MINUTES - ENERGY COMMITTEE
February 25, 2002
Council of New York State, Inc.
Lower Level Conference Room
1:30 p.m. - 3:00 p.m.
Chairman National Fuel
Johnny Evers, The Business Council
Sarah Ploss, AnAerobics
George Pond, Hiscock & Barclay
Lou Friscoe Mirant New York
Scott Irwin, NYPA
John Hamor, NYPA
Peter Casper, Whiteman, Osterman, Hanna
Christine Benedict, NYSERDA
Michael Whiteman, Whiteman, Osterman, Hanna
Frank Murray, Ecology and Environment
Mike Doyle, NYS Petroleum Council
Paul DeCotis, NYSERDA
Adam Procell, DMJM Harris
Ken Pokalsky, The Business Council
Elliott Shaw, The Business Council
Pat Brown, General Electric
Tom Macaulay, Glenville Energy Park
Jon Pierce, Sawchuck Brown Assoc.
Mark McLean, Dynegy Northeast
Dan Thompson, Dynegy Northeast
Carlene Pacholczak, Sen. Wrights Office
Mark Schmitt, Ecology and Environment
Brian Clark, MACNY
Bob Bergin, RG & E
Carolyn Brown, IPPNY
Gavin Donohue, IPPNY
Garry Brown, Sithe
Patrick Curran, Energy Association
Anne Van Buren, Energy Association
Stephen Hanse, Energy Association
Andrew Timmis, NORESCO
Ron Beruta, Johnson Controls
John Casellini, CSX
Jerry DeLuca, Pat Lynch Assoc.
Charles Coppola, Coppola Ryan McHugh
John Glusko, CH Energy
Susan Crossett, Niagara Mohawk
Kevin Lanahan, Niagara Mohawk
William Seils, Besicorp
Frank Bifera, Hiscock and Barclay
Noelle Kinsch, Leboeuf Lamb
Robert Tyson, Bond Schoeneck King
Bob Moses, Bond Schoeneck King
Michael Caufield, Alcoa, Inc.
Mitchell Khosrova, Devorsetz
Mark Glaser, Couch White
Chris Cernik, Couch White
Matt Picardi, Dynegy
Steve Sullivan, NYISO
Carol E. Murphy, NYISO
Michael Tucker, Mercer
William Flynn, NYSERDA
Cindy Chadwick NYSEG
Mr. Mike Rose, National Fuel Gas, Committee Chairman
- Guest Speaker, State Senator James Wright, Chairman Senate Energy and Telecommunications Committee.
State Energy Plan (SEP) - Mr. William Flynn, NYSERDA.
The Committee heard an update on the State Energy Plan from Mr. William Flynn, President of the New York State Energy and Research Development Authority (NYSERDA) and Chairman of the State Energy Planning Board.
Mr. Flynn stated that the State Energy Planning Board is in the process of finishing nine (9) hearings around the state.
To date they have received 92 sets of oral comments
Comments represent 44 groups and individuals
Comments seem to be heavily environmental
The suggestions from those who testified were varied and included many from those concerned with environmental issues such as enactment of stricter environmental standards and the elimination of coal and nuclear power. There were many references to energy efficiency and renewables. Some speakers took more of an economic perspective such as support for programs including "Power for Jobs". Mr. Flynn thanked the members present at the meeting for speaking and encouraged others to do so.
Mr. Flynn stated that there were varied comments both for and against many portions of the Plan and he mentioned only a sampling. He invited members of The Business Council to submit comments at the next (and last) public hearing to be held in Albany on March 5th at the Department of Environmental Conservation. Mr. Flynn also stated that the variety of responses helps impact the document and welcomed all views. He took questions form the committee. The final document should be ready by the summer. The Business Council stated that they would be submitting comments in March.
The Plan and information on the process can be found at: http://www.nyserda.org/sep.html
The Business Council's Testimony can be accessed here
Ms. Carol Murphy, Vice President of Government Affairs, the New York Independent System Operator (NYISO) addressed the committee on Regional Transmission Organizations (RTOs).
The presentation included a history of the RTO process and a summation of the recent agreement signed between the NYISO and the New England Independent System Operator (ISO-NE).
The January 28, 2002 agreement signed by the two ISOs includes the study of a common electricity market and the evaluation of the feasibility of an RTO comprised of the NYISO and ISO-NE. This market would become known as the NERTO - Northeast Regional Transmission Organization.
The agreement will address a number of other issues including the development of common markets with the participation of Canadian markets, greater standardization, and other FERC objectives.
The full text of the agreement can be found on the NYISO web page at; http://www.nyiso.com/index.html
Questions included the role of the Pennsylvania-New Jersey-Maryland (PJM) ISO. The agreement does not preclude PJM from the model. The ISO-NE has also implemented some software changes that brings it more into conformity with PJM software. The Canadian piece was also discussed. These are preliminary discussions. The ISO/NYSERDA natural gas study was also mentioned.
There will be more discussion on this topic over the next few months. (Note: the NYISO released a press statement on March 14th outlining a PJM and NYISO Interregional coordination agreement. That can also be accessed through the NYISO web page).
The committee briefly reviewed the Article X siting law as it currently exists. The committee then was briefed by Mr. Gavin Donohue of the Independent Power Producers of New York (IPPNY) on S. 6230.
The bill would extend the Article X law through December 31, 2007 with certain targeted amendments. Those changes included:
- Siting timeline: 8 months
- 6 month process for former industrial sites / brownfields
- Stipulations signed within 60 days of Preliminary Scoping Statement
- Hearings and issues conferences conducted in accordance with DEC proceedings rules
- Board renders decision within 60 days of ALJ Recommended decision
- Speculative evidence excluded
- Evidentiary hearings limited to 14 days
- Effective from January 1, 2003 to December 31, 2007
The committee discussed the merits of the bill. It was stated by many members of the committee that this bill addresses many concerns by developers and is a good starting point. Some also stated that a roll over of the existing bill may be better than having a bill with provisions worse than what were are currently dealing with. Some members also stated that it may be better to discuss the renewal of the law in a less charged political atmosphere (i.e. after the November elections). The Business Council will continue to monitor the process starting with the beneficial stipulations proposed under S. 6230.
Two hearings were announced.
- Assembly "Power for Jobs" on March 4th. The Business Council was invited to testify.
- State Energy Plan - March 5th. Testimony
Additionally, there will be an Energy Association Forum on March 20th in Albany at 10am. The forum will focus on what New York's energy policy should be given the uncertain economic climate and heightened security concerns. The forum will be held in the State Legislative Office Building, Hearing Room A.
and Next Meeting.
Next meeting will be held on June 11, 2002 at 1:30 p.m. -3 p.m. in The Business Councils Lower Level Conference room in Albany.