IPPNY Urges State Energy Planning Board to Recognize Success of Competitive Markets
Albany, N.Y., 2/18/14 - The Independent Power Producers of New York, Inc. (IPPNY) today provided testimony outlining recommendations for the 2014 Draft New York State Energy Plan for the state to continue to receive the investment and reliability benefits that the competitive wholesale energy markets provide. IPPNY's President & CEO Gavin J. Donohue testified this morning at a public hearing before members of the New York State Energy Planning Board that wholesale markets work for New York and should continue to be the model under which the state obtains its power supply resources.
"IPPNY is mystified that this Draft Plan fails to properly acknowledge the importance of wholesale markets and competitive solicitations for the acquisition of new generation. IPPNY supports policies that further private investments in fair, fully competitive electric markets in New York State for all resources to create a diverse and robust electricity supply that maintains the state's electric system reliability," Donohue remarked.
Additionally, Donohue stated that the Draft Plan reflects a shift in focus away from the competitive market and the significant private investment it has spurred over the past 15 years. "The proposed changes indicate an altered regulatory mindset that does not honor the investments made by private companies and seeks to incur more costs for the customer to, in effect, create a new distributed energy resource system. Regulatory certainty and consistency are critical, as an ever-changing or unpredictable landscape stifles the development of any market and will fail to attract crucially required investment in new and existing resources," he noted.
Donohue underscored what the Draft Plan must do to better fit into the parameters of the current wholesale market by: (1) continuing the longstanding Public Service Commission policy that utilities should not be allowed to own, develop, or operate any new electric generation; (2) providing regulatory certainty to the private sector to allow for better investment planning; (3) integrating distributed energy resources into the market without negatively affecting the benefits of the central generation station model , and (4) articulating precisely how the state will maintain and enhance fuel diversity in concert with the state's proposed actions for addressing the impact of climate change and price stability.
Donohue's testimony may be accessed here.
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