Utility dispute with FEMA unresolved

By Associated Press


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A group of electric utilities in Kansas has so far been unable to resolve differences with the Federal Emergency Management Agency over how to proceed with repairs to facilities damaged in December's ice storm.

The 26 Kansas utilities involved provide electric service to more than 300,000 residents. Several meetings between the municipal and cooperative electric utilities and FEMA have been aimed at resolving how to pay for replacing or repairing the damaged facilities.

The utilities contend they have line sections that need to be replaced, but FEMA disputes the extent of the damage, Stuart Lowry of Kansas Electric Cooperatives Inc. said.

Lowry said FEMA has proposed additional inspections to identify the damage more thoroughly.

"Our primary concern is to get these damaged systems back and operating at pre-disaster conditions very soon," said Colin Hansen of Kansas Municipal Utilities. "Unfortunately, the process outlined by FEMA does not get us to that point."

But FEMA said the utilities have not provided the agency with evidence that the facilities need replacing.

"It's the responsibility of the applicant to show us the damage," said Anita Westervelt, external affairs officer for FEMA. "We restore to predisaster design and conditions. We do not rebuild unless something is totally destroyed.

"We don't come to a disaster to not give people money," she added. "We come to give them every dollar that we can validate they're eligible for."

Westervelt said FEMA has paid about $52 million for repairs from the storm that hit much of Kansas on Dec. 6, 2007, and intensified on Dec. 10. More than 115,000 households lost power.

KEC said the state has estimated damage to be about $340 million for electric cooperatives in the state and that the money authorized so far did not return the electrical systems to pre-disaster condition.

Lowry said the required inspections could take up to a year, and that the detailed inspections could result in conductor breaks and outages.

"We have already provided FEMA with photographs, engineering studies, inspection reports, inventory reports, outage data and other information to document the extent of the damage, so we certainly don't welcome the additional delay the new inspections will cause," Lowry said.

But Westervelt said FEMA is governed by statutes and congressional mandates and that its requirements are reasonable.

"They think we should take their electrical engineering reports at face value," she said. "But by law, we cannot without validating."

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U.S. Department of Energy Announces $110M for Carbon Capture, Utilization, and Storage

DOE CCUS Funding advances carbon capture, utilization, and storage with FEED studies, regional deployment, and CarbonSAFE site characterization, leveraging 45Q tax credits to scale commercial CO2 reduction across fossil energy sectors.

 

Key Points

DOE CCUS Funding are federal FOAs for commercial carbon capture, storage, and utilization via FEED and CarbonSAFE.

✅ $110M across FEED, Regional, and CarbonSAFE FOAs

✅ Supports Class VI permits, NEPA, and site characterization

✅ Enables 45Q credits and enhanced oil recovery utilization

 

The U.S. Department of Energy’s (DOE’s) Office of Fossil Energy (FE) has announced approximately $110 million in federal funding for cost-shared research and development (R&D) projects under three funding opportunity announcements (FOAs), alongside broader carbon-free electricity investments across the power sector.

Approximately $75M is for awards selected under two FOAs announced earlier this fiscal year; $35M is for a new FOA.

These FOAs further the Administration’s commitment to strengthening coal while protecting the environment. Carbon capture, utilization, and storage (CCUS) is increasingly becoming widely accepted as a viable option for fossil-based energy sources—such as coal- or gas-fired power plants under new EPA power plant rules and other industrial sources—to lower their carbon dioxide (CO2) emissions.

DOE’s program has successfully deployed various large-scale CCUS pilot and demonstration projects, and it is imperative to build upon these learnings to test, mature, and prove CCUS technologies at the commercial scale. A recent study by Science of the Total Environment found that DOE is the most productive organization in the world in the carbon capture and storage field.

“This Administration is committed to providing cost-effective technologies to advance CCUS around the world,” said Secretary Perry. “CCUS technologies are vital to ensuring the United States can continue to safely use our vast fossil energy resources, and we are proud to be a global leader in this field.”

