December 21, 2017
New York

BPU discusses impact of Clean Energy Standard

Dennis Phillips, Jamestown Reporter/Business Editor | The Post-Journal | Dec 21, 2017 | www.post-journal.com

The effect of the state’s Clean Energy Standard will continue to impact the Jamestown Board of Public Utilities in future years.

On Monday, David Gustafson, Jamestown Board of Public Utilities electric and gas resource manage, gave a presentation on the Clean Energy Standard and how it will impact the city-owned utility in future years.

In August 2016, Gov. Andrew M. Cuomo announced the state Public Service Commission’s approval of the Clean Energy Standard. The Clean Energy Standard will require 50 percent of New York’s electricity, with the starting point at 25 percent, to come from renewable energy sources like wind, solar and hydro by 2030.

Under the Clean Energy Standard, state officials created two mechanism to meet the state’s energy goal, Gustafson said. One is the renewable energy credit and the other is the zero emission credit.

A renewable energy credit is proof that one megawatt-hour of electricity was generated from a renewable energy source. In order to meet the Clean Energy Standard by 2030, Gustafson said the BPU would need to build or buy from a 100 megawatt solar farm or build or by from a 60 megawatt wind farm.

The zero emission credit is for generating one megawatt-hour of electricity with zero-emission attributes. In 2017 and 2018, the BPU will pay $75,000 a month, or $893,000 a year, to the state for their zero emission credit requirement. The price is adjusted every two years so BPU officials aren’t sure how much they will pay starting in 2019.

Gustafson said the renewable energy credit and zero emission credit are both increasing the BPU’s purchase power expenses, which are paid for by customers through the fuel adjustment charge. He said they expect the fuel adjustment charge to continue trending upward, especially after 2021.

During the presentation, Gustafson also discussed the historic electric load trend for the city. He said in the last 10 years, billed industrial has decreased 34.6 percent and commercial has lowered by 8.2 percent. During the same time period, residential has increased by 1.5 percent.

Gustafson said expected trends that will happen between 2022 and 2030 include billed kilowatt hours continuing to decline by 1 percent a year, internal expenses increasing by 2 percent a year and wholesale energy costs begin to increase due to renewable energy credits.

Gustafson said BPU officials should create a responsible energy policy and supportive message that is consistently delivered to customers. He said BPU officials should create one, three and five year priority plans, with specific matching action items that include realistic milestones to manage their workload to achieve their goals.