IPPNY Prepared to Defend Markets in 2014
Energy Trade Association Issues 2014 Legislative Priorities
Albany, N.Y., 2/10/14 – Independent Power Producers of New York, Inc. (IPPNY) is ready for the 2014 Legislative Session, highlighting its priorities to champion the competitive wholesale electricity markets in the face of sweeping changes proposed by the 2014 Draft State Energy Plan and the Public Service Commission (PSC) through the upcoming proceeding on restructuring electric distribution utilities. IPPNY’s focus includes support of policies that further the trade association’s mission of promoting fair, fully competitive electric markets in New York State for all resources and the importance of a diverse and robust electricity supply, and that of associated fuels, to maintain the state’s electric system reliability.
IPPNY President & CEO Gavin J. Donohue said that the association is looking forward to 2014 and opportunities for further investment in the electric power supply industry. “A reliable electric system is the foundation of a vibrant economy. Expanding the economic strength of New York State through opportunities for additional private sector investment, as needed, in areas such as distributed generation, repowering, renewable energy resources, and transmission will continue to be a major focus. As in all cases, we advocate for regulatory certainty and fair tax treatment of all resources while maintaining the tenets of the competitive electricity market that has been so successful over the past 15 years. As the State works to harden the electric grid in light of recent storms, IPPNY will continue to work with Governor Cuomo and the Legislature to ensure that New York maintains its safe, secure and reliable electric system while recognizing the significant investments already made in the state.”
New York’s independent power producers have invested more than $10 billion in their facilities, and they employ over 10,000 people. Annually, they pay over $600 million in taxes and invest more than $55 million in their communities.
Specifically, IPPNY’s 2014 legislative priorities include: maintaining the benefits of the competitive wholesale electricity market; encouraging regulatory certainty; promoting fair competition among all types of energy resources; supporting the development of reliable and diverse supplies of energy; and ensuring that the use of Regional Greenhouse Gas Initiative (RGGI) carbon dioxide (CO2) allowance auction proceeds is focused upon achieving the state’s CO2 reduction goals at electric generating facilities.
One of the primary benefits of the competitive wholesale markets is that investment risks shift from captive ratepayers to private investors and not having utilities or public power authorities own new generating facilities regardless of size. In the case of a merchant generation facility, the developer’s shareholders, not consumers, bear the risk of loss. Since the developers must rely on the market to cover costs and produce revenue, they are more efficient. Therefore, not only are independent developers better suited to construct facilities, but they also incur less risk to consumers. The benefits of competitive markets have accrued because the marketplace has created an environment where all resources compete to be the most efficient and cost-effective solutions to the state’s energy needs.
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