“CCUS technologies have transformative potential,” said Assistant Secretary for Fossil Energy Steven Winberg. “Not only will these technologies allow us to utilize our fossil fuel resources in an environmentally friendly manner, but the captured CO2 can also be utilized in enhanced oil recovery and emerging CO2-to-electricity concepts, which would help us maximize our energy production.”

Under the first FOA award, Front-End Engineering Design (FEED) Studies for Carbon Capture Systems on Coal and Natural Gas Power Plants, DOE has selected nine projects to receive $55.4 million in federal funding for cost-shared R&D. The selected projects will support FEED studies for commercial-scale carbon capture systems. Find project descriptions HERE. 

Under the second FOA award, Regional Initiative to Accelerate CCUS Deployment, DOE selected four projects to receive up to $20 million in federal funding for cost-shared R&D. The projects also advance existing research and development by addressing key technical challenges; facilitating data collection, sharing, and analysis; evaluating regional infrastructure, including CO2 storage hubs and pipelines; and promoting regional technology transfer. Additionally, this new regional initiative includes newly proposed regions or advanced efforts undertaken by the previous Regional Carbon Sequestration Partnerships (RCSP) Initiative. Find project descriptions HERE. 

Elsewhere in North America, provincial efforts such as Quebec's and industry partners like Cascades are investing in energy efficiency projects to complement emissions-reduction goals.

Under the new FOA, Carbon Storage Assurance Facility Enterprise (CarbonSAFE): Site Characterization and CO2 Capture Assessment, DOE is announcing up to $35 million in federal funding for cost-shared R&D projects that will accelerate wide-scale deployment of CCUS through assessing and verifying safe and cost-effective anthropogenic CO2 commercial-scale storage sites, and carbon capture and/or purification technologies. These types of projects have the potential to take advantage of the 45Q tax credit, bolstered by historic U.S. climate legislation, which provides a tax credit for each ton of CO2 sequestered or utilized. The credit was recently increased to $35/metric ton for enhanced oil recovery and $50/metric ton for geologic storage.

Projects selected under this new FOA shall perform the following key activities: complete a detailed site characterization of a commercial-scale CO2 storage site (50 million metric tons of captured CO2 within a 30 year period); apply and obtain an underground injection control class VI permit to construct an injection well; complete a CO2capture assessment; and perform all work required to obtain a National Environmental Policy Act determination for the site.

 

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Duke Energy reaffirms capital investments in renewables and grid projects to deliver cleaner energy, economic growth

Duke Energy Clean Energy Strategy advances renewables, battery storage, grid modernization, and energy efficiency to cut carbon, retire coal, and target net-zero by 2050 across the Carolinas with robust IRPs and capital investments.

 

Key Points

Plan to expand renewables, storage, and grid upgrades to cut carbon and reach net-zero electricity by 2050.

✅ 56B investment in renewables, storage, and grid modernization

✅ Targets 50% carbon reduction by 2030 and net-zero by 2050

✅ Retires coal units; expands energy efficiency and IRPs

 

Duke Energy says that the company will continue advancing its ambitious clean energy goals without the Atlantic Coast Pipeline (ACP) by investing in renewables, battery storage, energy efficiency programs and grid projects that support U.S. electrification efforts.

Duke Energy, the nation's largest electric utility, unveils its new logo. (PRNewsFoto/Duke Energy) (PRNewsfoto/Duke Energy)

Duke Energy's $56 billion capital investment plan will deliver significant customer benefits and create jobs at a time when policymakers at all levels are looking for ways to rebuild the economy in 2020 and beyond. These investments will deliver cleaner energy for customers and communities while enhancing the energy grid to provide greater reliability and resiliency.

"Sustainability and the reduction of carbon emissions are closely tied to our region's success," said Lynn Good, Duke Energy Chair, President and CEO. "In our recent Climate Report, we shared a vision of a cleaner electricity future with an increasing focus on renewables and battery storage in addition to a diverse mix of zero-carbon nuclear, natural gas, hydro and energy efficiency programs.

