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To avoid the
kind of energy crisis afflicting California, New York must
site more power plants and do so more quickly, a range of
experts on energy policy agreed in a seminar on energy issues
today.
The discussion
was part of a breakfast seminar series sponsored by the Government
Law Center of Albany Law School. The other participants in
the one-hour discussion were: Barbara S. Brenner, a lawyer
specializing in energy issues and a partner in Couch White
LLP; Maureen Helmer, chairman of the New York State Public
Service Commission (PSC); Gerald Norlander, executive director
of the Public Utility Law Project (PULP); and Howard Shapiro,
president of the Energy Association of New York State.
The key issues
discussed include:
Siting more
power plants, faster: Most speakers emphasized that New
York needs to site more power plants, and to expedite the
process by which plants are approved.
Helmer said
the need for more plants is the main lesson New York should
take from California's current energy woes. She noted that
the state Department of Environmental Conservation (DEC) and
the state Public Service Commission (PSC) are both working
"hard and fast to get [power plant applications] out the door."
Both PSC and DEC play key roles in the plant-siting decision
process spelled out in Article 10 of the state's Public Service
Law.
How power
powers growth: Several speakers cited the link between
adding new power plants and future economic growth. We want
new businesses to locate in New York, Brenner said, and New
York won't be able to do that without an adequate supply of
power.
"Even the perception
of future power shortages is eroding California's business
climate," she noted.
Brenner, Walsh,
and Shapiro all noted that companies that apply for power
plants in New York typically apply at the same time for plants
in other states and countries. The first state or country
that sites a plant for this applicant is likeliest to get
it; slower government bureaucracies may lose out entirely,
they said.
Increasing
supply to reduce prices: Several speakers emphasized that
New York needs more energy capacity to drive prices down and
help competitive energy markets work.
Walsh noted
that California, which has not sited a new power plant during
many years of booming growth, is embroiled in a crisis rooted
in an inadequate supply of power. The state has already spent
$400 million to date to buy needed energy, with virtually
no chance of recovering that money.
Deregulation:
Several speakers said New York's energy concerns have nothing
to do with its decision to deregulate or the manner in which
it is deregulating. Only Norlander dissented.
"Higher rates
and higher prices are a convenient excuse for people who don't
want deregulation or want to change the way it's done," Brenner
said.
She noted that
the New York City consumers would have paid for last summer's
spike in energy prices even if New York hadn't begun deregulating.
She said New York's key issues are related to the spike in
the price of natural gas, which fuels most electricity generating
plants in New York.
The need
for cooperation among interested parties: Walsh
criticized environmental groups that have been vocal opposing
any and all power-plant sitings. He noted, for example, that
the New York Public Interest Research Group (NYPIRG) had filed
suit this week to block the siting of temporary power plants
in New York City that are considered essential to meeting
that region's needs this summer.
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