City demands financial data as offshore wind developers ask for bigger subsidies 

New York City and a consortium of big energy users accused offshore wind developers of “a concerted effort to avoid scrutiny” in their requests for bigger subsidies from ratepayers, filings with the state show.

The challenge is directed at developers behind four offshore wind projects that New York is relying on to reach its clean energy goals. In June, the developers told state regulators that their projects would be at risk without an inflation adjustment to their contracts.

But such changes stand to increase costs for consumers, and New York City and several large businesses want the developers to provide more information to support their claims.

“The Petitioners seek significant but unspecified increases to the amounts they would be paid by captive utility customers for previously-contracted [offshore wind projects], but a significant portion of the information that purportedly supports the requested relief is redacted and withheld from public review,” states a motion submitted to the state on July 27.

Motions were filed by the city and Multiple Intervenors, a group of 55 large electricity consumers including retailers, manufacturers and institutions throughout New York. Among the association’s varied members are IBM, Wegmans and the State University of New York.

The companies complain that “excessive redactions” in the developers’ filings make it difficult to evaluate the need for more relief.

“Petitioners’ overbroad use of redactions reveals a lack of regard for the right of utility customers to be adequately informed as to the costs they are being asked to bear,” the motion states. “The public interest demands that sufficient information be presented in the Petitions to allow the public to understand, evaluate, and provide meaningful input.”

Norway-based Equinor and British Petroleum are building three of the offshore projects that have petitioned for contract changes: Empire Wind 1 and 2 near the Jersey Shore, and Beacon Wind east of Montauk. The projects, which were awarded contracts in 2019 and 2022, are expected to produce more than 3,300 megawatts, enough to power nearly two million New York homes. The projects are expected to create thousands of jobs.

A representative for Equinor emphasized that the developments will “play a critical role in helping New York meet its renewable energy goals.” The projects represent 12% of the energy generation needed for New York to hit its target of producing 70% of the state’s electricity from renewables by 2030. The Equinor-British Petroleum developments are a significant contribution to New York’s efforts to establish the country’s largest offshore wind pipeline.

“We are reviewing the motion filed to understand what further information could be provided,” the Equinor representative told Crain’s in an emailed statement. “The petition includes information on requested changes to the agreements necessary for the projects to progress.”

The Sunrise Wind development, a 924-megawatt joint venture by Ørsted and Eversource east of Long Island, has also petitioned state regulators for contract changes. A representative for Ørsted told Crain’s that the company is currently reviewing the motion.

In an unusual move the Public Service Commission is seeking comment on the developers’ request for more aid—the agency is not required to do so. The comment period officially closes on Aug. 28, but input on the motions will be accepted until the commission reaches a decision, according to the Department of Public Service.