Joe Parella of the state Public Service Commission in Albany talks Tuesday night at the Broome County Library during a forum about renewable energy.

JIM SANCHEZ / Press & Sun-Bulletin

BINGHAMTON -- Regulators were told Tuesday that they must strike a balance between the costs and benefits of a policy that would mandate increased use of renewable energy sources to supply the state's electricity needs.

Speakers at a downtown forum called to elicit comment on an initiative to encourage more environmentally friendly sources for electric generation were divided on the proposal. The state wants to increase the renewable portion of electric generation from its current 18 percent to 25 percent by 2013.

While some speakers welcomed the initiative, others said the costs would be too great and drive more business out of the state.

"I'm certainly not opposed to a renewable energy portfolio," said Jay Simonis, site manager at Huron Real Estate Associates, the owners of the former IBM Corp. campus in Endicott. But, he said, with the state already burdened with some of the highest electricity costs in the nation, businesses within the state could ill-afford higher rates to encourage more renewable electric generation sources.

To raise costs even higher would make the state less competitive with others as companies consider the bottom-line impacts of the new tariffs planned on electric bills.

"We pay a heck of a lot for energy in this state and it's not getting any better," said Patrick Riban, senior facility manager for MT Picture Displays in Horseheads, which employs 750 people. "We are not competitive with other states."

Others, however, welcomed the proposal, saying the long-term health benefits from cleaner technology and lessening the state's dependence on fossil-fuel electric generation will far outweigh the short-term costs of the state plan.

About 35 people attended the early evening session at the Broome County Public Library, with 19 people speaking during the 85-minute meeting.

According to calculations by the state Public Service Commission, the cost of the renewable energy initiative would range from a 2 percent decline to 2.4 percent rise in current electric bills. But business representatives disputed the PSC calculations, saying the cost could be far greater than PSC estimates, and some doubted that a special tariff designed to encourage the development of alternative electric generation would be lifted as predicted in 2013.

Under a proposal under consideration by the PSC, the state would encourage the development of solar, wind, biomass and other alternatives with a special assessment on electric bills. In the long-term, according to the recommendation, the state will benefit as it cuts the amount of electricity coming from natural-gas-fired electric turbines. Experts worry about the increasing cost of natural gas in the face of what some believe is a depleted supply.

Ron Kamen, a Binghamton businessman who promotes alternative electric sources, called wind power the next step in electric generation. While wind may be more expensive now, the cost will decline as the technology improves, he said.

He reminded those attending the session that hydroelectric power was once considered too expensive. In retrospect, he said, it was a good investment for the state and now ranks as one of the cheapest forms of electric generation.

"The reality is this cannot only save us money in 2013 but in perpetuity," Kamen said of the state renewable energy initiative.

The Proposal Copies of the Renewable Portfolio Standard proposal are available at www.dps.state.ny.us/03e0188.htm. Written comments (in English and Spanish) about the proposal will be accepted by mailing them to Jaclyn A. Brilling, Secretary, New York State Public Service Commission, Three Empire State Plaza, Albany, N.Y., 12223. The letter should reference the "Renewable Energy Standard Proceeding," Case 03-E-0188. Comments on the proposal can also be made by calling the PSC's toll-free opinion line, 1-800-335-2120 or by visiting the commission's consumer Web site, www.AskPSC.com.

© 2004 Binghamton Press & Sun-Bulletin