"Achieving this clean energy vision will require all of us working together to develop a plan that is smart, equitable and ensures the reliability and affordability that will spur economic growth in the region. While we're disappointed that we're not able to move forward with ACP, we will continue exploring ways to help our customers and communities, particularly in eastern North Carolina where the need is great," said Good.

Already a clean-energy leader, Duke Energy has reduced its carbon emissions by 39% from 2005 and remains on track to cut its carbon emissions by at least 50% by 2030, as peers like Alliant's carbon-neutral plan demonstrate broader industry momentum toward decarbonization. The company also has an ambitious clean energy goal of reaching net-zero emissions from electricity generation by 2050. 

In September 2020, Duke Energy plans to file its Integrated Resource Plans (IRP) for the Carolinas after an extensive process of working with the state's leaders, policymakers, customers and other stakeholders. The IRPs will include multiple scenarios to support a path to a cleaner energy future in the Carolinas, reflecting key utility trends shaping resource planning.

Since 2010, Duke Energy has retired 51 coal units totaling more than 6,500 megawatts (MW) and plans to retire at least an additional 900 MW by the end of 2024. In 2019, the company proposed to shorten the book lives of another approximately 7,700 MW of coal capacity in North Carolina and Indiana.

Duke Energy will host an analyst call in early August 2020 to discuss second quarter 2020 financial results and other business and financial updates. The company will also host its inaugural Environmental, Social and Governance (ESG) investor day in October 2020.

 

Duke Energy

Duke Energy is transforming its customers' experience, modernizing the energy grid, generating cleaner energy and expanding natural gas infrastructure to create a smarter energy future for the people and communities it serves. The Electric Utilities and Infrastructure unit's regulated utilities serve 7.8 million retail electric customers in six states: North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky. The Gas Utilities and Infrastructure unit distributes natural gas to 1.6 million customers in five states: North Carolina, South Carolina, Tennessee, Ohio and Kentucky. The Duke Energy Renewables unit operates wind and solar generation facilities across the U.S., as well as energy storage and microgrid projects.

Duke Energy was named to Fortune's 2020 "World's Most Admired Companies" list and Forbes' "America's Best Employers" list. More information about the company is available at duke-energy.com. The Duke Energy News Center contains news releases, fact sheets, photos, videos and other materials. Duke Energy's illumination features stories about people, innovations, community topics and environmental issues. Follow Duke Energy on Twitter, LinkedIn, Instagram and Facebook.

 

Forward-Looking Information

This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on management's beliefs and assumptions and can often be identified by terms and phrases that include "anticipate," "believe," "intend," "estimate," "expect," "continue," "should," "could," "may," "plan," "project," "predict," "will," "potential," "forecast," "target," "guidance," "outlook" or other similar terminology. Various factors may cause actual results to be materially different than the suggested outcomes within forward-looking statements; accordingly, there is no assurance that such results will be realized. These factors include, but are not limited to:

