Environmentalists said the New York Public Service Commission (PSC) staff zero-emission credit proposal for upstate nuclear power plants under Gov. Andrew Cuomo’s Clean Energy Standard would rip off New York consumers, while ignoring cleaner, more affordable energy options.
That’s one of the takeaways from comments four environmental groups submitted before PSC’s deadline for public input on the matter on July 22.
A subsidiary of Exelon, which owns two nuclear plants in New York and is in discussions to buy a third, fired back in its own filing, saying anti-nuclear groups ignore the critical role nuclear can play in allowing New York to meet its goal of reducing greenhouse gases by 80 percent by 2050.
Constellation Energy Nuclear Group estimated that upstate nuclear facilities produce $1.7 billion annually in direct economic benefits and $144 million in tax benefits. The company cited three separate studies, including one from the Brattle Group that found “electricity costs for New York consumers would average $1.7 billion higher” without the upstate plants.
The Alliance for a Green Economy (AGREE) joined the Sierra Club Atlantic Chapter, the Nuclear Information and Resource Service, and the Council on Intelligent Energy & Conservation Policy for a joint filing. The groups said the credit program will cost the state anywhere from $7.6 billion to $10 billion over the course of the program, resulting in “likely the largest gift of public funds to a single corporation in New York’s history.” The uncompetitive nature of the program, according to the filing, goes against the rest of Cuomo’s Clean Energy Standard proposal.
The environmentalists, citing their own calculations using PSC staff documents, projected the cost of nuclear energy under the proposal as rising from $56.48 per megawatt hour to $68.15 per megawatt hour, while saying unsubsidized wind can be purchased in the Northeast for about $44 per megawatt hour, according to financial adviser Lazard. The environmentalists also cited their own study, from Synapse, that says New York can reduce total emissions by 34 percent by 2030 through a combination of wind and solar resources at a “conservative” estimate of $40 per megawatt hour.
The zero-emission credit proposal would allow nuclear energy sources access to the same zero-emission credits and financial assistance available to solar and wind sources.
Exelon earlier this month said the proposal could stave off the scheduled or threatened closure of Entergy’s James A. FitzPatrick Nuclear Power Plant, which the company is considering buying, as well as its R.E. Ginna Nuclear Power Plant and Nine Mile Point Nuclear Station. The only upstate nuclear plant not being considered for the credit program is Entergy’s Indian Point Energy Center.
The New York City Council, in its own filing, said the PSC staff proposal places “unduly burden” on customers, while nuclear utilities would enjoy “windfall profits.” Entergy, though, voiced support for approval of the plan, saying upstate nuclear facilities allow New York to avoid about 26 million tons of carbon emissions each year.
The Pubic Service Commission is scheduled to consider the credits at its Aug. 1 session.
