In the rush to pass the Climate Leadership and Community Protection Act in 2019, concerns about its affordability were disregarded. Unfortunately, four years later, we are just starting to address the significant costs associated with New York’s climate goals.
The state Department of Environmental Conservation’s commissioner, Basil Seggos, expressed concerns earlier this year that the CLCPA could lead to an 80% increase in natural gas bills and a 63 cents per gallon increase in gasoline prices. Seggos and Doreen Harris, commissioner of the New York State Energy Research and Development Authority, agreed in a joint op-ed that “fighting climate change won’t be effective if people and businesses cannot afford it.”
We echo their sentiments.
We encourage New Yorkers to take the time to gain a better understanding of the realities of the CLCPA because it’s not just natural gas and gasoline prices that will skyrocket. In fact, nearly every cost associated with the CLCPA is increasing dramatically.
The Port of Albany facility, responsible for building wind towers, has already exceeded its initial cost projection of $350 million by 100%. Will the final cost reach closer to $1 billion? It is highly likely.
In June, petitions were filed with the Public Service Commission on behalf of several renewable energy projects, requesting additional funding. The petitions warned that without the extra funds, these projects may be abandoned. However, the exact amount of additional funding requested remains undisclosed. Utility customers have the right to know the extent of the financial burden they will bear.
Although New Yorkers are still unaware of the true costs of the CLCPA, they can be assured that the recent increase in their utility bills will pale in comparison to what is to come.
How can we be so sure? A Department of Public Service report released last month indicated that in 2022 alone, the CLCPA led to double-digit increases in bills. This is alarming because only a small portion of the total costs associated with the CLCPA have been reflected in utility bills so far.
One of the main drivers of this problem is the timeline, which not only contributes to increased costs but also encourages them. For instance, renewable energy developers are pressuring the state into a situation where, if their request for additional funding is not approved by the PSC, the projects will need to be put up for bidding again, potentially jeopardizing the CLCPA’s legally mandated targets. Thus, the expedited timeline creates a perverse incentive for developers to demand more money from the state.
Moving from one cost overrun to another guarantees that the initial projections of the CLCPA were inaccurate. We are long overdue for serious discussions on the impact of the CLCPA on affordability and reliability. While blackouts have not occurred yet, the lack of transparency regarding the costs of the CLCPA keeps New Yorkers in the dark.
Justin Wilcox is the executive director of Upstate United, an economic advocacy coalition.