  • The impact of the COVID-19 electricity demand shift on operations and revenues;
  • State, federal and foreign legislative and regulatory initiatives, including costs of compliance with existing and future environmental requirements, including those related to climate change, as well as rulings that affect cost and investment recovery or have an impact on rate structures or market prices;
  • The extent and timing of costs and liabilities to comply with federal and state laws, regulations and legal requirements related to coal ash remediation, including amounts for required closure of certain ash impoundments, are uncertain and difficult to estimate;
  • The ability to recover eligible costs, including amounts associated with coal ash impoundment retirement obligations and costs related to significant weather events, and to earn an adequate return on investment through rate case proceedings and the regulatory process;
  • The costs of decommissioning nuclear facilities could prove to be more extensive than amounts estimated and all costs may not be fully recoverable through the regulatory process;
  • Costs and effects of legal and administrative proceedings, settlements, investigations and claims;
  • Industrial, commercial and residential growth or decline in service territories or customer bases resulting from sustained downturns of the economy and the economic health of our service territories or variations in customer usage patterns, including energy efficiency and demand response efforts and use of alternative energy sources, such as self-generation and distributed generation technologies;
  • Federal and state regulations, laws and other efforts designed to promote and expand the use of energy efficiency measures and distributed generation technologies, such as private solar and battery storage, in Duke Energy service territories could result in customers leaving the electric distribution system, excess generation resources as well as stranded costs;
  • Advancements in technology;
  • Additional competition in electric and natural gas markets and continued industry consolidation;
  • The influence of weather and other natural phenomena on operations, including the economic, operational and other effects of severe storms, hurricanes, droughts, earthquakes and tornadoes, including extreme weather associated with climate change;
  • The ability to successfully operate electric generating facilities and deliver electricity to customers including direct or indirect effects to the company resulting from an incident that affects the U.S. electric grid or generating resources;
  • The ability to obtain the necessary permits and approvals and to complete necessary or desirable pipeline expansion or infrastructure projects in our natural gas business;
  • Operational interruptions to our natural gas distribution and transmission activities;
  • The availability of adequate interstate pipeline transportation capacity and natural gas supply;
  • The impact on facilities and business from a terrorist attack, cybersecurity threats, data security breaches, operational accidents, information technology failures or other catastrophic events, such as fires, explosions, pandemic health events or other similar occurrences;
  • The inherent risks associated with the operation of nuclear facilities, including environmental, health, safety, regulatory and financial risks, including the financial stability of third-party service providers;
  • The timing and extent of changes in commodity prices and interest rates and the ability to recover such costs through the regulatory process, where appropriate, and their impact on liquidity positions and the value of underlying assets;
  • The results of financing efforts, including the ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings, interest rate fluctuations, compliance with debt covenants and conditions and general market and economic conditions;
  • Credit ratings of the Duke Energy Registrants may be different from what is expected;
  • Declines in the market prices of equity and fixed-income securities and resultant cash funding requirements for defined benefit pension plans, other post-retirement benefit plans and nuclear decommissioning trust funds;
  • Construction and development risks associated with the completion of the Duke Energy Registrants' capital investment projects, including risks related to financing, obtaining and complying with terms of permits, meeting construction budgets and schedules and satisfying operating and environmental performance standards, as well as the ability to recover costs from customers in a timely manner, or at all;
  • Changes in rules for regional transmission organizations, including FERC debates on coal and nuclear subsidies and new and evolving capacity markets, and risks related to obligations created by the default of other participants;
  • The ability to control operation and maintenance costs;
  • The level of creditworthiness of counterparties to transactions;
  • The ability to obtain adequate insurance at acceptable costs;
  • Employee workforce factors, including the potential inability to attract and retain key personnel;
  • The ability of subsidiaries to pay dividends or distributions to Duke Energy Corporation holding company (the Parent);
  • The performance of projects undertaken by our nonregulated businesses and the success of efforts to invest in and develop new opportunities;
  • The effect of accounting pronouncements issued periodically by accounting standard-setting bodies;
  • The impact of U.S. tax legislation to our financial condition, results of operations or cash flows and our credit ratings;
  • The impacts from potential impairments of goodwill or equity method investment carrying values; and
  • The ability to implement our business strategy, including enhancing existing technology systems.
  • Additional risks and uncertainties are identified and discussed in the Duke Energy Registrants' reports filed with the SEC and available at the SEC's website at sec.gov. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than described. Forward-looking statements speak only as of the date they are made and the Duke Energy Registrants expressly disclaim an obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

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Electricity demand set to reduce if UK workforce self-isolates

UK Energy Networks Coronavirus Contingency outlines ESO's lockdown electricity demand forecast, reduced industrial and commercial load, rising domestic use, Ofgem guidance needs, grid resilience, control rooms, mutual aid, and backup centers.

 

Key Points

A coordinated plan with ESO forecasts, safeguards, and mutual aid to keep power and gas services during a lockdown.

