Power costs called lowerMay 7 - McClatchy-Tribune Content Agency, LLC - Larry Rulison Times Union, Albany, N.Y.
Cable TV and fried chicken have nothing on electric generation. Officials with the Independent Power Producers of New York, an Albany-based trade group that represents power plants across the state, asserted Wednesday at its annual spring meeting that the wholesale cost of electricity in the state -- on an inflation-adjusted basis -- has dropped 34 percent in the 15 years since deregulation of the industry began. During that same time period, the cost of other commodities like cable TV and chicken has doubled, IPPNY officials assert. "Over the last decade, New York has seen lower wholesale electricity prices, significantly reduced emissions, an increase in the use of (renewable generation), and greater private investment in areas of the state where power is needed most, all while maintaining reliability," IPPNY CEO Gavin Donohue said during a news conference Wednesday. Consumers in New York actually pay a lot more than just the wholesale electric costs when they pay their monthly electric bills, which are some of the highest in the country. They also pay "delivery" fees, charges by their utility and taxes and fees added by the state that fund a variety of energy and environmental programs Donohue, who estimated the wholesale cost of electricity only makes up 30 percent of the average bill, used the meeting to tout the benefits of deregulation of the state's energy markets 15 years later. He said that separating the ownership of power plants and utilities and creating the wholesale electricity auction market has benefited ratepayers. William Museler, who as CEO of the New York Independent System Operator from 1999 to 2005 oversaw the state's wholesale markets during the initial years of deregulation, said outage rates have gone from 14 percent to just 4 percent during the period, showing how market forces make the system more reliable. "Money makes these things work," Museler said. National Grid unveiled a new study that found that nearly $1.2 billion in high-voltage transmission line upgrades that the utility is proposing will add tens of millions of dollars to the local property tax base and create hundreds of permanent new jobs. The project, which would alleviate transmission line bottlenecks between the Capital Region and New York City, would add $20 million to the tax base in the Capital Region and lead to 264 new permanent jobs locally, the study said. The figures include data from Albany, Columbia, Montgomery, Rensselaer and Schenectady counties, where the construction would take place. Overall, including other counties involved in the project including Oneida, Herkimer and Dutchess counties, the total tax base benefit would be $30 million, and the addition to the job base would be 389 jobs, according to the study. The project would also support 11,000 construction jobs over a three-year period. lrulison@timesunion.com, 518-454-5504, @larryrulison http://www.energycentral.com/functional/news/news_detail.cfm?did=36090085 |