by Kenneth Girardin
Governor Andrew Cuomo’s new Clean Energy Standard is shaping up to be one of the largest tax hikes in state history.
Beginning in January, the standard
will force electricity ratepayers to subsidize costly windmills and
solar panel farms, along with money-losing upstate nuclear plants, by
requiring utilities and other electricity customers to purchase
“renewable energy credits” (RECs) and “zero-emissions credits” (ZECs)
from the state.
The standard is part of the
governor’s goal of having the state get 50 percent of its electricity
from renewables by 2030—up from 23 percent as of 2015. Paradoxically,
the PSC assumes that this policy can drive down prices even while
mandating higher demand for renewables.
The credits are tied to the amount of
power each utility purchases from the electrical grid, on a
per-megawatt-hour basis. The state will be using the proceeds of the
RECs and ZECs to pay renewable energy generators and upstate nuclear
plants while they sell power to the grid at a loss.
In ordering the Clean Energy Standard
on August 1, the four members of the Public Service Commission (PSC)
set percentages of electricity usage that need to be offset with REC
purchases each year beginning in 2017.
The New York State Energy Research
and Development Authority (NYSERDA), which will play a key role in
implementing the standard, hasn’t yet set a price for RECs. However,
equivalent credits in Connecticut, Massachusetts and Rhode Island are
trading for more than $40.
Click here for the full article.
Source: Empire Center, NY Torch (via The Empire Report)
No comments:
Post a Comment