✅ ESO forecasts lower industrial use, higher domestic demand

✅ Control rooms protected; backup sites and cross-trained staff

✅ Mutual aid and Ofgem coordination bolster grid resilience

 

National Grid ESO is predicting a reduction in electricity demand, consistent with residential use trends observed during the pandemic, in the case of the coronavirus spread prompting a lockdown across the country.

Its analysis shows the reduction in commercial and industrial use would outweigh an upsurge in domestic demand, mirroring Ontario demand data seen as people stayed home, according to similar analyses.

The prediction was included in an update from the Energy Networks Association (ENA), in which it sought to reassure the public that contingency plans are in place, reflecting utility disaster planning across electric and gas networks, to ensure services are unaffected by the coronavirus spread.

The body, which represents the UK's electricity and gas network companies, said "robust measures" had been put in place to protect control rooms and contact centres, similar to staff lockdown protocols considered by other system operators, to maintain resilience. To provide additional resilience, engineers have been trained across multiple disciplines and backup centres exist should operations need to be moved if, for example, deep cleaning is required, the ENA said.

Networks also have industry-wide mutual aid arrangements, similar to grid response measures outlined in the U.S., for people and the equipment needed to keep gas and electricity flowing.

ENA chief executive, David Smith, said, echoing system reliability assurances from other markets: "The UK's electricity and gas network is one of the most reliable in the world and network operators are working with the authorities to ensure that their contingency plans are reviewed and delivered in accordance with the latest expert advice. We are following this advice closely and reassuring customers that energy networks are continuing to operate as normal for the public."

Utility Week spoke to a senior figure at one of the networks who reiterated the robust measures in place to keep the lights on, even as grid alerts elsewhere highlight the importance of contingency planning. However, they pleaded for more clarity from Ofgem and government on how its workers will be treated if the coronavirus spread becomes a pandemic in the UK.

 

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U.S. Renewable and Clean Energy Industries Set Sights on Market Majority

U.S. Majority Renewables by 2030 targets over half of electricity from wind, solar, hydropower, and energy storage, enabling a resilient, efficient grid, deep carbon reductions, fair market rules, and job growth across regions.

 

Key Points

A joint industry pledge for over 50% U.S. power from wind, solar, hydropower, and storage by 2030.

✅ Joint pledge by AWEA, SEIA, NHA, and ESA for a cleaner grid

✅ Focus on resilience, efficiency, affordability, and fair competition

✅ Storage enables flexibility to integrate variable renewables

 

Within a decade, more than half of the electricity generated in the U.S. will come from clean, renewable resources, with analyses indicating that wind and solar could meet 80% of U.S. electricity demand, supported by energy storage, according to a joint commitment today from the American wind, solar, hydropower, and energy storage industries. The American Wind Energy Association (AWEA), Solar Energy Industries Association (SEIA), National Hydropower Association (NHA), and Energy Storage Association (ESA) have agreed to actively collaborate across their industry segments to achieve this target. 

The four industries have released a set of joint advocacy principles that will enable them to realize this bold vision of a majority renewables grid. Along with increased collaboration, these shared principles include building a more resilient, efficient, sustainable, and affordable grid; achieving carbon reductions; and advancing greater competition through electricity market reforms and fair market rules. Each of these areas is critical to attaining the shared vision for 2030.  

The leaders of the four industry associations gathered to announce the shared vision, aligned with a broader 100% renewables pathway pursued nationwide, during the first CLEANPOWER annual conference for businesses across the renewable and clean energy spectrum. 

American Wind Energy Association 

"This collaborative promise sets the stage to deliver on the American electric grid of the future powered by wind, solar, hydropower, and storage," said Tom Kiernan, CEO of the American Wind Energy Association. "Market opportunities for projects that include a mix of technologies have opened up that didn't exist even a few years ago. And demand is growing for integrated renewable energy options. Individually and cooperatively, these sectors will continue growing to meet that demand and create hundreds of thousands of new jobs to strengthen economies from coast to coast, building a better, cleaner tomorrow. In the face of significant challenges the country is currently facing across pandemic response, economic, climate and social injustice problems, we are prepared to help lead toward a healthier and more equitable future."

