New York’s state government rejected requests from wind energy developers to renegotiate contracts amid inflation.
The energy developers requested billions of dollars in taxpayer funding for the offshore wind projects.
The New York State Public Service Commission (NYSPSC) said their decision would “preserve the robust competitive bidding process that provides critically needed renewable energy resources to New York.”
According to Commission Chair Rory Christian, “The requested amendments to the contracts would have provided adjustments outside the competitive procurement process; such relief is fundamentally inconsistent with long-standing Commission policy.”
“The Commission has repeatedly stated that competition in the procurement process is necessary to protect ratepayers and provides the soundest approach to mobilize the industry to achieve our critical State goals dependably and cost-effectively, and we do so again through today’s action.”
Had the request been approved, utility costs for taxpayers would have gone up as high as 6.7%.
In response to the NYSPSC’s ruling, Alliance for Clean Energy New York Inc. (ACE NY) Executive Director Anne Reynolds said, “The renewable energy industry is deeply disappointed with the Commission’s unfortunate ruling denying relief for renewable energy projects dealing with unprecedented inflation in the wake of the COVID-19 pandemic.”
“The decision is shortsighted. We were hoping the Commission would act strategically on behalf of ratepayers and the environment; instead, their decision will result in increased costs and greenhouse gas emissions.”
As Fox News reported, the decision comes as Biden seeks to expand green energy development. “Days after taking office, President Biden issued an executive action that ordered his administration to increase opportunities for the offshore wind industry as part of his aggressive climate agenda to curb greenhouse gas emissions and stop global warming,” the outlet said.
