Media Advisory
February 15, 2007
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Contact: Charlie Pratt, principal author of report: 212 – 836 – 4706
 Edna
Sussman, Committee Chair: 914 – 472 – 9406 |
A FAILURE TO TAKE STEPS NOW TO ASSURE CLEAN RELIABLE
ENERGY MAY LEAD TO SERIOUS DAMAGE TO THE PHYSICAL AND
ECONOMIC HEALTH OF MANY NY RESIDENTS
NEW YORK CITY BAR ASSOCIATION RELEASES ”ELECTRIC
REGULATION IN THE STATE OF NEW YORK”
The construction of new generating capacity in
the metropolitan area where it is needed is one
of the most significant energy issues facing the
State. According to a report by the New York City
Bar Association, written by its Energy Committee,
a prompt assessment of three measures is necessary
to encourage the building of new, efficient and
environmentally friendly electricity generating
plants.
The report, Electric Regulation In The State
Of New York, recommends that consideration be given
to modifying current rules affecting New York’s
electricity market to facilitate financing of plants,
through several proposals:
- The creation of a long-term market in electrical
capacity by the operator of New York’s electric
system
- Commitments to long-term power purchase agreements
by the State’s utilities
- The legislative authorization of a special
purpose entity to commit to such long-term agreements.
The Energy Committee report is available at http://www.nycbar.org/pdf/report/Dereg_report.pdf.
Over the past decade, New York has transformed
the business of owning and operating electricity
generating plants so that traditional utilities
now concentrate on the delivery of electricity
to customers. Power from generating plants, which
are owned and operated by independent companies,
is supplied through a competitive market. This
restructuring has led to savings for customers,
but it has made it more difficult to secure needed
financing for new plants.
Even though the use of electricity continues to
rise with the growth of the region’s population
and the increased use of electricity in everyday
life, few new plants are being built. The Energy
Committee’s three recommendations are important
to building new generating plants in the parts
of the State where the need for new generating
capacity is on the horizon.
The Report also recommends that the State undertake
energy planning that complements the planning conducted
by the operator of the State’s electric system.
Such planning would allow the State to focus on
long-term trends and issues, while the competitive
market administered by the system operator focuses
on short-term needs. It will also make it easier
to coordinate policy among state agencies and incorporate
environmental and policy concerns into energy planning.
The Committee has presented advantages and disadvantages
for the three recommended approaches to making
it possible to finance new generating plants. The
Energy Committee’s Chairperson, Edna Sussman,
observed that “we are concerned that a failure
to take steps now to assure adequate, clean and
reliable electricity in New York may lead to serious
damage to the physical well being and economic
health of many NY residents.” The State,
according to the Report, should undertake “a
careful analysis, including an open process with
comments from all stakeholders,” on the three
approaches.
Solution of the financial issues highlighted
in the Energy Committee Report will complement
the efforts of this Association and others to re-establish
Article X, a one-stop siting statute for new power
plants, which lapsed in 2003.
About the Association
The New York
City Bar Association (www.nycbar.org)
was founded in 1870, and since then has been
dedicated to maintaining the high ethical standards
of the profession, promoting reform of the
law, and providing service to the profession
and the public. The Association continues to
work for political, legal and social reform,
while implementing innovative means to help the
disadvantaged. Protecting the public’s welfare remains one of the
Association’s highest priorities.
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