IPPNY Celebrates 25 Years of Market Competition in the Electricity Sector
Today, the Independent Power Producers of New York, Inc. (IPPNY) issued an advocacy piece highlighting the significant achievement of the 25th anniversary of competitive electricity markets in New York State. “The Power of Markets: 25 Years of Innovation Through Competition in New York” booklet, distributed at IPPNY’s annual Clean Energy Spring Conference, demonstrated the benefits of market competition within the sector and how it is the best approach for New York to reach its aggressive climate mandates.
The piece outlines the history of competitive electricity markets and how risks and associated costs of building plants were shifted from the ratepayers to private investors. Prior to competitive electricity markets, traditional utility companies operated as monopolies by being the sole providers of energy to customers. This caused cost overruns and bad business decisions to be borne by the ratepayers. Through competitive electricity markets, independent power producers must compete with one another to sell their electricity, which creates the need to improve efficiency while reducing costs. Aside from assuming these risks, independent power producers employ over 10,000 New Yorkers and pay more than $1.5 billion in annual property taxes while supporting their local communities.
Another outstanding achievement highlighted within the booklet is the substantial decrease in greenhouse gas emissions. In 25 years, the private sector has successfully helped reduce carbon emissions by nearly half and cut sulfur dioxide and nitrogen oxide emissions by more than 90% each. Now, the electricity sector accounts for just 13% of emissions in New York, according to the Department of Environmental Conservation. Furthermore, independent power producers are leading the charge for zero emissions technologies as these resources are identified and developed.
“New York’s competitive energy markets have provided independent power producers the opportunity to make tremendous investments in this State,” said IPPNY Board of Directors Chair and Brookfield Renewable Senior Director, Public Policy & Regulatory Affairs Chris LaRoe. “Competitive markets incentivize electric generation resource availability and efficiency. Further, independent power producers have responded in a manner that has led to an increase in system reliability, a massive decrease in emissions, and a wholesale price of energy that reflects the lowest cost to ratepayers to meet their energy needs. The competitive market principles that have driven these achievements should be carried forward as New York State pursues its aggressive goals relating to climate and the environment. Independent power producers have demonstrated that they are best positioned to respond when presented the opportunity to do so.”
“IPPNY and its members are committed to New York’s clean energy transition,” said IPPNY President and CEO Gavin J. Donohue. “As the State strives to meet its climate goals, key elements such as reliability, affordability, and market transparency are paramount. New York’s independent power producers will provide the majority of investment in the new resources needed for New York’s future and are eagerly awaiting the green light.”
As New York continues to tackle issues with climate change and public policy, it is clear that a system structured around competitive markets will yield the best results for the State and New Yorkers. “The Power of Markets: 25 Years of Innovation Through Competition in New York” elaborates on the successes of market competition and demonstrates how it is the best way for New York to transition to a cleaner energy future with reliability and affordability issues at the forefront.
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About IPPNY
IPPNY, established in 1986, is the premier trade association dedicated to the representation of the State’s electric generation fleet, which powers New York’s economy. IPPNY Members produce clean electricity generation in this state; our Members have been successfully awarded more than half of the renewable energy credit contract awards from the New York State Energy Research and Development Authority, are leading proponents of meeting the State’s energy goals, while maintaining reliability, and are operating the facilities and making investments in additional ones to achieve the Climate Leadership and Community Protection Act’s targets. IPPNY Members also produce more than 75 percent of the State’s power from a multitude of fuel sources, such as: wind, solar, hydro, energy storage, natural gas, low sulfur oil, waste-to-energy, biomass, and nuclear. In combination, these resources maintain electric system reliability and “keep the lights on” for more than 19 million New Yorkers every day. Additionally, IPPNY’s Members have invested more than $10 billion in capital improvements at their facilities, employ over 10,000 people across the State, and pay approximately $1.7 billion in local property taxes annually. IPPNY does not represent investor-owned utilities or power authorities.