Solar Energy Industries Association

"These principles are just another step toward realizing our vision for a Solar+ Decade," said Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association. "In the face of this dreadful pandemic, our nation must chart a path forward that puts a premium on innovation, jobs recovery and a smarter approach to energy generation, reflecting expected solar and storage growth across the market. The right policies will make a growing American economy fueled by clean energy a reality for all Americans."

National Hydropower Association 

"The path towards an affordable, reliable, carbon-free electricity grid, supported by an ongoing grid overhaul for renewables, starts by harnessing the immense potential of hydropower, wind, solar and storage to work together," said Malcolm Woolf, President and CEO of the National Hydropower Association. "Today, hydropower and pumped storage are force multipliers that provide the grid with the flexibility needed to integrate other renewables onto the grid. By adding new generation onto existing non-powered dams and developing 15 GW of new pumped storage hydropower capacity, we can help accelerate the development of a clean energy electricity grid."

Energy Storage Association 

"We are pleased to join forces with our clean energy friends to substantially reduce carbon emissions by 2030, guided by practical decarbonization strategies, building a more resilient, efficient, sustainable, and affordable grid for generations to come," said ESA CEO Kelly Speakes-Backman. "A majority of generation supplied by renewable energy represents a significant change in the way we operate the grid, and the storage industry is a fundamental asset to provide the flexibility that a more modern, decarbonized grid will require. We look forward to actively collaborating with our colleagues to make this vision a reality by 2030."

 

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Ontario Businesses To See Full Impact of 2021 Electricity Rate Reductions

Ontario Comprehensive Electricity Plan delivers Global Adjustment reductions for industrial and commercial non-RPP customers, lowering electricity rates, shifting renewable energy costs, and enhancing competitiveness across Ontario businesses in 2022, with additional 4 percent savings.

 

Key Points

Ontario's plan lowers Global Adjustment by shifting renewable costs, cutting industrial and commercial bills 15-17%.

✅ Shifts above-market non-hydro renewable costs to the Province

✅ Reduces GA for industrial and commercial non-RPP customers

✅ Additional 4% savings on 2022 bills after GA deferral

 

As of January 1, 2022, industrial and commercial electricity customers will benefit from the full savings introduced through the Ontario government’s Comprehensive Electricity Plan, which supports stable electricity pricing for industrial and commercial companies, announced in Budget 2020, and first implemented in January 2021. This year customers could see an additional four percent savings compared to their bills last year, bringing the full savings from the Comprehensive Electricity Plan to between 15 and 17 per cent, making Ontario a more competitive place to do business.

“Our Comprehensive Electricity Plan has helped reverse the trend of skyrocketing electricity prices that drove jobs out of Ontario,” said Todd Smith, Minister of Energy. “Over 50,000 customers are benefiting from our government’s plan which has reduced electricity rates on clean and reliable power, allowing them to focus on reinvesting in their operations and creating jobs here at home.”

Starting on January 1, 2021, the Comprehensive Electricity Plan reduced overall Global Adjustment (GA) costs for industrial and commercial customers who do not participate in the Regulated Price Plan (RPP) by shifting the forecast above-market costs of non-hydro renewable energy, such as wind, solar and bioenergy, from the rate base to the Province, alongside energy-efficiency programs that complement demand reduction efforts.

“Since taking office, our government has listened to job creators and worked to lower the costs of doing business in the province. Through these significant reductions in electricity prices through the Comprehensive Electricity Plan, customers all across Ontario will benefit from significant savings in their business operations in 2022,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “By continuing to reduce electricity costs, lowering taxes, and cutting red tape our government has reduced the cost of doing business in Ontario by nearly $7 billion annually to ensure that we remain competitive, innovative and poised for economic recovery.”

