned generation. Competitive markets also minimize financial risks for consumers by incentivizing efficient project management.
Furthermore, these markets have accelerated emissions reductions, contributing to New York’s low per capita emissions and producing energy with less than half the carbon dioxide compared to states with utility-owned generation. The sector supports nearly 19,000 jobs and generates over $1.5 billion in state and local tax revenues.
The report suggests that utilities should focus on transmission and distribution, where they have expertise, rather than generation projects, which have historically resulted in cost overruns for consumers.
Independent power producers are capable of delivering new generation at lower costs and faster timelines, and utilities would face the same regulatory hurdles.
The study concludes that competitive energy markets are the optimal path to meet New York’s energy goals, and utility-owned generation should not be considered. The Public Service Commission (PSC) has consistently supported this view.
Reversing the competitive market approach could lead to higher energy costs, slower progress on clean energy goals, and limited market innovation. The full report is available on the ACPA website.
Photo Credit: pexels-felix-mittermeier
Categories: New York, Business, Energy