Legislative Memos

Memorandum in Support S.2383 (Maziarz) / A.6367 (Paulin)

Memorandum in Support

June 4, 2014

S.2383 (Maziarz) / A.6367 (Paulin) - AN ACT to amend the public service law, in relation to the rates paid for net energy metering technology

The Independent Power Producers of New York, Inc. (IPPNY) is a trade association representing companies involved in the development of electric generating facilities, the generation, sale, and marketing of electric power, and the development of natural gas facilities in the State of New York. IPPNY represents almost 75 percent of the electric generating capacity in New York.

IPPNY supports the passage of S.2383 (Maziarz) / A.6367 (Paulin). These bills would provide parity to technologies such as fuel cell electric generating equipment in terms of credits under the Net Metering Law. The legislation would support fuel diversity by providing for more of a consistent and level playing field for technologies under the Net Metering program.

According to the New York State Energy Law, the state's energy policy is to obtain and maintain safe, reliable, and diverse energy supplies, accelerate the development and use of renewable energy resources, and increase its energy independence in order to promote the state's economic growth, to maintain the security of its energy supplies, and to protect its environmental values. New York's existing generating resources are powered by cutting-edge technologies and a wide variety of fuel types such as fuel cells.

As an extension of that fuel diversity policy, the state has committed to increasing renewable energy supplies. Eligible resources under the New York State Renewable Portfolio Standard include fuel cells. Fuels cells also are among the technologies defined as powering an alternate energy production facility under the New York State Public Service Law.

A diverse energy fuel portfolio protects the reliability of New York's energy system and provides benefits to consumers. In general, the electric system is less reliable if it becomes too dependent on any one fuel source. Given the benefits of its existing fuel-diverse sources of supply, New York State has committed to expanding that mix further.

For the reasons stated above, IPPNY supports S.2383 (Maziarz) / A.6367 (Paulin).