As part of its COVID response, including electricity relief for families and small businesses, Ontario had deferred a portion of GA between April and June 2020 for industrial and non-RPP commercial customers, with more than 50,000 customers benefiting. Those same businesses paid back these deferred GA costs over 12 months, between January 2021 and December 2021, while the province prepared to extend disconnect moratoriums for residential customers.

During the pandemic, residential electricity use rose even as overall consumption dropped, underscoring shifts in load patterns.

Now that the GA deferral repayment period is over, industrial and non-RPP commercial customers will benefit from the full cost reductions provided to them by the Comprehensive Electricity Plan, alongside temporary off-peak rate relief that supported families and small businesses. This means that, beginning January 1, 2022, these businesses could see an additional four per cent savings on their bills compared to 2021, as new ultra-low overnight pricing options emerge depending on their location and consumption.

 

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States have big hopes for renewable energy. Get ready to pay for it.

New York Climate Transition Costs highlight rising utility bills for ratepayers as the state pursues renewable energy, electrification, and a zero-emissions grid, with Inflation Reduction Act funding to offset consumer burdens while delivering health benefits.

 

Key Points

Ratepayer-funded costs to meet New York's renewable targets and zero-emissions grid, offset by federal incentives.

✅ $48B in projects funded by consumers over two decades

✅ Up to 10% of utility bills already paid by some upstate users

✅ Targets: 70% renewables by 2030; zero-emissions grid by 2040

 

A generational push to tackle climate change in New York that includes its Green New Deal is quickly becoming a pocketbook issue headed into 2024.

Some upstate New York electric customers are already paying 10 percent of their electricity bills to support the state’s effort to move off fossil fuels and into renewable energy. In the coming years, people across the state can expect to give up even bigger chunks of their income to the programs — $48 billion in projects is set to be funded by consumers over the next two decades.

The scenario is creating a headache for New York Democrats grappling with the practical and political risk of the transition.


It’s an early sign of the dangers Democrats across the country will face as they press forward with similar policies at the state and federal level. New Jersey, Maryland and California are also wrestling with the issue and, in some cases, are reconsidering their ambitious plans, including a 100% carbon-free mandate in California.

“This is bad politics. This is politics that are going to hurt all New Yorkers,” said state Sen. Mario Mattera, a Long Island Republican who has repeatedly questioned the costs of the state’s climate law and who will pay for it.

Democrats, Mattera said, have been unable to explain effectively the costs for the state’s goals. “We need to transition into renewable energy at a certain rate, a certain pace,” he said.

Proponents say the switch will ultimately lower energy bills by harnessing the sun and wind, result in significant health benefits and — critically — help stave off the most devastating climate change scenarios. And they hope new money to go green from the Inflation Reduction Act, celebrating its one-year anniversary, can limit costs to consumers.

New York has statutory mandates calling for 70 percent renewable electricity by 2030 and a fully “zero emissions” grid by 2040, among the most aggressive targets in the country, aligning with a broader path to net-zero electricity by mid-century. The grid needs to be greened, while demand for electricity is expected to more than double by 2050 — the same year when state law requires emissions to be cut by 85 percent from 1990 levels.

But some lawmakers in New York, particularly upstate Democrats, and similar moderates across the nation are worried about moving too quickly and sparking a backlash against higher costs, as debates over Minnesota's 2050 carbon-free plan illustrate. The issue is another threat to Democrats heading into the critical 2024 battleground House races in New York, which will be instrumental in determining control of Congress.

Even Gov. Kathy Hochul, a Democrat who is fond of saying that “we’re the last generation to be able to do anything” about climate change, last spring balked at the potential price tag of a policy to achieve New York’s climate targets, a concern echoed in debates over a fully renewable grid by 2030 elsewhere. And she’s not the only top member of her party to say so.

“If it’s all just going to be passed along to the ratepayers — at some point, there’s a breaking point, and we don’t want to lose public support for this agenda,” state Comptroller Tom DiNapoli, a Democrat, warned in an interview.

 

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